Legacy Financial Strategies LLC

Item 5 Fees and Compensation

A. Fees for Investment Management Services

Legacy charges fees based on a percentage of assets under management or as a fixed fee. Actual fees
charged by Legacy are detailed in each client’s investment management agreement with Legacy. Legacy
reserves the option to negotiate fees based upon the complexity and unique needs of each client. Legacy
generally aggregates account values within a household for purposes of determining applicable fee
levels in a tiered structure, although limited exemptions may exist. Either party has the authority to
terminate the agreement with 30 days’ written notice.

Advisory fees are billed quarterly in advance (i.e. at the beginning of the service quarter). Fees are
calculated using an average daily balance method using the tiered investment fee schedule referenced
below or an agreed upon fee. The average daily balance for each account is determined by calculating
the total dollar value for every calendar day during the quarter preceding the service quarter. All daily
account balances for that quarter are then added together and divided by the number of days in that
quarter. The fee is then calculated by multiplying the average daily balance of the account by the
percentage in the tiered investment fee schedule.

                         Assets Under Management                    Annual Rate
                         First $250,000                             1.75%
                         Next $500,000                              1.25%
                         Next $1,750,000                            1.00%
                         Over $2,500,000                            0.75%

Fees are generally deducted directly from the client’s applicable account(s) unless other arrangements
are made and agreed to by Legacy. Should the client open an account during a quarter, the partial period
fee will be billed in arrears and prorated based on the beginning balance and the number of days that the
Account was open during the quarter. Should the client add to an account during a quarter, the partial
period fee will be billed in arrears and prorated based on the contribution amount and the number of days
that the additional funds were in the account during the quarter.

Accounts under the Legacy Next program are billed at an annual rate of up to 1.50% Legacy may have
previously negotiated fee arrangements with current clients that are no longer offered to new clients
which differ from the fee terms and schedule above. Additionally, Legacy may charge accounts held
outside of our regular custodians (e.g. directly held mutual funds, 529 accounts, annuities, etc.) based on
ending balance rather than average daily balance.

An advisory client will have a period of five (5) business days from the date of signing the investment
management agreement to unconditionally rescind the agreement and receive a full refund of all fees.
Thereafter, either party has the authority to terminate the agreement with 30 days’ written notice. Upon
termination of the Firm’s services, fees will be prorated to the date of termination and any unearned portion
of the fee will be refunded to the client.

The account custodian can charge fees, which are in addition to and separate from the investment advisory
service fee. The custodian can also charge accounts for various transaction costs, retirement plan fees, and
other administration fees. In addition, some mutual fund assets deposited in the account may have been
subject to deferred sales charges and 12b-1 fees which are retained by the custodian and not rebated to
Legacy. Mutual funds have expenses as described in each fund’s prospectus. Outside manager fees may
also apply, but such fees shall be disclosed to the client in advance.

B. Fees for Retirement Plan Services

The fee associated with retirement plan services is determined on a negotiated basis between Legacy, the
client, and associated third parties. Fees are due either monthly or quarterly in advance. Fees are due on
the first day of the service period and are billed directly to the client. Fees are based on the account’s asset
value as of the last business day of the prior service period and are prorated for accounts opened during a
service period.

Either party has the authority to terminate the agreement with 30 days’ written notice.

Associated third parties can charge fees, which are in addition to and separate from the investment
advisory service fee. These parties can charge accounts for various transaction costs, retirement plan and
administration fees.

C. Fees for Financial Planning/Consulting Services

In addition to advisory services, Legacy provides ongoing and project based financial planning and
consulting services. An agreement will be signed by both Legacy and the client prior to engagement.

Additional planning and consulting services are billed at the rate of $250.00 per hour, or a negotiated
fee based upon the complexity and unique needs of the client. The hourly fee or negotiated fee is due
and payable upon completion of services rendered. An agreement will be signed by both Legacy and
the client prior to the consulting engagement.

Clients are free at all times to accept or reject any of Legacy’s financial planning recommendations. If
clients elect to implement recommendations made in a financial plan, their accounts will incur transaction
costs, retirement plan administration fees, and other mutual fund expenses. These fees are in addition to
and separate from planning and consulting fees.

Clients will have a period of five (5) business days from the date of signing a financial planning or
consulting agreement to unconditionally rescind the agreement and receive a full refund of all fees.
Thereafter, clients have the authority to terminate an agreement by providing Legacy with written notice
prior to delivery of the plan or completion of the service. Legacy has the authority to terminate an
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Item 7 Types of Clients

General Clients: Description

Legacy generally provides investment advice and portfolio management services to individuals, high net
worth individuals, trusts, estates or charitable institutions and corporations or business entities.

General Clients: Account Minimums

Legacy requires a minimum of $500,000 to establish a new advisory account, but the firm reserves the
right to accept or decline any account.