Johnson & Shute Investment Advisors Inc

FEES AND COMPENSATION

We are compensated for our services as investment advisors by charging our clients a
fee based upon the amount of assets under management. The scope of our services
included in this fee are discussed in our engagement letter and include discussing our
client’s financial situation, investment goals and risk tolerance, selecting a model
investment portfolio and meetings related to changes in the foregoing and discussions
of portfolio performance. Additional services may be contracted under a separate
agreement and charged a fee as negotiated with the client.
Our annual fee for investment advisory services is generally computed on the following
fee schedule:
         1% on amounts up to $1,000,000
        .5% on amounts from $1,000,000 to $1,500,000
        .25% on amounts above $1,500,000

Individual client fee schedules may vary from the above schedule under special
circumstances but are non-negotiable.

Fees are computed and collected and the end of each quarter. The fee is calculated
based on the beginning balance at each quarter, plus contributions and minus

withdrawals made during the quarter, and pro-rated on a daily basis. We will send every
client a written invoice, including the fee, the formula used to calculate the fee, the fee
calculation itself, the time period covered by the fee and the amount of assets under
management on which the fee was based. We will also include the name of the
custodian(s) on the fee invoice. The fee is billed to the client’s account quarterly and
these statements will be sent to the client concurrent with the request for payment or
payment of our advisory fees.

We urge you to compare this information with the fees listed in the account statement.
Under special circumstances, clients may be billed directly for their fees.

Clients have the right to terminate the advisory contract without penalty or advisory fees
within five business days of entering into the contract. Upon termination of the advisory
relationship after the initial five days, the final billing will be computed on a pro-rated
basis. The fee will be based upon the number of days in the quarter services were
provided prior to the termination of the relationship. Clients may pay other types of fees
in connection with their investments, including mutual fund expenses and brokerage
and other transaction costs (see “Brokerage Practices” on page 4.) We do not receive
any compensation, including 12b-1 fees, from mutual funds in connection with the
purchase or sale of securities.

We are deemed to be a fiduciary to advisory clients that have 401K accounts and
individual retirement accounts (IRAs) pursuant to the Employee Retirement Income and
Securities Act ("ERISA"), and regulations under the Internal Revenue Code of 1986 (the
"Code"), respectively. As such, our firm is subject to specific duties and obligations
under ERISA and the Internal Revenue Code that include among other things,
restrictions concerning certain forms of compensation.

TYPES OF CLIENTS

We generally provide investment advice to individuals and pension and profit-sharing
plans. We may also provide investment advice to trusts, estates, charitable
organizations, corporations or other business entities.

Our general minimum account size is $100,000. We may accept an account below this
minimum under special circumstances, generally with a minimum annual fee of $500.
The minimum fee may be waived under special circumstances.