Wernau Asset Management Inc

Item 5 Fees and Compensation
Fees are charged quarterly in arrears based on the value of assets under management as of the last day
of the calendar quarter. Management fees will be automatically debited from client accounts on a
quarterly basis by the advisor at the qualified custodian of record. The custodian maintains possession
of client assets in accordance with the client authorization in the Advisory Agreement ("Agreement").
The fee schedule for actively managed discretionary accounts is as follows:

                        Assets Under Management Percentage (fee charged)
                               $0-$25,000,000                      1.50%

In some client cases, lower fees may be negotiated under certain circumstances depending on the scope
and complexity of client investment management needs and circumstances.

Fee Calculation: The fee is calculated as described above. Fees are charged in arrears (end of quarter)
based upon a percentage of the total assets under management, including money market balances on the
last trading day of each calendar quarter. The fee is not charged on the basis of a share of capital gains
upon or capital appreciation of the funds or any portion of the funds of an advisory client (i.e.
Performance fees).

In any partial calendar quarter, fees are pro-rated based on the number of days in which the account is
open during the quarter. All securities and their values are determined by each mutual fund company,
their designee, or other third party sources unless otherwise noted. Fee calculations are derived from
these valuations.

Management fees are negotiable under certain circumstances, at the sole discretion of the firm.
Wernau's fee is separate and distinct from the custodian and execution fees. All commissions, custody,
execution fees and other related costs or expenses charged by the qualified custodian and/or executing
broker-dealer (or other financial institution(s) involved with the client account) are charged separately.

Such fees may include custodial fees, charges imposed directly by a mutual fund or exchange traded
fund in the account, which shall be disclosed in the fund's prospectus (e.g., fund management fees and
other fund expenses), 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. Wernau
does not receive any portion of these commissions, fees, and costs.

For those clients that are charged an hourly rate, the following fee schedule applies:

                                     Service                Rate
                                   Consulting           $300 Per hour

For planning and family office clients, Wernau offers its clients a fixed fee per month that is negotiated
in advance based on the scope of the proposed engagement. In general, the fixed fee may vary
depending on the complexity of services provided, but will not exceed $20,000 per month. Hourly and
fixed fees are payable as specified in the advisory agreement.

Termination of Advisory Relationship: The advisory agreement may be canceled at any time, by
either party, for any reason upon receipt of written notice. Upon termination of an account, any prepaid
and/or unearned fees will be promptly refunded. Similarly, any earned and/or unpaid fees will be due
and payable. Clients retain the right to terminate the advisory agreement without penalty within five
business days after entering into the agreement. The agreement shall remain non-transferable unless
authorized by the client in writing.

Item 7 Types of Clients
As mentioned throughout this brochure, Wernau provides investment management services individuals,
high net-worth individuals, pension and profit sharing plans, trusts, estates, charitable organizations,
corporations and business entities. Prior to engaging the firm for services, clients are required to enter
into a written agreement with the firm setting forth the terms and conditions under which Wernau
renders its services.