Your Net Worth
This is your net worth ->
Exhibit II
Fee Schedules:
The following are the fee schedules charged by Centimillionaire Advisors, LLC for services
provided. Fee schedules are based on the Client being fully accredited and/or qualified as by
defined by the Securities Act of 1933 Rule 506(b) of Regulation D and information provided by
Client on the Investment Policy Statement attached.
Schedule for Qualified/Accredited Investors: This fee schedule is for anyone worth over
$2.2M net worth outside of your primary residence, we will not transact or advise anyone
with under a $2.2M net worth.
CA LLC is only compensated on the capital gains realized at the time of sale of the asset or
exit of the fund or investment vehicle. There is no account minimum for any of CA LLC’s
services, but clients must have a minimum $2.2M net worth.
Performance-Based Fees: Qualified clients will pay a 5-20% performance fee (10% is most
common) based on distributions & capital appreciation which is calculated at the time of sale
of the asset or exit from the fund as discussed elsewhere in this agreement. If the client’s
asset/investment rises in value (as determined at the time of the sale of the asset or exit
from the fund), the client will pay 5-20% performance fee (10% is typical) on that increase in
value at the time of sale. If the client does multiple investments with us and one was to lose
money, we cannot charge the client performance fees on any other investments through us
until we have net made them a positive return, so we are making money together. This
creates alignment and reduces the motivation an investment firm would have to show very
risky deals to clients, as one bad deal could wipe out all of the performance fees on other
good deals. This is over the lifetime of the account, so a loss in 2019 would carry over and
have to be netted out by gains in 2020 and future years before CA LLC could be paid a
performance fee.
We do not invest in startups, seed capital rounds, angel investments, international deals,
cryptocurrency, blockchain, venture capital, or anything else which we deem to be
moderate-high or high risk, or anything which could likely have a binary great or drop to $0
value event to it.
Any investments made due to the referral of a deal, sourcing of a deal, or introduction to an
individual who then refers a deal to Client will fall under this investment advisory agreement
and be subject to a % performance fee.
Any investments Client engages on or commits to without the negotiation assistance, explicit
approval in writing of a niche-scoped area of investment, or direct referral from CA LLC will
not be subject to a performance fee. Any gray area on this matter will be stated in writing via
email so both parties are clear on what is covered and not via this agreement and written
emails between the two parties. As possible CA LLC will attempt to reduce fees paid on
investments negotiated by 5-10% to add additional value and pay for the cost of this
engagement, in some cases 5-10%+ reduction in fees may be possible and in some cases no
concessions will be given. CA LLC will send an invoice for performance-based fees
directly to Client on a quarterly basis to be paid by bank transfer within 15 days of receipt.
By signing below, Client agrees to the performance-based fee of 10%. While no management
fee structures can align parties, and add alignment long-term in some ways, client should be
aware that investment advisers can be seen to potentially have an incentive to invest in
riskier investments when paid a performance-based fee due to the higher risk/higher reward
attributes.
Please Note: If you are not an accredited investor we can still help you identify a wealth
advisor, help with proactive tax planning, estate/trust planning, etc.
If you are signing this agreement on behalf of your parents or as a representative of a private
equity firm, institutional investor, or wealth management firm please let us know upon
execution so we can amend the agreement as needed.
To avoid any confusion for anyone raising capital, this is not an agreement to engage us in
raising capital in any way, we do not do investment banking or placement agent work. Also,
as mentioned above, fees for CA LLC do not incur until Client has entered into an investment
they have sourced through CA LLC. This agreement serves as a pre-agreed to term sheet for if
or when you as a client may decide in the future to invest in a direct investment through our
RIA.
