The Clarus Group Inc

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more written agreements with the Advisor.

A. Fees for Advisory Services
Wealth Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement. Investment advisory fees are based on the market value of assets under
management at the end of the prior calendar quarter.

Investment advisory fees range from 0.50% to 1.50% annually based on several factors, including: the
complexity of the services to be provided, the level of assets to be managed, and the overall relationship with the
Advisor. Relationships with multiple objectives, specific reporting requirements, portfolio restrictions and other
complexities may be charged a higher fee. The Client’s fees will take into consideration the aggregate assets
under management with the Advisor. The investment advisory fee in the first quarter of service is prorated from
the inception date of the account[s] to the end of the first quarter. Fees may be negotiable at the sole discretion
of the Advisor.

All securities held in accounts managed by The Clarus Group will be independently valued by the Custodian. The
Clarus Group will conduct periodic reviews of the Custodian’s valuation to ensure accurate billing. The Advisor’s
fee is exclusive of, and in addition to, any applicable securities transaction and custody fees, and other related
costs and expenses described in Item 5.C. below, which may be incurred by the Client. However, the Advisor
shall not receive any portion of these commissions, fees, and costs.

The Client may make additions or withdrawals from the account[s] at any time, subject to the Advisor’s right to
terminate an account or the overall relationship. Additions may be in cash or securities provided that the Advisor
reserves the right to liquidate any transferred securities or decline to accept particular securities into a Client’s
account[s]. Clients may withdraw account assets on notice to The Clarus Group, subject to the usual and
customary securities settlement procedures. However, the Advisor typically designs its investment portfolios as
long-term investments and the withdrawal of assets may impair the achievement of a Client’s investment
objectives. Clients are advised that when such securities are liquidated, they may be subject to securities
transaction fees, short-term redemption fees, and/or tax ramifications. If assets in excess of $100,000 are
deposited into or withdrawn from the Client’s account[s], the Advisor’s fee will be adjusted prior to the next billing
period to reflect the fee difference. The Advisor may negotiate a fee that differs from the schedule above for
certain account[s] or holdings.

Use of Independent Managers – As noted in Item 4, the Advisor may implement all or a portion of a Client’s
investment portfolio utilizing one or more Independent Managers. To eliminate any conflict of interest, the Advisor
does not earn any compensation from an Independent Manager. The Advisor will only earn its investment
advisory fee as described above. Independent Managers typically do not offer any fee discounts but may have a
breakpoint schedule that will reduce the fee with an increased level of assets placed under management with an
Independent Manager. The terms of such fee arrangements are included in the Independent Manager’s
disclosure brochure and applicable contract[s] with the Independent Manager. The total blended fee, including
the Advisor’s fee and the Independent Manager’s fee, will not exceed 2.50% annually.

Financial Planning Services
                                                 The Clarus Group, Inc.
                                              520 Post Oak Blvd., Suite 750,
                                                   Houston TX 77027
                                                 Phone: (713) 621-3500
                                               www.claruswealthgroup.com

The Clarus Group typically offers financial planning services as a component of wealth management services as
described above. The Clarus Group also offers its financial planning as a standalone service based on a fixed
annual fee ranging up to $50,000 per year. Fees may be negotiable based on the nature and complexity of the
services to be provided and the overall relationship with the Advisor. An estimate for total fees will be provided to
the Client prior to engaging for these services.

Estate Planning Document Generation – The Clarus Group offers estate planning document generation services
as an additional service under financial planning for a one-time flat fee of either $1,700 per household or $1,000
per individual.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 1.25% and are
deducted pursuant to the terms of the agreement. Retirement plan fees are based on the market value of assets
under management. Fees may be negotiable depending on the size and complexity of the Plan.

Financial Institution Consulting Services
The Clarus Group receives a consulting fee based on the Assets Under Management from Brokerage Customers
who have provided written consent to a broker/dealer to receive the investment consulting service from The
Clarus Group and have entered into a written advisory contract with The Clarus Group. The consulting fee is
calculated from the Assets Under Management as of the end of a calendar quarter period multiplied by the
annualized rate up to 75 basis points. The initial fee is paid only after the completion of one full calendar quarter
period following the date of the executed agreement with broker/dealers.

B. Fee Billing
Wealth Management Services
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Item 7 – Types of Clients
The Clarus Group offers investment advisory services to individuals, high net worth individuals, trusts, estates,
businesses, and retirement plans. The Clarus Group generally does not impose a minimum relationship size.