Douglas Lane & Associates LLC

Item 5 – Fees and Compensation

The only source of revenue for our Firm is the fee assessed to manage our clients’ assets. The
annual fee is based on a client’s assets under our management according to the following
schedule:

                              Standard Fee Schedule:
                              1.00% on the first   $ 5 million
                               .75% on the next    $10 million
                               .60% on the next    $15 million
                               .50% on the next    $20 million
                               .30% thereafter

Certain employees, friends and family associated with DCLA do not pay fees, or receive
discounted fees. In some cases, fees are negotiable.

DCLA will generally bill clients quarterly, in advance, utilizing a quarterly fee calculation based
upon the total market value of the assets in each account at the close of business on the last
business day of the preceding quarter (a three month billing period determined by the date of
inception of the client relationship, rather than a calendar quarter). In some instances, when
there are special circumstances, fees, or the assets subject to fees, may be adjusted.

Clients may from time to time have cash assets invested in money-market funds which charge a
management fee on the assets invested in the money-market funds. DCLA will also charge a fee
on cash invested in money-market funds when such cash is considered available for long-term
investment. DCLA can choose not to bill clients on cash or other asset classes or products as a
concession to clients in certain circumstances.

Fee Payment Options

Clients receive a fee statement from us quarterly. As indicated in our Investment Advisory
Agreement, there are two options from which to choose in paying for our services:

   •   Direct Debiting: Most clients choose to have their fees deducted directly from their
       accounts. The custodian does not validate or check our fee or its calculation.

   •   Pay-by-check

Our Investment Advisory Agreement with a client may be terminated at will by either party upon
written notice. Fees are owed up to the date we receive written notice of termination from a
client, and any fees paid in advance and unearned are refunded.

Additional Fees and Expenses:

Advisory fees payable to us do not include expenses a client pays to the broker/dealer when we
purchase or sell securities for his/her account(s). In addition to our advisory fees, clients are
responsible for the fees and expenses associated with the investment of their assets, which could
include:
    • Brokerage commissions
   •   Trade-away fees
   •   Custodial fees
   •   Transaction fees
   •   Exchange fees
   •   SEC fees
   •   Wire transfer and electronic fund processing fees

These fees are charged by and paid to the broker/dealer or custodian from the clients’ accounts.
We do not receive, directly or indirectly, any portion of these fees charged to our client. In
addition, none of our employees receive (directly or indirectly) any compensation from the
purchase or sale of securities or investments for our clients. As a result, we are a “fee only”
investment advisor.

Clients are additionally responsible for the fees and expenses of externally managed
investments, such as mutual funds, exchange traded funds, private investment funds and/or
investment management programs and external managers of separately managed accounts. The
fees that clients pay to us for investment advisory services are separate and distinct from the
fees and expenses charged by mutual funds, exchange traded funds, private funds and/or
investment management programs and external managers of separately managed accounts.

SCS Private Funds

We do not receive any compensation from SCS in connection with assets that our clients place
in SCS’s pooled investment vehicles. Our clients are not advisory clients of and do not pay
advisory fees to SCS. However, our clients bear the costs of SCS’s investment vehicle or
vehicles in which they are invested, including any management fees and performance fees
payable to SCS.

The allocation of our client assets to SCS’s pooled investment vehicles, rather than to an
unaffiliated investment manager, increases SCS’s compensation and the revenue to Focus LLC
relative to a situation in which our clients are excluded from SCS’s pooled investment vehicles
or invested in an unaffiliated third party’s pooled investment vehicles. As a consequence, Focus

LLC has a financial incentive to cause us to recommend that our clients invest in SCS’s pooled
investment vehicles.

UPTIQ Credit and Cash Management Solutions

We offer clients the option of obtaining certain financial solutions from unaffiliated third-party
financial institutions through UPTIQ Treasury & Credit Solutions, LLC (together with UPTIQ,
Inc. and its affiliates, “UPTIQ”). Focus Financial Partners, LLC (“Focus”) is a minority investor
in UPTIQ, Inc. UPTIQ is compensated by sharing in the revenue earned by such third-party
financial institutions for serving our clients. Although the revenue paid to UPTIQ benefits
UPTIQ Inc.’s investors, including Focus, our parent company, no Focus affiliate will receive any
compensation from UPTIQ that is attributable to our clients’ transactions. Further information
on this conflict of interest is available in Item 10 of this Brochure.

Focus Risk Solutions

We help our clients obtain certain insurance solutions by introducing clients to our affiliate,
Focus Risk Solutions, LLC (“FRS”), a wholly owned subsidiary of our parent company, Focus
Financial Partners, LLC. FRS assists our clients with regulated insurance sales activity by
advising our clients on insurance matters and placing insurance products for them and/or
referring our clients to certain third-party insurance brokers (the “Brokers”), with whom FRS
has agreements, which either separately or together with FRS place insurance products for
...

Item 7 – Types of Clients

We provide our services to the following types of Clients:
           • High net worth individuals and other individuals
           • Trusts, estates, charitable organizations and institutions
           • Corporations or other business entities
           • Pension and profit sharing plans
           • Others
We typically require new clients to have a minimum of $1,000,000 to invest with us, but will
waive the minimum investment amount under circumstances where we deem appropriate.