Adell Harriman & Carpenter Inc

Item #5: Fees and Compensation
AHC charges most of its clients an annual investment management fee based on the following
schedule:
Assets under management                                Annual Fee
First $1 Million                                       1.00%
Amounts in excess of $1 Million and up to $3 Million   0.85%
Amounts in excess of $3 Million and up to $5 Million   0.70%
Amounts in excess of $5 Million                       negotiable

In certain cases, AHC has negotiated lower fees, such as with charitable organizations or
family members. AHC imposes a minimum annual fee of $2,500, which may be waived or
reduced. Financial planning services have negotiated fee arrangements. AHC charges fees
quarterly in arrears based on the account value at the end of the prior quarter. Most clients authorize
AHC to deduct fees automatically from their brokerage accounts, but clients may request that AHC
send quarterly invoices to be paid by check. For partial time periods AHC will invoice the client
for an amount that is pro-rated based on the number of days that the account was managed.

In addition to AHC’s investment management fees, clients bear any trading costs and custodial
fees payable directly to their broker/custodian. To the extent that clients’ accounts are invested
in E T F s or mutual funds, these funds generally charge an internal layer of management and
administrative expenses.

Item #7: Types of Clients
AHC primarily provides customized investment management services to high-net-worth

individuals and associated trusts, estates, corporations, non-profit groups, pension and
profit sharing plans, and other legal entities.

AHC’s minimum account size is generally $1,000,000; however, this amount is negotiable.