Perceptive Edge Investment Management Inc

Item 5 – Fees and Compensation

Perceptive Edge bases its fees on one of the following methods: retainer fee, percentage of
assets under advisement, fixed fee, or hourly fee. All fees charged by Perceptive Edge are
negotiable.

Retainer Fees
Retainer fees are typically used with pension and profit sharing plans, charitable organizations,
corporations, and other business entities. These entities usually hire Perceptive Edge for non-
discretionary investment consulting engagements. Fees are negotiable based on the size of the
plan or account and the complexities involved. Fees for non-discretionary investment
consulting services typically range from $10,000 to $80,000 per year.

Percentage of Assets Under Advisement
Fees based on a percentage of assets under advisement are typically used with individual
clients, trust accounts, and estate accounts. Annual fees for discretionary services are generally
charged according to the following schedule:

     Assets Under Management                                  Percentage
      First $1,000,000                                            .80
      Next     $500,000                                           .70
      Next     $500,000                                           .60
      Over $2,500,000                                             .50

Fixed Fees
Fixed fees are charged for project based consulting services. The fee is determined based on
the scope and complexity of the services and detailed in the client’s engagement letter.

Hourly Fees
Perceptive Edge may charge an hourly fee for services provided. The hourly fees range from
$200 to $400 per hour depending on the scope and complexity of the services requested.

The specific manner in which fees are charged by Perceptive Edge is established in a client’s
written engagement letter. Fees paid to Perceptive Edge are for Perceptive Edge advisory
services only. Perceptive Edge will generally bill its fees on a quarterly basis in arrears. Clients
may elect to be billed directly for fees or to authorize Perceptive Edge to directly debit fees
from client accounts. Accounts initiated or terminated during a calendar quarter will be
charged a prorated fee. Upon termination of any account, any unpaid fees will be due and
payable.

Perceptive Edge’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 imposed by custodians, brokers, and third party investment advisors. Other third party
fees may include fees charged by independent investment managers, custodial fees, deferred
sales charges, odd-lot differential fees, transfer taxes, wire transfer and electronic fund fees,
and other fees and taxes on brokerage accounts and securities transactions. Mutual funds,
collective investment trusts, and exchange traded funds also charge internal management fees,
which are disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of
and in addition to Perceptive Edge’s fee. Perceptive Edge does not receive any portion of these
third party commissions, fees, and costs.

Item 6 –Performance-Based and Side-By-Side Management

Perceptive Edge does not charge any performance-based fees (fees based on a share of capital
gains or capital appreciation of the assets of a client).

Item 7 – Types of Clients

Perceptive Edge provides investment advisory services to a wide variety of clients, including but
not limited to, pension and profit sharing plans, individuals, trusts, estates, charitable
organizations, corporations, and other business entities.

Perceptive Edge does not require a minimum account size, but favors accepting institutional
accounts greater than $10,000,000 or individual accounts greater than $1,000,000 in assets.
The firm has the right to reject or terminate any account for any reason.