Virtue Capital Management LLC

Item 5: Fees and Compensation

A. Methods of Compensation and Fee Schedule

  A.1. Investment Management Services Fees
VCM’s fee for investment management services is an asset-based fee calculated as a percentage
of the value of the managed assets, pursuant to an asset management agreement and negotiated
fee that is fully disclosed at the time a client contracts with VCM or a client contracts with an
independent investment adviser that in turn contracts with VCM to act as a subadvisor. Such asset-
based management fees generally range from 1.00% to 1.95% per year. Please note that the client
may be able to obtain comparable services elsewhere at more favorable pricing.
Asset-based fees are generally subject to an investment advisory agreement between the client
and VCM or the client and their independent registered investment adviser that in turn contracts
with VCM as a subadvisor. Such fees are payable monthly in arrears and are based on the average
daily balance of the account during the month. Related accounts may be combined for fee paying
purposes. VCM may combine the account valuations to assist a client in meeting fee breakpoints
and therefore lowering the overall fee level. This option is generally extended to accounts residing
in the same household and certain members of the same family. The fees are usually prorated if
the investment advisory relationship commences other than at the beginning of a calendar month.
In the event a client should withdraw from a strategy mid-month the prorated advisory fee will be
charged at that time.
The client authorizes the qualified custodian to automatically deduct the fee and all other charges
payable hereunder from the assets in the account when due with such payments to be reflected
on the next account statement sent to the client. If insufficient cash is available to pay such fees,
securities in an amount equal to the balance of unpaid fees will be liquidated to pay for the unpaid
balance. VCM may modify the fee at any time upon 30 days’ written notice to the client. In the
event the client has an ERISA-governed plan, fee modifications must be approved in writing by
the client.
A client investment advisory agreement may be canceled at any time by the client, or by VCM
with 30 days’ prior written notice to the client. Upon termination, any earned, unpaid fees will be
due and payable. The client has the right to terminate an agreement without penalty within five
business days after entering into the agreement.

  A.2. Selection of Other Advisers and Fees
VCM may use third-party money managers as sub-advisers or direct clients to third-party money
managers. VCM will be compensated via a fee share from these advisers and this relationship will
be memorialized in each contract between VCM and each third-party adviser. The fees shared will
not exceed any limit imposed by any regulatory agency. The payment of fees for third-party
investment advisers will depend on the specific sub-adviser/third-party adviser selected. Clients
may terminate the contract with VCM without penalty, for a full refund, within five business days
of signing the contract. Thereafter, clients may terminate the contract at anytime. If a client invests

                     Part 2A of Form ADV: Virtue Capital Management, LLC Brochure

with a few days left in the month, they would be billed for the actual days in which they are
invested in the models.

 A.3. Hourly and Fixed Fee Arrangements

   Fixed Fees

Depending upon the complexity of the situation and the needs of the client, the fixed fee for
creating client financial plans typically ranges between $1,000 and $15,000. The variation of fees
would depend on the complexity of the client’s particular situation. Fixed fees are computed based
upon a good faith estimate of hours required to perform services. VCM attempts to maintain parity
with hourly and fixed charges while allowing some flexibility in estimation, taking into account
case complexity and client-specific circumstances. Fees are paid by check in advance, but never
more than six months in advance, with the remainder due upon presentation of the plan. A client
investment advisory agreement may be canceled at any time by the client, or by VCM with 30
days’ prior written notice to the client. Fees that are charged in advance will usually be refunded
based on the prorated amount of work completed at the point of termination. The fees are
negotiable, and the final fee schedule will be attached as an exhibit to the Financial Planning
Agreement. Clients may terminate their contracts without penalty within five business days of
signing the advisory contract.

   Hourly Fees

Depending upon the complexity of the situation and the needs of the client, the hourly fee for
these services is generally between $100 and $300. The fees are negotiable, and the final fee
schedule will be attached as an exhibit to the Financial Planning Agreement. Clients may terminate
a financial planning agreement at any time with written notice to the firm. The fee refunded will
be the balance of the fees collected in advance minus the hourly rate times the number of hours
of work that has been completed up to and including the day of termination. Clients may
terminate their contracts without penalty within five business days of signing the contract.

 A.4. Retirement Answers 101 Financial Education Course Fee
A fee may be charged on a per attendee basis for the course. Clients generally pay the course fee
directly to their investment adviser representative hosting the Retirement Answers 101 course.

 A.5. ERISA & Qualified Plan Service Fees
Fees for ERISA and Qualified Plan services are negotiated on an engagement-by-engagement
basis prior to services commencing and generally involve an annualized percentage based upon
the assets under management of the Plan. Such fees may be paid by the Plan directly or as part
of the fees charged to the Plan by the investment fiduciary.
...

Item 7: Types of Clients
VCM along with its investment adviser representatives may provide investment advice and/or
management supervisory services to any of the following types of clients:
   ▪   Individuals
   ▪   Pensions and/or profit-sharing plans
   ▪   High-net-worth individuals
   ▪   Trusts, estates, or charitable organizations
   ▪   Corporations and other business entities
   ▪   Other investment advisers or their clients
VCM requires a minimum of $1,000 to open and maintain an advisory account or in certain
circumstances an account can be established with less than $1,000. VCM may, at its discretion,
accept accounts below the minimum required amount. Prior to engaging VCM to provide any of
the investment advisory services described in this Brochure, the client will be required to enter
into a written agreement setting forth the terms and conditions under which the firm shall render
its services. Certain third-party money managers have higher minimum investment amounts than
$1,000 to open and maintain an advisory account.

                     Part 2A of Form ADV: Virtue Capital Management, LLC Brochure