Horizon Capital Management LLC

Item 5 - Fees and Compensation

General Fee Information
Fees paid to HCM are exclusive of all custodial and transaction costs paid to the client’s custodian,
brokers or other third-party consultants. Please see Item 12 - Brokerage Practices for additional
information. Fees paid to HCM are also separate and distinct from the fees and expenses charged by
mutual funds, ETFs (exchange traded funds) or other investment pools to their shareholders
(generally including a management fee and fund expenses, as described in each fund’s prospectus or
offering materials). The client should review all fees charged by funds, brokers, HCM and others to
fully understand the total amount of fees paid by the client for investment and financial-related
services.

Portfolio Management Fees
The annual fee schedule, based on a percentage of assets under management, is as follows:

       First $1,000,000                                  1.0%
       Next $1,000,000 - $2,000,000                      0.8%
       Next $2,000,000 - $3,000,000                      0.6%
       Next $3,000,000 - $5,000,000                      0.4%
       Greater than $5,000,000                           0.2%

The minimum portfolio value is generally set at $1,000,000. The minimum annual fee for any client
relationship is $10,000. HCM may, at its discretion, make exceptions to the foregoing or negotiate
special fee arrangements where HCM deems it appropriate under the circumstances.

Portfolio management fees are generally payable quarterly, in arrears. If management begins after
the start of a quarter, fees will be prorated accordingly. With client authorization, unless other
arrangements are made, fees are normally debited directly from client account(s). If insufficient cash
is available to pay such fees, securities in an amount equal to the balance of unpaid fees will be
liquidated to pay for the unpaid balance.

Either HCM or the client may terminate their Investment Advisory Agreement at any time. In the
event of termination, any paid but unearned fees will be promptly refunded to the client based on the

number of days that the account was managed, and any fees due to HCM from the client will be
invoiced or deducted from the client’s account prior to termination.

Item 7 - Types of Clients

HCM serves individuals, high net worth individuals and pension and profit-sharing plans. With some
exceptions, the minimum portfolio value eligible for conventional investment advisory services is
$1,000,000, and the annual minimum fee charged is $10,000. Under certain circumstances and in its
sole discretion, HCM may negotiate such minimums.