Legacy Wealth Management Inc

Item 5 – Fees and Compensation

Fees for Wealth Management services are based on the amount of assets under
management. Our Wealth Management services include Portfolio Management and
comprehensive Financial Planning. The recommended minimum account size for a new
client relationship is $500,000.

Fees for Wealth Management are:

       Annual Fee Schedule

       1.0% on the first $2 million

       0.5% on the next $3 million

       0.4% on the amount over $5 million

Fees for all services, on an exception basis, are negotiable depending upon specific services
required and type and size of investments under management.

The specific way fees are charged by Legacy is established in a client’s signed written
agreement with Legacy. Generally, Legacy bills its fees in arrears, with one-fourth of the
annual fee being billed quarterly. The amount billed is determined by the market value of
account assets at the end of each calendar quarter. Legacy’s fees are not payable in
advance; however, a client may pay in advance if he or she prefers to do so. Clients may
also elect to authorize Legacy to debit fees directly from a bank account or to authorize
Legacy to debit fees directly from client accounts. Accounts initiated or terminated during
a calendar quarter will be charged a prorated fee based upon the amount of assets under

Part 2A of Form ADV                                                                    Page 2

advisement as of the date of initiation or termination. Upon termination of an account, any
prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due
and payable. Legacy’s standard advisory agreement provides that either party can
terminate the agreement upon written notice to Legacy. Termination will be effective 30
calendar days after notice is delivered unless the parties agree to an earlier effective date
for termination.

Legacy’s fees do not include brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients will incur certain charges
imposed by custodians, brokers or other third parties, including fees charged by managers,
custodial fees, 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. 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 in
addition to Legacy’s fee. Legacy does not receive any portion of these commissions, fees,
and costs.

Item 12 further describes the factors that Legacy considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions or transaction fees).

Item 7 – Types of Clients

Legacy provides portfolio management services primarily to individuals, high-net-worth
individuals, a limited number of corporate pensions, 401(k) and profit-sharing plans,
foundations, endowments and both state and municipal government entities.