Capital Advisors Inc

Item 5: Fees and Compensation
Compensation
Capital Advisors bases its fees on a percentage of assets under management, hourly and fixed fees, which are
described below.

Compensation – Investment Advisory Services
Fees for Investment Advisory Services associated with internally managed investment strategies are 1.00% (100 basis
points) annually on the average daily market value of the assets held in the portfolio, payable quarterly, in arrears.

Clients who participate in strategies provided by a Sub-Adviser are not charged additional fees. The Sub-Adviser
assesses an annual fee of 0.15% to 0.70% (15 to 70 basis points) to Capital Advisors on the assets that are allocated
to the Sub-Adviser Note that this fee is included in the fees charged for internally managed strategies. The client is
not charged an additional fee for the use of a Sub-Adviser.

Compensation – Financial Planning Services
Capital Advisors provides financial planning services to clients based on an hourly fee with a set minimum. At this
time, these fees are waived.

Through the use of a Financial Planning Agreement, we provide the client with an estimate of the fee amount
indicating fixed minimum base rate of $2,500 plus an additional $200 per hour for a plan requiring more than ten
hours of completion. The estimate will provide client with anticipated completion guidelines according to the nature
and complexity of plan and financial planning services that can be expected. Typically, a flat rate of $1,200 is charged
at the beginning of the engagement. The balance is due and payable at the completion of the financial plan.

The fees for financial planning services may be reduced and/or waived determined by individual circumstances.

Compensation – Investment Companies (Mutual Funds)
Capital Advisors may recommend the use of CIAOX (the Fund) as suitable to its investment advisory clients. Capital
Advisors receives 0.75% (75 basis points) of the market value of CIAOX on an annual basis, payable monthly in arrears.
Capital Advisors does not charge an additional investment advisory fee on the portion of a client's assets that are
invested in the funds.

Calculation and Payment

The specific manner in which fees are charged by Capital Advisors is established in a client’s written agreement with
Capital Advisors. Capital Advisors will generally calculate fees on a quarterly basis. Clients may also elect to be invoiced
directly for fees or to authorize Capital Advisors to directly debit fees from client accounts.

Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon termination of any
account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due and payable.

Termination of Agreement
Capital Advisors may terminate any agreement at any time by notifying the client in writing. If the client made an
advance payment, Capital Advisors will refund any unearned portion of the advance payment.

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);
    •    never put our financial interests ahead of our clients’ when making recommendations (give loyal advice);
    •    avoid misleading statements about conflicts of interest, fees, and investments;
    •    follow policies and procedures designed to ensure that we give advice that is in our clients’ best interests;
    •    charge no more than a reasonable fee for our services; and
    •    give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company plan. Also, current
employees can sometimes move assets out of their company plan before they retire or change jobs. In determining
...

Types of Clients
As described in Item 4, Capital Advisors’ clients include individuals, high net worth individuals, institutions, pension
and profit-sharing plans, charitable organizations, investment companies, and corporations and other business
entities.

Account Minimums

Capital Advisors requires a minimum account of $500,000 for investment advisory clients. The minimum account size
is negotiable. The minimum account size may be waived for clients referred to Capital Advisors under various Wrap
Fee Programs. In addition, Capital Advisors may group certain related client accounts for the purpose of achieving the
minimum account. Clients with similar assets may have differing fee schedules.