Mystic Asset Management Inc

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your account and
is set forth in the following annual fee schedule:

                                          Annual Fee Schedule

              Assets Under Management                                      Annual Fee
                   First $1,000,000                                           1.00

                   Next $1,000,000                                             0.90

                  Next $1,000,000                                              0.85

               In excess of $3,000,000                                         0.75

Our annual portfolio management fee is billed and payable quarterly in advance, based on the value of
the account on the last day of the calendar quarter.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.

You may terminate the portfolio management agreement upon notice to our firm.

You will incur a pro rata charge for services rendered prior to the termination of the portfolio
management agreement, which means you will incur advisory fees only in proportion to the number of
days in the quarter for which you are a client. If you have pre-paid advisory fees that we have not yet
earned, you will receive a prorated refund of those fees.

The Firm reserves the right to employ a minimum fee, which would be fully disclosed and discussed
with the client and in writing. The Firm, in its sole discretion, may waive its minimum fee and/or charge
a lesser or higher investment advisory fee based upon certain criteria (e.g., historical relationship, type
of assets, anticipated future earning capacity, anticipated future additional assets, dollar amounts of
assets to be managed, related accounts, account composition, negotiations with clients, etc.). Fees are
negotiable and current client relationships exist where the fees are higher or lower than the fee
schedule above.

Although the Advisory Service Agreement is an ongoing agreement and constant adjustments are
required, the length of service to the client is at the client's discretion. The client or the investment
manager may terminate an Agreement by written notice to the other party. At termination, fees will be
billed on a pro rata basis for the portion of the quarter completed or if the account is billed in advance,
fees will be returned to client on a pro rata basis.

Fee Billing

Advisory service fees are billed quarterly, in ADVANCE, meaning that we invoice you BEFORE the
three-month or month billing period has BEGUN. Fees are usually deducted from a client account to
facilitate billing. The client must consent in advance to direct debiting of their investment account.

Expense Ratios

Mutual funds generally charge a management fee for their services as investment managers. The
management fee is called an expense ratio. For example, an expense ratio of 0.50 means that the
mutual fund company charges 0.5% for their services. These fees are in addition to the fees paid by
client to the Firm.

Performance figures quoted by mutual fund companies in various publications are after their fees have
been deducted.

Past Due Accounts and Termination of Agreement

The Firm reserves the right to stop work on any account that is more than a 30 days overdue. In
addition, the Firm reserves the right to terminate any financial planning engagement where a client has
willfully concealed or has refused to provide pertinent information about financial situations when
necessary and appropriate, in the Firm's judgment, to providing proper financial advice. Any unused
portion of fees collected in advance will be refunded within 30 days.

Additional Fees and Expenses

As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees charged by
mutual funds, exchange traded funds, our firm, and others. For information on our brokerage practices,
refer to the Brokerage Practices section of this brochure.

Compensation for the Sale of Securities or Other Investment Products

Persons providing investment advice on behalf of our firm are registered representatives with ISC
Group, a securities broker-dealer, and a member of the Financial Industry Regulatory Authority and the
Securities Investor Protection Corporation. In their capacity as registered representatives, these
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Item 7 Types of Clients
Description

The Firm generally provides investment advice to individuals, banks or thrift institutions, investment
companies, pension and profit sharing plans, trusts, estates, nonprofit and charitable organizations,
corporations or business entities.

Client relationships vary in scope and length of service.

Account Minimums

The minimum account size is $500,000 of assets under management.

The Firm has the discretion to waive the account minimum. Other exceptions will apply to employees
of The Firm and their relatives, or relatives of existing clients.

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.