Fortune Financial Group Inc

Item 5: Fees and Compensation

      1. Financial Planning - Clients of Fortune Financial Group have a choice of whether or not
          they wish to have FFG provide them with a custom financial plan which may contain the
          following…

1.     Retirement planning
2.     Tax planning
3.     Investment allocation
4.     Insurance planning
5.     Education planning
6.     Employee benefits
7.     Estate planning
8.     Cash flow analysis
9.     Financing options
10.    Charitable giving strategies.

Clients may opt for a one-time financial plan with specific recommendations. This includes the
above areas of a financial plan. The plan includes a detailed evaluation of “what-if” scenarios
based on the client’s goals and current plan.

Clients may also choose to engage in an ongoing financial planning relationship in exchange for a
monthly fee. The fee will be direct billed via credit card or ACH.

The planning fees range from $500-$4,000 depending on the complexity of client situation.

Clients may also choose hourly rate advice which could include telephone or computer sharing
meetings for a fixed rate to be agreed upon in advance.

If the client chooses to have FFG manage money in excess of $500,000 the financial planning fee
is waived, and the financial planning is included entirely in the asset management fee.

Financial planning clients are under no obligation to hire FFG to manage their investments.

In certain situations, this fee may be negotiable, and a different offer may be defined based on the
prospective client’s situation. In this case, it would be spelled out in the client Agreement.

      2. Investment Management

                  1. Establishing an Investment Policy Statement
                  2. Designing a Suitable Portfolio Structure 3. Selecting appropriate
                      Investment Managers
                  4. Reporting of Portfolio Performance.

        An asset-based fee, ranging from 0.50% to 1.25%, will be charged in arrears for the asset
 management service. The fee will be a percentage of assets monitored, payable quarterly. Fees
 will be calculated as follows:

                Assets Under Management (AUM) Annual Fee (% of Assets)
Assets Under Management (AUM)                           Annual Fee (% of Assets)

$100,000-$250,000                                                 1.25% (0.3125% per quarter)
$250,001-$1,000,000                                               1.00% (0.25% per quarter)
$1,000,001-$2,500,000                                             0.75% (0.1875% per quarter)
Greater than $2,500,000                                           0.50% (0.0125% per quarter)

 These fees are Negotiable: AUM fee for special circumstances as determined by FFG.

          A quarterly management fee may be charged to the client's account held by an
independent custodian or billed directly to the client. Payment of fees may be made directly by
the client or made by the custodian holding the client's funds and securities. If payment is made
by the custodian, clients will provide FFG with written authorization permitting the fees to be
paid directly from the clients account held at the independent custodian. The custodian will send
the client a statement, at least quarterly, indicating all amounts dispersed from the account,
including the amount of advisory fees paid directly to FFG. FFG does not have custody of the
client's funds or securities.

    3. Advisors with FFG may also recommend Alternative Investments (i.e., Real Estate
       Developments) from which they will ultimately share in the profits. This may create a
       financial incentive to recommend these products.
    4. When we provide investment advice to you regarding your retirement plan account or
       individual retirement account, we are fiduciaries within the meaning of Title I of the
       Employee Retirement Income Security Act and/or the Internal Revenue Code, as
       applicable, which are laws governing retirement accounts. The way we make money
       creates some conflicts with your interests, so we operate under a special rule that requires
       us to act in your best interest and not put our interests ahead of yours.

Under this special rule’s provisions, we must:

          •   Meet a professional standard of care when making investment recommendations
              (give prudent advice)
          •   Never put our financial interests ahead of yours when making recommendations
              (give loyal advice)
          •   Avoid misleading statements about conflicts of interest, fees, and investments
          •   Follow policies and procedures designed to ensure that we give advice that is in
              your best interest
          •   Charge no more than is reasonable for our services
          •   Give you basic information about conflicts of interest.

There are many reasons you may decide (no obligation) to move your money out of your old
employer 401k or IRA to an IRA managed by FFG. Some of these include:

           •    Does not wish to leave assets with former employer or employer is terminating the
                plan
           •    Dissatisfied with the limited investment options
           •    Dissatisfied with the performance of the investment alternatives
           •    Would like a lifetime income option
           •    Would like to consolidate assets
           •    Wants more direct control over the assets
           •    Prefers to have professional advice/management
           •    Would like to have more holistic planning services for other matters

We are making investment recommendations to you regarding your retirement plan account or
individual retirement account as fiduciaries within the meaning of Title I of the Employee
Retirement Income Security Act and/or the Internal Revenue Code, as applicable, which are laws
governing retirement accounts. The way we make money or otherwise are compensated creates
...

Item 7: Types of Clients

                FFG generally provides investment advice to individuals, trusts, estates,
charitable organizations, and small businesses.

The desired minimum account size for the asset management offered by FFG is $500,000 and may
be negotiated on a limited basis to reflect new clients with fewer assets based on the prospective
client’s situation.