Monarch Capital Management Inc

Item 5 Fees and Compensation
Fees for discretionary investment advisory services are payable quarterly in advance and are based
on the market value of assets under management at the end of the previous billing period. For
example, fees for the 1st quarter are charged based on the year end market value and are paid during
the first part of the 1st quarter. Clients have the option of having fees deducted from their account or
billed directly to them. Fees are calculated at the following annual rates:

                                        Annual Fee Schedule
                                    Balanced or Equity Accounts

                 Assets Under Management                                 Annual Fee
                        First $1,000,000                                     1.00%
                 Next $1,000,000 (up to $2M)                                 0.90%
                 Next $1,000,000 (up to $3M)                                 0.80%
                 Next $2,000,000 (up to $5M)                                 0.70%
                 Next $5,000,000 (up to $10M)                                0.60%
                      Above $10,000,000                                      0.50%
                                        *Certain clients have legacy fee schedules.

If assets greater than 10% of the account's market value are deposited into or withdrawn from an
account after the inception of a billing period, the fee payable with respect to such assets is adjusted
accordingly in the following quarter. If the portfolio management agreement is executed at any time
other than the first day of a calendar quarter, our fees will apply on a pro rata basis, which means that
the advisory fee is payable in proportion to the number of days in the quarter for which you are a client.

In certain circumstances, the investment management fee is negotiable. For example, a lower fee can
be negotiated in such cases where account maintenance is the goal because low cost basis securities
prevent active management of the account to minimize capital gains and tax liability.

At our discretion, we combine the account values of family members to determine the applicable
advisory fee. For example, we combine account values for you and your minor children, joint accounts
with your spouse, and other types of related accounts. In general, combining account values increases
the asset total, which results in a reduced advisory fee based on the available breakpoints in our fee
schedule stated above.

We charge an annual minimum fee of $500 per account relationship billed quarterly in advance. The
minimum annual fee is not applicable to legacy fee schedules.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy.

Deducting advisory fees from client accounts causes Monarch to have limited custody,
therefore, Monarch reconciles its assets held with the qualified custodians. On occasion, there can be
a minor discrepancy, which oftentimes is the difference in timing in the posting of a dividend or interest
on the custodian's books versus the date Monarch anticipates the dividend or interest to be posted.
Monarch bills fees on a quarterly basis using an automated billing system. Provided the impact of this
discrepancy to the client's fees is less than $1, Monarch for efficiency purposes will bill based on its
automated billing system.

In limited circumstances, some clients may choose our non-discretionary financial advisory services,
which are managed on a non-continuous basis. In such cases a negotiated, but fixed, engagement fee
applies. This fee is billed at the time the service is performed or may be billed quarterly, if the service is
ongoing, not to exceed $5,000 annually.

The client may terminate services at any time by writing and delivering the request to Monarch, by
verbal instructions or by notification by the custodian. Upon notification all active management of the
account stops. If the client communicates this information verbally to Monarch a letter or email is sent
to the customer acknowledging the client's desire to terminate, the date of termination and fee
reimbursement information. Fees are refunded promptly on a pro-rata basis from the date of
termination. Since fees are charged in advance, termination of our services on any date other than on
the 1st day of a calendar quarter would require a refund. For example, if a client terminates our
services on February 1, he or she would receive a refund of fees from February 1 through March 31.

Monarch may resign as investment manager by giving written notification. Monarch's investment
management contract states that the contract may be terminated without penalty within five (5)
business days after entering into the contract. "Without penalty" means that no management fee will be
charged. The fees described above are the only fees Monarch charges. It receives no other
compensation.

Additional fees (not fees payable to Monarch) may be incurred. Examples are trustee fees,
commissions billed by the broker for purchases and sales, and trade-done-away fees when assets are
purchased or sold through another broker.

If mutual funds or exchange traded funds ("ETFs") are held in a client's account, Monarch may include
these funds in the assets subject to management fees. When this occurs, the client will pay two levels
of advisory fees for the management of their mutual fund or ETF assets, both directly to Monarch and
indirectly through the fees charged to the mutual fund or ETF by its manager or other fund
...

Item 7 Types of Clients
Monarch provides investment advisory services to individuals, trusts, foundations, charitable
organizations, corporations and other businesses and pension plans. Monarch also provides financial
advisory services to similar client types as the investment advisory services.

We charge an annual minimum fee of $500 per account relationship. At our discretion we may waive
the minimum fee. See the Fees and Compensation section above for additional information.

In certain instances, legacy relationships will have different fee schedules and are not subject to
minimum fees.

Monarch's investment advice regarding the same security or investment may be different. Investment
strategies and advice may vary depending upon each client's specific financial situation.