CCM Investment Advisers LLC

Item 5 – Fees and Compensation

A. Fees Paid to CCM
1. Portfolio Management Services
Client Fees are based on the fair market value of all assets under management in the respective
portfolio. Fair market value for assets is determined by custodians holding client assets. In the
event that a fair market value is not available for a security(ies), CCM would work with other
pricing sources such as Bloomberg, other custodians or its own internal valuation analysis to
determine a fair market value. Annual fee schedules are as follows:

Equity/Balanced Accounts

  Market Value of Managed Assets                    Annual Fee
          Up to $ 2,500,000                            1.00%
          Next $ 2,500,000                             0.90%
          Next $ 5,000,000                             0.75%
          Next $ 10,000,000                            0.60%
          Over $20,000,000                             0.45%

Calculation Example

Using tiered pricing to calculate the annual management fee for a $35,000,000 Balanced or
Equity Account would be as follows:

2,500,000*1.00%)+(2,500,000*0.90%)+(5,000,000*0.75%)+(10,000,000*0.60%)+(15,000,000*
0.45%) = $212,500

The fee for a $35,000,000 Equity or Balanced Account would be: $212,500.

Fixed Income Accounts

  Market Value of Managed Assets                        Annual Fee
          Up to $ 10,000,000                              0.50%
          Next $ 10,000,000                               0.35%
          Over $ 20,000,000                               0.25%

Calculation Example

Using tiered pricing to calculate the annual management fee for a $35,000,000 Fixed Income
Account would be as follows: (10,000,000*0.5%)+(10,000,000*0.35%)+(15,000,000*0.25%) =
$122,500

The fee for a $35,000,000 Fixed Income Account would be: $122,500.

In certain cases, advisory fees are negotiable depending on a variety of special factors that are
based on a client's particular circumstances.

As explained above, in some cases CCM manages client account assets as a subadviser, we are
paid a portion of the investment management fee received by the primary adviser and does not
charge the client directly. Likewise, where CCM participates in a wrap-fee program, it is
compensated by the wrap fee plan sponsor from the bundled fee charged to clients. The advisory
fees it earns on such accounts range from 0.30% to 0.50%, based on the program and the strategy
selected.
The specific manner in which CCM’s fees are charged is established in a client’s written agreement
with CCM. CCM will generally bill its fees on a quarterly basis, in arrears, although some clients
elect to be billed in advance. Clients can also elect to be billed directly for fees or to authorize the
custodian to debit our fees directly from their custody accounts. Management Fees can be prorated
for each capital contribution and withdrawal made during the applicable calendar quarter under
certain circumstances. 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. If a client maintains securities in
their account and they do not play a role in the client’s investment strategy, CCM excludes these
assets from the account for the purpose of the Management Fee calculation.
Fee discounts are awarded to clients for a variety of factors including but not limited to competitive
pressure, length of relationship and service requirements. As an example, clients with multiple
accounts, including friends and family relationships, with market values totaling more than
$5,000,000 are grouped together to qualify for the breakpoint fee discount described below in our
standard fee schedule.

Example of Household fee discount:

 Account                           Balance            Fee Rate         Fee
 A                                 $2,500,000         1.00%            $25,000
 B                                 $2,500,000         1.00%            $25,000
 C                                 $2,500,000         1.00%            $25,000
 Average Rate and Total Fee                           1.00%            $75,000

Household fee calculation:

 Balance                         Fee Tier                    Fee
 $2,500,000                      1.00%                       $25,000
 $2,500,000                      0.90%                       $22,500
 $2,500,000                      0.75%                       $18,750
 Average Rate and Total Fee      0.88%                       $66,250

B. Other Fees or Expenses
CCM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients will incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. A complete description of brokerage and custodial fees can be obtained from the
respective brokerage firm or custodian. CCM does not receive any portion of these commissions,
fees, and costs. As noted above, some of CCM’s clients have entered into arrangements whereby
some or all of the fees described in this section are charged on an asset-based fee or other bundled
basis.

In addition to the foregoing, clients will incur additional expenses in the event that CCM purchases
mutual funds or exchange-traded funds for the client accounts. Such funds charge their own
internal management fees which are disclosed in the funds’ prospectuses.

Item 12 of this brochure further describes the factors that CCM considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness of their
...

Item 7 – Types of Clients

CCM provides portfolio management services to individuals, high net worth individuals, corporate
and public pension and profit-sharing plans, charitable institutions, foundations, endowments,
municipalities, trust programs, and other U.S. and international institutions, entities, or individuals.