Magellan Financial Solutions LLC

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Services Fees

                    Total Assets Under Management          Annual Fee

ADV 2A Brochure Magellan Financial Solutions                                             Page 8 of 18

                                 $0 - $499,999                           1.50%

                              $500,000 - $999,999                        1.25%

                            $1,000,000 - $1,999,999                      1.00%

                            $2,000,000 - $4,999,999                      0.75%

                            $5,000,000 and higher                        0.60%

The final fee schedule is attached as Exhibit II of the Investment Advisory Contract.

Our firm’s fees are billed on a pro-rata, annualized basis, quarterly in advance, based on the value of your
account on the last day of the previous quarter. An account’s first billing cycle may occur once the
agreement is executed and accounts are funded. A partial period will be assessed a pro-rated fee.

For the benefit of discounting your asset-based fee, we may aggregate investment supervisory services
accounts for the same individual or two or more accounts within the same family, or accounts where a family
member has power of attorney over another family member’s or incompetent person’s account. Should,
however, investment objectives be substantially different for any two or more household accounts, requiring
different investment approaches or operational requirements, we do reserve the right to apply our fee
schedule separately to each account.

For all forms of engagement noted in earlier paragraphs, the services that are to be provided to you and the
fee range will be detailed specifically in your agreement. Our fees may be negotiable and are solely at the
discretion of a firm principal.

Financial Planning Fees

Fixed Fees

The rate for creating client financial plans is between $1,500 and $7,500. The final fee schedule will be attached
as Exhibit II of the Financial Planning Agreement.

We also offer our financial planning, investment consultation, and portfolio monitoring services on a retainer
basis, typically ranging from $4,000 to $25,000 annually. The fixed fee takes into consideration factors such
as the estimated amount of time dedicated to the engagement as well as the complexity of your project and
your financial profile.

When a fixed-fee engagement involves our portfolio monitoring services, the fee may also reflect the assets
that comprise your overall portfolio, number of individual accounts comprising the portfolio, frequency of
reviews, among other considerations.

Hourly Fees

The hourly fee for these services is between $300 and $500. The final fee schedule will be attached as Exhibit
II of the Financial Planning Agreement.
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Termination of Agreement

Clients may terminate the agreement without penalty, for full refund of Magellan’s fees, within five business
days of signing the Investment Advisory Contract. Thereafter, clients may terminate the Investment
Advisory Contract generally with thirty days’ written notice.

B. Payment of Fees

Payment of AUM-based Portfolio Management Fees

AUM-based portfolio management fees are invoiced and billed directly to the client on a quarterly basis.

Payment of Financial Planning Fees

Fixed and Hourly Financial Planning fees are paid via check or bank transfer.

C. Clients Are Responsible For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees, brokerage fees, mutual
fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and expenses charged
by Magellan. Please see Item 12 of this brochure regarding broker/custodian.

D. Prepayment of Fees

Magellan collects fees in advance. Refunds for fees paid in advance will be returned within fourteen days to
the client via check or return deposit back into the client’s account.

For all asset based fees paid in advance, the fee refunded will be the balance of the fees collected in advance
minus the daily rate* times the number of days in the billing period up to and including the day of
termination. (*The daily rate is calculated by dividing the annual asset-based fee by 365.)

Fixed financial planning fees that are collected in advance will be refunded based on the prorated amount of
work completed at the point of termination.

For hourly financial planning fees that are collected in advance, the fee refunded will be the balance of the
fees collected in advance minus the hourly rate times the number of hours of work that has been completed
up to and including the day of termination.

E. Outside Compensation for the Sale of Securities to Clients

Neither Magellan nor its supervised persons accept any compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual funds.

Item 7: Types of Clients

Magellan generally provides advisory services to the following types of clients:

   Individuals
   High-Net-Worth Individuals
   Trusts/Estates
   Charitable organizations
   Profit-sharing plans

Minimum Account Size for Portfolio Management

There is an account minimum of $400,000, which may be waived by Magellan in its discretion.