Gen N by mohammed shine

Summary for

Founding Families Fall 2014

contents 2 | Welcome 5

| Executive summary

| What is a Family Office

| Why a Family Office

| Who We Are

| What We Do

Summary for

Founding Families Fall 2014

it’s just the beginning, We understand.

It’s been said that having money isn’t the end of worry…

Executive summary What is a Family Office Why a Family Office

Executive Summary

ENn Family Office Ltd. provides a complete service offering tailored to support the bespoke requirements of our high net worth member families. Our founding members bring decades of experience in tax, legal, accounting, finance, and counseling. Our unique approach focuses on ensuring our families have the right structures in place to facilitate international wealth transfers while also preparing the recipient generations to be diligent stewards of the family wealth. We feel this dual focus is the key to growing wealth for generations to come. From the 400 names on the Forbes 400 list unveiled in 1982, only 50 were still listed in 2011. That places the probability that significant wealth will last even through a single generation at 12.5%. Overcoming these odds is not random luck but disciplined preparation. Our firm is focused completely on ensuring our member families are structured as efficiently as possible and maintain a steady path towards their defined long term wealth goals.

Gen N /01/Welcome

GENn Family Office Ltd. is structured in a unique fashion to provide 3 founding families the opportunity to share in the ownership of the firm to actualize a business that is truly an extension of the family, with advisors whose sole interests are 100% aligned with preserving and growing the familiesâ&#x20AC;&#x2122; wealth. The following document will explore in greater detail the GENn management team, the services GENn offers and how these serviceare delivered to create value for our families.

87+13+F 12.5%

the percentage that significant wealth will last through a single generation.

Summary for Founding Families/ Fall 2014

what is a family office?

here is a saying that “if you’ve seen one family office, you’ve seen one family office. This refers to the fact that are many different enterprises that carry the “family office” title. For this reason we feel it is very important for us to be clear about our offering. Despite the variety of family offices, there is likely broad agreement that a family office is an enterprise established to meet the investment, estate planning and, in some cases, the lifestyle needs of ultra-high net worth families. With this structure, many wealthy families do a great job of preparing their money for future generations but they nevertheless struggle in preparing future generations for their money. One of our goals is to correct this by educating families through continuity planning and coaching them into a prosperous future. GENn will offer all of the traditional family office services but GENn is a family office with a difference.

WHAT SETS IT APART? Through our deep understanding of human nature, family dynamics and the meaning of money, GENn provides a range of services that will allow significant wealth to be unequivocally positive for current and future generations. Our diversity of services, opportunity for ownership,

....what is a family office?

sensitivity to the diversity of family and generations and our attention to both the hard and soft issues of family management sets us apart. Our process will enhance many aspects of life with access to recognized experts from multiple professions. Through the collaborative efforts and holistic approach of our professional experts, family relationships will be enhanced, wealth will be enhanced and even relationships with existing advisors will be enhanced.

OUR EXPERT TEAM WILL BRING STRUCTURE, MAXIMUM VALUE AND EXPERTISE TO MANAGING YOUR FAMILY WEALTH WITH THE UTMOST RESPECT AND THOUGHT FOR HOW FAMILIES SUCCEED IN

Gen N /01/Welcome

BUSINESS AND BEYOND.

GENn is a family office focused on enhancing the lives of families by managing and ensuring intergenerational wealth. Our expert team will bring structure, maximum value and expertise to managing your family wealth with the utmost respect and thought for how families succeed in business and beyond. GENn is a family office with a clear understanding of financial success and â&#x20AC;&#x2DC;The Power of Familyâ&#x20AC;&#x2122;TM We support families as they realize their vision and goals, while focusing on enhancing their lives by managing and ensuring inter-generational wealth.

NEED SUPPORT AND NEW KNOWLEDGE, PROCESSES, TOOLS AND SOLUTIONS.

why a family office?

Summary for Founding Families/ Fall 2014

WEALTH CREATORS THEMSELVES

t’s been said that having money isn’t the end of worry….it’s just the beginning. We understand. The questions seem endless. You may have asked yourself: What is an appropriate lifestyle? How should I educate my children regarding wealth? Will our money be a negative or positive influence on our children? Should they be involved and if so, how best to involve them? What is a fair return on my investments, and a fair fee to pay for that return? Can I safely reduce the tax I pay? How should I employ advisors? Can they relate to other members of my family both now and after I am gone? Are my advisors trustworthy? Are they properly motivated? And so on. In fact the list is so daunting and the answers so elusive that some wealthy parents give up and resolve to disregard estate planning and, but for some nominal assistance to children, to give all their money away. But even then, the questions continue. Am I shirking my responsibility to my family? Will giving the money away negatively affect family members, e.g. create resentment

...why a family office?

90+10+F 90%

Gen N /01/Welcome

90% wealthy were either middle class or flat out poor in the beginning.

that they were not considered competent stewards of wealth? What are good philanthropic causes? Should there be a consensus of family members? Will the charity manage the money well? Are there optimal tax structures that should be employed to maximize the contribution? Part of the reason why wealth is so perplexing is that few wealthy people started that way – 90% were either middle class or flat out poor in the beginning. They have had no opportunity to acculturate to their new status. To borrow an analogy from Dr. James Grubman, wealth creators are immigrants to the Land of Wealth. As immigrants, their middle or poor class culture and background does not provide a lot of answers or guidance to the questions posed by vast wealth. In fact, in many ways middle and poor class culture is at odds with the wealth class. One need only be reminded of the Occupy Wall Street movement which pitted the “99%“ against the “1%”. Having once been a member of the poor or middle class, a wealth creator may feel a sense of guilt, albeit unconsciously so. Whether it is felt or not, the 99% will be there as constant reminder. So it’s not just about training and educating children. Wealth creators themselves need support and new knowledge, processes, tools and solutions.

OR POOR CLASS CULTURE AND BACKGROUND DOES NOT PROVIDE A LOT OF ANSWERS OR GUIDANCE TO THE QUESTIONS POSED BY VAST WEALTH. ...why a family office?

Summary for Founding Families/ Fall 2014

AS IMMIGRANTS, THEIR MIDDLE

The situation cries out for assistance. And we see a variety of responses. For example, “By Invitation Only“ groups of peers which appear to ignore the arithmetic truth that 10 times zero is still zero. Membership in a group of wealthy individuals, each of whom has not acculturated to their wealth, will not serve to acculturate any of the members. What is needed is a service that understands the issues, “hard” and “soft”, and can marshal the talent to tailor the provision of ongoing unbiased, professional and motivated care for your family. Whose aim is to significantly reduce the worry. A true partnership dedicated to making the wealth you worked so hard to produce, continue to work positively for generations. To help your family make a difference today and tomorrow.

Enhancing your lives by managing & ensuring inter-generational wealth DENNIS NERLAND

B.Sc., M.A., LL.B., TEP, ICD.D, Q.C.

KEVIN ALGAR B.A. Hons, JD, CIMA, CFP, CLU, CIM, TEP

PENNY LECKIE CA, CMA, TEP, FEA

ALY PAIN CPCC, PCC, ORSCC

Founder and Family Board member Founder, Family Board member, Family Council member & CEO Founder and Family Board member. Founder and Family Council member

Dennis Nerland.

B.Sc., M.A., LL.B., TEP, ICD.D, Q.C.

ENn founder and Family Board member Dennis Nerland has worked in the legal profession for 35 years, most recently cofounding Shea Nerland Calnan LLP in 1990. A premier business law firm, they are a leader in structuring, financing and negotiating transactions in the industrial oil and gas markets, high and bio-technical industries and the real estate and entertainment sectors. Within that practice, Dennis has focused exclusively on tax and estate planning. Dennis received his Bachelor of Science Degree with Honours in Economics and Mathematics from the University of Calgary, his Master of Arts Degree in Economics from Carleton University in Ottawa and finally his Juris Doctorate Degree from the University of Calgary in 1979. Dennis completed the Rotman/Haskayne Directors Education Program and achieved the designation of Institute-certified Director (ICD.D) from the Institute of Corporate Directors in 2011. He has also completed the Rotman Financial Literacy Program and is a member of the Society of Trust and Estate Planners (“STEP”). In 2014, Dennis was appointed a Queen’s Counsel (“QC”) of Alberta. His emphasis of practice includes taxation, trusts, wills, estate planning, wealth enhancement, wealth preservation, business succession, and family succession. He is a member of the Law Society of Alberta, Canadian Tax Foundation, the Calgary Bar Association, the Canadian Bar Association, Society of Trust and Estate Practitioners, and the Institute of Corporate Directors, Institute-Certified Director, ICD.D. Dennis is presently a trustee of a number of private wealth preservation and enhancement trusts and has provided legal services to a wide range of high net-worth clients. In addition to this, he is currently a director of numerous private businesses, holding and investment companies.

Kevin Algar

B.A. Hons, JD, CIMA, CFP, CLU, CIM, TEP

ENn founder, Family Board member, Family Council member and CEO, Kevin Algar is passionate about helping Canadian families prudently manage their wealth. With 33 years’ experience in the fields of tax, investment and estate planning, he provides premium, exclusive and independent professional wealth management services to Canadian families. Having prepared hundreds of financial plans, he possesses a tremendous knowledge base of what works and what doesn’t.

Penny Leckie

CA, CMA, TEP, FEA

ENn founder and Family Board member Penny Leckie founded P. Leckie Professional Corporation in 2004 focusing on providing successful individuals and their families with tax, finance and business solutions. Her efforts have focused on family harmony while assisting clients in minimizing tax risk and maximizing their overall wealth. She holds her designation as a Chartered Accountant and Certified Management Accountant. Penny is certified by the Institute of Family Enterprise Advisors. She is a member of the Society of Trust and Estate Practioners, Family Firm Institute, the Calgary Estate Planning Council, the Canadian Tax Foundation and the Institute of Chartered Accountants of Alberta. In addition to her role as a tax advisor, Penny is a trustee/executor to a number of estates and trusts, and is a Director on the board of Alliance Trust Company.

Aly Pain

CPCC, PCC, ORSCC

ENn founder and Family Council member, Aly Pain will work to provide families with a clear purpose, greater awareness and effective habits in their business and personal lives. Aly has over 15 years of experience as a facilitator and trainer and over 10 years of experience in the personal development field. She is an approved speaker for TEC Canada, a graduate of the Coaches Training Institute in the Co-Active Coaching Program, and holds the Professional Certified Coach designation from the International Coach Federation (ICF). She is one of the first 70 people globally to graduate and be certified by the Center for Right Relationships Organization & Relationship Systems Coaching program. She has worked extensively with high-net worth families, some of which own large organizations and employ their family members within that. Aly is currently pursuing her Master Certified Coach designation with the ICF â&#x20AC;&#x201C; the highest and most rigorous standard held by less than 450 coaches globally.

He has been an instructor and speaker on taxation and retirement planning topics to groups including the Canadian Bar Association, the Canadian Institute of Chartered Accountants, The Canadian Tax Foundation and the (former) Canadian Association of Financial Planners.His education and credentials span the field of wealth management. He is a Certified Financial Planner, with specialized training in a variety of areas. In the field of investment planning, he carries the Chartered Investment Manager (CIM) designation from the Canadian Securities Institute and the Certified Investment Management Analyst (CIMA) through The Wharton School and The Investment Management Consultants Association. In the fields of tax and estate planning, he has a law degree (Juris Doctor) from the University of Calgary, is a Registered Trust and Estate Practitioner (TEP) and a Chartered Life Underwriter (CLU).

it’s just the beginning, We understand.

It’s been said that having money isn’t the end of worry…

Services Private Equity & Hedge Opportunities Wealth Reporting

Gen N /01/Welcome

The expenses that may be reduced or eliminated by having a family office; and The simplification and optimization that may be achieved centralizing services and functions in a family office. As required by the client family,

services provided will be coordinated with services currently provided by existing advisors. There is no intent to replace existing services provided by external advisors unless that is desired by the client.

Incorporations Act as registered office Complete and file annual returns/updates Simple corporate reorganizations, mergers/ acquisitions and estate freezes (S.85, 86 etc.) nn Liaise with external professionals on more complex transactions nn Document storage (virtual and /or hardcopy) • Contracts • Tax returns and financial statements • Personal documents • (passports, birth certificates etc) • Wills, Enduring Powers of Attorney, Personal Directives • Insurance policies • Investment reports nn Annual document review nn Prepare financial statements - personal, trusts, corps nn Identify tax saving and planning opportunities nn Prepare CDN and US tax returns, personal, corp, trust, GST nn Initial dealings with tax authorities and subsequent support to external advisors in more complex matters. nn Preparation and support for civil litigation matters nn Evaluate/negotiate/renew property and casualty insurance for homes, vacation property, cars, boats, aircraft, and businesses. nn Draft legal documents (where final requires third party vetting) • Unanimous • Wills etc. Shareholder • Prenuptial • Agreements • Trusts • Partnerships nn Assess exposure to US estate tax(UK?) nn Coordination of/ liaison with all external advisors nn Complete real estate purchases and sales nn Supervise management of rental properties. nn Purchase and sale of businesses nn Negotiation and monitoring of banking arrangements nn Vetting credit card bills. nn Bill payment. nn Investment of global “market” assets (publicly traded equities, fixed incomeand money market) with third party investment counsel • Assessment of current investment (involving third party investment counsel as necessary) respecting quality, risk, asset mix, diversification, overlap • Risk tolerance assessment • Manager search and selection

nn nn nn nn

nn nn

• Vet and negotiate investment management agreements and custodial arrangements. • Co-preparation of investment policy statements and subsequent monitoring of compliance (asset mix etc.) • Investment metrics-performance, risk- adjusted performance, aftertax-risk adjusted performance. • Ensure tax efficient allocation of investment assets including minimization of exposure to US and other foreign estate taxes • Negotiating fees with invest ment managers • Monitoring fees • Ensuring tax deduction of fees Private equity • Source private equity opportunities • Due diligence • Board representation • Ongoing monitoring, valuation and reporting Annual review of wills, powers of attorney and personal directives Negotiating/ reviewing banking arrangements Travel arrangements Risk management • Stewardship of life and health insurance policies (life, disability, critical illness) • Becoming stewards (servicing agent) for existing polices • Needs analysis for new/replacement coverage • Evaluation and selection of policies • Review of tax effective options (we expect to have the support of the best insurance minds in Canada) • Annual review and evaluation of coverage, premiums, funding etc. • Monitoring/anticipating trends in the insurance industry (member of CALU) Administration of individual pension plans ex. actuarial services Management of group benefit and RRSP/ investment plans and revenue capture Meeting space Monitoring RRSPs/TFSAs/RESPs and ensuring contributions are maximized Hiring staff (e.g. nannies) Cashflow/financial/retirement planning Implementing family governance procedures and coordination with external professionals including personal/life coaches, psychologists, etc., as the case may be, to address: • Mission/purpose • Values • Financial and wealth education and stewardship • Philanthropy

Summary for Founding Families/ Fall 2014

nn nn nn nn nn nn nn

This list of services are subject to change without notice.

private equity & hedge opportunities

THE GENN ADVANTAGE:

Gen N /01/Welcome

Genn will provide families (investors) with access to opportunities in these asset classes which are otherwise very difficult to source and analyze, such as: 1. Co investment opportunities in private equity opportunities sourced by, and tabled by, Genn families; 2. Access to an opportunity to invest in, or with, top of class managers in U.S. and European private equity funds, such as the leveraged buyout, growth capital, mezzanine capital, distressed and special situation (turnaround), real estate, infrastructure, energy and power, fund of funds, royalty and secondary spaces; and 3. Access to an opportunity to invest in top of class managers in U.S., primarily, and European, secondarily, hedge funds.

he Family Board will be instrumental helping client families access private equity (equity and debt in active private corporations, or assets, with some level of influence or control over the investees) and hedge (liquid securities, owned long or short, in listed corporations, with limited to no influence or control over the investees) investment opportunities, covering a range of sub specialty investments defined by manager, focus, or "style". Genn has access to and will utilize rigorous analytical underwriting processes to analyze any of the above mentioned opportunities prior to recommending them to Genn families. For opportunities brought by Genn families, this function will be first analyzed internally, then, if appropriate, outsourced to excellent underwriting firms in the particular investment space being considered. For sourcing, analyzing and underwriting both U.S. and European opportunities, Genn has access to and will retain best of class advisors not otherwise available to Genn families such as Cambridge Associates LLC, with offices in Arlington, Beijing, Boston, Dallas, London, Menlo Park, Singapore and Sydney. The objective of our approach is to provide families with risk adjusted rates of return much better than those available in the local markets and public markets. The value add is threefold; get access to these asset classes; get the underwriting right for family sourced opportunities; and get the managers right for the U.S. and European opportunities.

Summary for Founding Families/ Fall 2014

ENn offers a deep consolidated reporting suite for complete interactive net worth reporting. GENn families can track their net worth on any internet enabled device with market data consolidated from all sources, aggregated and updated daily. Assets with unique reporting requirements like art, wine, private equity holdings, or real estate are priced at periodic intervals chosen by the families. All of the holdings for all of the family members can be aggregated in the best way chosen by the family members for how they want to view their wealth.

Wealth reporting Full drill down capabilities exists to the individual holding levels to help a GENn familyâ&#x20AC;&#x2122;s financial advisors make informed planning decisions. For example: In a case where parents have established a trust with $50M with assets managed by three separate discretionary managers each with their own specialty. GENn reporting has all of the positions from all of the managers consolidated daily and income reports available which will project the dividend income from equities and interest income from fixed income holdings for one year out broken down monthly so decision makers have accurate monthly income projections on a consolidated basis updated daily without waiting for quarterly reports from each manager. With consolidated position reporting, risk analytics become more complete and more valuable. In a situation where multiple managers are managing assets for family members across generations, the GENn consolidated reporting solution exposes position concentration risks and monitors target aggregated asset allocations for more effective implementation of investment policy.

...Wealth reporting

GENN FAMILIES ARE ABLE TO ACCESS STANDARD RISK MEASURES AS WELL AS ENHANCED RISK ANALYTICS LIKE VALUE AT RISK, EXPECTED SHORTFALL AND PORTFOLIO

Gen N /01/Welcome

STRESS TESTING.

Industry and sector concentrations are also displayed to ensure our families are fully aware of concentration risks inherent in multiple manager structures. GENn families are able to access standard risk measures as well as enhanced risk analytics like Value at Risk, Expected Shortfall and portfolio stress testing. With advanced portfolio structures, rich risk analytics allow GENn families to create or update investment policy statements which reflect the interactions of all their assets. Stress testing allows GENn families to run sections of a familyâ&#x20AC;&#x2122;s net worth, or the entire portfolio through predefined scenarios like Black Monday â&#x20AC;&#x2122;87, 9/11, or the Lehman collapse. Custom scenarios can also be created to stress portfolios for those GENn families who might have unique risk concerns correlated with their businesses, other interests, or economic concerns expressed from financial advisors. The GENn reporting suite is a customizable solution which is designed to provide GENn families with an easy to use tool to visualise their net worth. Being able to see aggregated net worth and understand the current risk in the portfolio gives GENn families and their advisors a high resolution image of exactly where the family is situated on the financial landscape. To assess the progress through time, the reporting suite offers customizable performance reporting to track individual managers, accounts or aggregated assets. Performance analytics can compare results to a customized benchmark, report risk adjusted returns, report Time Weighted

GENN EMPLOYEES AS WELL AS GENN FAMILY MEMBERS ACCESS FINANCIAL REPORTING INFORMATION THROUGH A SECURE WEB PORTAL PROTECTED BY 128-BIT SECURE SOCKET LAYER (SSL) ENCRYPTION.

Summary for Founding Families/ Fall 2014

...Wealth reporting

Returns or Internal Rate of Returns and compare performance over time relative to targets. Year end and periodic reports can be generated with each familyâ&#x20AC;&#x2122;s needs, detailed for their tax preparer if they choose to use external accounting services. Our reporting can deliver detailed geographic breakdowns to assist accountants with T-1135 reports. All reports are customized for each family to display as much or as little information as they want and need. Our capacity allows us to offer our families and their advisors rich analytics and detailed information, but we can also distill this information into simple clear formats with just what a given family desires to see. GENn Family Office Ltd. takes great care to safeguard our familyâ&#x20AC;&#x2122;s personal and financial information with established security procedures. GENn reporting and analytic software is designed to gather information like a one way street and cannot be used to direct funds, execute any transactions or influence accounts in any way. GENn employees as well as GENn family members access financial reporting information through a secure web portal protected by 128-bit Secure Socket Layer (SSL) encryption. This is the same cryptographic protocols utilized by all of the big five Canadian banks, and we would not use anything less for our families. Our web portal makes extensive use of firewall barriers and authentication procedures to maintain the security of online sessions and to protect GENn accounts and systems from unauthorized access. For more information on how we care for your personal information please view our Privacy Policy or contact us directly.

it’s just the beginning We understand.

It’s been said that having money isn’t the end of worry…

The Family Council The Board The GENN Structure The GENN Fee Structure

The family council

Family

Ownership

Business

Gen N /01/Welcome

ur novel approach begins with the formation of a Family Council. Choosing GENn means choosing a family office passionate about preparing subsequent generations to be knowledgeable and prudent stewards of their family wealth. Each family will have a ‘Family Council’ to address ‘soft’ issues such as family values, mission, communication, governance, philanthropy, legacy, etc. It will meet regularly and will provide instruction to the management of GENn to execute strategies and processes based on the goals and values that solidify the family. The Family Council helps address, reconcile and integrate the various often intersecting roles played by members of a family business or family enterprise, illustrated as follows:As part of each family’s Family Council, GENn founder Aly Pain, CPCC, PCC, ORSCC, will work to provide families with a clear purpose, greater awareness and effective habits in their business and personal lives. Aly has over 15 years of experience as a facilitator

and trainer and over 10 years of experience in the personal development field. She is an approved speaker for TEC Canada, a graduate of the Coaches Training Institute in the Co-Active Coaching Program, and holds the Professional Certified Coach designation from the International Coach Federation (ICF). She is one of the first 70 people globally to graduate and be certified by the Center for Right Relationships Organization & Relationship Systems Coaching program. She has worked extensively with high-net worth families, some of which own large organizations and employ their family members within that. Aly is currently pursuing her Master Certified Coach designation with the ICF – the highest and most rigorous standard held by less than 450 coaches globally. The intention of offering coaching for the families of GENn is to facilitate meaningful conversations about wealth management that unfortunately, tend not to occur without outside support. Or if those conversations do happen, they don’t go well. Family coaching provides a safe environment where all parties have equal opportunity to be heard. This forum opens an awareness of the range of perspectives within the family in order to create alignment, and working definitions about the 'meaning of money' now, and in the future. We work with the family to clarify values, mission statements and identify key legacy initiatives that all members can play a role in.Generational misunderstandings can create enormous stress in wealthy families, sometimes pitting family members against each other in power struggles, while having other members feeling marginalized. Family coaching creates a forum for passionate, constructive conflict with a common language and solid agreements to lean into, with the Professional Coach providing direction and perspective. Educating and agreeing on various roles, while increasing accountability and transparency, lessons the confusion that lead to conflict. Our mandate is to have GENn families communicate better and more frequently about issues, so they make better, holistic decisions faster and with greater buy in at all levels. We also provide individual Leadership Coaching and Relationship Coaching to specific family members on an as needed basis. The Family Council will also enjoy the consultation of Margaret-Jean Mannix, who is the CEO of her family’s multi-generation family office. MargaretJean is a graduate of Queen’s University with a

Alyson Pain

Family Members

CPCC,PCC, ORSCCC

Other/ Existing Advisors

FAMILY COUNCIL Family Continuity Planning

Education Leadership Governance

Family Philanthropy

Mission Foundation Management Strategic Granting

Bachelor of Arts, Honours in Classical Studies and a graduate of Loyola University’s Next Generation Leadership Institute. Her experience in international business practices in Canada, Great Britain and China is unparalleled. She was on the Management Team at Global Private Banking in England, The Royal Bank of Canada, and has held increasingly senior positions in her own family’s business since 1995. Currently, she is Chairman of Loram 99 Corporation where she is responsible for the strategic planning of the Family Office and the Family Council. For many years, she has been actively involved in all facets of studying the family office. Margaret-Jean holds her ICD.D designation from the Directors’ Education Programme at Haskayne School of Business in Calgary. She sits on the boards of the Business Families Foundation, Institute for Family Enterprise, Mancal Corporation, The Carthy Foundation, Chinook Valley Inc. and the Alberta College of Art & Design. The Family Council will include designated family members and external advisors, and if so desired by the family external advisors. When appropriate and needed, the Family Council will draw upon experienced external specialists. Kevin Algar, founder and CEO of GENn, will be a member of the Family Council to ensure a channel of communication between the Family Council and GENn’s operations staff.

The familyboard

Summary for Founding Families/ Fall 2014

...The family council

he next aspect of our novel approach is the creation of a Family Board. The role of the Family Board will be similar to that of a board of directors in the corporate world and will bring business discipline to the management of the family’s wealth. The members of the Family Board will meet on a quarterly basis to address so-called “hard” issues and opportunities (i.e. tax, investment including private equity, estate planning, strategic planning, etc.) facing a family and to provide direction to the management of the family office. The Family Board members will include GENn founders, Dennis Nerland, Penny Leckie and Kevin Algar. As full time professionals running their own firms specializing in tax and estate planning, Nerland and Leckie will bring leading edge and current strategies to the Family Board. As CEO of GENn, Algar’s presence on the Family Board will ensure integration of the Board’s directives with the dayto-day operations of the family office.

...The familyboard

Dennis Nerland

Penny Leckie

BSc (Hons). MA, LLB, TEP, ICD.D

CA, CMA, TEP, FEA

Partner & co-founder of Shea Nerland, Calman LIP Business & Tax Lawyers

Kevin Algar

BA(Hons).JD,CIMA, CFP, CIM,CLU,TEP Co-founder Founder & of Algar, President Virtue Family P. Leckie CFO Professional Corporation

Other/ Existing Advisors

GenN Structure

Gen N /01/Welcome

FAMILY BOARD Integrated Planing Investment Estate Tax and Financial Plans

Family Risk Assesment Balance sheet analysis Review of risk sharing Insurance Stewarship

Family Business Planing Business Succession Ownership control Capital Financing

Investment Consulting Asset Allocation Manager evaluation & selection Portfolio construction & evaluation

Each family may appoint one or more family members and trusted external advisors to the Family Board. This experienced team from multiple professions sets us apart. Considering the diversity of families as well as the range of issues that families face, our team at GENn provides an unparalleled access to services for families to grow their wealth in a way that allows everyone to reach their goals and follow their values.

ENn is a corporation providing services under a management services agreement to a number of limited partnerships, each of which is owned 50% by a particular family and 50% by GENn. GENn will in turn be owned 50% (aggregate) by the initial founding families and 50% by the Founding Directors. (See Organization Chart tab). The 4 founders will contribute a total of $500,000 and the initial founding families (3 to 5) will contribute a total of $1,000,000. These amounts will bear interest at 5%. Founders will own 50% of the equity and founding families will collectively own the remaining 50% of the equity. Fundamental control of the business of GENn will remain with the founders. Once the full complement of founding families has been reached, new families will be “on-boarded” with the same service structure, but these families will not own equity in GENn. As such, the profitability related to these families will be for the account of GENn. GENn is the service provider of our multi-family office services. Structurally GENn will act as General Partner to each family Limited Partnership (the aggregator of the various wealth silos of each family) but as each family’s structure will be different, flexibility is necessary. Current advisors to each family will be consulted to ensure that an appropriate structure is in place. This may require different contractual relationships and/or legal structures for GENn to optimally provide its services. GENn is run by an executive led by Kevin Algar and is projected to employ at least six individuals across our service offerings. Puruant to our goal of providing excellent governance of family wealth, GENn itself has significant governance in place with a Board of Directors comprised of talented individuals from all sections of wealth management (financial, insurance, legal, accounting and family dynamics) all working together to ensure GENn is and will remain a best-in-class service provider. Four individuals Kevin Algar, Aly Pain, Penny Leckie and Dennis Nerland are current Board members.

GenN fee structure

GENn provides its services in accordance with a Services Agreement that contemplates a base fee calculated on net worth for what we consider to be the minimum level of service required to properly administer wealth. There will be circumstances where additional services are contemplated, particularly where outside advisers must be hired for project-specific tasks, and these additional services will incur additional costs.

ON BOARDING FEE Upon becoming a client a fixed onboarding fee of $100,000 is payable

ONGOING NET WORTH FEE

$25 Million Net Worth 100 basis points $250K $50 Million Net Worth 75 basis points $375K $100 Million Net Worth 65 basis points $650K $200 Million Net Worth 50 basis points $1M

Current fee schedule (excludes costs associated external advisors and investment managers) but includes cost of GENn Family Board directors and GENn Family Council member (which are estimated at $30K per family per annum - $10k per director per family). Based on benchmarking studies prepared by The Family Office Exchange (FOX), this fee schedule represents a significant reduction from reported costs. Even at $200 million of assets, there is a 15bps saving relative to the low end of the range reported by FOX clients. Savings on tax, investment and professional fees could be significant and will reduce overall cost (see worksheet below). Tax deductibility of at least some of the fee with reduce the after tax impact of the fee.

Summary for Founding Families/ Fall 2014

...GenN Structure

BASIS FOR NET WORTH FEE: nn Our service offering is very broad with correspondingly more ways to influence net worth nn Allows us to accept clients to include families who are underweight in â&#x20AC;&#x153;marketâ&#x20AC;? assets (overweight in illiquid assets). nn Arguably eliminates all potential bias. nn Incentive to preserve and grow net worth. nn There is a risk management component to everything. nn Non-market assets will be valued by contractual formula. nn Allows families to transition life phases (build business, create liquidity, retire) with fairly seamless fee structure.

SAVINGS: Clients will experience the benefit of tax savings (fee deductibility), investment fee reductions, reduced accounting and legal fees

ANCILLARY REVENUE: Insurance (life, health, P&C, group benefits)

DISTRIBUTIONS: Founding client families will enjoy the benefit of profit distributions

it’s just the beginning We understand.

It’s been said that having money isn’t the end of worry…

1 Executive summary 1 What is a Family Office 1 Why a Family Office