Terms and Conditions

Minimum Investment
$500,000 for new investors. Additions and withdrawals at client's discretion.

Management Fee
A management fee payable quarterly in arrears at a rate equal to the greater of $750 or 1/8% of the Account's end-of-quarter account value. On an annualized basis this is equal to $3,000 or 1/2% of the Account's value; or

Performance Fee
Equal to 11% of the increase in the Account's value (before management fees) calculated at calendar year end or, in the event the relationship is terminated by either party during a calendar year, as of the date of termination. The increase in Account value includes realized and unrealized gains/losses and interest and dividend income.

Please Note
When (i) the Account value decreases during a year or (ii) the management fees paid by the client during the year exceed the performance fee calculated at year end, CCM will not bill a performance fee for that calendar year. However, when the performance fee calculated at year end exceeds the management fee paid during the year, the client pays the difference between the performance fee and management fees already paid by the client during the year.

Investor Eligibility
To be eligible for the fee structure outlined above, a client must be a "qualified client," as defined in Rule 205-3 of the Investment Advisers Act of 1940. A "qualified client" is an individual or company that immediately after entering into an investment contract. has at least $500,000 under management with the firm, or an individual or company with a net worth (or a joint net worth if the investor's spouse is included) exceeding $1,500,000 immediately before entering into the management contract. "Net worth" for these purposes means the fair-market value of total assets, including investments, homes, home furnishings and automobiles, minus total liabilities. For individuals not meeting the definition of a "qualified client" we generally negotiate a fixed fee schedule, based on assets under management.

Trading costs
Our clients pay commissions and trading costs directly from the assets (cash accounts) within the client accounts held by the custodian. Trading costs are passed along at net cost - there is no markup by Cutler Capital. Trading costs are deducted before the performance and the incentive performance fee are calculated.

Account Administration
Assets in individually managed accounts are held in a custodial account in each client's name at RBC Capital Markets Corp., a subsidiary of Royal Bank of Canada. We are authorized to buy and sell securities in the custodial account, and cannot transfer or withdraw funds or securities, except for the payment of agreed upon investment management fees.