HF Advisory Group LLC

Item 5: Fees and Compensation

A. Fee Schedule

Lower fees for comparable services may be available from other sources.

Portfolio Management Fees

The firm charges fees ranging from 0.5% to 1.75% for its portfolio management services.
The advisory fee is calculated using the value of the assets in the Account on the last
business day of the prior billing period. Fees are subsequently adjusted at the end of any
calendar quarter to reflect all additions to, or withdrawals from, the account. Any such
adjustments will be made on a pro rata basis during the calendar quarter for which the
adjustment is made.

These fees are negotiable, and the final fee rate will be memorialized in the client’s
advisory agreement. Clients may terminate the agreement without penalty for a full
refund of HFA Group's fees within five business days of signing the Investment Advisory
Contract. Thereafter, clients may terminate the Investment Advisory Contract
immediately upon written notice.

Financial Planning Fees

Fixed Fees

The negotiated fixed rate for creating client financial plans is between $500 and $5,000.

The fixed fee is based upon the complexity of the plan, the hourly rate, the estimated
amount of time to be used for creating a financial plan. Fixed fees relate to financial plans
and financial planning that may include, without limitation: investment planning; life

insurance; tax concerns; retirement planning; college planning; and debt/credit planning,
each service as further detailed above.

Hourly Fees

The negotiated hourly fee for these services is between $250 - $650.

It is anticipated that each financial planning service listed above will take approximately
2-4 hours of financial planning and therefore the time to complete a financial plan will
depend on the services required by the client. For example, the financial plan for a client
requiring only investment planning, retirement, and life insurance planning will usually
require 6-12 hours.

Clients may terminate the agreement without penalty, for full refund of HFA Group’s
fees, within five business days of signing the Financial Planning Agreement. Thereafter,
clients may terminate the Financial Planning Agreement generally upon written notice.

B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from the client's accounts
with client's written authorization on a quarterly basis. Fees are paid in advance.

   For fees deducted directly from client accounts HFA Group will use the safeguards
   below:

   1. HFA Group will have written authorization from the client to deduct advisory fees
      from the account held with a qualified custodian.
   2. The custodian will send statements, at least quarterly, to the client showing all
      disbursements for the custodian account, including the amount of the advisory
      fees.

Payment of Financial Planning Fees

Financial planning fees are paid via check and wire.

Fixed financial planning fees are paid 50% in advance, but never more than six months in
advance, with the remainder due upon presentation of the plan.

Hourly financial planning fees are paid 10% in advance, but never more than six months
in advance, with the remainder due upon presentation of the plan.

       C. Client Responsibility for Third Party Fees

       Clients are responsible for the payment of all third-party fees (i.e. custodian fees,
       brokerage fees, mutual fund fees, transaction fees, etc.). Those fees are separate and
       distinct from the fees and expenses charged by HFA Group. Please see Item 12 of this
       brochure regarding broker-dealer/custodian.

       D. Prepayment of Fees

       HFA Group collects fees in advance. Refunds for fees paid in advance but not yet earned
       will be refunded on a prorated basis and returned within fourteen days to the client via
       check or return deposit back into the client’s account.

       For all asset-based fees paid in advance, the fee refunded will be equal to the balance of
       the fees collected in advance minus the daily rate* times the number of days elapsed in
       the billing period up to and including the day of termination. (*The daily rate is calculated
       by dividing the annual asset-based fee rate by 365.)

       Fixed fees that are collected in advance will be refunded based on the prorated amount of
       work completed at the point of termination.

       For hourly fees that are collected in advance, the fee refunded will be the balance of the
       fees collected in advance minus the hourly rate times the number of hours of work that
       has been completed up to and including the day of termination.

       E. Outside Compensation for the Sale of Securities to Clients

       HFA Group does not receive any compensation for the sale of investment products,
       including asset-based sales charges or service fees from the sale of mutual funds. As
       described in Item 10, its supervised persons are licensed insurance agents and receive
       commissions on the sale of insurance products. This presents a conflict of interest and
       gives the supervised person an incentive to recommend products based on the
       compensation received rather than on the client’s needs. When recommending the sale of
       insurance products for which the supervised persons receives compensation, HFA will
       document the conflict of interest in the client file and inform the client of the conflict of
       interest. Clients always have the right to decide whether to purchase recommended
       products and, if purchasing, have the right to purchase those products through other
       insurance agents that are not affiliated with HFA.

Item 7: Types of Clients

HFA Group generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals
       ❖      Corporations or Business Entities

There is no account minimum for any of HFA Group’s services.