Mollot & Hardy Inc

Item 5 – Fees and Compensation

This section provides descriptions of each service’s fees and compensation arrangements. The exact
fees and other terms will be outlined in the agreement between you and Mollot & Hardy.

Mollot & Hardy believes that its annual fee is reasonable in relation to: (1) services provided and (2) the
fees charged by other investment advisers offering similar services/programs. However, our annual
investment advisory fee may be higher than that charged by other investment advisers offering similar
services/programs. In addition to our compensation, you will also incur charges imposed at the mutual
fund level (e.g., advisory fees and other fund expenses) and other third-parties.

Mollot & Hardy allows your investment adviser representative to set fees within ranges provided by Mollot
& Hardy. As a result, your investment adviser representative may charge more or less for the same
service than another investment adviser representative of Mollot & Hardy.

We charge a different fee rate or schedule based upon asset classes (e.g., equities, fixed income) or
investment product types (e.g., mutual funds, ETFs, stocks and bonds) invested in the client’s account.

These situations create conflicts of interest in that there is an economic incentive for Mollot & Hardy and
its investment adviser representatives to recommend certain asset classes, investment product types,
Sub-Advisers, or service platforms which have a higher fee rate or schedule compared to other asset
classes, investment product types, Sub-Advisers, or service platforms with a lower fee rate or
schedule. Mollot & Hardy has taken steps to manage its conflict of interest arising from its use of different
fee rates/schedules through its code of ethics, whereby Mollot & Hardy and its investment adviser
representatives will not exercise investment discretion with respect to changing asset classes, investment
product types, Sub-Advisers, or service platforms that result in a higher fee to Mollot & Hardy. Moreover,
we strive to only recommend the change of asset classes, investment products, Sub-Advisers or service
platforms when in the best interest of the client and without regard to the financial interest of Mollot &
Hardy and/or your investment adviser representative.

Investment Management Services

Fees charged for our investment management services are charged based on a percentage of assets
under management, billed in advance (at the start of the billing period) on a quarterly calendar basis and

Mollot & Hardy, Inc.                               Page 13                       Form ADV Part 2A: Firm Brochure

calculated based on the fair market value of your account as of the last business day of the previous
billing period. Fees are prorated (based on the number of days service is provided during the initial billing
period) for your account opened at any time other than the beginning of the billing period. If asset
management services are commenced in the middle of the billing period, then the prorated fee for that
billing period is based on the value of the Account when services commence and is due immediately and
will be deducted from Account when services commence.

The asset management services continue until terminated by either party (i.e., Mollot & Hardy or you) by
giving thirty (30) days written notice to the other party. Any prepaid, unearned fees will be promptly
refunded by Mollot & Hardy to you. Fee refunds will be determined on a pro rata basis using the number
of days services are actually provided during the final period.

For our asset management services, clients will be charged an annual fee based upon the amount of
assets under management. The fees generally range from 1.00% to 2.50% inclusive of our fee, the third-
party platform provider (i.e., Focus Partners), the portion retained by Osaic Wealth, Inc., and any Sub-
Advisers (if selected for the Account).

Each asset tier shall be assessed a fee percentage in accordance with the schedule shown below. The
cumulative fee percentage for the account shall be a blended rate based on the fee percentages applied
to each asset tier. The following is a sample of our standard fee schedule. It is provided for illustrative
purposes so you can see an example of our fee schedule will work.

          Assets Under Management                                           Annual Fees
          $0 – $500,000                                                     1.65%
          $500,001 – $1,000,000                                             1.05%
          $1,000,001 – $5,000,000                                           1.00%
          $5,000,001 – $10,000,000                                          0.85%
          $10,000,001 – $15,000,000                                         0.70%
          $15,000,001 – $20,000,000                                         0.60%
          $20,000,001 and Above                                             0.50%

          (This is a blended fee schedule. This means that the assets in a client’s account will be billed at
          different levels according to the fee schedule above. For example, if a client had an account value
          of $9,000,000 then the first $500,000 is billed at 1.65%, the next $500,000 is billed at 1.05%, the
          next $5,000,000 is billed at 1.00% and the final $4,000,000 is billed at 0.85% for an effective
          blended (or average) fee rate of 0.975%

Fees charged for our asset management services are negotiable based on the investment adviser
representative providing the services, the type of client, the potential for additional account deposits, the
relationship of the client with the investment adviser representative, and the total amount of assets under
management for the client. We are willing to combine accounts and family arrangements to hit
breakpoints in our fee schedule. Moreover, some clients are not charged a “blended” annual fee
...

Item 7 – Types of Clients

Mollot & Hardy generally provides investment advice to the following types of clients:

         Individuals
         High net worth individuals
         Pension and profit sharing plans

You are required to execute a written agreement with Mollot & Hardy specifying the particular advisory
services in order to establish a client arrangement with Mollot & Hardy.

Mollot & Hardy, Inc.                                Page 16                        Form ADV Part 2A: Firm Brochure

Minimum Investment Amounts Required

Mollot & Hardy requires a minimum of $250,000 in order to open an account. To reach this account
minimum, clients can aggregate all household accounts. We, at our sole discretion, can accept clients
with smaller portfolios based upon certain factors including anticipated future earning capacity,
anticipated future additional assets, account composition, related accounts and pre- existing client
relationships. We can consider the portfolios of your family members to determine if your portfolio meets
the minimum size requirement.