Acorn Asset Management LLC

ITEM 5   Fees and Compensation
         ANNUAL FEES FOR ADVISORY SERVICES
         Acorn is compensated for providing asset management services by charging a negotiable fee based on the
         total assets under management. The fees and billing will be pre-determined in writing in the Investment
         Advisory Agreement executed by you and Acorn.
         The fees charged for financial planning services are negotiable and vary depending on the complexity of
         the process undertaken, the types of issues addressed, the scope of services provided, and the frequency
         with which the services are rendered. All fees are agreed upon before entering the Financial Planning and
         Consulting Agreement you sign.
         Fees for retirement plan services are negotiated before the signing of the Retirement Plan Advisory and
         Consulting Agreement. The agreement language includes the negotiated fee, which can be charged as a
         percentage of the total retirement plan assets and/or a flat annual fee.
         The below ranges are the standard fee ranges that are typically charged. We can waive the agreed-upon
         financial planning fees if you engage our asset management services.

                                            Asset Management Fee Schedule
                                    $0 - $1,000,000                         1.5%
                                $1,000,001 - $2,000,000                     1.4%
                                 $2,000,001-$3,000,000                     1.25%
                                 $3,000,001-$4,000,000                      1.1%
                                      $4,000,001+                           .95%

                             Financial Planning and Consulting Fee Schedule
                                 Hourly                          $450 per hour
                                Fixed Fee                        Up to $10,000
                     Ongoing Annual Planning Fee                 Up to $10,000

                         Retirement Plan Advisory and Consulting Fee Schedule
                       Percentage of Plan Assets                 0.95% - 1.5%

FEE BILLING & PAYMENT
Our asset management fees are annual fees and are negotiable. Asset management fees are paid monthly
in advance. Payments are due on the first day of the calendar month and are based on the account’s asset
value as of the last business day of the prior calendar month multiplied by the applicable annual rate and
divided by twelve (12). The fee for the subsequent month is billed and payable within ten (10) days after
the end of the prior month. We will deduct our asset management fee only when in receipt of your written
authorization by executing an investment advisory agreement permitting the fees to be paid directly from
your account. We will send a copy of your invoice to the custodian at the same time that we send a copy
to you. The qualified custodian will deliver an account statement to you at least quarterly, which will show
all disbursements from your account. We urge you to review all statements for accuracy. Your account at
the custodian can also be charged for certain additional assets managed for you by us but not held by the
custodian (i.e., variable annuities, mutual funds, 401(k)s).
Financial planning and consulting fees are assessed on an hourly basis, as a one-time project fee, or as an
annual fee payable either monthly or quarterly. An estimate for total hours will be determined at the start
of the relationship in order to determine whether hourly planning or a project-based plan is in the Client’s
best interest. Hourly fees will be invoiced upon completion of the financial plan or the rendering of
consulting services with a thirty (30) day written notice. For one-time projects, the Client agrees to pay
one-half of the total fee upon signing the Financial Planning and Consulting Agreement and the remaining
fee upon delivery of the plan. For ongoing financial planning or consulting services, the Client agrees to
pay a one-time initial planning fee in addition to an annual fee paid out monthly in advance. We will not
require a fee of $500 or more to be paid six months or more in advance. Financial planning and consulting
fees are paid via check or by direct invoicing via an electronic payment processor.
Retirement plan consulting fees will be billed on a quarterly basis, in arrears, at the end of each calendar
quarter, due within thirty (30) days after the date of invoice, unless otherwise agreed to by the parties.
The fee will either be billed directly to the plan sponsor or paid directly from the plan assets if authorized
by the plan fiduciary

TERMINATION OF AGREEMENT
Either party can terminate the agreement by providing 30-day advance written notice. Upon termination
of any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will
be due and payable up to and including the effective date of termination.

         Notwithstanding the above, if we do not deliver the appropriate disclosure statement to you at least 48
         hours prior to you entering into any written or oral advisory contract with us, then you have the right to
         terminate the contract without penalty within five (5) business days after entering into the contract.

         OTHER EXPENSES AND FEES
         The fees discussed above include payment solely for the investment advisory services provided by us and
         are separate from certain fees or charges that are imposed by third parties in connection with investments
         made on your behalf for your account. Third-party fees can include markdowns, markups, brokerage
         commissions, other transaction costs, and/or custodial fees.
         All fees paid to us for asset management services are separate from the expenses charged by exchange-
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ITEM 7   Types of Clients
         We provide our investment advisory services to:
             -   Individuals
             -   High Net Worth Individuals
             -   Banking or Thrift Institutions
             -   Pension and profit sharing plans
             -   Charitable organizations
             -   State or municipal government entities

             -   Insurance Companies
         Our minimum account size requirements for opening an account with us is $50,000