Cosner Financial Group LLC

Item	5:	Fees	&	Compensation

We are required to describe our brokerage, custody, fees and fund expenses so you will know how
much you are charged and by whom for our advisory services provided to you. Our fees may be
negotiable. Therefore, clients with similar assets under management and investment objectives may
pay higher or lower fees than other clients.

A. Description of how we are compensated for our advisory services provided to you.

   (i) (a) Asset Management:

       Assets under management           Annual Percentage of assets charge*:
       $0-$4,999,999                                1.00 %
       $5,000,000+                                  Negotiable

       *Our firm’s fees are billed on a pro-rata annualized basis quarterly in arrears based on the
       value of your account on the last day of the quarter. Fees in excess of 2% are in excess of
       industry standards. Similar advisory services can be obtained for less.

       (b) FD&M Legacy Account:

       Advisory fees will be charged in advance of each calendar quarter. The quarterly advisory fee
       will be based on the value of the account on the last business day of previous quarter. We
       reserve the right to adjust billing for material interim additions to or withdrawals from the
       account during the quarter. Fee adjustments for additions and withdrawals made from an
       account will be reflected on the next billing cycle. The adjustment is calculated based on the
       number of days the money was under management and your fee schedule.

       To simplify accounting, your fee each quarter will be rounded up/down to the nearest dollar.
       Some quarters a client may pay slightly more and some quarters slightly less than the exact
       formula amount. Over time, such rounding will tend to average out to the exact formula
       amount.

       Portfolio Size                 Quarterly Fee          Annual Fee
       First $100,000                  0.40 - .45%            1.6 - 1.8%
       Next $150,000                   0.35 - .45%            1.4 - 1.8%
       Next $250,000                  0.325 - .35%            1.3 - 1.4%
       Next $500,000                    0.275%                  1.1%
       Next $1,000,000                 0.2 - .25%             0.8 - 1%
       Next $3,000,000              0.1625 - 0.1875%       0.65% - 0.75%

           If the value of your portfolio is less than $150,000, in addition to the advisory fees above, you
           will pay trading fees for securities transactions executed in your account in accordance with
           the custodian’s transaction fee schedule. The current fee schedule is included in your
           Advisory Agreement.

           (c) Gateway Financial Strategies (GFS)

           Fees are based on a percentage of assets being managed. This fee is for ongoing account
           monitoring, for initiating appropriate changes in investments, for quarterly reporting of
           portfolio results and for personal discussions to ensure your financial objectives are being
           met. To simplify accounting, your fee each quarter will be rounded up/down to the nearest
           dollar. Some quarters a client may pay slightly more and some quarters slightly less than the
           exact formula amount. Over time, such rounding will tend to average out to the exact formula
           amount.

           Portfolio Size                  Quarterly Fee           Annual Fee
           First $500,000                    0.3375%                1.35%
           Next $500,000                     0.2750%                1.10%
           Next $1,000,000                   0.2500%                1.00%
           Next $3,000,000                   0.1875%                0.75%
           Next $5,000,000                  Negotiable             Negotiable

           We do not retain a management fee based on the amount of assets being managed, instead it
           is reimbursed for operational and compliance costs associated with the GFS.

    (ii)       Financial Planning and Consulting:

           We charge on an hourly or flat fee basis for financial planning and consulting services. The
           total estimated fee, as well as the ultimate fee that we charge you, is based on the scope and
           complexity of our engagement with you. Our hourly fees are $175 for financial advisors. Flat
           fees generally range from $500 to $10,000.

B. Description of whether we deduct fees from clients’ assets or bill clients for fees incurred.

   (i)         (a) Asset Management:

           Our firm’s fees are billed on a pro-rata annualized basis quarterly in arrears based on the
           value of your account on the last day of the quarter. Fees will generally be automatically
           deducted from your managed account. In rare cases, we will agree to directly bill clients.

               (b) FD&M Legacy Account:

           Our fees are billed on a pro-rata annualized basis quarterly in advance. The quarterly
           advisory fee will be based on the value of the account on the last business day of previous
           quarter. Fees will generally be automatically deducted from your managed account. In rare
           cases, we will agree to directly bill clients.

               (c) Gateway Financial Strategies (GFS)

           Our fees are billed on a pro-rata annualized basis quarterly in advance based on the value of
           your account on the last day of the quarter.

   (ii)        Financial Planning and Consulting:

           We require a retainer of fifty-percent (50%) of the ultimate financial planning or consulting
           fee with the remainder of the fee directly billed to you and due to us within thirty (30) days
           of your financial plan being delivered or consultation rendered to you. In all cases, we will not
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Item	7:	Types	of	Clients	&	Account	Requirements

We have the following types of clients:
    Individuals;
    High-Net Worth Individuals;
    Pension and profit sharing plans;
    Corporations or other businesses.

We do not require a minimum account balance for our asset management service.