Course Management Investment Advisors LLC

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees

CMIA earns its compensation from clients based on the total assets under management.
Typically, the fee charged by CMIA covers all portfolio management and financial
planning services provided by the Firm.

The Firm’s current fee schedule for individual accounts utilizing CMIA’s portfolio
management services is as follows:

        Total Assets Under Management            Annual Fees
        $1-$250,000                              1.50%

        $250,001 - $500,000                      1.20%

        $500,001 - $1,000,000                    1.00%

        $1,000,001 - $2,000,000                  0.90%

        $2,000,001 – And Up                      0.80%

The advisory fee is calculated using the value of the assets in the Account on the last
business day of the prior billing period.

These fees are generally negotiable and the final fee schedule will be memorialized in the
client’s advisory agreement. Clients may terminate the agreement without penalty for a
full refund of CMIA's fees within five business days of signing the Investment Advisory
Contract. Thereafter, clients may terminate the Investment Advisory Contract
immediately upon written notice.

The Firm does not have custody of any advisory client’s cash, securities or other assets
except that it is deemed to have custody in those circumstances where it has the ability to
receive the payment of its advisory fees directly from the client’s account. The Firm does
not accept prepayment of fees six (6) or more months in advance.

B. Payment of Fees

Payment of Portfolio Management Fees

Clients are billed by the Firm and a statement is sent to the client and the client’s custodian.
With the client’s approval, fees will be deducted from the client’s account by the custodian
when it receives the Firm’s statement. All asset-based fees are deducted by the qualified
custodian of record on a quarterly basis, in advance, based on the value of the assets in
the Account on the last business day of the prior billing period.

Client statements for prior deductions will be provided on a quarterly basis. However,
clients may elect to pay the Firm directly when they receive a statement. The method of
payment may be changed at any time by the client, provided that the client gives the Firm
at least thirty (30) days advance written notice.

Fee Deduction Disclosure

Where the Firm deducts its management fee from client Accounts utilizing a qualified
custodian, the Firm is required to meet the following requirements:

   1. Possess written authorization from the client to deduct advisory fees from an
      account held by a qualified custodian;
   2. The Firm must send the qualified custodian a written statement detailing the fee
      amount to be deducted from the client account; and,
   3. The qualified custodian sends account statements, at least quarterly, directly to the
      client, showing all disbursements from the account, including the amount of the
      advisory fee paid.

Note, as an SEC-registered adviser, the Firm will rely on the qualified custodian(s) to send
client’s fee statements.

C. Client Responsibility For Third Party Fees

As payment for services rendered, CMIA receives the fees described in this Item 5.
Nevertheless, clients may incur additional fees to affect any investment opportunity
recommended by the adviser, including, but not limited to, the following: brokerage
commissions, transaction fees, managerial fees, custodian fees, and any other fee imposed
by a third party necessary to effectuate the investment transaction. Broker-dealers may
charge brokerage commissions and/or transaction fees for effecting certain securities
transactions (i.e., transaction fees are charged for certain no-load mutual funds,
commissions are charged for individual equity transactions, and mark-ups and mark-
downs are charged for fixed income transactions). The amount of these commissions
and/or transaction fees may vary depending upon a range of factors, which typically
include the following: the broker-dealer/custodian utilized; the total value of regulatory
assets under management held at the applicable custodian; the type of asset (e.g., equity,
ETF, mutual fund, fixed income product). In addition, client accounts may invest in open-
end mutual funds (including money market funds) and ETFs that have various internal
fees and expenses (i.e., management fees), which are paid by these funds but ultimately
borne by clients as a fund shareholder. These internal fees and expenses are in addition to
the fees charged by the Firm. Clients are responsible for the payment of all such third
party fees. Those fees are separate and distinct from the fees and expenses charged by
CMIA. Please see Item 12 of this brochure regarding broker-dealer/custodian.

D. Prepayment of Fees

CMIA collects fees in advance. Refunds for fees paid in advance but not yet earned will
be refunded on a prorated basis and returned within fourteen (14) days to the client via
check, or return deposit back into the client’s account.

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee rate by 365.)

Where the Firm may request a fee in advance, the amount paid in advance will not be
more than $1,200 per client and 6 months in advance. A client has the right to terminate

       any contract with CMIA without a penalty assessed by the Firm within five (5) business
       days after entering into the contract. If the client’s advisory relationship with the Firm
       terminates, the client will pay the Firm only for that portion of the quarter during which
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Item 7: Types of Clients

CMIA generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals

       ❖       Pension and Profit Sharing Plans

There is no account minimum for any of CMIA’s services.