Pasnau Investment Management Inc

Item 5 Fees and Compensation
A Client may choose to engage Pasnau Investment Management, Inc. to provide discretionary
investment advisory services on a fee basis. The annual investment advisory fee shall be based on a
percentage of the market value as follows:

Fee Schedule

Market Value of Portfolio   % of Assets
$0-$250,000                        1.5%
$250,000- $ 1,000,000              1.0%
                                   1.0% on first $1.0 million .75% on amounts over
$1,000,000 - $2,000,000
                                   $1 million
Over $2 million                    to be negotiated
All fees are subject to negotiation.

The specific manner in which fees are charged by Pasnau Investment Management, Inc. is established
in a client's written agreement with Pasnau Investment Management, Inc. Pasnau Investment
Management, Inc. will generally bill its fees on a quarterly basis. Clients are billed in advance each
quarter, based upon the market value of the assets on the last business day of the previous quarter.
Clients may also elect to be billed directly for fees or to authorize Pasnau Investment Management,
Inc. to directly debit fees from client accounts. In the event that the client elects to be billed directly,
payment is due upon the receipt of Pasnau Investment Management, Inc.'s invoice. Management fees
shall not be prorated for each capital contribution and withdrawal made during the applicable quarter.
Accounts initiated or terminated during a quarter will be charged a prorated fee. Termination is by
notice in writing 30 days in advance. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded, and any earned, unpaid fees will be due and payable.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.

Unless the client directs otherwise, or a client's circumstances require, Pasnau Investment
Management, Inc. will generally recommend that Fidelity Brokerage Services LLC serve as the broker-
dealer/custodian for client assets under management. The broker-dealer/custodian charge brokerage
commissions and/or transaction fees for effecting securities transactions. In addition, clients may also
incur, relative to all mutual fund and exchange traded fund purchases, charges imposed at the fund
level (i.e. management fees and other fund expenses). Individual fixed income and/or equity
transactions may be effected through David Burleson of Crews and Associates, a broker/dealer with
whom Pasnau Investment Management, Inc. has entered into an arrangement for prime brokerage
clearing services.

Pasnau Investment Management, Inc.'s fees are exclusive of brokerage commissions, transaction
fees, and other related costs and expenses which shall be incurred by the client. Clients may 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. Mutual funds and exchange traded funds also charge internal management fees, which
are disclosed in a fund's prospectus.

Such charges, fees and commissions are exclusive of and in addition to Pasnau Investment
Management, Inc.'s fee, and Pasnau Investment Management, Inc. shall not receive any portion of
these commissions, fees, and costs.

Item 12 further describes the factors that Pasnau Investment Management, Inc. considers in selecting
or recommending broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).

Item 7 Types of Clients
Pasnau Investment Management, Inc. provides investment advisory services to individuals and high
net worth individuals and does not require a minimum asset level for investment advisory services.