Legacy Wealth Management LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of your assets that we manage.
Our advisory fees are negotiable and range from 0.0% to 2.50% of total assets. The basis for
negotiating the advisory fees are dependent upon account sizes, family accounts, investment goals,
risk tolerance, time horizon, clients’ involvement and depth of the financial planning, and complexity of
the strategy.

Our fees are currently billed and payable either quarterly in advance based on the value of your
account on the last day of the previous quarter, or monthly in arrears based on the average value of
your account for the month that is being billed.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter or calendar month, our fees will apply on a pro rata basis, which means that the advisory fee is
payable in proportion to the number of days in the quarter or month for which you are a client.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee when the following requirements are met:

You provide our firm with written authorization permitting the fees to be paid directly from your account
held by the qualified custodian. The qualified custodian agrees to send you a statement, at least
quarterly, indicating all amounts dispersed from your account including the amount of the advisory fee
paid directly to our firm. You may terminate the portfolio management agreement upon 15 days written
notice to our firm.

You will incur a pro rata charge for services rendered prior to the termination of the portfolio
management agreement, which means you will incur advisory fees only in proportion to the number of
days in the quarter or month for which you are a client. If you have pre-paid advisory fees that we have
not yet earned, you will receive a prorated refund of those fees. Any refunds will be sent by check to
your address or reimbursed to your custodial account.

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An investment adviser shall deliver materials, via internet web link or other means, required by this
section to an advisory client or prospective advisory client at or before the time of entering into the
contract. The client has the right to terminate the contract without penalty within five business days
after entering into the contract. We will not require prepayment of a fee more than six months in
advance.

Fee Schedule

The advisory fee and money management fees charged to you by Legacy are negotiable. The fee
percentage is decided upon between you and your investment adviser representative and set forth in
the Advisory Agreement signed upon opening an account with Legacy Wealth Management.

In general, fees are lower for larger dollar amounts. Fees can also differ due to the complexity of the
portfolio. For example, fees may be higher when you utilize complex strategies, such as those
strategies that employ options trading.

Except in situations involving a performance based fee arrangement, Legacy charges an annual fee of
up to 2.50% on assets under management. The annual fee is made of an advisory fee, and a money-
management fee, broken down as follows:

            Up to 2.0% Advisory Fee – This fee is charged for the advisory services provided by
            Legacy to the Client, this fee may be lower at the discretion of the adviser.

            Legacy may also charge a 0.50% fee as outlined in the Illiquid Direct Participation Program
            paragraph below.

            In situations that involve a performance based fee arrangement, the fee is negotiated
            between the client and the advisor. The parameters of this arrangement are outlined in
            item 6 below. Within those parameters, The client and advisor are free to negotiate a
            performance based fee up to 20%.

In the event a TPMM is used, there will a be money management fee charged by the TPMM, in
addition to the advisory fee charged by Legacy. The TPMM’s fee will vary based on the complexity of
the strategies used. Legacy will use its discretion in selecting a TPMM and/or sub-adviser, utilizing
fees charged by the TPMM or sub-adviser as a factor in deciding to use any third-party services. You
will be made aware of the types and rates of fees charged by any third-party engaged by Legacy to
manage all or a part of your accounts. In some cases, the third-party fees may be collected by Legacy
on behalf of the TPMM and then sent to the TPMM.

Illiquid Direct Participation Program (“DPP”) Investments
The maximum annual AUM fee assessed on DPP Investments is 0.50%. DPP investment offering
structures may be private equity (for example, Regulation D, Regulation A, etc.), public non-traded
offerings (for example, S-1 offerings, Intrastate offerings, Business Development Companies (“BDCs”),
non-traded mutual funds, etc.), non-traded REITs, non-traded closed-end funds, or non-traded oil and
gas programs. Legacy does not collect any additional compensation, from clients, outside of the 0.50%
fee for alternative product investments. The adviser utilizes the value of illiquid investments on the last
day of each calendar quarter for quarterly billings, and on the average monthly value for monthly
billings, when such valuations are available.

The adviser uses the valuation of the investment or fund as published by the investment sponsor. In
...

Item 7 Types of Clients
We offer investment advisory services to individuals (other than high net worth individuals), high net
worth individuals, charitable organizations, limited liability companies, partnerships, and corporations
and other business types not listed above.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.

We may also combine account values for you and your minor children, joint accounts with your
spouse, and other types of related accounts to meet the stated minimum.

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