ICM Asset Management Inc

Item 5 – Fees and Compensation
ICM charges individually managed accounts an annual management fee based on a percentage
of the market value of assets under management as calculated by ICM on the date the fee
becomes due and payable. All fees are subject to negotiation. The specific manner in which fees
are charged by ICM is established in each client’s written agreement with ICM. Clients may elect
to be billed directly for fees or to authorize ICM to directly debit fees from the client(s) custodial
account(s). Regardless of the fee billing option, clients will always receive a copy of the quarterly
invoice for their records. The fees are generally payable in advance at the beginning of each
calendar quarter (January 1, April 1, July 1, and October 1).

The fee schedule below describes the current standard fees applied to most new non-wrap fee
accounts. However, some clients’ fees may vary depending on individual circumstances. Wrap
fee clients may pay fees lower than those listed as a result of negotiated agreements between
the wrap sponsor and ICM.            ICM reserves the right to negotiate fees.

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ICM’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges by custodians,
brokers, and other third parties such as: custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on
brokerage accounts. These are exclusive of and in addition to ICM’s management fee, and ICM
shall not receive any portion of these expenses.

Item 7 – Types of Clients
ICM may provide discretionary portfolio management services to individuals, high-net-worth
individuals, corporations and businesses, and other pension plans, charitable institutions,
foundations and endowments, trusts, estates, banks, thrifts, insurance companies, and private
investment funds.

All discretionary clients are required to enter into a written Investment Management Agreement,
and under such agreement may be required to provide additional documentation/personal
information prior to the establishment of the advisory relationship. Furthermore, Clients should
note that all or a portion of the securities in their account may be sold during the course of the
management of the account. The client is responsible for all tax liabilities arising from such
transactions.      Also, depending on market conditions it may take new accounts and/or
contributions to existing accounts, six to nine months to be fully invested into the selected strategy.

ICM may also offer non-discretionary model portfolio investment recommendations to Model
Program Sponsors in the form of model portfolios based on one or more of our investment
strategies. Program Sponsors utilize the model portfolios to provide investment services to their
clients. However, it is up to the Model Program Sponsor to accept, modify, or reject ICM’s model
portfolio recommendations and therefore, ICM does not have trading authority or discretion over
these portfolio assets. The “Model Program Sponsors” clients are not ICM clients. On a quarterly
basis ICM receives a portion of the investment management fee paid to the Model Program
Sponsor by the participating portfolios.

ICM Asset Management, Inc.                    Page 11 of 36                         ADV Brochure, Part 2A