Claret Asset Management Corp

ITEM 5. FEES AND COMPENSATION

     A. COMPENSATION FOR ADVISORY SERVICES

Claret earns fees for investment management, based on the value of assets under
management in your portfolio. Generally, the separately managed discretionary accounts are
subject to a management fee of up to 1.25% per annum and billed quarterly in arrears. Fees
on larger accounts are charged based on tiers and may be negotiable.

     B. PAYMENT OF FEES

Most clients choose to have their custodian pay our fees directly from their account upon
receipt of our invoice with the justifying calculation based on the client signed investment
policy statement. Some clients choose to be billed directly. We bill quarterly, every three
months, in arrears based on the value of the portfolio at the end of the previous quarter.

     C. OTHER FEES AND EXPENSES YOU MAY PAY

Claret does not provide custodial services, so you will have to choose a qualified custodian to
hold your assets. Several options are available. Traditional custodians or trust companies
usually charge a fee based on the value of your portfolio. They may also charge fees for each
transaction within the portfolio. The fees are set out in your contract with the custodian you
have selected.
Brokerage firms can also provide custody services. They do not generally, charge a fee on the
value of your portfolio; instead they make their money from commissions charged on
transactions.
You will pay brokerage commission fees whenever we trade in your portfolio. Claret is able to
select any broker to use for trading in your account. We are not limited to trading only with
your broker. However, if a client selects a brokerage firm that Claret does not have a
relationship with, the brokerage firm will charge you fees for transactions regarding custody of
your security. These fees are charged on transactions commonly called DAP or RAP (delivery
against payment or receipt against payment).
If Claret has a relationship with the broker you choose as custodian, we generally negotiate
more favorable commission rates due to our volume of business. Brokerage firms allow Claret
to use outside brokers, either to get access to a particular investment or to obtain a better
price for you. In these cases, if your broker also acts as your custodian, you will not be charged
a DAP or RAP (delivery against payment or receipt against payment) fee to settle the trade
within your account. Custodians and brokers may also charge a fee to wire payments to you

or to research information for you (such as printing duplicate tax slips or verifying tax costs).
When you hold non-North American securities, the brokerage commission you pay for each
transaction will generally be higher.
Other expenses you may pay would include government withholding taxes on income such as
dividends. Additional governmental charges, taxes and duties may apply.

     D. PAYMENT

The investment management fees on Claret’s separately managed client accounts are payable
in arrears, using the quarter end market value of the previous quarter. If you terminate the
advisory contract with us before the end of the billing period, we will send your custodian an
invoice for the portion of the fees payable from your account from the agreed upon date of
termination. You are required to inform us of termination. We do not force clients to prepay
our fees or pay fees in advance of services.

     E. COMPENSATION TO SUPERVISED PERSONS

We do not have compensation arrangements to disclose with respect to supervised persons,
i.e. we do not pay commissions or sales charges to any Claret employees.

ITEM 7. TYPES OF CLIENTS
Claret is an investment advisory firm, managing private portfolios mainly for clients in North
America.
The minimum for opening an account directly with Claret is generally $500,000 for separately
managed clients. Individuals and entities with smaller accounts may become clients at Claret’s
discretion.
At Claret, we specialize in handling the needs of individual investors. Our services extend to
many types of investment accounts: personal investment account, corporate account, trust
account, foundations, registered accounts and more.