Catherine Avery Investment Management LLC

Item 5: Fees and Compensation

A. Fee Schedule

Investment Advisory Services Fees

Clients pay CAIM a management fee quarterly in advance of up to 0.3125% (1.25%
annually). Fees are paid quarterly in advance, and are calculated based on the amount of
the Client’s assets under management with CAIM as of the last day of the prior quarter.

Fees are negotiable and the final fee schedule is attached as Exhibit II to Client Investment
Advisory Contracts. Client authorizes CAIM to withdraw advisory fees directly from the
client’s accounts. CAIM will not be compensated on the basis of a share of capital gains
upon or capital appreciation of client funds. All third party fees related to client’s account,
such as custodian, brokerage, mutual fund and transaction fees, will be deducted from
client’s account and are separate from and additional to CAIM’s fees. Clients may
terminate their contracts with one day written notice. Refunds are given on a prorated
basis, based on the number of days remaining in a quarter at the point of termination.
Clients may terminate their contracts without penalty, for full refund, within 5 business
days of signing the advisory contract. Advisory fees are withdrawn directly from the
client’s accounts with client written authorization.

Subadviser Services Fees

CAIM acts as a subadviser to unaffiliated third-party advisers and CAIM receives a share
of the fees collected from the third-party adviser’s client. The fees charged will not exceed
any limit imposed by any regulatory agency. This relationship is memorialized in each
contract between CAIM and the third-party adviser.

Financial Planning Fees

        Fixed Fees

         The rate for creating client financial plans is $2,500 for existing clients as needed, and
$5,000 for non clients. The fees are negotiable and the final fee schedule will be attached as Exhibit
II of the Financial Planning Agreement.

B. Payment of Fees

Payment of Investment Advisory Fees

Advisory fees are withdrawn directly from the client’s accounts with client written
authorization. Fees are paid quarterly in advance.

Payment of Subadviser Fees

Subadviser fees are withdrawn from client’s accounts or clients may be invoiced for such
fees, as disclosed in each contract between CAIM and the applicable third-party adviser.

Payment of Financial Planning Fees

Fixed Financial Planning fees are withdrawn from client’s accounts or clients may be
invoiced for such fees, as disclosed in each contract between CAIM.

C. Clients Are Responsible For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by CAIM. Please see Item 12 of this brochure
regarding broker/custodian.

D. Prepayment of Fees

CAIM collects fees in advance. Fees that are collected in advance will be refunded based
on the prorated amount of work completed at the point of termination and the total days
during the billing period. Fees will be returned within fourteen days to the client via check.

Fixed fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

E. Outside Compensation For the Sale of Securities to Clients

Neither CAIM nor its supervised persons accept any compensation for the sale of
securities or other investment products, including asset-based sales charges or services
fees from the sale of mutual funds.

Item 7: Types of Clients

CAIM generally provides management advisory services to the following types of clients:

              Individuals
              Other Investment Advisers
              Pension Funds

Minimum Account Size

There is no account minimum.