Clarity Investments Planning LLC

Item 5: Fees and Compensation

We base our fees on hourly charges, fixed fees, and a percentage of assets under management,
which are described below.

Compensation – Financial Planning/Consulting Services
Clarity may charge a fixed fee and/or hourly fee for financial planning and consulting services.
These fees are negotiable, but generally range from $600 to $4,000 on a fixed fee basis and/or
$300 on an hourly basis, with a minimum of $600 for a first -time engagement. If the client
engages Clarity for additional investment advisory services, Clarity may offset all or a portion of
its fees for those services based upon the amount paid for the financial planning services.

Prior to engaging Clarity to provide financial planning or consulting services, the client is
required to enter into a written agreement with Clarity setting forth the terms and conditions
of the engagement. Generally, Clarity requires the entire financial planning fee payable upon
entering the written agreement. The balance (if any) is generally due upon delivery of the
financial plan or completion of the agreed upon services. Consulting services are typically
charged on a retainer basis, quarterly in advance.

Compensation – Investment Management Fee
Clarity provides investment management services for an annual fee based upon a percentage of
the market value of the assets being managed by Clarity. Clarity’s annual fee is exclusive of, and
in addition to brokerage commissions, transaction fees, and other related costs and expenses
which are incurred by the client. Clarity does not, however, receive any portion of these
commissions, fees, and costs.

Clarity’s annual fee is prorated and charged quarterly, in advance, based upon the market value
of the assets being managed by Clarity on the last day of the previous quarter. The annual fee
varies depending upon the market value of the assets under management.

             Portfolio Value                                           Base Fee*
             Up to $500,000                                              1.00%
          $500,001 to $1,000,000                                         0.75%
            Above $1,000,000                                             0.50%
* Minimum Annual Fee - $4,000

Clarity, in its sole discretion, may negotiate to charge a lesser management fee based upon
certain criteria (i.e., anticipated future earning capacity, anticipated future additional assets,
dollar amount of assets to be managed, related accounts, account composition, pre-existing
client, account retention, pro bono activities, etc.)

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our
       clients’ best interests;
   •   charge no more than a reasonable fee for our services; and
   •   give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to

the extent the following options are available, clients should consider the costs and benefits of
a rollover. Note that an employee will typically have four options in this situation:

   1.   leaving the funds in the employer’s (former employer’s) plan;
   2.   moving the funds to a new employer’s retirement plan;
...

Types of Clients
Clarity provides its services to individuals, high net worth individuals, pension and profit-
sharing plans, and corporations or other business entities.

Account Minimums
As a condition for starting and maintaining a relationship, Clarity generally imposes a minimum
annual fee of $4,000. This minimum fee may have the effect of making Clarity’s service
impractical for clients, particularly those with portfolios less than $200,000 under Clarity’s
management. Clarity, in its sole discretion, may waive its minimum annual fee based upon
certain criteria including anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition, pre-
existing client, account retention, and pro bono activities.

Additionally, certain Independent Managers may impose more restrictive account requirements
and varying billing practices than Clarity. In such instances, Clarity may alter its corresponding
account requirements and/or billing practices to accommodate those of the Independent
Managers.