Horizon Financial Services LLC

Item 5: Fees and Compensation

A.      Fee Schedule
Asset Management
HFS charges an annual fee between 0.60% and 2.00% of the total assets under management.

The annual fee may be negotiable. Accounts within the same household may be combined for a reduced fee.
Fees are paid monthly in arrears, based on the previous month’s average daily account balance. For accounts
opened mid-billing period initial fees for the partial month will be prorated. Clients may terminate their
contracts with five (5) business days written notice. For accounts closed mid-billing period, any unpaid fees
will be due to HFS. Lower fees for comparable services may be available from other sources.

Variable Annuity Solution
The platforms have varying fees, the selected subaccounts are subject to various internal expenses, and HFS
charges an annual fee between 0.60% and 1.00% of the total assets under management.

The annual fee may be negotiable. Accounts within the same household may be combined for a reduced fee.
Fees are paid quarterly in arrears, based on the previous quarter’s average daily account balance. For accounts
opened mid-billing period initial fees for the partial quarter will be prorated. Clients may terminate their
contracts with five (5) business days written notice. For accounts closed mid-billing period, any unpaid fees
will be due to HFS. Lower fees for comparable services may be available from other sources.

Mutual Fund Direct Solution
The platforms have varying fees. The selected mutual funds are subject to various internal expenses and we
bill a negotiable flat percentage with a maximum rate of 1% annually.

The annual fee may be negotiable. Accounts within the same household may be combined for a reduced fee.
Fees are paid quarterly in arrears, based on the previous quarter’s average daily account balance. For accounts
opened mid-billing period initial fees for the partial quarter will be prorated. Clients may terminate their
contracts with five (5) business days written notice. For accounts closed mid-billing period, any unpaid fees
will be due to HFS. Lower fees for comparable services may be available from other sources.

Donor Advised Funds
HFS does not charge fees on Donor Advised Funds. The only fee to the client is the administrative fee charged
by the provider.

Co-Advisor Services
HFS charges a maximum annual investment advisory fee of 1.70%, which is based on the total assets under
management. Fees will be billed monthly in arrears and will be calculated based on the average daily market
value of the assets held in the Designated Account over the preceding calendar month. Fees associated with
Designated Accounts held directly with mutual fund or insurance companies will be billed quarterly, in arrears.
Fees will either be paid directly to HFS or deducted from another account managed by HFS.

ERISA 3(21) Services
HFS charges a maximum annual investment advisory fee of 1% of Plan assets. We will rely upon the
valuations provided by the custodian without independent verification. Fees are billed quarterly in arrears and
calculated based upon the assets held in the Designated Account as of the closing date of the Custodian’s
account statement for the previous quarter. Clients may terminate this Agreement, without penalty, within five
(5) business days from the date specified on the signature page. Thereafter, the client or HFS may

                                                                                                      Form ADV 2A

terminate this Agreement by providing the other party with written notice. Upon termination, HFS will have
no further obligation with respect to your Designated Account.

Assets Under Advisement
HFS charges an annual fee between 0.60% and 2.00% of the total of assets under advisement.

Fees for investment advisory services will be calculated annually based on the account balance at the time
services are engaged pursuant to the Schedule of Fees (D) in the Investment Advisory Agreement. After the
annual fee is calculated, it will be divided by 12 and billed monthly in arrears. Each year, in conjunction with
the Agreement’s anniversary date, the account balance will be reviewed with the client and advisory fees for
the upcoming year will be calculated using the same methodology. Advisory fees for clients with mid-month
engagement dates will begin on the first day of the first complete month following the engagement date.
If clients roll funds out of their account or withdraw funds mid-year and the account balance is reduced by 20
percent or more, HFS will recalculate fees for the remainder of the year and subsequent monthly invoices will
be adjusted accordingly. Clients assume responsibility and agree to alert HFS as soon as funds totaling 20
percent or more of an account balance are rolled out of or withdrawn from an account and are not deposited
into another account managed by HFS. If an updated statement or screenshot is not provided after a rollover
or withdrawal is processed and HFS is not alerted by the client that such action has taken place, HFS will
continue to bill fees each month based on the last known account balance used to calculate annual fees.
Fees will not be reassessed mid-year based on growth or deposits made into the account.
Investment advisory fees for assets under advisement will be billed directly to the client or deducted from
another account managed by HFS as directed by the client. (An invoice for fees will be provided to clients
that choose to pay by direct billing, either by check or credit card.)
Should advisory services be terminated mid-billing period, fees will not be charged or invoiced after the month
in which services are terminated.
Clients may terminate their contracts without penalty, for a full refund, within five (5) business days of signing
the advisory agreement with written notice. Advisory fees are withdrawn directly from client accounts with the
client’s written authorization.
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Item 7: Types of Clients

HFS generally provides management supervisory services to the following types of clients:
            Individuals
            High-Net-Worth Individuals
            Pension and Profit-Sharing Plans
            Charitable Organizations
            Business and Corporations
Minimum Account Size
HFS works primarily with individuals and families who have approximately $1 million in investable assets
and who value a long-term relationship that includes ongoing portfolio management and financial guidance.
While this reflects the typical profile of clients we serve, we may consider exceptions where appropriate.