International Assets Investment Management LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by
IAIM. Each Client shall sign one or more agreements that detail the responsibilities of IAIM and the Client.

A.      Fees for Advisory Services

Investment Advisory Services

Asset based investment advisory fees are paid in advance or arrears, on a monthly or quarterly basis.
Whether the fees are paid in advance or arrears depends on the agreement between the Client and IAIM
and subject to the limitations of the Custodian of the Client’s account and/or the terms of the investment
advisory agreement. Asset based investment advisory fees are charged at an annual rate up to 3.00%
depending on several factors, including the overall size of the relationship, the inclusion/exclusion of
transaction fees and/or the complexity of the services to be provided. Fees are typically based on the market
value of assets under management at the end of the prior month or quarter but may at times be offered as
a fixed quarterly fee. The fee is negotiated between the Client and the IAR. IAIM does not maintain a static
fee schedule – meaning that all advisory fees are customized to the individual needs of the Client and the
advisor. Some IARs may adhere to a static fee schedule for their own Clients within IAIM’s stated asset
based advisory fee range.

The asset-based investment advisory fee in the first month or quarter of service is prorated from the
inception date of the Client’s account(s) to the end of the first month or quarter. The Client’s fees will take
into consideration the aggregate assets under management with the IAR. All securities held in accounts
managed by IAIM will be independently valued by the Custodian (as discussed in Item 12). IAIM will not
have the authority or responsibility to value portfolio securities.

Clients may make additions to and withdrawals from their accounts at any time, subject to IAIM’s right to
terminate an account. Additions may be in cash or securities provided that IAIM reserves the right to
liquidate any transferred securities or decline to accept particular securities into a Client’s accounts. Clients
may withdraw account assets on notice to IAIM, subject to the usual and customary securities settlement
procedures. However, IAIM designs its portfolios as long-term investments and the withdrawal of assets
may impair the achievement of a Client’s investment objectives. IAIM and/or the IAR may consult with
Clients about the options and ramifications of transferring securities. However, Clients are advised that
when transferred securities are liquidated, they are subject to transaction fees, fees assessed at the mutual
fund level (i.e. contingent deferred sales charge) and/or tax ramifications.

In addition to the advisory fee charged to the Client, the Client and/or the IAR will pay a transaction fee for
each trade done in your account including no transaction fee mutual funds (“NTFs”). This presents a conflict
of interest as your IAR may be incentivized to reduce his overall costs by not trading in your account. IAIM
mitigates this conflict by monitoring for low trade activity in advisory accounts. IAA receives a portion of the
transaction cost assessed to each IAR which creates an incentive for IAIM to encourage your IAR to trade
frequently. In addition, IAIM charges a program fee to your IAR which is an additional source of revenue.
As such, IAIM has an incentive to recommend that you open accounts within this program.

IAIM’s fees are exclusive of brokerage commissions, new issue selling concessions, transaction fees,
markups, markdowns, and other related costs and expenses which shall be incurred by the Client. Clients
will incur certain charges imposed by Custodians, brokers, and other third parties such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and

                                International Assets Investment Management, LLC
                                111 North Orange Ave., Suite 1000, Orlando, FL 32801
                                    Phone: (407) 254-1500 * Fax: (407) 254-1505
                                                   www.iaac.com

electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual
funds and ETFs also charge internal management fees, which are disclosed in the fund’s prospectus. Such
charges, fees and commissions are exclusive of and in addition to IAIM’s fees. IAIM does not receive any
part of these fees.

Third Party Asset Manager Services

For Client accounts implemented through a TPAM, the Client’s overall fees will often include IAIM’s asset-
based investment advisory fee (as noted above) plus advisory fees and/or platform fees charged by the
TPAM, as applicable. The TPAM assumes responsibility for calculating the Client’s fees and deducts all
fees from the Client’s account(s). In such instances, IAIM will not charge its fee separately on those assets.
The TPAM will deduct its advisory fees and/or platform fees and IAIM’s asset-based investment advisory
fee on an arrears or advance basis, depending on the billing practices of the TPAM.

There are other fees and charges imposed by third parties that apply to investments in accounts managed
by a TPAM. Some of these fees and charges are described below and should be outlined in the TPAM’s
Disclosure Brochure. The Client will be charged commissions, markups, markdowns, or transaction charges
by the broker-dealer who executes transactions in the account. There also are custodial related fees
imposed by the Custodian of assets for the program account. These additional fees and charges will be set
out in the TPAM’s Disclosure Brochure and the agreements executed by the Client at the time the TPAM
account is opened.

If assets are invested in mutual funds, ETFs or other pooled funds, there are two layers of advisory fees
...

Item 7 – Types of Clients

IAIM offers investment advisory services to individuals, high net worth individuals, families, trusts, estates,
businesses and retirement plans. Further information concerning each type of Client is available on IAIM’s
Form ADV Part 1A. IAIM’s minimum account size is $50,000. However, the minimum may be waived at
IAIM’s discretion.