Legacy Capital Group California Inc

Item 5 – Fees and Compensation

The specific manner in which fees are charged by Legacy Capital Group California is established

through a client’s written agreement with us. Legacy Capital Group California will usually charge a
planning fee of $5,000 for individuals and is due at the time the planning agreement is entered into.
In the case of an extremely complicated plan, or a plan for a business, the typical fee could be
increased and/or combined with hourly consulting fees. In any case, the fee will be quoted and
agreed upon in writing prior to any work being performed. Legacy Capital Group California
typically provides financial reporting and back-office services through its affiliate, REACT
Investment Solutions, LLC (“REACT”). In addition, financial planning investment
recommendations provided by Legacy are carried out via the REACT platform. The REACT fee
schedule, described below, applies to such recommendations. Given the relationship between
Legacy and REACT, Legacy has an incentive to use REACT to provide services over other firms.
Such firms could charge lower fees for similar services.

All fees are subject to negotiation.

Legacy Capital Group California fees are exclusive of brokerage commissions, transaction fees, and
other related costs and expenses which shall be incurred by the client. Clients will likely incur certain
charges imposed by custodians, brokers, third party investments, and other third parties such as fees
charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire
transfers 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 Legacy Capital Group
California’s planning fee. In certain circumstances, Legacy Capital Group California will also
receive a portion of the fees the money manager, investment and/or platform collects from the
investor or investor’s account.
These fees and/or commissions provide Legacy Capital Group California’s primary compensation.

Legacy Capital Group’s principals, Richard Baer, and Brent Bunger receive commissions from any
insurance product for which they act as agent. The commissions received by them do not have any
impact on the price you pay for insurance premiums. The commissions are paid to Mr. Baer and
Mr. Bunger directly by the insurance company and do not increase your fees or premiums.
Nonetheless, these commissions create an incentive for Mr. Baer and Mr. Bunger to recommend
these products over other products, which could be cheaper. The commission received are typically
between .5% and 10% of the face value of the insurance coverage. Depending on the product, the
commission structure could be different.

Legacy Capital Group’s principals, Richard Baer and Brent Bunger will receive commissions from any
securities product placed through their broker dealer, Integrity Alliance. The security products placed
through Integrity Alliance by Mr. Baer and Mr. Bunger’s broker-dealer, currently are variable
annuities, 529 Plans, Axcelus International Private Placement Life Insurance and Axcelus
International Private Placement variable annuities. The commissions received by Mr. Baer and Mr.
Bunger do not have any impact on the price you pay for the securities product. The commissions are

paid to Mr. Baer and Mr. Bunger by Integrity Alliance and do not increase your Legacy Capital Group
fees or expenses. These commissions create an incentive for Mr. Baer and Mr. Bunger to recommend
these products over other similar products, which could be cheaper. The commissions received are
typically between 0% and 10% of the value of the initial investment. Depending on the product, the
commission structure could be different.

Legacy Capital Group’s principals, Richard Baer and Brent Bunger will receive commissions via the
broker dealer Integrity Alliance as well as money management/asset management fees from all
Axcelus International Private Placement products. For Axcelus International Private Placement
Variable Life products, Mr. Baer and Mr. Bunger will receive a portion no greater than 20% of the
mortality and expense fees collected by Axcelus International. These commissions are separate and
in addition to advisory fees charged by Legacy. This practice presents a conflict of interest because
persons providing investment advice on behalf of firms who are insurance agents and/or registered
representatives of broker-dealers, have an incentive to recommend products to clients for the
purpose of generating commissions rather than solely based on a client’s needs. The commissions
and portion of mortality and expense fees received by Mr. Baer and Mr. Bunger do not have any
impact on the price you pay for insurance premiums. The commissions and portion of mortality
and expense fees are paid to Mr. Baer and Mr. Bunger via the broker dealer, Integrity Alliance, and
do not increase your fees or premiums. The commission received are typically between .25% and
3% of the face value of the insurance coverage and/or annuity. Depending on the product, the
commission structure can vary slightly. A conflict of interest exists such that Mr. Baer and Mr.
Bunger receive commissions individually as well as asset management fees via their RIA Legacy
Capital Group California. Receiving this dual compensation could create an incentive for Legacy
Capital Group California to recommend investments which are eligible for commissions as well as
asset management fees.

The fee collection frequency, fee rate and manner will be detailed in each investment agreement and
could be different between investments. The fees charged by the money
manager/investment/platform could include performance fees. Performance fees will only be
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Item 7 – Types of Clients

Legacy Capital Group California provides investment advice to individuals, trusts, estates, charitable
organizations, corporations or business entities, pooled investment vehicles and qualified plans.

The majority of clients Legacy Capital Group California advises are high net worth individuals and
small business owners.