Materetsky Financial Group Inc

Item 5           Fees and Compensation

   A. The client can determine to engage the Registrant to provide non-discretionary investment
      advisory services on a wrap-fee basis.

         INVESTMENT ADVISORY SERVICES
         Registrant’s negotiable annual investment advisory fee shall generally be based upon a
         percentage (%) of the market value and type of assets placed under Registrant’s
         management and/or advisement, between 0.45% and 1.40%. Fees shall vary depending
         upon various objective and subjective factors, including but not limited to: the amount of
         assets to be managed; personal and familial relationships; account composition; the scope
         and complexity of the engagement; the anticipated number of meetings and servicing
         needs; related accounts; future earning capacity; anticipated future additional assets; the
         professional(s) rendering the service(s); courtesy accounts, negotiations with the client;
         prior fee schedules; and competition. Please Note: As a result of these factors, similarly
         situated clients could pay different fees, and the services to be provided by the Registrant
         to any particular client could be available from other advisers at lower fees. Please Also
         Note: Conflict of Interest. The Registrant’s representative shall receive a portion of the
         advisory fee charged to the client. As a result, a material conflict of interest arises because
         the representative has an incentive to seek a higher investment advisory fee to potentially
         increase the representative’s compensation. ANY QUESTIONS: Registrant’s Chief
         Compliance Officer, Ira Materetsky, remains available to address any questions that a
         client or prospective client may have regarding the above fee disparity, impact on account
         performance, and conflict of interest.

         Registrant's annual investment advisory fee shall include investment advisory services,
         and, to the extent specifically requested by the client, financial planning and consulting
         services. In the event that the client requires extraordinary planning and/or consultation
         services (to be determined in the sole discretion of the Registrant), the Registrant may
         determine to charge for such additional services, the dollar amount of which shall be set
         forth in a separate written notice to the client. Please Note: The Registrant does not serve
         as an attorney or accountant, and no portion of our financial planning or consulting services
         should be construed as legal or accounting services. Accordingly, we do not prepare estate
         planning documents or tax returns. Please Further Note. Registrant believes that it is
         important for the client to address financial planning issues on an ongoing basis.
         Registrant’s advisory fee will remain the same regardless of whether or not the client
         determines to address financial planning issues with the Registrant.

         Fee Dispersion. Registrant, in its discretion, may charge a lesser investment advisory fee,
         charge a flat fee, waive its fee entirely, or charge fee on a different interval, based upon
         certain criteria (i.e., anticipated future earning capacity, anticipated future additional assets,
         dollar amount of assets to be managed, related accounts, account composition, complexity

    of the engagement, anticipated services to be rendered, grandfathered fee schedules,
    employees and family members, courtesy accounts, competition, negotiations with client,
    etc.). Please Note: As result of the above, similarly situated clients could pay different fees.
    In addition, similar advisory services may be available from other investment advisers for
    similar or lower fees. ANY QUESTIONS: Registrant’s Chief Compliance Officer, Ira
    Materetsky, remains available to address any questions that a client or prospective client
    may have regarding advisory fees.

    RETIREMENT PLAN CONSULTING
    The terms and conditions of the Registrant’s retirement plan consulting services, including
    the applicable fee, shall be set forth in a Retirement Plan Consulting Agreement between
    the Registrant and the plan sponsor. Clients can engage Registrant to provide Retirement
    Plan Consulting services for a fixed fee or a fee based on a percentage of plan assets, which
    fees may be negotiable and may vary depending upon the level and scope of the service(s)
    required and the professional(s) rendering the service, and will generally range from 0.40%
    to 1.00% of plan assets.

    Margin Accounts: Risks/Conflict of Interest. Registrant does not recommend the use of
    margin for investment purposes. A margin account is a brokerage account that allows
    investors to borrow money to buy securities and/or for other non-investment borrowing
    purposes. The broker/custodian charges the investor interest for the right to borrow money
    and uses the securities as collateral. By using borrowed funds, the customer is employing
    leverage that will magnify both account gains and losses. Should a client determine to use
    margin, Registrant will include the entire market value of the margined assets when
    computing its advisory fee. Accordingly, Registrant’s fee shall be based upon a higher
    margined account value, resulting in Registrant earning a correspondingly higher advisory
    fee. As a result, the potential of conflict of interest arises since Registrant may have an
    economic disincentive to recommend that the client terminate the use of margin. Please
    Note: The use of margin can cause significant adverse financial consequences in the event
    of a market correction. ANY QUESTIONS: Our Chief Compliance Officer, Ira
    Materetsky, remains available to address any questions that a client or prospective
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Item 7           Types of Clients

         The Registrant’s clients shall generally include individuals, high net worth individuals,
         retirement plans, and charitable organizations. In general, Registrant requires a minimum
         of $250,000 to open and maintain an advisory account. At Registrant’s discretion, we may
         waive this minimum account size. For example, we may waive the minimum if you appear
         to have significant potential for increasing your assets under our management. We may
         also combine account values for you and your minor children, joint accounts with your
         spouse, and other types of related accounts to meet the stated minimum. Registrant does
         not require a minimum fee for its investment management services. Additionally,
         Registrant, in its discretion, may charge a lesser investment advisory fee, charge a flat fee,
         waive its fee entirely, or charge fee on a different interval, based upon certain criteria (i.e.,
         anticipated future earning capacity, anticipated future additional assets, dollar amount of
         assets to be managed, related accounts, account composition, complexity of the
         engagement, anticipated services to be rendered, grandfathered fee schedules, employees
         and family members, courtesy accounts, competition, negotiations with client, etc.). Please
         Note: As result of the above, similarly situated clients could pay different fees. In addition,
         similar advisory services may be available from other investment advisers for similar or
         lower fees. ANY QUESTIONS: Registrant’s Chief Compliance Officer, Ira Materetsky,
         remains available to address any questions that a client or prospective client may have
         regarding advisory fees.