Claris Financial LLC

Item 5 – Fees & Compensation

Portfolio Management Service Fees
Our annual portfolio management fee is billed and payable quarterly in advance and is based on the
closing value of the assets on the last day of the previous calendar quarter. If the portfolio
management agreement is executed at any time other than the first day of a calendar quarter, our fees
will apply on a pro rata basis, which means that the advisory fee is based the opening value of the
account payable in proportion to the number of days in the quarter for which you are a client.
Fees are negotiable based on many factors including the size, complexity and composition of the
services to be provided. The maximum Claris fee schedule is as follows:

Account Size                   Annual Fee
Up to $499,999                 2.50%
$500,000 to $999,999           2.25%
$1,000,000 to $4,999,999       2.00%
$5,000,000 to $9,999,999       1.50%
Over $10,000,000               Negotiable

Claris uses money market/stable value funds and cash defensively and tactically in its management
process; therefore assets invested in money market/stable value funds and cash are subject to Claris’
management fee.

Claris offers programs which allow us to bring investment services to our clients by using third-party or
separate account managers. Clients electing a separate account manager will be charged the fee
described in the Claris advisory agreement. A portion (ranging from .30% to .65%) of the total fee paid
to Claris will be allocated to the Separate Account Manager.

For investments in private funds or companies, Claris will charge a fee for services related to the
administration of capital committed to such investments. Fees for private investments will generally be
lower than the Firm’s standard fee schedule and will be agreed upon by the client and the Firm in
advance. Unlike liquid investments, private investment securities do not provide daily liquidity or
pricing. Fees will be calculated using the most recent value provided by the security sponsor.

Investment Advisory Agreement
Both the description of services offered and the specific manner in which fees are charged by Claris are
established in the client’s written “investment advisory agreement” with Claris. Claris bills its fees on a
quarterly basis. Individual client accounts are billed in advance. The Claris Investment Advisory
Agreement provides us with written authorization to deduct the fees to be paid directly from client
accounts held by the qualified custodian. The qualified custodian has agreed to deliver an account
statement at least quarterly directly to the client indicating the amounts deducted from the account,
Claris Financial, LLC                            6                                   Form ADV Part 2A

including the advisory fee.

Either Claris or their clients may terminate advisory agreements for any reason with written notice.
Upon receipt of written notice of termination (or communication by the Brokerage firm or custodian),
Claris will cease all advisory work on the client’s account as of that date and reimburse the client any
prepaid fees based on the pro rata number of days left in the billing period.

Additional Fees:
In addition to advisory and underlying investment fees, client accounts are also subject to various
custodial or account administration fees. These fees vary with each custodian but are always fully
disclosed to the client in advance.

Claris’ 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, third party investment and other third parties such as fees charged by managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds
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 the Claris
management fee.

Claris shall not receive any portion of these charges, fees or commissions, but may receive benefits as
a result of larger overall relationships.

Timing for Fee Billing
Clients will pay Claris a fee for its investment management services. This fee is commonly
referred to as the “advisory fee” or “management fee.” Advisory fees are payable quarterly in advance.

With the exception of a new client account, the actual fee will be a fractional percentage of the closing
value of the assets as of the last day of the calendar quarter. For new client accounts where the
investment advisory agreement is executed at any time other than the first day of a calendar quarter,
our fees will apply on a pro rata basis, which means that the advisory fee is based the opening value of
the account payable in proportion to the number of days in the quarter for which you are a client. Fees
will subsequently be charged and deducted as described above following the end of the calendar
quarter.

Account assets invested in shares of mutual funds or other investment companies will be included in
calculating the value of the account for purposes of computing the advisory fees. These same assets
will also be subject to any management fees and expenses as set forth in the prospectuses of those
funds. Such fees and expenses are paid by the funds but are ultimately borne by the investor.

Billing Process
Per the client’s advisory agreement, fees are deducted from a client’s account by the Custodian. As
Custodian, Schwab does not verify the accuracy of the fee. It is the client’s responsibility to verify the
accuracy of the fee.

Claris Financial, LLC                            7                                   Form ADV Part 2A

Clients who wish to terminate their advisory arrangement with Claris should notify us in writing to be
...

Item 7 – Types of Clients
As described in Item 4, Claris offers advisory services for individuals, families, small businesses, trusts
and a limited number of retirement plans. Our typical clients are those who are experienced and
comfortable with saving and investing for their retirement and their family’s future, board members
and/or trustees acting on behalf of the trust for an organization they represent, and
employers/business owners looking for an advisory group to assist them in making prudent decisions
for their employees’ retirement assets. In order to be able to offer our clients our most effective work,
Claris Financial, LLC                            8                                   Form ADV Part 2A

Claris Financial recommends (but does not require) that clients have at least $100,000 in total
manageable assets. This allows us to prudently diversify client accounts into lower cost investment
vehicles and avoid conflicts caused by certain investment minimums.