Financial Security Advisory Inc

Item 5 - Fees and Compensation

FSA’s fee will be deducted directly from the account. FSA is authorized as agent to take payment of
the fees when due out of the account and, in its discretion, to redeem at the then current price or net
asset value a sufficient number of shares of the assets in the account to pay the fees when due. In
exchange for FSA’s investment services rendered, the Client agrees to pay FSA a fee based upon the
following platform utilized and the market value of all the Assets in the Account:

    •   Investment Builder Platform (“IBP”) – FSA’s annual fee is 0.75% and is deducted by
        American Funds Service Company (“AFS”) and paid directly to FSA. The fees shall be
        calculated by AFS for each quarterly period ending the last business day of February, May,
        August and November and shall be the product of the average daily net asset value of
        Client assets invested in shares of the Funds through the platform during the quarter. We
        are no longer opening new IBP accounts.

    •   MAP – FSA is authorized as agent to take payment of the fees when due out of the Account
        and, in its discretion, to redeem at the then current price or net asset value a sufficient
        number of shares of the Assets in the Account to pay the fees when due. FSA’s fee will be
        deducted directly from the Account. Advisory fees will be charged and paid every four
        months, in advance. The annual fee charged for managing assets is negotiable between client
        and IAR, but otherwise will default to the following table:

                                                       Annual Fee
                 Portfolio Value
                 Up to $249,999                        1.50%
                 $250,000 - $999,999                   1.00%
                 $1,000,000 - $9,999,999               0.75%
                 $10,000,000 - $20,000,000             0.65%
                 Above $20,000,000                     Negotiated

Advisory fees due on both initial and future deposits of funds into the Account will be prorated for
the remainder of the billing cycle in which the deposit is made and shall be payable at deposit.
Accounts initiated or terminated during the billing cycle will be charged a prorated fee. Upon
termination of an account, any prepaid, unearned fees will be promptly refunded, and any earned,
unpaid fees will be due and payable.

We may negotiate the amount of the fee depending upon circumstances including but not limited to
account composition and complexity, other client, employee or family relationships, etc. which may
result in different fees being charged by us for client accounts similar in composition and objectives.
Our employees and their family-related accounts may be charged a reduced fee, or no fee, for our
services.

FSA’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, third party investment and other third parties such as fees charged by managers,
custodial fees, wire transfer and electronic fund fees, and other fees and taxes on brokerage

accounts and securities transactions. Such charges, fees and commissions are exclusive of and in
addition to FSA’s fee, and we shall not receive any portion of these commissions, fees, and costs.

Where a fee is charged for financial planning, investment advisory and/or consultation services, our
fee is based either on an elapsed time or an expected elapsed time at the rate of $150 per hour. The
anticipated fee is between $1,500 and $2,500. This fee is payable subsequent to the rendering of
appropriate services.

Item 7 - Types of Clients

FSA provides portfolio management services to individuals, trusts, estates, corporate pension and
profit-sharing plans, and corporations or business entities.