Fortune Financial Advisors LLC

Item 5 – Fees and Compensation

Investment Management Fees and Compensation

Fortune Financial’s fees are based on an annual percentage of assets under management
and are generally billed quarterly in advance. The initial fee will be prorated based upon
the date the account is accepted for management by execution of the investment advisory

contract by Fortune Financial or when the assets are transferred, through the last day of
the current calendar quarter. Thereafter, the fee will be based on the market value of the
account on the last day of the previous calendar quarter and will cover the period from the
first day of the calendar quarter through the last day of the calendar quarter. The market
value will be determined as reported by the Custodian.

Fees are assessed on all assets under management, including securities, cash and money
market balances. Margin debit balances do not reduce the value of assets under
management.

Fees may vary based on the size of the account, complexity of the portfolio, extent of
activity in the account or other reasons agreed upon by Fortune Financial and the client.
Fees will generally follow the schedule of assets under management outlined below. In
certain circumstances, fees may be negotiated. The fee schedule is as follows:

Market Value of the           Maximum Annual
Managed Assets                Advisory Fees%

$0 to $100,000                     2.00%
$100,001 to $250,000               1.75%
$250,000 to $1,000,000             1.50%
$1,000,001 and over                1.25%

Clients may authorize Fortune Financial to debit their account quarterly for our fee. The
custodian will send the client a statement at least quarterly indicating all the amounts
disbursed from the account, including the amount of advisory fees.

Either Fortune Financial or the client may terminate the client agreement upon written
notice. If terminated, a prorated portion of the fee paid in advance would be refunded to
the client.

Fortune Financial's fee includes compensation for advisory and consulting services
provided, trade entry and other account-related services. Although Fortune Financial does
not charge redemption/exit fees or transaction fees, the custodian may charge custodial
fees, transaction fees, redemption fees or commissions. These fees are independent of
Fortune Financial's fees and will be disclosed by the custodian.

In addition, all fees paid to Fortune Financial for investment advisory services are separate
from any fees and expenses charged to shareholders of mutual fund shares or mutual fund
companies. A complete explanation of the expenses charged by the mutual fund is
contained in each fund's prospectus. Clients may also incur additional fees and expenses
charged by investment issuers such as private funds or other directly held alternative
investments. Details of such fees and expenses are included in the applicable fund
documents. Outside manager fees may be included in the quoted fee or may be separate,
but when separate must be approved by the client in advance. Outside manager fees may
or may not include trade commissions or other trading costs, depending on the manager
and platform used. Information about outside manager fees and trading costs can be found
in the applicable outside manager’s Form ADV Part 2 Disclosure Brochure which is
available upon request.

Upon termination of an advisory contract, the client is responsible for monitoring the
securities in his or her account, and Fortune Financial as investment adviser will have no
further obligation to act or advise with respect to those assets.

Financial Planning Fees

Fortune Financial negotiates fees for financial planning on a case by case basis. The fee
may be a flat fee calculated based on a combination of the extent and complexity of the
individual client's personal circumstances, the client's gross income and amount of assets
under management. Flat fees for financial planning services will typically range from
$50.00 to $5,000.00. Fees may also be negotiated on an hourly basis of $25.00 to $500.00
an hour.

All fees are agreed upon prior to entering into a contract with any client. Financial
planning fees shall be due as follows: One half of the total fee will be due and payable at the
time the client enters into the financial planning agreement, with the balance due and
payable at the time the financial plan is delivered to the client. Typically the financial plan
will be presented to the client within 90 days of the contract date, provided that all
information needed to prepare the financial plan has been provided by the client. If the
client terminates the contract prior to completion of the financial plan, any prepaid,
unearned fees will be refunded promptly, and any earned, unpaid fees will be due and
payable.

Consulting Fees

Fees for specific consulting services will be billed at an hourly rate of $25.00 to $500.00 per
hour, upon mutual agreement with the client, and shall be due and payable as earned.

Item 7 – Types of Clients

Fortune Financial provides investment management and investment supervisory services
to individuals, businesses and retirement plans.

For its services, Fortune Financial generally requires a minimum dollar value of $100,000
in assets for establishing or maintaining a client’s account. The minimum is subject to
waiver or negotiation.