MTM Investment Management LLC

Item 5: Fees and Compensation
MTM bases its fees on a percentage of assets under management. MTM’s fee schedules
are described below.
Compensation – Investment Advisory Services - Individuals
MTM receives investment advisory fees for managing clients’ assets in ICA accounts, the
Sub-Advisory Wrap Program, and for advising Retirement Plans and Accounts. These
advisory fees are based on a percentage of assets under management.
Independent Clearing Accounts (ICA)
For ICA accounts, MTM receives an investment advisory fee based on a percentage of
the value of assets managed.

For clients with assets under management of up to $500,000, the annual fee rate is equal
to 1.25% of the total assets under management (or the minimum annual fixed fee, if
applicable).

For clients with assets under management over $500,000, a blended fee is charged in
accordance with the schedule below. For the sake of clarity, fees are charged in
accordance with the tiered schedule, meaning a lower rate will be charged on assets
above each designated breakpoint.

          Assets Under Management                               Annual Fee

               $0 - $1,500,000                                     1.00%

           $1,500,001 - $2,500,000                                0.750%

           $2,500,001 - $5,000,000                                0.600%

           $5,000,001 - $7,000,000                                0.500%

              Above $7,000,000                                    0.375%

For accounts with a margin balance, clients are assessed the management fee based on
the gross value of the assets in the account.
On occasion, MTM may agree to a fixed fee. The minimum annual fixed fee is $1,000
(“Minimum Annual Fixed Fee”). Factors considered in determining the fees charged
generally include, but are not limited to: the complexity of the client’s portfolio; assets to
be placed under management; anticipated future assets; related accounts; portfolio style;
account composition; or other special circumstances or requirements. This investment
advisory fee generally is deducted directly from each client’s account.
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Although MTM has established the aforementioned fee arrangements, MTM retains the
discretion to negotiate alternative fees on a client-by-client basis. Client facts,
circumstances and needs are considered in determining the fees. These include the
complexity of the client, assets to be placed under management, anticipated future
additional assets, related accounts, portfolio style, account composition, reports, and
other factors deemed applicable by MTM. The actual fee charged to a particular client is
disclosed in the investment advisory agreement entered into between MTM and each
client.
MTM may group certain related client accounts for the purposes of achieving the minimum
account size requirements and determining the annualized fee. Discounts, not generally
available to advisory clients, may be offered to family members and friends of associated
persons of MTM.
Clients pay the investment advisory fee with respect to ICA accounts quarterly in advance.
For new accounts, the initial fee is calculated based on the value of the assets in the
account(s) on the first day the account(s) are managed and, if management begins mid-
quarter, the fee is prorated based on the remaining days in the calendar quarter and
added to the first full quarter’s fee statement and billed in connection therewith.
Subsequently, the quarterly advisory fee is based on the value of the assets in the
account(s) on the last business day of the previous calendar quarter. If the investment
advisory agreement is terminated before the end of the calendar quarter in which an
advisory fee has been paid, MTM will provide a refund of the unearned advisory fee to
the client based on the number of days in the quarter in which the client’s assets were not
invested in the ICA program.
In addition to the investment advisory fee, clients will incur brokerage and other
transaction costs and certain expenses. The additional costs and expenses are imposed
by companies other than MTM and may include, but may not be limited to, mutual fund
and ETF management fees and expenses, brokerage fees paid to clear transactions,
mark-ups/mark-downs on fixed income trades, annual fees paid for custodial services,
spreads paid to market makers, fees for trades executed away from the custodian, wire
transfer fees and other fees and taxes on brokerage accounts and securities transactions .
Sub-Advisory Wrap Program
In a wrap program, the client pays a single fee that covers the fees for advisory, brokerage
execution, clearing, custodial and other administrative services and includes the fees of
any third-party managers, if applicable. These services are provided by MTM, one or
more broker-dealers, and/or a portfolio manager. Any portion of the single fee that is not
paid to third parties is retained by MTM as its investment advisory fee. Because of this,
MTM may have a disincentive to trade securities in client accounts. However, MTM pays
a flat fee for all transaction and execution expenses to help mitigate against this conflict
of interest.
In the Sub-Advisory Wrap Program, the client pays an annualized fee of up to 1.75% of
the value of assets managed. MTM charges accounts in the Sub-Advisory Wrap Program
a minimum quarterly fee of $375.

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Wrap Fee Billing
The wrap fee is paid quarterly in advance. For new accounts, the initial wrap fee is
calculated based on the value of the assets in the account(s) on the first day the
account(s) are managed and, if management begins mid-quarter, the fee is prorated
based on the remaining days in the calendar quarter and added to the first full quarter’s
fee statement and billed in connection therewith. Subsequently, the quarterly wrap fee is
based on the value of the assets in the account(s) on the last business day of the previous
...

Types of Clients
As described in Item 4, MTM provides investment advisory services to families,
individuals, trusts, and retirement plans.
Account Minimums
MTM requires a minimum account size of $500,000 although this may be negotiable
under certain circumstances. MTM has the discretion to reduce this minimum account
size or combine related-party accounts to satisfy the minimum account size.