Account Management LLC

Item 5: Fees and Compensation

We offer discretionary investment advisory services for a percentage of assets under
management. We do not sell investment products, and our only source of income are fees paid
by clients.

Investment Advisory Fees
Our investment advisory fees range up to 1% annually of a client’s assets under management
and are negotiated with each client on a case‐by‐case basis. Fees are calculated in arrears, and
based upon the average market value, including cash, of the client's account at the end of each
quarter or year. The average market value is calculated using the beginning and ending
balances in the account during such period.

We will be adjusting our management fee to offset any brokerage commissions incurred due to
equity trades in client accounts during the billing period. We will deduct the commissions paid
from your advisory fee to a level not less than zero.

Termination
A client agreement may be canceled at any time, by either party, for any reason upon receipt of
written notice. Upon termination of any account, any earned, unpaid fees will be due and
payable.

Accounts initiated or terminated during a calendar quarter may be charged a prorated fee.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients.

Under this special rule’s provisions, we must:

   •    meet a professional standard of care when making investment recommendations (give
        prudent advice);
   •    never put our financial interests ahead of our clients’ when making recommendations
        (give loyal advice);
   •    avoid misleading statements about conflicts of interest, fees, and investments;
   •    follow policies and procedures designed to ensure that we give advice that is in our
        clients’ best interests;
   •    charge no more than a reasonable fee for our services; and
   •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to
the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
   3.   cashing out and taking a taxable distribution from the plan; or
   4.   rolling the funds into an IRA rollover account.

Each of these options has positives and negatives. Because of that, along with the importance
of understanding the differences between these types of accounts, we will provide clients with
an explanation of the advantages and disadvantages of both account types and document the
basis for our belief that the rollover transaction we recommend is in your best interests.

General Information on Compensation
In certain circumstances, all fees and account minimums may be negotiable. Our fees may be
negotiable based on various criteria, including, but not limited to the size of the aggregate
related party portfolio size and pre-existing relationships with clients. Compensation will
ultimately be based on the time involved, the degree of responsibility assumed, complexity of

the engagement, special skills needed to solve problems, the application of experience and
knowledge of the client’s situation.

Related accounts may be linked for purposes of fee calculation if all parties agree; meaning
certain accounts, approved by us, may be grouped for fee calculations.

In addition to our investment advisory fees, clients are also responsible for the fees and
expenses charged by custodians and imposed by broker dealers, including, but not limited to,
...

Types of Clients
We provide investment advisory service to high-net-worth individuals, individuals, and families,
trusts, revocable and irrevocable family limited partnerships, estates, and charitable
organizations.

Account Minimums
We require a minimum account of $1,000,000 for investment advisory services. Waivers or
exceptions from the minimum may be granted at our discretion. We may group certain related
client accounts for the purpose of achieving the minimum account size.