American Expats in Europe Ltd

Item 5: Fees and Compensation

We base our fees on a percentage of account assets committed upon the establishment of the
relationship, and thereafter, on assets under management. These fees are described below.

Compensation – Account Establishment Services – Initial Advice Fees
At the inception of the client engagement, we charge a one-time Initial Advice Fee which is a
service fee reasonably related to the up-front services and costs we expect to incur at the
beginning of the investment advisory relationship. The costs and time expended by us in
establishing the account (so we can provide the Wealth Management services) is generally
proportional to the account size, and therefore, it is based on the initial client account assets
committed and charged as follows:

                 Account Initial Advice Fees                         Fee

                        Up to $500,000                              1.25%
                   $500,001 to $1,000,000                            1.1%
                    $1,000,001 and above                            1.00%

The above Initial Advice Fees are charged on a tiered basis with a resulting composite charge
applied. This means that investment up to $500,000 is charged at 1.25% with subsequent
monies charged at the next tier rate.

Example: for a $1,000,000 investment you would be charged 1.25% on the first $500,000 with
the next tier $500,001 to $1,000,000 charged at 1.1% and the resulting composite charge
applied.

You should be aware that any Initial Advice Fees paid will be deducted from your initial
capital invested and will reduce the amount of capital available for investment.

Initial advice fees are in addition to the Wealth Management fees described below and are
collected on the transfer of funds to be managed. The maximum initial advice fee is $20,000.
Initial Advice fees are negotiable and non-refundable.

Note: The initial advice fee described above that is charged by the adviser is not a common fee
for U.S. based SEC registered advisors, but it is not uncommon for this type of fee to be charged
by advisers located in Europe for clients who reside outside the U.S. Therefore, similar advisory
services and account establishment services may be available to you elsewhere at lower cost.

Conflict of Interest
In reference to the Firm’s Investment Management Agreement, The Firm receives an Initial
Advice Fee (as detailed above) anytime you transfer assets in to be managed by the Firm. As
such this may be viewed as a conflict of interest, as the Firm stands to gain a financial incentive
in recommending you to transfer assets in, to be subsequently managed by the Firm.

Compensation – Wealth Management Services
Wealth Management fees are charged an annual fee of 1.5% on total assets under
management. The asset-based fee is billed on a monthly basis, in arrears, based upon the
market value of the Household Assets, including cash, on the last day of the month as valued by
the custodian.

Calculation and Payment
The specific manner in which we charge fees is established in a client’s written agreement with
us. Clients may elect to be invoiced directly for fees or to authorize us to directly debit fees
from client accounts.

Other Fees
There are no additional types of fees or expenses that our clients pay in connection with the
delivery of advisory services.

Agreement Terms
Either party may terminate an agreement at any time by notifying the other in writing. If the
client made an advance payment, we would refund any unearned portion of the advance
payment.

If the client made a payment in arrears, we would collect any earned yet unpaid fees.

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);
...

Types of Clients
We provide services to individuals, high net worth individuals, and pension and profit-sharing
plans.

Account Minimums
We have no minimum account size.