Legacy Financial Advisors Inc

Item 5 Fees and Compensation
LEGACY’S FEE SCHEDULE AND BILLING

Financial Planning Services. Legacy provides financial planning services, as described in Item 4, for a flat fee
of $5,000, payable upon delivery to the client of the financial plan.

Advisory Services. Unless otherwise stated, Legacy’s fee for providing investment advisory services is
calculated as a percentage of the market value of all assets in the client’s account. The fee schedule depends
on the nature of services that Legacy provides to clients. Legacy’s account minimum is typically $500,000
for new clients. Regardless, we reserve the right to accept or decline a potential client for any reason in our
sole discretion.

Legacy’s standard fee schedule is as follows:

                      Asset Breakpoints                       Standard Fee Schedule (per annum)

                              <$1M                                             1.00%
                          >$1M - $3M                                           0.80%
                          >$3M - $5M                                           0.60%
                         >$5M - $10M                                          0.50%
                            >$10M                                            Negotiable

    *The specified fee rate applies only to assets within the applicable breakpoint tier, not to all managed assets.

Legacy’s management fee is billed quarterly in arrears using an average daily balance calculation. The initial
management fee is prorated for the number of days remaining in the calendar quarter based on the average daily
balance from the day the account is opened. Thereafter, the quarterly fee is based on the average daily fair
market value of the assets in the client’s account(s) during the preceding quarter as valued by the account
custodian. Legacy’s management fees are generally debited from a client’s account by the custodian; however,
upon request of the client, Legacy will invoice the client separately instead of having the custodian debit the
fee.

Legacy Planned Outcome Portfolios (“POPS”). The account minimum for new clients enrolled in POPS
strategies is $200,000 subject to a flat fee of up to 1.50% per annum. The flat fee is billed same as the
standard fee schedule described above (i.e. quarterly in arrears based on average daily value).

ADDITIONAL FEES AND EXPENSES

In addition to Legacy’s fee, the client may be responsible for the payment of certain additional fees,
including, if applicable, the fees described in more detail below.

Public Fund Management Fees and Expenses. As part of Legacy’s investment advisory services, Legacy
may invest in, or recommend that you invest, in mutual funds, exchange traded funds (“ETFs”), real estate
investment trusts (“REITs”), master limited partnerships, or other publicly traded pooled investment vehicles
(collectively, “Public Funds”) depending on their suitability and the overall benefits each may provide to the
particular asset allocation strategy. Public Funds incur management fees and other operating fees and
expenses as disclosed in the prospectuses for such funds. The fee that a client pays to Legacy for investment
advisory services are separate and distinct from the fees and expenses charged by Public Funds.

Performance Reporting Fee. Legacy’s fee does not include the cost for performance reporting provided to
the client. Legacy engages a third party to conduct performance reporting. The fee owed to the performance
reporting provider is payable quarterly. In the investment advisory agreement, the client authorizes the
custodian to deduct this fee, in conjunction with Legacy’s management fee, to cover fees owed to the
performance reporting provider. The quarterly performance reporting fee is equal to the greater of $4.50 per
account or an amount equal to .0025% of the average daily fair market value of the assets in the client’s
account for the preceding quarter.

Other Costs. Legacy generally recommends that clients utilize the brokerage and clearing services of Fidelity,
which includes National Financial Services LLC and Fidelity Brokerage Services LLC (together with
affiliates, “Fidelity”), and Charles Schwab & Company Inc. (“Schwab”) for investment management
accounts. Legacy may only implement its investment management recommendations after the client has
arranged for and furnished Legacy with all information and authorization regarding accounts with appropriate
financial institutions. Financial institutions include, but are not limited to, Fidelity, Schwab, any other broker-
dealer recommended by Legacy, broker-dealer directed by the client, trust companies, banks, etc. (collectively
referred to herein as the “Financial Institutions”).

Clients may incur certain charges imposed by the Financial Institutions and other third parties such as fees
charged by Independent Managers, custodial fees, charges imposed directly by a mutual fund or ETF in the
account, which are disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses),
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. Such charges, fees, and commissions are
exclusive of and in addition to our fee. For information on our brokerage practices, please refer to Item 12 of
this Brochure titled “Brokerage Practices.”

Negotiated Fees. Legacy, in its sole discretion, may reduce its financial planning, advisory services,
performance reporting and any other fees charged by Legacy based upon certain factors, such as future
anticipated earning capacity, anticipated future assets, and dollar amount of assets to be managed, related
accounts, account composition, negotiations with client and other considerations.

COMPENSATION FOR THE SALE OF SECURITIES OR OTHER INVESTMENT/INSURANCE
PRODUCTS & CONFLICTS OF INTEREST
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Item 7 Types of Clients
Legacy offers personalized, goal-oriented financial guidance to individuals, pension plans, profit sharing plans,
estates, trusts, charitable organizations, corporations and other business entities.

As discussed in response to Item 5, Legacy may impose a minimum account size for its services.