Financial Horizons Inc

Fees and Compensation
    Description
      Financial Horizons, Inc. bases its fees on a percentage of assets under
      management.
       Fees may be negotiable.

    Fee Billing
       Investment management fees are billed semi-annually at the end of the
       billing period. Payment in full is expected upon invoice presentation. Fees
       may be deducted from a designated client account to facilitate billing. The
       client must consent in advance to direct debiting of their investment account.

    Other Fees
       Custodians may charge transaction fees on purchases or sales of certain
       mutual funds and exchange-traded funds. These transaction charges are
       usually small and incidental to the purchase or sale of a security.
       Financial Horizons, Inc. may waive its minimum fee and/or charge a lesser
       investment advisory fee based upon certain criteria (e.g., historical
       relationship, type of assets, anticipated future earning capacity, anticipated
       future additional assets, dollar amounts of assets to be managed, related
       accounts, account composition, negotiations with clients, etc.).

    Expense Ratios
      Mutual funds generally charge a management fee for their services as
      investment managers. The management fee is called an expense ratio. For
      example, an expense ratio of 0.50 means that the mutual fund company
      charges 0.5% for their services. These fees are in addition to the fees paid
      by you to Financial Horizons, Inc.
       Performance figures quoted by mutual fund companies in various publications
       are after their fees have been deducted.

    Past Due Accounts and Termination of Agreement
       Financial Horizons, Inc. reserves the right to discontinue work on any
       account that is more than 120 days overdue. Any unused portion of fees
       collected in advance will be refunded within 30 days.

                                Financial Horizons, Inc.

Types of Clients
    Description
      Financial Horizons, Inc. generally provides investment advice to individuals,
      pension and profit sharing plans, and trusts.
       Client relationships vary in scope and length of service.

    Account Minimums
      The minimum account size is $200,000 of assets under management, which
      equates to an annual fee of $4,000.
       When an account falls below $200,000 in value, the minimum annual fee of
       $4,000 may be charged.
       Financial Horizons, Inc. has the discretion to waive the account minimum.
       Accounts of less than $200,000 may be set up when the client and the
       advisor anticipate the client will add additional funds to the accounts bringing
       the total to $200,000 within a reasonable time.

Methods of Analysis, Investment Strategies and Risk of Loss