Legacy Financial Services Group Inc

Item 5 - Fees and Compensation

Investment Management Fees and Compensation
    Legacy Group charges a fee as compensation for providing Investment
    Management services to your account. These services include advisory and
    consulting services, trade entry, investment supervision, and other account
    maintenance activities. The custodian may charge custodial fees, transaction
    costs, redemption fees, retirement plan and administrative fees or commissions.
    See Additional Fees and Expenses below.
    The fees for accounts are based on an annual percentage of your assets that we
    manage. The fees are applied to the account asset value on a pro-rated basis,
    billed monthly, in arrears. Fees are usually deducted from a designated client
    account to facilitate billing. The client must consent in advance to direct debiting
    of their investment account.
    The initial fee will be based upon the market value of the account on the date the
    account is accepted for management by execution of the investment advisory
    contract by the Firm and the assets are transferred, and then prorated for the
    number of days in the calendar month that your account is under management.
    Thereafter, the fee will be based on the market value of the account on the last
    day of the previous calendar month and will cover the period from the first day of
    the calendar month through the last day of the calendar month. The market value
    will be determined as reported by the Custodian. Fees are assessed on all assets
    under management, including securities, cash and money market balances.
    Margin debit balances do not reduce the value of assets under management.
    Fees may vary based on the size of the account, complexity of the portfolio,
    extent of activity in the account or other reasons agreed upon by us and you as
    the client. Fees will generally follow the schedule of assets under management
    outlined below. In certain circumstances at our discretion, we may allow you to
    negotiate fees.
    The annual Advisory Service Agreement fee is based on a percentage of the
    investable assets according to the following schedule:

                                    Legacy Group

Maximum Annual Fee                 Portfolio Size (Assets Under Management)
1.75%                              Up to $249,000 (if accepted conditionally)
1.50%                              $250,000 - $499,999
1.00%                              $500,000 - $999,999
0.90%                              $1,000,000 - $1,999,999
0.80%                              $2,000,000 - $2,999,999
0.70%                              $3,000,000 - $4,999,999
Determined at Engagement           $5,000,000 +

Current client relationships may exist where the fees are higher or lower than the
fee schedule above.
In our discretion, we may add (aggregate) asset amounts in accounts from your
same household together to determine the advisory fee for all your accounts. We
may do this, for example, where we also service accounts on behalf of your minor
children, individual and joint accounts for a spouse, and/or other types of related
accounts. This consolidation practice is designed to allow you the benefit of an
increased asset total, which could potentially cause your account(s) to be
assessed a reduced advisory fee based on the asset levels available in our fee
schedule.
You authorize us to debit your account for our fee. The independent qualified
custodian holding your funds and securities will debit your account directly for the
advisory fee and pay that fee to us.
You will provide written authorization permitting the fees to be paid directly from
your account held by the qualified custodian. Further, the qualified custodian
agrees to deliver an account statement at least quarterly directly to you indicating
all the amounts deducted from the account including our advisory fees. You are
encouraged to review your account statements for accuracy. We will receive a
duplicate copy of the custodian’s statement that was delivered to you.
Although the Wealth Management Agreement is an ongoing agreement and
constant adjustments are required, the length of service to the client is at the
client’s discretion. The client or Legacy Group may terminate the Agreement by
written notice to the other party. At termination, fees will be billed on a pro rata
basis for the portion of the month completed. The portfolio value at the
completion of the prior full billing month is used as the basis for the fee
computation, adjusted for the number of days during the billing month prior to
termination. Upon termination, you are responsible for monitoring the securities in
your account, and we will have no further obligation to act or advise with respect
to those assets.

                                Legacy Group

Additional Fees and Expenses:

     Advisory fees payable to us do not include the fees you may pay when we
     purchase or sell securities for your Account(s). The following list of fees or
     expenses are what you may pay directly to third parties, whether a security is
     being purchased, sold or held in your Account(s) under our management.

         •   Brokerage commissions;
         •   Transaction fees;
         •   Exchange fees;
         •   SEC fees;
         •   Advisory fees and administrative fees charged by Mutual Funds (MF),
             and/or Exchange Traded Funds (ETFs)
         •   Advisory fees charged by sub-advisers (if any are used for your account
         •   Custodial Fees;
         •   Deferred sales charges (on MF or annuities);
         •   Odd-Lot differentials;
         •   Transfer taxes;
         •   Wire transfer and electronic fund processing fees;
         •   Fees on existing variable annuities that may have been subject to trailing
             service fees, deferred sales charges, and mortality and expense fees.
...

Item 7 - Types of Clients

Description
      Legacy Group generally provides investment advice to individuals, banks or thrift
      institutions, investment companies, pension and profit sharing plans, trusts,
      estates, or charitable organizations, corporations or business entities.
      Client relationships vary in scope and length of service.
Account Minimums
      The minimum account size is $250,000.00 of assets under management, which
      equates to an annual fee of $3,750.00.
      When an account falls below $250,000 in value, the management fee percentage
      will remain unchanged. Depending upon circumstances, Legacy Group will
      negotiate a lower rate.
      Legacy Group has the discretion to waive the account minimum. Accounts of
      less than $250,000 may be set up when the client and the advisor anticipate the
      client will add additional funds to the accounts bringing the total to $250,000
      within a reasonable time. Other exceptions will apply to employees of Legacy
      Group and their relatives, or relatives of existing clients.
      Clients receiving ongoing asset management services and with assets below the
      minimum account size may pay a higher percentage rate on their annual fees
      than the fees paid by clients with greater assets under management.

                                      Legacy Group