FSC Wealth Advisors LLC

Item 5 – Fees and Compensation

A        We provide investment supervisory, financial planning and investment consulting services to
clients primarily under the following fee schedules below:

Assets Under Management:

For Wealth Management Agreements executed prior to January 17, 2013, the following maximum
annual wealth management retainer fees shall apply:

        1.95% on assets under $100,000
        1.80% on assets between $100,001 and $250,000
        1.75% on assets between $250,001 and $500,000
        1.70% on assets between $500,001 and $750,000
        1.65% on assets between $750,001 and $1,000,000
        1.50% on assets in excess of $1,000,000

For Wealth Management Agreements executed on or after January 17, 2013, either the above stated
maximum fees or the following maximum annual wealth management retainer fees shall apply:

        2.50% on assets under $100,000
        2.35% on assets between $100,001 and $250,000
        2.30% on assets between $250,001 and $500,000
        2.25% on assets between $500,001 and $750,000
        2.20% on assets between $750,001 and $1,000,000
        2.05% on assets in excess of $1,000,000

                                                 Part 2A - 5

                                        FSC Wealth Advisors, LLC

                                      Part 2A of Form ADV – Brochure

Clients pay no commissions or trading fees on any discretionary trades initiated by us. However, Clients
will be charged up to $35.00 for security and any mutual fund company imposed fees (e.g. short term
redemption fees) for Client directed trades.

Notwithstanding the above, fees are generally negotiable.

We may also provide investment advice or financial planning to clients on an hourly or fixed rate fee.
Our maximum hourly rate is $275.00 per hour depending on the complexity of the issue being
addressed.

Flat fees projects are not our primary focus and the pricing will be developed on a project-by-project
basis for each client, depending on the scope of work performed. Payment of fixed-fee projects shall be
made as agreed by the parties. However, under no circumstances will the Client be required to prepay
fees for more than six months of such services.

Educational Workshops/Seminars:

FSC occasionally offers educational workshops and seminars. If there is a charge to attend, fees will be
published in the workshop invitation or announcement. Fees would be based on the scope of
information covered, number of class sessions, and cost of handouts or other information provided to
attendees.

Clients are encouraged to review their plans on a regular basis, based on individual circumstances.
Our fees are generally negotiable.

B        For standard AUM, we bill the Client either quarterly in arrears or monthly in advance. Fees are
paid directly to us from the account by unaffiliated third-party service providers, if applicable, and the
custodian upon our submission of an invoice to custodian. Payment of fees may result in the
liquidation of Client’s securities if there is insufficient cash in the account. The quarterly fee is based on
the market value of the Client’s account on the last trading day of the prior quarter. The monthly fee is
based on the average daily balance of the Client’s account during the prior month.

Market value means the value of all assets in the account (not adjusted by any margin debit). To
determine value, securities and other instruments traded on a market for which actual transaction prices
are publicly reported shall be valued at the last reported sale price on the principal market in which they
are traded (or, if there shall be no sales on such date, then at the mean between the closing bid and
asked prices on such date). Other readily marketable securities and other instruments shall be priced
using a pricing service or through quotations from one or more dealers. All other assets shall be valued
at fair value by the Adviser whose determination shall be conclusive.

The quarterly fee will be equal to the agreed upon rate per annum, multiplied by the market value of the
account, divided by the number of days in the agreed upon year and multiplied by the number of days
in the quarter. Fees for a partial quarter at the commencement or termination of an agreement will be
prorated based on the number of days the account was open during the quarter. Quarterly fee
adjustments for additional assets received into an account during a quarter or for partial withdrawals

                                                 Part 2A - 6

                                       FSC Wealth Advisors, LLC

                                     Part 2A of Form ADV – Brochure

may also be provided as negotiated. We may modify the terms of the fee agreement by giving clients 30
days written notice in advance.

The monthly fee is based on an average daily balance and computed using each day’s market value
balance for the prior month totaled then divided by the number of days in the month. The average daily
balance is then multiplied by the annual fee percentage adjusted for the number of calendar days in the
billable month for the calendar year to determine the monthly fee due. Accounts opened mid-month
are assessed a pro-rated management fee. Fees for the initial month are adjusted pro-rata based upon
the number of calendar days in the calendar month that the account is invested in a billable strategy.

C       Clients pay brokerage transaction costs and other charges directly to the custodian. See Item 12.
Clients may be required to pay, in addition to our fee, a proportionate share of any Exchange Traded
Fund’s (ETF) or mutual fund’s fees and charges. For example, Mutual fund operating expenses are paid
out of the fund and are an additional expense incurred by the client.

Fees include the time and activities necessary to work with Client’s attorney and/or accountant in
...

Item 7 – Types of Clients

We provide investment advice to individuals, businesses, qualified retirement plans (e.g. 401(k), Profit
Sharing, Defined Benefit) and non-qualified plans (e.g. Deferred Compensation), trusts, estates, and
charitable organizations. Because each client is unique, they must be willing to be involved in the
planning and ongoing processes. Such involvement does not have to be time consuming, however we
want our clients to remain informed and have a sense of security about their investments.