The Financial Discovery Group Inc

Item 5                Fees and Compensation

Item 5. A.            Fee Schedule
The assets considered in determining the fee are agreed upon at the initial investment selection
meeting. The Financial Discovery Group, Inc. reserves the right to change the investment fees with a
thirty-day notice. Under certain circumstances, the fee may be negotiable. The annual fee schedule
follows:

Portfolio Value               Percent of Portfolio          Maximum Cumulative Fee
  <$750,000                          1.25%                         $9,375
  >$750,000                          1.00%                         None

Fixed fees: for portfolio values less than $500,000, there is a fixed minimum annual fee of $6,250.

There is no additional charge for financial planning services for clients using The Financial Discovery
Group, Inc. for investment advisory services. The Financial Discovery Group, Inc. may agree to prepare
one-time financial plans for a negotiated fee for persons not using the firm for investment advisory
services.

Item 5. B.              Client Billing and Fee Deduction
In most circumstances, The Financial Discovery Group, Inc. bills quarterly in advance and deducts fees
from client's assets within fifteen days of the calendar quarter. For more information see Item 5.D
Billing in Advance. Clients may select to be billed for fees incurred. See Item 15 Custody for
additional information when The Financial Discovery Group, Inc. is given the authority to deduct fees
from client’s assets.

Item 5. C.              Other Fees and Expenses
In addition to fees paid to The Financial Discovery Group, Inc., clients also pay the custodian/broker
for transaction costs associated with buying or selling securities (“Brokerage Fees”). Any brokerage
commission, stock transfer fees, and other similar charges that are incurred in connection with
transactions for a client’s account are immediately deducted by the custodian/broker from the client's
account and are in addition to the advisory fees the client pays to The Financial Discovery Group, Inc.
See Item 12 Brokerage Practices for additional information on brokerage. The Financial Discovery
Group, Inc. does not receive any compensation from transactions.

In addition, each mutual fund and exchange traded fund has underlying expense ratios which reduce the
return of the investment. These fees are embedded in the mutual fund or exchange traded fund and reduce
the price (“Net Asset Value”). The fees are not deducted from the client account. The Financial
Discovery Group, Inc. does not receive any compensation from these fees.

Item 5. D.             Billing In Advance
The Financial Discovery Group, Inc. typically bills quarterly in advance at the end of each calendar
quarter based on the quarter-end client asset values. Unless otherwise mutually agreed-to, the initial
management fee is payable quarterly in advance on a pro rata basis on the first day of the next
succeeding month after the assets have substantially transferred to The Financial Discovery Group, Inc.'s
management. Either party may terminate the agreement with a thirty-day notice to the other party. A
terminating client will receive a prorated refund for the portion of the quarter during which assets were
not under The Financial Discovery Group, Inc.'s management.

Item 5. E.            Compensation of Supervised Person

Form ADV Part 2 A - Page 5
No employee of The Financial Discovery Group, Inc. receives compensation for the sale of securities
or other investment products.

Form ADV Part 2 A - Page 6

Item 7.               Types of Clients

The Financial Discovery Group, Inc. provides investment advice to individuals, individual/solo 401k
plans, estates of individuals, trusts, and custodial accounts for minors. Under most circumstances, the
minimum account size is $500,000.