Harger and Company Inc

ITEM 5: FEES, COMPENSATION AND TERMINATION OF SERVICES

A. Description of Compensation and Basic Fee Schedule
As a participant in the Portfolio Management Services Program, the client will pay the
annualized fees described below:

Fees for the Portfolio Management Services Account typically range from the annual rate of
0.00% to 2.00% of the account’s assets under management and are negotiated between the HCI
Advisor Representative and the client and as agreed upon in writing by each client.

There is no minimum asset level required for this service.

The Account Fee is paid to and retained by HCI and the Advisor Representative.

Fees for financial planning services may be based on an hourly charge of $150 per hour or on a
fixed fee basis. The HCI Advisor Representative will give pre-consultation estimate to the
client based on the complexity of the needs of the client and receive the estimated fee before the
consultation begins. The fee may be negotiated between the client, the Advisor Representative
and HCI during the pre-consultation estimate. The client may terminate the Financial Planning
Agreement without penalty within five days of execution. After the five-day time period, the
client may terminate the agreement at any time and a refund of unearned fees, if any, will be
made based upon the time and effort completed prior to termination of the Agreement. The
Financial Planning Agreement terminates upon delivery of the written financial plan. No
refunds will be made after completion of the plan.

The fees charged will never be on the basis of capital gains upon or capital appreciation of the
funds or any portion of the funds of the client as contained in Section 205(a)(1) of the Advisers
Act.

Advisory fees charged by HCI are separate and distinct from Advisory fees and expenses
charged by mutual funds and variable annuity sub-accounts in which client assets may be
invested. A complete description of these funds and expenses may be found in the prospectus
for each fund or annuity.

Apart from the Client services provided directly by HCI, services identical to the Portfolio
Management Service may be provided by other investment advisors for fees less than the fees
charged by HCI.

In certain circumstances, fees may be negotiable.

Form ADV Part 2A Harger

B. Payment of Fees
For assets managed on a non-discretionary basis and held at RBC, the advisory fee is payable
quarterly in advance based upon the market value of the accounts’ assets under management as
of the close of business on the last business day of the preceding quarter. The fee is then
computed by using that amount multiplied by the applicable fee rate divided by 365 days times
the number of days in the quarter. Advisory Fees attributable to deposits to or withdrawals from
an account of cash or securities with a value equal to or greater than $10,000 will be pro-rated
based upon the date the transactions occur during the quarter and is more fully described in the
RBC account paperwork provided to the client upon account opening at RBC.

For assets managed in a variable annuity, the advisory fee is payable quarterly in arrears, based
upon the market value of the assets held in the variable annuity and respective sub-accounts.

The fee may be debited from the Client’s account(s) with the prior written consent of the Client
and the custodian. Either party may terminate the agreement upon the written notice to the other
party. The client has the right to terminate this Agreement without penalty within five business
days from the date of execution of this Agreement by delivery to Advisor of written notice of
Client’s desire to terminate.

C. Other Fees
In addition to account fees, clients may also incur certain charges imposed by third-parties
which may include, but are not limited to, the following: mutual fund or money market 12b-1
and sub transfer fees, fund or money market management fees and administrative expenses,
mutual fund transaction fees, certain deferred sales charges on previously purchased mutual
funds transferred into the account, IRA and qualified retirement plan fees, and other charges
required by law. HCI and its Advisor Representatives may receive a portion of these fees.

D. Prepayment of Fees
Either party may terminate the agreement upon written notice to the other party. The client has
the right to terminate this Agreement without penalty within five business days from the date of
execution of this Agreement by delivery to Adviser of written notice of Client's desire to
terminate. In the event of the cancellation of the Agreement, HCI will refund any pre-paid fees
on a prorated basis.

Form ADV Part 2A Harger

E. Other Compensation
HCI is also a broker/dealer registered with the SEC and a member of FINRA. In certain
circumstances commissions on the sale of mutual funds and variable annuities, and other
investments purchased for a client's account may be paid to an Advisor Representative through
HCI. All Account Representatives are also registered as securities brokers with HCI.

Form ADV Part 2A Harger

ITEM 7: TYPES OF CLIENTS

HCI provides portfolio management services to individuals, high net worth individuals, pension
and profit-sharing plans, trusts, estates and corporations. HCI also offers advisory services to
401(k) participants.

Form ADV Part 2A Harger