Each arm is perpendicular to the rod that is connected to it. At the middle of it's travel. You need to completely ignore "vertical" and "horizontal", and just look at the angles relative to the pivot points, and contact points, of each arm and rod. This includes the pedal arm, too. The pedal "pulls" the Z bar, and the Z bar "pushes" the throwout arm. The outer end pivot should be retained with a clip, and it locates the Z bar sideways. The Z bar tube slides on the inner pivot, in and out, as needed when the engine moves relative to the car's frame.