Virginia Wealth Management Group Inc

Item 5 – Fees and Compensation

How We Are Compensated for Our Advisory Services

Virginia Wealth Management offers our advisory services on a fee-only basis. Our fees vary among
the different types of advisory services we offer and may be negotiated at our sole discretion. The
specific fees and manner in which fees are charged and calculated are described in your investment
advisory agreement. You should carefully review the investment advisory agreement prior to signing
it.

Fees for our advisory services may be higher than fees charged by other advisers who offer similar
services. You may be charged different fees than similarly situated clients for the same services. You
should carefully review this brochure to understand the fees and other sources of compensation that
exist among our services prior to entering into an investment advisory contract with our firm.

Investment and Wealth Management Services

Virginia Wealth Management offers investment and wealth management services for a maximum
annual fee of 1% based on the amount of assets under the firm’s management.

Fees are generally billed in advance each calendar quarter based on the market value of the assets
under management/advisement on the last day of the previous calendar quarter. Virginia Wealth
Management, in our sole discretion, may waive the annual fee based upon certain criteria, including,
but not limited to, anticipated future earning capacity and/or additional assets, dollar amount of
assets to be managed, related accounts, account composition, pre-existing client relationships,
account retention, and pro bono activities. For investment and wealth management services Virginia
Wealth Management provides to certain clients or for specific client holdings (e.g., held-away assets,
529 plans, etc.), we may negotiate a fee rate that differs from our standard fee schedule.

Fees may be based on cumulative household assets under management. However, certain ERISA
rules prevent householding corporate plans with personal assets for fee reductions. You should refer
to your advisory agreement for your specific fee rate(s).

Selection of Independent Managers

Fees for Independent Managers are set forth by the Independent Manager and are in addition to
Virginia Wealth Management’s fees. You should refer to the Independent Manager’s Form ADV
Part 2A Brochure for information on their fees and compensation.

Program Offered Through Wells Fargo

When utilizing the programs offered by Wells Fargo, investment management services are
provided by third-party money managers through the Private Advisor Network Program. Wells
Fargo requires clients sign an investment advisory agreement for access to the programs in
addition to our investment management agreement.

Fees for advisory programs offered through Wells Fargo are as follows:

 Program               Program Type            Maximum Virginia             Maximum
                                               Wealth Management            Independent Manager
                                               Annual Advisory Fee          Annual Advisory Fee
 Private Advisor       Separately Managed      1.00%                        0.50%
 Network               Account

Advisory fees for the third-party manager utilized through the Private Advisor Network Program
are not included in Virginia Wealth Management’s advisory fee. You pay for the services of the
third-party manager separately. You should refer to your advisory agreement for your specific fee
rate(s).

Wells Fargo will calculate and directly debit advisory fees from the clients’ accounts for assets within
their programs. The value of assets held in any Wells Fargo program is excluded from the amount of
total household assets used to determine Virginia Wealth Management’s advisory fees for other
assets of a client that are managed by Virginia Wealth Management.

Financial Planning and Consulting Services

Fees for financial planning and/or consulting services are billed, in advance, on an hourly rate, fixed
rate or on an asset-based basis. Hourly fees generally range up to $500 per hour. There is no
minimum fee required for financial planning or consulting services; however financial planning and
consulting fees shall generally not exceed $20,000 annually. Fees are due and payable as incurred.

Factors we consider when determining our financial planning and consulting fees include, but are
not limited to:

    •   The amount of time we expect to spend completing the financial planning or consulting
        services and providing related advice;

    •   The complexity of your goals, issues and/or needs;

    •   The extensiveness and complexity of the data needed regarding your personal financial
        information;

    •   Your net worth or the value of your investment accounts and/or other assets that are the
        subject of the financial planning or consulting services; and/or

    •   Special circumstances related to life changes, marital status, health or special income needs,
        or growth or decline of a personal business.

Virginia Wealth Management may request a retainer to initiate financial planning and consulting
services; however, we will not request the prepayment of fees more than $1,200 in advisory fees
more than six months in advance.

You may engage Virginia Wealth Management for additional investment management services to
assist with implementing one or more financial planning recommendations. You will incur
additional fees if you retain our firm for such services. You have complete freedom in selecting an
investment adviser to assist you in implementing any recommendations by Virginia Wealth
Management and are under no obligation to act upon the advice we provide.

For consulting services, the investment advisory agreement between Virginia Wealth Management
and the client will continue in effect until terminated by either party. For stand-alone financial
...

Item 7 – Types of Clients
Virginia Wealth Management provides portfolio management services to individuals, high net worth
individuals and families, pension and profit-sharing plans, trusts, estates, charitable institutions,
foundations, corporations, and other business entities.

Virginia Wealth Management generally does not require a minimum initial investment for
investment management services. The firm, in its sole discretion, may accept clients with smaller
portfolios based upon each client’s particular circumstances.

Certain Independent Managers may impose more restrictive account requirements and varying
billing practices than Virginia Wealth Management. In such instances, Virginia Wealth
Management may alter its corresponding account requirements and/or billing practices to
accommodate those of the Independent Managers.