Fortress Wealth Management Inc

Item 5: Fees and Compensation

A. Overview

Compensation for investment management is generally annual fees based upon a percentage of
assets under management. The compensation method is explained and agreed upon with the

clients in advance before any services are rendered. The compensation for our services ranges
from 0.25% to 1.00% of the market value of assets under management. Fees may be negotiated
on a case by case basis with the client and are determined based upon a number of factors
including the amount of work involved, the assets placed under management and the attention
required to manage the account. Alternatively, Fortress may consider a fixed fee in lieu of an
asset-based management fee as negotiated with the client. Fees will be adjusted pro rata based
upon the number of calendar days in the calendar quarter that the Agreement is effective. Clients
may terminate the Agreement without penalty for a full refund of Fortress's fees within five
business days of signing the Agreement. Thereafter, clients may terminate the Services
Agreement immediately upon written notice.

Upon termination, any fees paid in advance for advisory services will be pro-rated and a refund
for any unearned fees will be issued. The client is responsible to pay for services rendered until
the termination of the Agreement and any fees earned by Fortress but not billed will be due
upon termination. The advisory fee is calculated using the value of the assets in the Account on
the last business day of the prior billing period.

Clients should be aware of their responsibility to verify the accuracy of the fee calculation
submitted to the custodian by Fortress, as the custodian will not determine whether the fee has
been properly calculated. Fortress often utilizes mutual funds to implement its recommended
investment strategy. Fortress clients who are invested in mutual funds are paying two advisory
fees; a management fee to Fortress and, indirectly, a separate advisory fee to the investment
advisor of the mutual fund. A description of these fees and expenses are available in each fund's
prospectus. Fortress’s fees are for advisory services only and do not include other costs that the
client may incur, including but not limited to transaction fees, commission, or other
management fees charged by non-affiliated third parties, including recommended separate
account managers.

The negotiated fixed rate for creating standalone client financial plans is between $500 and
$10,000. The negotiated hourly fees for financial planning services and investment consulting
services range between $250 and $400.

Clients may terminate the agreement without penalty, for full refund of Fortress’s fees, within
five business days of signing the Services Agreement. Thereafter, clients may terminate the
Financial Planning Agreement generally upon written notice.

When Fortress engages a sub-advisor, the sub-advisor fee will be paid by Fortress out of the
Fortress management fee or the client will separately authorize the custodian to collect the sub-
advisor fee separately.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts with
client's written authorization on a quarterly basis or may be invoiced and billed directly to the
client on a quarterly basis. Clients may select the method in which they are billed. Fortress clients
are either billed quarterly at the end of each calendar quarter (in arrears), or in advance
depending upon the Client. Fees will generally be deducted directly from the client's account
pursuant to a written agreement.

Financial Planning

Fixed and hourly financial planning fees are paid in arrears upon completion of work. Financial
planning fees are paid via check.

C. Client Responsibility For Third Party Fees

Clients are responsible for the payment of all third party fees (i.e. custodian fees, brokerage fees,
mutual fund fees, transaction fees, etc.). Those fees are separate and distinct from the fees and
expenses charged by Fortress. Please see Item 12 of this brochure regarding broker-
dealer/custodian.

D. Prepayment of Fees

Fortress collects certain fees in advance and certain fees in arrears, as indicated above. Refunds
for fees paid in advance will be returned within fourteen days to the client via check, or return
deposit back into the client’s account

For all asset-based fees paid in advance, the fee refunded will be equal to the balance of the fees
collected in advance minus the daily rate* times the number of days elapsed in the billing period
up to and including the day of termination. (*The daily rate is calculated by dividing the annual
asset-based fee rate by 365.)

E. Outside Compensation For the Sale of Securities to Clients

Neither Fortress nor its supervised persons accept any compensation for the sale of investment
products, including asset-based sales charges or service fees Fortress from the sale of mutual
funds.

Item 7: Types of Clients

Fortress generally provides advisory and/or management services individuals, high net worth
individuals, Pension Plans, Defined Contribution Plans and Deferred Compensation Plans.

There are no minimum asset requirements for any of Fortress’s services.