(FUN TOKENS) SALE TERMS

Confidentiality

1. I will keep confidential and will not disclose to third parties (other than my tax or other financial advisors under like conditions of confidentiality) any and all information regarding THE FORTUNE FUND, an exempted company, registered under the laws of BRITISH VIRGIN Islands, (“THE FORTUNE FINANCE”) or COMPANY NUMBER 1979891 (“Smart Contract Supporter”) provided, however, that this confidential treatment shall not apply to the tax treatment and tax structure of an acquisition of (FUN TOKENS) and all materials of any kind (including opinions or other tax analyses) that are provided to me relating to such tax treatment and tax structure.

Authorization and Indemnification

2. I at this moment authorize and instruct each of THE FORTUNE FUND and Smart Contract Supporter to accept and execute any instructions given about any (FUN TOKENS) acquired for by me. I agree to keep each of them indemnified against any loss of any nature whatsoever arising to any of them because of any of them acting upon such instructions and they may each rely conclusively upon and shall incur no liability in respect of any action taken upon any notice, consent, request, instructions or another instrument believed in good faith to be genuine or to be signed by properly authorized persons.

2.1 I indemnify and hold harmless each of THE FORTUNE FUND, Smart Contract Supporter against any loss of any nature whatsoever arising to any of them because of any of them acting upon instructions given about any (FUN TOKEN) purchased by me.

2.2 I indemnify and hold harmless THE FORTUNE FUND and the Smart Contract Supporter and their respective directors, members, partners, shareholders, officers, employees, agents, and affiliates (collectively, the Indemnified Parties) from and against any and all losses, liabilities, damages, penalties, costs, fees and expenses (including legal fees and disbursements) that may result, directly or indirectly, from any inaccuracy in or breach of any representation, warranty, covenant or Application set forth in this Application or in any other document I deliver to THE FORTUNE FUND and the Smart Contract Supporter, or from my assertion of my proper authorization to act.

2.3 I indemnify and hold harmless THE FORTUNE FUND and the Smart Contract Supporter and each of its agents and delegates and each of their respective principals, members, managers, officers, directors, stockholders, employees, and agents (each a FATCA Indemnified Party) and hold them harmless from and against any withholding and any FATCA (or other withholding or information reporting) related liability, action, proceeding, 2.4 claim, demand, costs, damages, expenses (including legal expenses) penalties or taxes whatsoever which a FATCA Indemnified Party may suffer or incur as a result of any action or inaction on my part (or on the part of any person related to me). This indemnification shall survive my death or the disposition of my (FUN TOKENS).

2.5 I indemnify and hold harmless THE FORTUNE FUND and the Smart Contract Supporter against any loss arising because of a delay or failure to process this application or a redemption request if I have failed to provide such evidence as is required by such parties to satisfy applicable anti-money laundering rules.

2.6 I understand, acknowledge and agree that:

Acknowledgements

I understand, acknowledge and agree as follows:

Interpretation

3. Terms not defined herein will be as defined in the White Paper and Terms and Conditions (collectively, the Token Sale Terms) located at https://www.thefortunefund.com (the Website).

3.1 References to Token Sale Terms and the Articles are to those documents as they may be amended from time to time.

White Paper and Terms and Conditions

4. I have received and reviewed The Token Sale Terms and have taken appropriate legal and tax advice concerning the same.

I understand that (FUN TOKENS) do not represent nor do they entitle the holder, in any way whatever, to a:

as such terms are defined in the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) Regulations, 2015, BTLG1-8265751-5.

Terms of Tokens

5. (FUN TOKENS) are held subject to the terms and conditions of the Token Sale Terms and this Application (this Application).

5.1 No certificate will be issued to about my (FUN TOKENS), and my personal (FUN TOKEN) holding will not be reflected, recognized or recorded in any account or ledger maintained by THE FORTUNE FUND.

Acquisition and Reversion

6. I understand that Acquisitions and Reversions will be processed by THE FORTUNE FUND as per its Token Sale Terms. For this Application, a "Reversion" means a transaction directly between THE FORTUNE FUND and you whereby (FUN TOKEN) registered on your public key revert to a public key owned or controlled by THE FORTUNE FUND or its affiliates by the Terms and Conditions.

6.1 I understand that, before any purchase of (FUN TOKENS), I must pay cash or Digital Currency (Contributed Amount) to THE FORTUNE FUND by the Token Sale Terms to the cryptocurrency address indicated by THE FORTUNE FUND.

6.2 Upon acceptance of my request to buy (FUN TOKENS), the Contributed Amount will be converted for (FUN TOKENS) by the Token Sale Terms.

6.3 Any Reversion proceeds realized and due to me following a Reversion of (FUN TOKENS) held by me at the point of Reversion (Reversion Proceeds) by Token Sale Terms shall be paid to me as soon as practicable in the manner set forth in the Token Sale Terms. Contributed Amount or Reversion Proceeds shall be transferred and/or reflected on the same Digital Currency address from which the Contributed Amount was originally remitted unless such account or Digital Currency address has been changed and notified to THE FORTUNE FUND and all relevant anti-money laundering and other verification procedures have been complied with prior to withdrawal. No Contributed Amount or Reversion Proceeds shall be paid to any Third Party account in respect of (FUN TOKENS) held by me and reverted.

6.4 I acknowledge and understand that, for so long as any Reversion Proceeds are held as assets of THE FORTUNE FUND, I shall accept the risk that a creditor of THE FORTUNE FUND may seek to and may be successful in securing discharge of a liability of THE FORTUNE FUND out of THE FORTUNE FUND assets, thereby materially adversely affecting the value of my Contributed Amount and/or Reversion Proceeds and potentially reducing one or both to zero. Furthermore, I acknowledge that any interest accruing concerning such Contributed Amount and Reversion Proceeds held in this manner shall be for the benefit of THE FORTUNE FUND only.

Anti-Money Laundering

7. THE FORTUNE FUND (and its delegate) may request such evidence as is necessary to verify the identity and source of funds of a prospective token purchaser and to confirm the AML status of any redeeming (FUN TOKEN) holder. THE FORTUNE FUND shall not accept or repay any Contributed Amount and application for (FUN TOKENS) and shall not pay any Reversion Proceeds until all information required for verification purposes has been provided.

7.1 If, as a result of any information or other matter which comes to his attention, any person resident in the BRITISH VIRGIN Islands knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property, and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to: (i) the Financial Reporting Authority of the BRITISH VIRGIN Islands, pursuant to the Proceeds of Crime Law (Revised) of the BRITISH VIRGIN Islands if the disclosure relates to criminal conduct or money laundering; or (ii) a police constable not below the rank of inspector, or the Financial Reporting Authority, pursuant to the Terrorism Law (Revised) of the BRITISH VIRGIN Islands, if the disclosure relates to involvement with terrorism or terrorist financing and property. Such a report shall not be treated as a breach of confidence or any restriction upon the disclosure of information imposed by any enactment or otherwise.

7.2 THE FORTUNE FUND prohibits acceptance of funds by any persons or entities that are acting, directly or indirectly: (i) in contravention of any U.S. or international laws and regulations, including anti-money laundering regulations or conventions; (ii) on behalf of terrorists or terrorist organizations, including those persons or entities that are included on the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Treasury Department’s Office of Foreign Assets Control [1] (“OFAC”), as such list may be amended from time to time; (iii) for a senior foreign political [2] figure, any member of a senior foreign political figure’s immediate family or any close associate of a senior foreign political, unless THE FORTUNE FUND, after being specifically notified in writing that the Purchaser is such a person, conducts further due diligence, and determines that such acquisition shall be permitted; or (iv) for a foreign shell bank [3] (such persons or entities in (i) – (iv) are collectively referred to as “Prohibited Persons”).

Tax Information Exchange Obligations

8. I acknowledge that THE FORTUNE FUND may be subject to certain obligations (the Tax Information Exchange Obligations) to gather and disclose to the competent authorities information relating to purchasers of (FUN TOKEN) under: 

(i) the United States Foreign Account Tax Compliance Act provisions enacted under the United States Hiring Incentives to Restore Employment Act and any guidance, or regulations relating thereto (FATCA); 

(ii) any other legislation, regulations or guidance enacted in any jurisdiction which seeks to implement similar tax reporting, tax information exchange, reporting and/or withholding tax regimes (including the OECD Common Reporting Standard on the automatic exchange of financial account information); 

(iii) any intergovernmental Application between the BRITISH VIRGIN Islands (or any BRITISH VIRGIN Islands government body) and the U.S., the U.K. or any other jurisdiction (including any government bodies in any other such jurisdiction), entered, in order to comply with, facilitate, supplement or implement the legislation, regulations or guidance described in (i) and (ii), including the OECD Multilateral Competent Authority Application; and 

(iv) any legislation, regulations or guidance in the BRITISH VIRGIN Islands that give effect to the foregoing.

8.1 I shall execute properly and provide to THE FORTUNE FUND promptly any documentation or other information that THE FORTUNE FUND or its agents may request in writing from time to time in connection with the Tax Information Obligations. I waive any provision under the laws and regulations of any jurisdiction that would, absent a waiver, prevent or inhibit THE FORTUNE FUND's compliance with applicable law as described in this paragraph, including but not limited to by preventing either (i) the Purchaser from providing any requested information or documentation, or (ii) the disclosure by THE FORTUNE FUND and its agents of the provided information or documentation to applicable regulatory authorities.

8.2 Without limitation, I shall provide any documentation or other information regarding myself and my beneficial owners requested by THE FORTUNE FUND or its agents in connection with the Tax Information Exchange Obligations.

8.3 If I provide information and/or documentation that is in anyway misleading, or I fail to provide THE FORTUNE FUND or its agents or delegates with the information and documentation that has been requested, (whether such action or inaction leads to compliance failures by THE FORTUNE FUND, or a risk of THE FORTUNE FUND or its token holders being subject to withholding tax or other penalties), THE FORTUNE FUND reserves the right:

8.4 Further, I shall have no claim against THE FORTUNE FUND or Smart Contract Supporter, or either of their agents or delegates, for any form of damages or liability because of actions taken or remedies pursued by or on behalf of THE FORTUNE FUND or Smart Contract Supporter to comply with the Tax Information Exchange Obligations.

Electronic Delivery of Reports and Other Communications

9. I accept that such electronic communications are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with or without the knowledge of the sender or the intended recipient. THE FORTUNE FUND and Smart Contract Supporter make no warranties about these matters. Each of THE FORTUNE FUND and Smart Contract Supporter reserve the right to intercept, monitor, and retain e-mail messages to and from their systems as permitted by applicable law. If I have any doubts about the authenticity of an electronic communication purportedly sent by THE FORTUNE FUND or Smart Contract Supporter I am required to contact the purported sender immediately. THE FORTUNE FUND's acceptance of my (FUN TOKEN) purchase is not conditioned on my giving consent to electronic delivery of THE FORTUNE FUND related information. If I do not have reliable access to the internet or e-mail, I shall not acquire Tokens. I shall not be entitled to receive any information from THE FORTUNE FUND in paper format.

Representations and Warranties

9. In consideration of THE FORTUNE FUND's acceptance of my offer to purchase (FUN TOKENS) and recognizing its reliance thereon, I agree, represent, and warrant to THE FORTUNE FUND that:

9.1 I am not:

9.2 I did not acquire and will not transfer any (FUN TOKENS) within the United States of America, its territories or possessions (from now on collectively referred to as the “United States”).

9.3 I did not engage (except as specifically authorized by THE FORTUNE FUND) and will not engage in any activity relating to the sale of (FUN TOKENS) in the United States;

9.4 I will not transfer directly or indirectly any of my (FUN TOKENS) or any interest therein (including without limitation any right to receive dividends or other distributions) without the consent of the directors of THE FORTUNE FUND and further, I shall not transfer directly or indirectly any of my (FUN TOKENS) or any interest therein (including without limitation any right to receive dividends or other distributions) to a U.S. Person or to any other person or entity unless the proposed transferee has made the same representations and warranties as set out herein.

9.5 I did not acquire and will not transfer any (FUN TOKENS) within [the Republic South Africa, British Virgin Islands or the United states of America its territories or possessions (from now on collectively referred to as the “Restricted Territory”).

9.6 I did not engage (except as specifically authorized by THE FORTUNE FUND) and will not engage in any activity relating to the sale of the (FUN TOKENS) in the Restricted Territory;

No solicitation

10. I am not aware of and am in no way relying on, and did not become aware of the sale of (FUN TOKENS) through or as a result of, from or in any of the United States, BRITISH VIRGIN Islands or Republic of South Africa: any form of general solicitation or general advertising including, without limitation, any article, notice, advertisement or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or electronic mail over the internet, in connection with the offering and sale of (FUN TOKENS) and I am not purchasing (FUN TOKENS) and did not become aware of the offering of (FUN TOKENS) through or as a result of, in any of the United States, BRITISH VIRGIN Islands or Republic of South Africa, any seminar or meeting to which I was invited by, or any solicitation of a subscription by, a person not previously known to me in connection with investments in securities generally.

Capacity and experience

11. I am responsible for the decision to acquire (FUN TOKENS), and I have legal competence and capacity to execute this Application.

11.1 I have the knowledge, expertise, and experience in financial matters to evaluate the risks of acquiring (FUN TOKEN), I am aware of the risks inherent in acquiring and the method by which the assets of THE FORTUNE FUND are held and/or traded, and I can bear the risk of loss of my entire token acquisition.

11.2 I am qualified and authorized to make such acquisition decision and, to the extent deemed necessary, I have consulted my advisors and legal counsel regarding the acquisition of (FUN TOKENS). In deciding to acquire (FUN TOKENS), I have not relied on any advice or recommendation from THE FORTUNE FUND, Smart Contract Supporter nor any placement agent associated with THE FORTUNE FUND, or any of their affiliates.

11.3 To the extent that I am acting on behalf of an entity, I have the full power and authority under such entity's governing instruments to do so, and that entity has the full power and authority under its governing instruments to acquire (FUN TOKENS).

Binding Application and extent of representations and warranties

12. This Application constitutes a valid and binding Application and is enforceable against me by its terms.

12.1 I have read and understand FORTUNE FUND's privacy policy.

(i) I am not, nor is any person or entity controlling, controlled by or under common control with me, a Prohibited Person, 

(ii) the funds paid for (FUN TOKENS) on my behalf of any of my beneficial owner(s), were not and are not derived from activities that may contravene any U.S. or international laws and regulations, including anti-money laundering laws and regulations and 

(iii) to the extent I have any beneficial owners,

(A) I have carried out thorough due diligence to establish the identities of such beneficial owners, 

(B) based on such due diligence, the I reasonably believe that no such beneficial owners are Prohibited Persons, 

(C) I hold the evidence of such identities and status and will maintain all such evidence for at least five years from the date of my complete redemption from THE FORTUNE FUND, and 

(D) I will make available such information and any additional information that THE FORTUNE FUND may require upon request in accordance with applicable regulations. If any of the representations, warranties or covenants in this section cease to be true or if THE FORTUNE FUND no longer reasonably believes that it has satisfactory evidence as to their truth, notwithstanding any other agreement to the contrary, THE FORTUNE FUND may, in accordance with applicable regulations, be obligated to freeze my token rights, either by prohibiting additional acquisition, declining or suspending any redemption requests, or my (FUN TOKENS) may immediately be involuntarily redeemed by THE FORTUNE FUND, and THE FORTUNE FUND may also be required to report such action and to disclose my identity to OFAC or other authority. In the event that THE FORTUNE FUND is required to take any of the foregoing actions, I understand and agree that it shall have no claim against THE FORTUNE FUND and its respective affiliates, directors, members, partners, shareholders, officers, employees and agents for any form of damages as a result of any of the aforementioned actions.

12.2 Having reviewed the Token Sale Terms, I at this moment agree with THE FORTUNE FUND, subject to THE FORTUNE FUND's provisional acceptance, to acquire for as many of the (FUN TOKENS) as the Contributed Amount shall purchase.

Appendix 

[1] The OFAC list may be accessed on the web at http://www.treas.gov/ofac

[2] Senior foreign political figure means a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. Also, a senior foreign political figure includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure. The immediate family of a senior foreign political figure typically includes the political figure’s parents, siblings, spouse, children and in-laws. A close associate of a senior foreign political figure is a person who is widely and publicly known internationally to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure.

[3] Foreign shell bank means a foreign bank without a physical presence in any country, but does not include a regulated affiliate. A post office box or electronic address would not be considered a physical presence. A regulated affiliate means a foreign shell bank that: 

(1) is an affiliate of a depository institution, credit union, or foreign bank that maintains a physical presence in the United States or a foreign country, as applicable; and 

(2) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or foreign bank.

[4] See Exhibit A attached hereto for the definition of a “U.S. Person”.

[5] See Exhibit A attached hereto for the definition of a “U.S. Person”.

[6] Beneficial owners will include, but not be limited to: 

(i) shareholders of a corporation; 

(ii) partners of a partnership; 

(iii) members of a limited liability company; 

(iv) investors in a fund-of-funds; 

(v) the grantor of a revocable or grantor trust; 

(vi) the beneficiaries of an irrevocable trust; (vii) the individual who established an IRA; 

(viii) the participant in a self-directed pension plan; 

(ix) the sponsor of any other pension plan; and 

(x) any person being represented by the Purchaser in an agent, representative, intermediary, nominee or similar capacity. If the beneficial owner is itself an entity, the information and representations set forth herein must also be given concerning its beneficial owners. If the Purchaser is a publicly-traded company, it need not conduct due diligence as to its beneficial owners.

EXHIBIT A

DEFINITION OF U.S. PERSON

Rule 902 of the U.S. Securities Act of 1933

(1) “U.S. Person” means: 

(2) Notwithstanding (1) above, any discretionary account or similar account (other than an estate or trust) held for the benefit or account of a non-U.S. Person by a dealer or other professional fiduciary organized, incorporated, or (if an individual) resident in the United States shall not be deemed a “U.S. Person”.

(3) Notwithstanding (1) above, any estate of which any professional fiduciary acting as executor or administrator is a U.S. Person shall not be deemed a U.S. Person if:

(4) Notwithstanding (1) above, any trust of which any professional fiduciary acting as trustee is a U.S. Person shall not be deemed a U.S. Person if a trustee who is not a U.S. Person has sole or shared investment discretion with respect to the trust assets, and no beneficiary of the trust (and no settlor if the trust is revocable) is a U.S. Person.

(5) Notwithstanding (1) above, an employee benefit plan established and administered by the law of a country other than the United States and customary practices and documentation of such country shall not be deemed a U.S. Person.

(6) Notwithstanding (1) above, any agency or branch of a U.S. Person located outside the United States shall not be deemed a “U.S. Person” if:

(7) The International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the United Nations, and their agencies, affiliates and pension plans, and any other similar international organizations, their agencies, affiliates and pension plans shall not be deemed “U.S. Persons.

IMPORTANT LEGAL DISCLAIMER

Access to products and services detailed on this website may be restricted for certain persons or countries. In particular, the products and services referred to herein are not available to U.S. Persons, as defined by Regulation S of the United States Securities and Exchange Commission, as amended ('U.S. Persons'). The information contained on this website is not available to U.S. Persons. Investors who are such 'U.S. Persons' should not view this website. The provision of the information in this website does not constitute an offer of securities to any person in the United States or to any 'U.S. Person.' The Fortune Fund is not registered under the U.S. Investment Company Act of 1940, as amended, nor is the sale of FUN tokens registered under the U.S. Securities Act of 1933, as amended. Consequently, it cannot be offered for sale or be sold in the United States, its territories, possessions or protectorates under its jurisdiction, nor to nationals, citizens or residents in any of those areas, except pursuant to a valid exemption. More generally, the products and services presented on this website may only be purchased in jurisdictions in which their marketing and distribution are authorised. The Fortune Fund advises all interested parties to check in advance whether they are legally entitled to purchase the products and/or services presented on the website.