Schauer Investment Management Inc

Item 5: Fees and Compensation

Lower fees for comparable services may be available from other sources.

A. Fee Schedule

Asset-Based Fees for Portfolio Management

        Total Assets Under Management           Annual Fee

        $0 - $1,000,000                         1.50%

        $1,000,001 - And Up                     1.00%

These fees are generally negotiable and the final fee schedule is attached as Exhibit II of
the Investment Advisory Contract. Clients may terminate the agreement without penalty
for a full refund of SI's fees within five business days of signing the Investment Advisory

Contract. Thereafter, clients may terminate the Investment Advisory Contract generally
with 30 days' written notice.

SI uses an average of the quarterly balance in the client's account throughout the billing
period, after taking into account deposits and withdrawals, for purposes of determining
the market value of the assets upon which the advisory fee is based.

Performance-Based Fees for Portfolio Management

Qualified clients will pay an annual fee of 1.00% of assets under management along with
a 15.00% performance fee based on capital appreciation. If the portfolio rises in value at
least an 8-percent return for the calendar year, then the client will pay 15% on that increase
in value, but if the portfolio drops in value, then the client will not incur a new
performance fee until the portfolio reaches the last highest value, adjusted for
withdrawals and deposits, which is generally known as a “high water mark”.

These fees are generally negotiable and the final fee schedule is attached as Exhibit II of
the Investment Advisory Contract. This service may be canceled with 30 days’ notice.
Clients must pay the prorated performance-based fees for the billing period in which they
terminate the Investment Advisory Contract up to and including the day of termination.

B. Payment of Fees

Payment of Asset-Based Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis, or may be invoiced and billed
directly to the client on a quarterly basis. Clients may select the method in which they are
billed. Fees are paid in arrears.

Payment of Performance-Based Portfolio Management Fees

Performance-based portfolio management fees are withdrawn directly from the client's
accounts with client's written authorization on a quarterly basis, or may be invoiced and
billed directly to the client on a quarterly basis. Clients may select the method in which
they are billed. Fees are paid in arrears.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees,
brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
distinct from the fees and expenses charged by SI. Please see Item 12 of this brochure
regarding broker-dealer/custodian.

       D. Prepayment of Fees

       SI collects its fees in arrears. It does not collect fees in advance.

       E. Outside Compensation For the Sale of Securities to Clients

       Neither SI nor its supervised persons accept any compensation for the sale of securities or
       other investment products, including asset-based sales charges or service fees from the
       sale of mutual funds.

Item 7: Types of Clients

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

           ❖   Individuals
           ❖   High-Net-Worth Individuals
           ❖   Pension and Profit Sharing Plans
           ❖   Pooled Investment Vehicles

Minimum Account Size

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