Magellan Planning Group Inc

Item 5 Fees and Compensation

Investment Advisory Fees
Pursuant to an investment advisory contract signed by each client, the client will pay Magellan
Planning Group an annual management fee, payable quarterly in advance, based on the value of
portfolio assets of the account managed by the Advisor as of the opening of business on the first
business day of each quarter. New account fees will be prorated from the inception of the account
to the end of the first quarter.

Assets Under Management:               Annual Fee:
First $500,000                         1.50 %
$500,001 – $1 million                  1.25 %
$1,000,001 – $5 million                1.00%
$5,000,001 – $10 million               0.85 %
$10,000,001 – $50 million              0.75%
Over $50 million                       0.50%

Fees on accounts valued up to $1 million will be calculated on a blended tier schedule, while fees
on accounts valued in excess of $1 million will be calculated on a breakpoint schedule. For
example, fees charged on a $750,000 account would be calculated annually as follows: ($500,000
x 1.50%) + ($250,000 x 1.25%) = $7,500 + $3,125 = $10,625 per annum. Fees charged on a $7
million account would be calculated annually as follows: $7 million x 0.85% = $59,500 per annum.

Fees may be negotiable based at the discretion of the Advisor. Asset management fees will be
directly deducted from the client account on a quarterly basis by the qualified custodian. The client
will give written authorization permitting the Advisor to be paid directly from their account held
by the custodian. The custodian will send a statement at least quarterly to the client.

Advisory services may be terminated at any time, by either party, by providing written notice to
the other party. The client will be responsible for the prorated fees based on the number of days

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in the quarter, up to an including the date of termination. Fees paid in advance will be prorated to
the date of termination and any excess will be refunded to the client.

Financial Planning Fixed Fees
Magellan Planning Group will charge a fixed fee of $1,200 per client for financial planning
services. These fees may be negotiable based at the discretion of the Advisor. The financial
planning fixed fee will be waived for any investment advisory service clients with account assets
under management of the Advisor. Fixed fee-based clients are billed one half of the fee at the time
of signing the agreement with the Advisor and the other one half upon delivery of the financial
plan to the client. If the final fee is not paid by the client at the delivery of the financial plan, the
client is required to pay the fee within five days of delivery of the financial plan. If the client
terminates the Agreement with the Advisor prior to the Advisor's completion of the financial plan,
any fees due the Advisor will be invoiced to the client and payable within five days of delivery of
the invoice. Unearned fees will be refunded to the client on a pro-rata basis within five days of
termination of the Agreement.

All fees paid to Magellan Planning Group for investment advisory services are separate and
distinct from the expenses charged by mutual funds to their shareholders. These fees and expenses
are described in each fund’s prospectus. These fees will generally include a management fee and
other fund expenses. Client is responsible for all custodial and securities execution fees charged
by the custodian and executing broker-dealer. The Advisor’s fee is separate and distinct from the
custodian and execution fees.

At no time will Magellan Planning Group accept or maintain custody of a client’s funds or
securities except for authorized fee deduction.

Magellan Planning Group’s fees are payable in advance. Upon termination, any fees paid in
advance will be prorated to the date of termination and any unearned fees will be refunded to client.

Where acting in the capacity of an insurance producer, investment advisor representatives of
Magellan Planning Group may as broker or agent effect insurance transactions for typical and
customary compensation. This practice presents a conflict of interest by creating an incentive to
recommend investment products based on the compensation received, rather than on a client’s
needs. Clients are not obligated to use investment advisor representatives of Magellan Planning
Group to execute such securities transactions. A client may be able to directly invest in products
recommended by the firm directly, without the services of Magellan Planning Group. In that case,
the client would not receive the services provided by Magellan Planning Group which are
designed, among other things, to assist the client in determining which products or services are
most appropriate to each client’s financial condition and objectives.

Item 7 Types of Clients

The Advisor will offer its services to individuals, trusts, estates, and charitable organizations.

The Advisor’s cumulative minimum account requirement for opening and maintaining an account
is $250,000. However, based on facts and circumstances the Advisor may, at its sole discretion,
accept accounts with a lower value.