Magnifina LLC

Item 5 – Fees and Compensation

Wealth Management Fees

As compensation for ongoing investment advice and management, we charge a percentage-
based fee (“Advisory Fee”) on each client’s assets under management. Our standard Advisory
Fee is 1.00% per year. For client accounts over $2,000,000, our Advisory Fee may be
negotiated. Advisory Fees are calculated based on client account values at the end of the last
trading day of the prior quarter.

We collect Advisory Fees by deducting them from the qualified custodian on a quarterly basis in
arrears. If we do not provide services for an entire quarter (due to mid-quarter commencement
or termination of services), our Advisory Fee is prorated on a calendar day basis and any
overpayments are refunded.

Some non-profit organizations, family members of clients, or Firm staff members, may receive
services on a discounted or pro-bono basis at the sole discretion of the Firm.

Wealth Management clients who elect to receive financial planning services, and the Firm has
determined such service is appropriate, will receive such services for no additional cost.

Because the Advisory Fee we charge is based on a client’s assets, a client should be aware
that the more assets that are in a client’s retail account, the more the client will pay in Advisory
Fees. This presents a conflict of interest in that we are incentivized to encourage clients to
increase the assets in their account. We address this conflict of interest by reviewing any such
recommendation to ensure it is in the best interest of the client.

Quantitative Equity Strategies

QES does not have an independent fee, but the Firm is compensated depending on how the
QES service is utilized. For Wealth Management clients, clients are not charged an additional
fee and all fees to the Firm are included in the client’s Advisory Fee. Please see above.

Financial Planning Fees

We typically charge clients on a flat fee basis for any financial planning services to be provided.
The financial plan is created and provided pursuant to a written agreement, the basic terms of
which are described below. Typically, we charge a flat fee according to the below table and
depending on the complexity of the situation and planning. Financial planning fees may be
negotiated at the sole discretion of the Firm and will be listed in each client’s agreement.
Financial plans are not required to be implemented through Magnifina. However, if the financial
plan is implemented through Magnifina within two years of the financial plan’s delivery date, the
client shall receive a credit toward initial advisory fees to offset the cost of the financial plan.
Additionally, Magnifina, in its sole discretion, may elect to reimburse, offset, or otherwise credit a
client for fees due for services or for the selection of additional services.

                    Net Worth Range
                                                                               Fixed Fee
        Bottom Range               Upper Range
             $0                       $99,999                                    $1,000
          $100,000                   $199,999                                    $1,500
          $200,000                   $299,999                                    $1,750
          $300,000                   $399,999                                    $2,000
          $400,000                   $499,999                                    $2,250
          $500,000                   $599,999                                    $2,500
          $600,000                   $699,999                                    $3,000
          $700,000                   $899,999                                    $3,500
          $900,000                   $999,999                                    $4,500
         $1,000,000                 $1,249,999                                   $5,000

          $1,250,000                       $1,499,999                         $6,250
          $1,500,000                       $1,749,999                         $7,500
          $1,750,000                       $1,999,999                         $8,750
          $2,000,000                         And up                          Negotiable

Magnifina, in its sole discretion, may provide financial planning engagements on an hourly
basis. The hourly fee will not exceed $500 per hour. Hourly engagements are typically reserved
for specific projects limited in scope.

Financial Plans are delivered within six (6) months of commencing services, unless otherwise
agreed to by both the Client and Magnifina. Upon delivery, we will provide a final fee invoice that
identifies the amount owed for our services. 50% of the fee is due upon execution of the client’s
agreement with any remainder due upon completion of services rendered. We do not require
prepayment of a fee more than six months in advance and in excess of $1200.

Other Fees

In addition to our fees, clients may be subject to brokerage fees, custodian fees, or other fees in
connection with our custodian broker partnerships. We aim to work with qualified custodians
who maintain competitive fees within the industry. Clients are advised to consult with their
custodian for details about these fees. For more information on custodians we use, please see

Item 7 – Types of Clients

We offer services to many different types of clients. Our clients may include individuals and their
families, high net worth individuals, family offices, charity endowments, irrevocable trusts, and
other organizations or pooled investments.

For individual accounts, we typically require a minimum of $100,000 in assets to open a wealth
management account. Furthermore, we will not normally advise any client with less than
$1,000,000 to make alternative investments (i.e. non-publicly traded securities).