Individual Asset Management Inc

Item 5     Fees and Compensation

                      PORTFOLIO MANAGEMENT FEES

Fees for the IAM Portfolio Management Service are assessed based upon
the level of assets under management (AUM).

If fees are levied solely based upon the level of assets under management,
the fee structure shall be as follows:
Yearly fee of:
  • 1.5% on AUM under $500,000,
  • 1.25% on AUM between $500,000 and $1,000,000,
  • 1.0% on AUM over $1,000,000.

Fees are charged quarterly in arrears based upon the market value of the
client’s portfolio at the end of the quarter, pro-rated for any deposits or
withdrawals and for the actual days under management in that quarter.
The client’s accounts are aggregated for purposes of computing the AUM
fees. Fees are deducted directly from client accounts pursuant to an
invoice submitted to the custodial firm. Each client receives a quarterly
invoice detailing the fee calculation for that quarter.

The performance fee structure is detailed in Item 6 below. Qualifying
clients are free to choose either fee structure. Once chosen, the fee
structure remains in place for at least one full calendar year and can only
be changed at the end of each calendar year for the next year.

                        PORTFOLIO ADVISORY FEES

Standard portfolio advisory fees are:

The greater of $2,000/year or
Yearly fee of:
  • 1.00% on AUM under $1,000,000,
  • 0.85% on AUM between $1,000,000 and $2,000,000,
  • 0.70% on AUM over $2,000,000.

Former Clients of Odyssey Wealth Management only:

Yearly fee of: 0.75% on AUM

Former Clients of Ententvest only

Yearly fee of 0.85% on AUM

EuroAmerican Financial Advisors clients only:

Yearly fee of 0.75% on AUM

IAM also collects client fees and VAT on behalf of EAFA and remits these to EAFA.
These fees are:
Yearly fee inclusive of VAT of:
  • 0.75% on AUM under $500,000,
  • 0.5% on AUM between $500,000 and $1,000,000,
  • 0.25% on AUM over $1,000,000.

Fees are charged quarterly in arrears based upon the market value of the
client’s portfolio at the end of the quarter, pro-rated for any deposits or
withdrawals and for the actual days under advisement in that quarter. The
client’s accounts are aggregated for purposes of computing the fee. Fees
may be deducted directly from client accounts pursuant to an invoice
submitted to the custodial firm or the client may arrange alternate
payment by check or wire transfer. Each client receives a quarterly invoice
detailing the fee calculation for that quarter.

                      COMPREHENSIVE SERVICE FEES

Fees for the IAM Comprehensive Service are assessed based upon the
level of assets under management (AUM).

If fees are levied solely based upon the level of assets under management,
the fee structure shall be as follows:

Yearly fee of:
  • 2.0 % on AUM under $500,000,
  • 1.5% on AUM between $500,000 and $1,000,000,
  • 1.0% on AUM over $1,000,000.

Fees are charged quarterly in arrears based upon the market value of the
client’s portfolio at the end of the quarter, pro-rated for any deposits or
withdrawals and for the actual days under management in that quarter.

The client’s accounts are aggregated for purposes of computing the AUM
fees. Fees are deducted directly from client accounts pursuant to an
invoice submitted to the custodial firm. Each client receives a quarterly
invoice detailing the fee calculation for that quarter.

The performance fee structure is detailed in Item 6 below. Clients are free
to choose either fee structure. Once chosen, the fee structure remains in
place for at least one full calendar year and can only be changed at the end
of each calendar year for the next year.

                         FINANCIAL PLANNING FEES

As a standalone service, financial planning services are billed at a flat rate of
between $1,500 and $3,000 depending upon the complexity of the analysis
and upon mutual agreement with the client. We require a retainer upon the
signing of the advisory agreement of 50% of the negotiated fee. The balance
is due upon completion of the advisory service. Yearly updates to the
financial plan are available for $500 or at a negotiated rate for other-than-
yearly updates.

                          GENERAL INFORMATION

Limited Negotiability of Advisory Fees: Although IAM has established the
aforementioned fee schedule(s), we retain the discretion to negotiate
alternative fees on a client-by-client basis. Client facts, circumstances and
needs are considered in determining the fee schedule. These include the
complexity of the client situation, assets to be placed under management,
anticipated future additional assets; related accounts; portfolio style,
account composition, reports, among other factors. The specific annual fee
schedule is identified in the contract between the adviser and each client.

We may group certain related client accounts for the purposes of achieving
the minimum account size requirements and determining the annualized fee.

Discounts, not generally available to our advisory clients, may be offered to
family members and friends of associated persons of our firm.

Fund Fees: All fees paid to IAM for investment advisory services are
separate and distinct from the fees and expenses charged by mutual
funds, exchange traded funds, closed end funds, or other pooled
investments. These fees and expenses are described in each fund’s
prospectus. These fees will generally include a management fee, other

fund expenses, and a possible distribution fee. If the fund also imposes
sales charges, a client may pay an initial or deferred sales charge. A client
could invest in a mutual fund directly, without our services. In that case,
the client would not receive the services provided by our firm which are
designed, among other things, to assist the client in determining which
mutual fund or funds are most appropriate to each client’s financial
condition and objectives. Accordingly, the client should review both the
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Item 7     Types of Clients

IAM provides advisory services to the following types of clients:
  • Individuals (other than high net worth individuals)
  • High net worth individuals
  • Other financial advisory firms
  • Small businesses

For new clients our minimum level of assets under management is
$400,000. A few legacy clients have portfolios that are smaller than these
amounts and we may also accept smaller portfolios for relatives of clients
who meet our minimum, for employees, or in certain other limited cases.