Prosperity Financial Group Inc

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. Please note that lower
    fees for comparable services may be available from other sources.

ADV Part 2A – Firm Brochure                        Page 5                               Prosperity Financial Group, Inc.

    Compensation for Our Advisory Services

    Asset Management:

                  Assets Under Management                Annual Percentage of Assets Charge
                        Up to $250,000                                2.00%
                     $250,001 to $500,000                             1.50%
                    $500,001 to $1.000.000                            1.25%
                    $1,000,001 - $3,000,000                           1.00%
                    $3,000,001 to $5,00,000                           0.90%
                   $5,000,001 to $10,000,000                          0.80%
                         $10,000,001 +                                0.70%

    Fees are negotiable and will generally be charged quarterly in advance at a rate of one quarter of the
    annual fee based on the value of your account on the last day of the previous quarter. Adjustments
    will be made for any deposits and withdrawals in excess of $500,000 made during the quarter. Unless
    otherwise agreed to in writing, fees will be assessed on cash and cash equivalents. In certain cases,
    we will agree to alternative billing calculation methods, which will be described in the executed
    advisory agreement, but they will not exceed the amounts published above.

    Fees will generally be automatically deducted from your managed account but in rare cases we may
    agree to directly invoice clients. As part of this process, you understand and acknowledge the
    following:

              (1) The client’s independent custodian sends statements at least quarterly showing the
                  market values for each security included in the Assets and all account disbursements,
                  including the amount of the advisory fees paid to our firm;
              (2) Clients will provide authorization permitting our firm to be directly paid by these terms.
                  Our firm will send an invoice directly to the custodian; and
              (3) If our firm sends a copy of our invoice to the client, legend urging the comparison of
                  information provided in our statement with those from the qualified custodian will be
                  included.

    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 negotiable based on the scope and
    complexity of our engagement with you. Our hourly fees are $250. Flat fees generally range from up
    to $10,000.

    The total fee for financial planning and consulting services will be deducted from your managed
    account or will be directly billed to you. For direct billing, 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 require a retainer exceeding $1,200 when services cannot be rendered
    within 6 (six) months.

ADV Part 2A – Firm Brochure                         Page 6                                Prosperity Financial Group, Inc.

    Other Types of Fees & Expenses

    Fees for third party advisors are separate and in addition to our firm’s advisory fees. These fees and
    the investment strategy risks are disclosed to the client via provision of the third party advisor’s
    regulatory disclosure documents.

    Clients will incur transaction fees for trades executed by their chosen custodian, via individual
    transaction charges, or as a percentage of assets. These transaction fees are separate from our firm’s
    advisory fees and will be disclosed by the chosen custodian. Charles Schwab & Co., Inc. (“Schwab”),
    does not charge transaction fees for U.S. listed equities and exchange traded funds.

    You may pay charges imposed directly by a mutual fund, index fund, or exchange traded fund which
    shall be disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses),
    mark-ups and mark-downs, spreads paid to market makers, wire transfer fees and other fees and
    taxes on brokerage accounts and securities transactions. These fees are not included within the fee
    you are charged by our firm.

    Termination & Refunds

    We charge our advisory fees quarterly in advance. In the event that you wish to terminate our
    services, we will refund the unearned portion of our advisory fee to you. You need to contact us in
    writing and state that you wish to terminate our services. Upon receipt of your letter of termination,
    we will proceed to close out your account and process a pro-rata refund of unearned advisory fees.

    Commissionable Securities Sales

    We do not sell securities for a commission in any of our advisory accounts.

Item 7: Types of Clients & Account Requirements

    We have the following types of clients:
       • Individuals and High Net Worth Individuals;
       • Trusts, Estates or Charitable Organizations;
       • Corporations, limited liability companies and/or other business types.

    Our requirements for opening and maintaining accounts or otherwise engaging us:
       • We generally charge a minimum fee of $500 for written financial plans.

    Each of these items may be waived at the discretion of management.