Melfa Wealth Management Inc

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

A. Fees for Advisory Services
Wealth management fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
agreement. Wealth management fees are based on the average daily balance of assets under management with
the Advisor during the prior calendar quarter. Wealth management fees range up to 1.30% annually based on
several factors, including the complexity of the services to be provided, the inclusion of financial planning services,
the level of assets to be managed, and the overall relationship with the Advisor. Relationships with multiple
objectives, specific reporting requirements, portfolio restrictions, and other complexities may be charged a higher
fee.

The wealth management fee in the first quarter of service is prorated from the inception date of the account[s] to the
end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. Clients may be offered a fixed rate fee
schedule or a tiered fee schedule. All securities held in accounts managed by FIG will be independently valued by
the Custodian, recommended by the Advisor. FIG will conduct periodic reviews of the Custodian’s valuations to
ensure accurate billing.

Clients may make additions to and withdrawals from their account[s] at any time, subject to FIG’ right to terminate
an account. Additions may be in cash or securities provided that FIG reserves the right to liquidate any transferred
securities or decline to accept particular securities into a Client’s account[s]. Clients may withdraw account assets
on notice to FIG, subject to the usual and customary securities settlement procedures. However, FIG designs its
portfolios as long-term investments, and the withdrawal of assets may impair the achievement of a Client’s
investment objectives. FIG may consult with its Clients about the options and ramifications of transferring securities.
However, Clients are advised that when transferred securities are liquidated, they may be subject to transaction
fees, fees assessed at the mutual fund level (i.e. contingent deferred sales charge) and/or tax ramifications.

B. Fee Billing
Wealth management fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] at the start of each quarter. The amount due is calculated by applying the quarterly rate
(annual rate divided 365 multiplied by the number of days in the upcoming quarter) to the average daily balance of
assets under management with FIG during the prior quarter. Clients will be provided with a statement, at least
quarterly, from the Custodian reflecting the deduction of the wealth management fee. Clients are urged also to
review the brokerage statement from the Custodian, as the Custodian does not perform a verification of fees.
Clients provide written authorization permitting advisory fees to be deducted by FIG to be paid directly from their
account[s] held by the Custodian as part of the wealth management agreement and separate account forms
provided by the Custodian.

C. Other Fees and Expenses
Clients will incur certain fees or charges imposed by third parties, other than FIG, in connection with investments
made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities execution fees
charged by the Custodian, if applicable. Trading through the Advisor's recommended Custodian does not incur
securities transaction fees for ETF and equity trades in a Client's account, provided that the account meets the
terms and conditions of the Custodian's brokerage requirements. However, trades in Mutual Funds and other
types of investments may incur additional expenses. The Advisors recommended Custodian charges a platform
                                  Melfa Wealth Management, Inc. dba Factor Investing Group
                                      8 Lyman Street, STE 204, Westborough, MA 01581
                                     Phone: (508) 366-6040 | Website: https://factorig.com

fee of 0.0975% or $25, depending on which is greater. Fees are outlined above in item 5.A. The fees charged by
FIG are separate and distinct from these custody and execution fees.

In addition, all fees paid to FIG for wealth management services are separate and distinct from the expenses
charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are described
in each fund’s prospectus. These fees and expenses will generally be used to pay management fees for the
funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and a
possible distribution fee. The Client should review both the fees charged by the fund[s] and the fees charged by
FIG to fully understand the total fees to be paid. Please refer to Item 12 – Brokerage Practices for additional
information.

D. Advance Payment of Fees and Termination
FIG is compensated for its wealth management services in advance of the quarter in which services are rendered.
Either party may terminate the wealth management agreement, at any time, by providing advance written notice to
the other party. The Client may also terminate the wealth management agreement within five (5) business days of
signing the Advisor’s agreement at no cost to the Client. After the five-day period, the Client will incur charges for
bona fide advisory services rendered to the point of termination, and such fees will be due and payable by the
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Item 7 – Types of Clients

FIG offers wealth management services to individuals, high net worth individuals, trusts, estates, charitable
organizations, businesses, and retirement plans. FIG generally does not impose a minimum relationship size.