Fortius Financial Advisors LLC

Fees and Compensation

Investment Advisory Fees
Our investment advisory fees, as described below, are exclusive of, and in addition to, other fees that you may
incur, including, but not limited to, the following types of fees: custody and transaction, third party managers,
overlay manager, third-party administrator, legal, audit, and funds’ internal investment expenses. Clients using
separate account managers pay separate account manager fees directly to those managers. On an exception
basis we may provide our services at a negotiated hourly rate.

Our Associated Persons may, from time to time, attend conferences offered by various vendors and/or
wholesalers. These conferences may be available to our Associated Persons at a discounted price or no cost.
This could be a conflict and we manage it by disclosing to the client. Conferences are reviewed for fairness to
make sure it does not create a bias.

Individual Accounts
We charge a fee based on a percentage of assets under management for portfolio management services. This
compensation method is explained and agreed to with each client before any services are provided. Our annual
percentage based fee ranges from 1.00% to 1.50% depending upon the market value of your assets under our
management, as follows:

                             Assets Under Management                     Annualized Fee
                                 $250,000 to $1,000,000                     1.00%
                               $1,000,001 and Over                         Negotiable

Our fee is billed and payable quarterly in advance based on the market value of your account on the last day of
the previous quarter. In general, we require a minimum of $250,000.00 to open and maintain an advisory account.
At our discretion, we may waive this minimum account size. Our minimum annual fee for each account is $1,000
per account. For Clients with multiple accounts, fees will be totaled and averaged to determine if minimum
account fee is being satisfied. The initial payment is due upon execution of the agreement for services, and is
prorated based on the number of days remaining in the quarter. Our advisory fee is negotiable, depending on
individual client circumstances. Circumstances for negotiating fees may be friends and family, or legacy clients
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of Advisor. Lower fees for comparable services may be available from other sources. On an exception basis our
services may be provided on at an hourly rate.

Private Investment Companies
For portfolio and investment advisory services rendered to private investment companies, we charge a fee based
on a percentage of assets under management. The percentage due to our firm shall be agreed upon in an
investment advisory agreement and, if applicable, through side letter agreements established throughout the
investment advisory relationship. Percentage fees shall generally range from 0%-2.5% annualized and shall be
charged quarterly in advance.

Although we only charge asset-based fees to our private investment company clients, in instances where the
private investment company is an affiliate of our firm, resulting from common management, the General Partner of
the private investment company will receive performance-based compensation for its operation of the private
investment company. The performance fee is annualized and ranges from 0% to 25% of the net new profits of the
private investment company subject to a high water mark. Under these arrangements, our compensation is
separate and distinct from the performance based compensation received by the General Partner. Refer to the
Financial Industry Activities and Affiliations section below for additional disclosures on our affiliation with the
General Partner to the private investment company. Refer to the Performance-Based Fees and Side-By-Side
Management section for additional disclosures on performance-based compensation.

Our portfolio management fee is billed and payable quarterly in advance based on the value of your account on
the last day of the previous quarter. For the initial quarter of investment management services, the first
quarter’s fees will be calculated on a pro rata basis, which means the advisory fee is payable in proportion to
the number of days in the quarter for which you are a client.

Payment of Fees
We will send you an invoice for the payment of our advisory fee, or we will deduct our fee directly from your
account through the qualified custodian holding your funds and securities. We will deduct our advisory fee only
when you have given our firm written authorization permitting the fees to be paid directly from your account.
Further, the qualified custodian will deliver an account statement to you at least quarterly. These account
statements will show all disbursements from your account. You should review all statements for accuracy. We will
also receive a duplicate copy of your account statements.

Termination of Advisory Relationship
A client agreement may be canceled at any time, by either party, for any reason upon receipt of 30 days written
notice. As disclosed above, asset management fees are paid quarterly in advance of services provided. Upon
termination of any account for which 30 day written notice has been given by the client or the client’s
representative, prepaid, unearned fees will be promptly refunded. In calculating a client’s reimbursement of fees,
consideration of the 30 day written notice above will be enforced and we will pro rate the reimbursement according
to the number of days remaining in the billing period.

Additional Fees and Expenses
In limited circumstances, and solely at our client’s request, we may trade client accounts on margin. Our fees for
advice (as disclosed above) and execution on these securities do not include the value of the securities purchased
on margin. Nonetheless, the use of margin may result in interest charges in addition to all other fees and expenses
associated with the security involved.
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Types of Clients

We offer investment advisory services to individuals, pension and profit sharing plans, trusts, estates, charitable
organizations, corporations, privately held investment companies, and other business entities.

In general, we require a minimum of $250,000.00 to open and maintain an advisory account. At our discretion,
we may waive this minimum account size. For example, we may waive the minimum if you appear to have
significant potential for increasing your assets under our management. We may also combine account values for
you and your minor children, joint accounts with your spouse, and other types of related accounts to meet the
stated minimum.

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Additionally, certain third party investment managers may impose more restrictive account requirements and
varying billing practices than we require. In such instances, we may alter our corresponding account
requirements and/or billing practices to accommodate those of the third party investment manager(s).

                  Methods of Analysis, Investment Strategies and Risk of Loss

Our security analysis methods include, but are not limited to, charting (using charts to track individual security or
market movements over time); fundamental analysis (evaluating securities based upon its historical and projected
financial performance); technical analysis (examining moves in the price of an issue based upon peer securities or
comparisons to an investment sector or index); and cyclical analysis (determining the desirability of an issue based
upon the status of an issue within the price cycle the security or similar securities have followed historically).

A long term investment strategy is the cornerstone of our investment advisory and wealth building
recommendations. Nonetheless, our investment strategies and advice may vary depending upon each client’s
specific financial situation. As such, we determine recommendations and allocations based upon your predefined
objectives, risk tolerance, time horizon, financial horizon, financial information, liquidity needs, and other various
suitability factors. Your restrictions and guidelines may affect the composition of your investment portfolio.

We may use short-term trading (in general, selling securities within 30 days of purchasing the same securities) as
an investment strategy when managing your account(s). Short-term trading is not a fundamental part of our overall
investment strategy, but we may use this strategy occasionally when we determine that it is suitable given your
stated investment objectives and tolerance for risk.

In limited circumstances, and solely at our client’s request, we may trade client accounts on margin, use options
writing, and/or short sales as an investment strategy. With regard to margin transaction, each client must sign a
separate margin agreement before margin is extended to that client account. We may, in our sole discretion,
decline to utilize any one or all of these investment strategies where we do not believe these investment
strategies are suitable for your investment account and/or in your best interest.

The private investment fund(s) for which we serve as investment adviser will employ varied methods of analysis
and investment strategies that are geared towards the overall investment objectives of the particular fund. Full
disclosure is available in the offering documents of the particular fund. Refer to the Other Financial Industry
Activities and Affiliations section below for additional disclosures on this topic.

Risks Associated with Methods of Analysis
The risk of charting/technical analysis is that charts may not accurately predict future price movements. Current
prices of securities may reflect all information known about the security and day to day changes in market
prices of securities may follow random patterns and may not be predictable with any degree of accuracy.

The risk of fundamental analysis is that collected data may be inaccurate and the analysis may not provide an
accurate estimate of earnings, which may be the basis for a stock’s value. If securities prices adjust rapidly to
new information, utilizing fundamental analysis may not result in favorable performance.

Economic/business cycles may not be predictable and may have many fluctuations between long term
expansions and contractions. The lengths of economic cycles may be difficult to predict with accuracy and
therefore the risk of cyclical analysis is the difficulty in predicting economic trends and consequently the
changing value of securities that would be affected by these changing trends.

Investment Strategy and Tax Disclosures
Our strategies and investments may have unique and significant tax implications. However, unless we specifically
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agree otherwise, and in writing, tax efficiency is not our primary consideration in the management of your assets.
Regardless of your account size or any other factors, we strongly recommend that you continuously consult with
a tax professional prior to and throughout the investing of your assets.

Moreover, as a result of revised IRS regulations, custodians and broker-dealers will begin reporting the cost basis
of equities acquired in client accounts on or after January 1, 2011. Your custodian will default to the FIFO (First-
In First-Out) accounting method for calculating the cost basis of your investments. You are responsible
for contacting your tax advisor to determine if this accounting method is the right choice for you. If your tax advisor
believes another accounting method is more advantageous, please provide written notice to our firm immediately
and we will alert your account custodian of your individually selected accounting method. Please note that
decisions about cost basis accounting methods will need to be made before trades settle, as the cost basis
method cannot be changed after settlement.

Risk of Loss
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