Magnus Financial Group LLC

Item 5 – Fees and Compensation

   A. Fee Schedule for Advisory Services

Magnus charges an annual advisory fee which is billed quarterly and agreed upon with each
client and set forth in an agreement executed by Magnus and the client. Magnus and any client
may, however, agree to adjust the fee annually or on a more frequent basis.

Magnus’ annual advisory fee is generally based on a percentage of the assets under management
in the client’s account. Magnus’ fee for investment advisory services is negotiable and varies

Magnus Financial Group LLC                                                   Disclosure Brochure

based on a multitude of factors, including, but not limited to, the size of the relationship and the
nature and complexity of the products and investments involved, service intensity, degree of
custom work, time requirement, number of entities, number of family members served and travel
requirements. The fee for most clients ranges between 0.5% and 1.5% annually of the client’s
total assets under management. Magnus may also agree to enter into a flat fee arrangement with
a client. Certain of Magnus’ advisors offer separate strategies, for an additional fee, which may be
used when managing all or a portion of a client’s portfolio.

Magnus, in its discretion, may charge a lesser investment advisory fee, charge a flat fee, waive its
fee entirely, or charge fee on a different interval, based upon certain criteria (i.e., anticipated
future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, complexity of the engagement, anticipated
services to be rendered, grandfathered fee schedules, employees and family members, courtesy
accounts, competition, negotiations with client, etc.). As result of the above, similarly situated
clients could pay different fees. In addition, similar advisory services may be available from other
investment advisors for similar or lower fees.

The investment advisory agreement between Magnus and the client may be terminated at will
by either Magnus or the client. Magnus does not impose termination fees when the client
terminates the investment advisory relationship, except when agreed upon in advance.

Magnus may offer clients the provision of a financial review included in the initial consultation
at no additional cost to the clients. Such service is subject to the availability of the client and
the timely cooperation of the client.

The hourly rate for ad-hoc and project-based consultations for clients could vary depending on
the services provided and the experience, knowledge, and skill of those performing the services
on behalf of Magnus. Hourly rates would be expected to generally range from $150 to $1,000
per hour. The scope and charges of all hourly ad-hoc work must be agreed-upon in writing by
Magnus and the client before any billing begins.

Magnus does not maintain a minimum fee or a minimum level of account assets.

   B. Billing and Payment of Fees

Magnus generally deducts its advisory fee from the client’s investment account(s) held at the
client’s custodian. Upon engaging Magnus to manage such account(s), the client grants Magnus
the limited authority (which can be withdrawn at any time by the client) to deduct its advisory fee
from the client’s account(s) through an investment advisory agreement relating to his/her
account(s). The fee generally is billed in advance on a quarterly basis, except for some clients that

Magnus Financial Group LLC                                                   Disclosure Brochure

have 401k plans on third party platforms and to the extent specifically requested by the client
when the client may be billed quarterly in arrears.

A newly-managed account is charged an advisory fee from the start date to the end of the
initial quarter based on the number of days remaining in the quarter. For new accounts that
are not charged a flat fee, the advisory fee is based on the market value of the account the day
prior to the start date. Thereafter, the quarterly fee is based on the market value of the
account on the last business day of the previous quarter. Although clients generally are
required to have their advisory fees deducted from their accounts, in some cases, Magnus may
directly bill a client for advisory fees if it determines that such billing arrangement is
appropriate given the circumstances.

The custodian of the client’s accounts provides each client with a monthly statement indicating
separate line items for all amounts disbursed from the client’s accounts. Fees paid to Magnus
are disclosed to clients through statements from the custodian.

   C. Clients Responsible for Custodial and Brokerage Fees

As discussed below at Item 12 below, when requested to recommend a custodian for client
accounts, Magnus generally recommends that Schwab Advisor Services, a division of Charles
Schwab & Co., Inc. (together with all affiliates, “Schwab”) and/or Fidelity Clearing & Custody
Solutions, a division of Fidelity Brokerage Services LLC (together with all affiliates, “Fidelity”)
serve as the custodians for client investment management assets. As an alternative option,
Magnus may also recommend Interactive Brokers LLC (“Interactive Brokers”) as a custodian for
client investment management assets.

Custodians such as Schwab, Fidelity and Interactive Brokers may charge ticket
charges/brokerage commissions, transaction, and/or other fees for effecting certain types of
securities transactions (i.e., including transaction fees for certain mutual funds, and mark-ups
and mark-downs charged for fixed income transactions, etc.). The types of securities for which
transaction fees, ticket charges/ brokerage commissions, and/or other fees (as well as the
amount of those fees) shall differ depending upon the broker-dealer/custodian. While certain
custodians, including Schwab and Fidelity, generally (with the potential exception for large
...

Item 7 – Types of Clients

Magnus provides personalized financial counseling and discretionary and non-discretionary
investment advisory services to individuals and entities, including but not limited to, family

Magnus Financial Group LLC                                                     Disclosure Brochure

offices, trusts, estates, businesses and qualified retirement plan sponsors.

Magnus, in its discretion, may charge a lesser investment advisory fee, charge a flat fee, waive
its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e.,
anticipated future earning capacity, anticipated future additional assets, dollar amount of
assets to be managed, related accounts, account composition, complexity of the engagement,
anticipated services to be rendered, grandfathered fee schedules, employees and family
members, courtesy accounts, competition, negotiations with client, etc.).

As result of the above, similarly situated clients could pay different fees. In addition, similar
advisory services may be available from other investment advisors for similar or lower fees.