Schear Investment Advisers LLC

ITEM 5       FEES AND COMPENSATION

Schear Investment Advisers, LLC offers investment services to clients for a fee. Most of
the clients pay a fee between 0.25% and 1.25% based on assets under management
depending on what is negotiated with the investment adviser.

Individual clients negotiate individual fee arrangements based on account size and type
of securities or funds held in their accounts. The fee is calculated quarterly and is paid in
advance based on the balance of the previous calendar quarter. In all instances, the fee
is deducted from the client's Charles Schwab account. The fee is prorated if the client
enters or leaves in the middle of a calendar quarter for any unearned advisory fees. The
firm will not refund a client if the refund is less than $10.

Schear, in its sole discretion, may waive the account minimum requirement based upon
certain criteria (e.g., historical relationship, types of assets, anticipated future additional
assets, dollar amounts of assets to be managed, related accounts, account composition,
etc.).

Investment Advisory Fees

All asset based fees are deducted by the qualified custodian of record on a quarterly basis
in Advance, or as otherwise indicated in the client agreement. Client statements for prior
deductions will be provided on a quarterly basis.

Schear, in its sole discretion, may discount or waive the investment advisory fee at the
household or account level based upon certain criteria (e.g., historical relationship, types
of assets, anticipated future additional assets, dollar amounts of assets to be managed,
related accounts, account composition, etc.).

All fees paid to Adviser for investment advisory services are separate and distinct from
the expenses charged by third-party managers and Investment Companies to their
shareholders. These fees and expenses are described to the client in separate disclosures.
These fees will generally include third-party management fees, an Investment
management fee, other fund expenses, and in some situations a possible distribution fee.

Adviser will provide investment advisory services and portfolio management services but
will not provide custodial or other administrative services. Adviser may accept or maintain
custody of a client’s funds or securities, including for authorized fee deduction. The Client
may contact the Custodian directly for disbursements, or account record changes, and
may also do so in writing to the custodian. Adviser may act at the client’s convenience to
facilitate such written communications to the Custodian, provided that such action is not
construed to be custody of client assets.

Client is responsible for all custodial and securities execution fees charged by the
custodian and executing broker-dealer. Fees paid to Adviser are separate and distinct
from the custodian and execution fees.

Clients may request to terminate their advisory contract with Adviser, in whole or in part,
by providing advance written notice. Upon termination, any fees paid in advance will be
prorated to the date of termination and any excess will be refunded to client through the
Custodian. Client’s advisory agreement with the Advisor is non-transferable without
Client’s written approval.

Retirement Plan and Pension Consulting Fees
Fees for retirement plan investment advisory services are negotiated on a plan-by-plan
basis and are fully disclosed in the applicable advisory agreement. For most Retirement
Plan engagements, the fees are between 0.25% and 1.25% based on a percentage of
assets under management depending on what is negotiated with the investment adviser.
The fee is assessed only on the portion of plan assets managed by the Firm and does not

apply to assets held outside the Firm’s management. Fees are generally billed in advance,
as specified in the advisory agreement, and are deducted directly from plan assets or
billed to the plan sponsor, as agreed.

All asset based fees are deducted by the plan sponsor of record on a quarterly basis in
Advance, or as otherwise indicated in the client agreement. Client statements for prior
deductions will be provided on a quarterly basis.

Schear, in its sole discretion, may discount or waive the investment advisory fee at the
household or account level based upon certain criteria (e.g., historical relationship, types
of assets, anticipated future additional assets, dollar amounts of assets to be managed,
related accounts, account composition, etc.).

Clients may request to terminate their advisory contract with Adviser, in whole or in part,
by providing advance written notice. Upon termination, any fees paid in advance will be
prorated to the date of termination and any excess will be refunded to client through the
Custodian. Client’s advisory agreement with the Advisor is non-transferable without
Client’s written approval.

Separate Third-Party Fees
Retirement Plans typically incur additional fees charged by third parties, including but not
limited to:
  • Third-party administrators (TPAs);
  • Recordkeepers;
  • Custodians;
  • Payroll providers.

These fees are separate from and in addition to the Firm’s advisory fees. The Firm does
not receive compensation from TPAs or other service providers for referring clients to
them, unless otherwise disclosed.

Tax Preparation and Ancillary Services
In limited cases where the Firm prepares plan-related tax returns or provides other non-
investment services, such services are billed separately from investment advisory fees.
These fees are generally based on:
  • The number of hours required to complete the work; and
  • A markup to cover applicable software costs and overhead.

Clients are informed of these fees in advance, and such services are provided only
pursuant to a written agreement or amendment to the advisory agreement.

No Fees for Certain Plans
The Firm does not charge advisory fees for its own internal retirement plan.

Fee Deduction Disclosure
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ITEM 7       TYPES OF CLIENTS

Schear Investment Advisers, LLC's clients are a combination of individuals, high net

worth individuals, business entities such as corporations and partnerships, trusts,
pension and profit-sharing plans and charitable organizations. At this time, the Firm
does not require a minimum investment to open or maintain an account with Schear
Investment Advisers, LLC.

There is also a minimum fee charged to accounts that are less than $10,000 per
household for our investment advisory services. The minimum fee is $100/year or
$25/quarterly. This fee is charged quarterly in advance based on the balance of the
previous calendar quarter. Currently there is no one that is charged this minimum fee.

Schear, in its sole discretion, may waive the account minimum requirement based upon
certain criteria (e.g., historical relationship, types of assets, anticipated future additional
assets, dollar amounts of assets to be managed, related accounts, account composition,
etc.).