Clarity Financial LLC

ITEM 5 - FEES AND COMPENSATION
Asset Management
For asset management RIA Advisors is compensated by advisory fees that are based on a
percentage of assets under advisory management. The maximum percentages charged,
based on assets under management, are set out on our fee schedule as follows:

                Net Asset Value                            Annualized Fee
              $0.00 - $2,000,000                              1.25%
            $2,000,001 - $4,000,000                           1.00%
                  $4,000,001 +                                  0.90%

The Advisory Fee will be based on the Net Asset Value of the assets under management
in the Account, including cash and accrued interest. The "Net Asset Value" of the Account
shall mean the current value of the Account on the last business day of the respective
quarterly period. Fees are calculated by multiplying the Net Asset Value of the account by the
relevant percent and dividing such product by 365 days then multiplying product by days
contained within current quarter. Accounts opened in mid-quarter will be assessed a pro-
rated management fee. Normally, fees are payable one-time fee paid in advance, but the
customer can negotiate the payment of fees in arrears. Fees may be deducted from
client's account(s) within ten (10) days following the end of the month or quarter for which
said fees will be incurred. All advisory fees are based on bundled pricing. Fees are
withdrawn directly from the client’s accounts with client’s written authorization or may be
invoiced and billed directly to the client; clients may select the method in which they are
billed payable via cash, check, or wire. Invoiced fees will be paid via online payment
processing. Currently RIA Advisers utilizes PayPal.

Any client charged a quarterly fee in advance will be given a pro-rata refund of fees, if
services are terminated prior to the end of the quarter billed.

Fees are calculated on an incremental basis and are subject to change with 30 days
written notice. Notwithstanding the above, based upon pre-existing relationships, assets
under management and other factors relevant to an engagement, the actual fees charged
can be less than those set out above. Fees are withdrawn directly from client account
with client written authorization & Invoiced and payable via cash, check, or wire. Fees are
paid quarterly and in advance.

Either party can terminate at any time by giving thirty (30) days prior written notice of such
termination to the other party. If the Account is to be liquidated as the result of a
termination notice, the parties understand that the process of liquidation can take up to
five (5) trading days following the date RIA Advisors received the liquidation request.

Transaction Costs: Our fees are exclusive of brokerage commissions, transaction fees,
and other related costs and expenses which shall be incurred by the client. Clients
generally 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.

The above fee schedule includes RIA Advisors’ held-away account services through the
Pontera a third-party online platform for direct management of 401ks, 403bs, 529 plans,
and other assets for which RIA Advisors does not have custody and are held at
custodians other than those RIA Advisors recommends. RIA Advisors is not affiliated with
the platform in any way and receives no compensation from them for using their platform.
A link will be provided to the client allowing them to connect an account(s) to the platform.
Once client account(s) is connected to the platform, RIA Advisors will review the current
account allocations. When deemed necessary, RIA Advisors will rebalance the account
considering client investment goals and risk tolerance, and any change in allocations will
consider current economic and market trends. Fees are based on the assets within these
accounts according to the valuation of the accounts at the close of the quarter as valued
by the account custodian. RIA Advisors strongly encourages Client to confirm the market
values for accuracy against Client’s custodian statements.

Securities Backed Line of Credit: For certain clients, RIA Advisors will recommend and
can facilitate the establishment of Securities Backed Line of Credit (SBLOC) / Non-
Purpose Loans through a third-party bank. An SBLOC is a bank line of credit
collateralized by the assets of the managed account. An SBLOC enables clients to access
non-purpose credit that is secured by that client’s brokerage and/or advisory portfolio.
The maximum amount of the credit given depends on the lending value of the portfolio.
Securities Backed Lending creates additional risks for managed account clients including,
but not limited to being subject to a collateral call due to a drop in the account’s value
attributable to downward market movement, market volatility and credit exposure. All
these can lead to collateral shortfalls and cause the bank which has extended the credit,
to ask the managed account client for additional collateral or can cause the liquidation of
existing collateral to satisfy the collateral shortfall. Such a circumstance can result in the
failure to reach investment goals. Any securities-based lending fees and interest are
separate and in addition to any fees paid pursuant to the RIA Advisors investment

management agreement. These types of loans are not suitable for all investors and carry
a number of other risks (please refer to Item 8 below for further details on risks). Clients
should not obtain such a loan or line of credit without fully understanding the benefits and
risks.

There also is a conflict of interest between RIA Advisors and a client implementing a
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ITEM 7 - TYPES OF CLIENTS
RIA Advisors provides advisory services to individuals, high net worth individuals,
charitable organizations and to small businesses, such as sole proprietorships,
partnerships, and small corporations.

Additionally, the Adviser provides investment advisory services to the following types of
clients:

    •      Tax-qualified retirement plans (both defined benefit and defined contribution)
           that are intended to receive favorable tax-treatment under section 401(a) or
           403(b) of the IRC
    •      Non-qualified executive deferred compensation plans

    •      Other types of retirement plan types as may be introduced to the Programs.

The Adviser requires a $15,000 account minimum, waivable at its discretion.