Legacy Financial Advisors II LLC

Item 5.    Fees and Compensation
In addition to the information provided in Item 4 Advisory Services, this section provides
additional details regarding the Firm’s services along with descriptions of each service’s fees and
compensation arrangements. It should be noted that lower fees for comparable service may be
available from other sources. The exact fees and other terms will be outlined in the agreement
between the client and the Firm.

A. Fees and Compensation for Portfolio Management
We typically charge a standard fee that is based on a percentage of the assets we manage in the
client’s accounts (“Advisory Fee(s)”). Advisory Fees are charged quarterly in arrears. When
managing Client Accounts directly, Advisor utilizes multiple investment strategies that are
implemented via separate investment models (“Model(s)”). Each Model has its own
corresponding Advisory Fee. Client Accounts are comprised of a blend of these Models. The
Advisory Fee charged to the Client and due to the Advisor will be calculated based on the total
value of the Client’s portfolios under LFA’s management and how the Client’s assets under
management are distributed among the Models. The maximum annual advisory fee LFA charges
its clients is 1.50%.

The quarterly Advisory Fee to be charged to Client account(s) that hold multiple Models shall be

                                                                         Legacy Financial Advisors

calculated by multiplying the average daily balance held in each individual Model during the
month by the fee applicable to that strategy, which yields a “Quarterly Per Strategy Fee,” then
adding all Quarterly Per Strategy Fees together. Breakpoint calculations are based on the average
daily balance of the household for the billing period and that breakpoint fee is applied for the
entire period.

Please note that some Client assets may be considered assets under management for purposes
of calculating our fee even though they would not be considered assets under management for
purposes of regulatory reporting. The Advisory Fee shall be based on the fair market value of the
assets under management.

In individual cases, LFA has the sole discretion to negotiate fees that are lower than the standard
fee shown or to waive fees.

Our receipt of an asset-based fee presents a conflict of interest. This is because the more assets
there are in the client’s account, the more the client will pay in fees. Therefore, we have an
incentive to encourage clients to increase the assets in their accounts. We address the conflict of
interest by ensuring any such recommendation are in the client’s best interest.

Clients are provided a one-time financial plan concerning their financial situation. After the
presentation of the plan, there are no further reports. Clients may request additional plans or
reports for a fee.

Fees are never based on the share of capital gains, capital appreciation of the funds, or any
portion of the funds. Comparable services for lower fees may be available from other sources.

Fees for the initial month will be prorated based upon the number of calendar days in the
calendar month that the advisory agreement is in effect.

As authorized in the client agreement, the account custodian withdraws LFA’s advisory fees
directly from the clients’ accounts according to the custodian’s policies, practices, and
procedures. The custodial statement includes the amount of any fees paid to LFA for advisory
services. You should carefully review the statement from your custodian/broker-dealer’s
statement and verify the calculation of fees. Your custodian/broker- dealer does not verify the
accuracy of fee calculations.

Fees are charged in arrears on a quarterly basis, meaning that advisory fees for a month are
charged on or about the first day of the following month. Clients may terminate investment
advisory services obtained from LFA, without fees or penalties, upon written notice within five
(5) business days after entering into the advisory agreement with LFA. Thereafter, the client may
terminate advisory services upon written notice delivered to and received by LFA. Clients who
terminate investment advisory services during a month are charged a prorated advisory fee
based on the date of LFA’s receipt of client’s written notice to terminate. Any earned but unpaid

                                                                         Legacy Financial Advisors

fees are immediately due and payable, and any prepaid and unearned fees will be immediately
refunded.

B. Fees and Compensation for Fianncial Planning
Financial planning fees are charged in arrears through an hourly arrangement as agreed upon
between the client and Legacy Financial Advisors LLC. There will never be an instance where $500
or more in fees is charged six or more months in advance of receiving our financial planning
advice.

Hourly fees are generally charged when the scope of services cannot be determined or if the
services are limited to one meeting. Fixed fees are generally quoted to the client for longer-term
consulting projects. Whether the fee is hourly or fixed will be reflected in the client agreement.
Fees are negotiable and vary depending upon the complexity of the client situation and services
to be provided. Hourly fees range from $100 - $350 per hour, depending on what is negotiated
between LFA and the client. An estimate for total hours and charges is determined at the start of
the advisory relationship. Similar financial planning services may be available elsewhere for a
lower cost to the client.

Typically, clients will be invoiced monthly for all time spent by LFA as agreed upon by client or
upon completion of the services if less than a month. Clients who wish to terminate the planning
process prior to completion may do so with written notice. The client may obtain a refund of a
pre-paid fee if the advisory contract is terminated before the end of the billing period by
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Item 7.    Types of Clients
The Firm provides investment advisory services to individuals, high net worth individuals, pension
and profit sharing plans (but not the plan participants or government pension plans), broker-
dealers, and corporations or businesses not listed above.

For individual accounts, our minimum relationship opening balance is $250,000, which may be
negotiable based upon certain circumstances.