Hinsdale Associates Inc

Item 5 - Fees and Compensation

For its Advisory Services, Hinsdale earns an advisory fee based on assets under management. The
maximum fee is detailed in the Advisory Service Agreement based on the following schedule:

                 1.00% on the first $2,000,000 per annum*;
                 0.75% on the next $3,000,000 (from 2,000,001 to 5,000,000)
                 0.50% on the next $5,000,000 (from $5,000, 001 to $10,000,000); and
                 0.375% on all assets above $10,000,001

                 *Debt portfolios charge .75% and declining from there.

The annual fee is negotiable (minimum not to be below 0.35% regardless of account size). The applicant
considers the following factors in negotiating fees: clients with multiple accounts, size of account, prior
or existing relationships, a client’s particular needs or financial characteristics. The agreed upon fee rate
is charged in arrears - applied to the market value of the assets managed by the Firm as of the end of
each quarter, as may be reasonably determined by the custodian. Fees may be discounted or waived for
certain related persons or their families, or services provided pro bono, at the sole discretion of Hinsdale.

Advisory Services fees are usually deducted from an account designated by the client to facilitate billing
and subject to the client’s written consent.

For its Financial Planning services, fees are predicated upon the facts known at the start of the
engagement. The minimum fee is $300 and is subject to adjustment - since financial planning is a
discovery process, situations occur wherein the client is unaware of certain financial exposures or
predicaments. In the event that the client’s situation is substantially different than initially discussed, a
revised fee will be provided for mutual agreement. The client must approve the change of scope in
advance of the additional work being performed when a fee increase is necessary.

Certain investments, such as mutual funds and ETFs charge their own advisory fees and other expenses,
which are in addition to Hinsdale’s fees. Similarly, investment advisory fees do not include other
expenses incurred in connection with advisory services, such as custodial fees, brokerage commissions
and other transaction costs. You will pay fees and costs whether you make or lose money on your
investments, and will reduce the amount of any money you make on your investments over time.

Hinsdale does not share in any compensation or financial incentives from broker dealers or the
investment companies it recommends, although these firms may provide certain services to Hinsdale.
These are discussed more fully below in Item 12, Brokerage Practices. Hinsdale typically uses

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institutional-class or no-load mutual funds, which pay no compensation to the Firm, to mitigate any
conflicts of interest with regard to mutual fund investments.

Neither Hinsdale nor its supervised persons receive compensation for the sale of securities or other
investment products, including asset based sales charges or service fees from the sale of mutual funds.
The Firm and/or its supervised persons do receive compensation for selling annuities and other
insurance products. This represents a conflict of interest because we have an incentive to recommend
these insurance products. We do not, however, receive an advisory fee with respect to those products
for which we receive a commission - excluding them from the advisory assets.

Insurance is sold based on client insurable need and annuities represent a minor percentage of Firm
business. Clients are under no obligation to purchase such products from us and are free to purchase
them from the insurance professional of their choosing.

Any commission earned from insurance or annuity products by a licensed representative under our
supervision is separate and distinct from advisory fees, and is disclosed to the client.