Hudson Advisor Services Inc

Item 5 - Fees And Compensation

A. Advisory Fees

The annual fee for Investment Management Services is charged as a percentage of assets
under management and will not exceed 1.00% of the value of the client’s portfolio. All fees
are subject to negotiation. Details of the investment advisory fee charged are more fully
described in the advisory agreement entered into with each client.

Clients will be billed either monthly or quarterly in arrears based upon the prior month’s
closing value of the client’s account. Certain existing client accounts will be billed based on
the client’s brokerage statement pro rated for deposits and withdrawals (based on a ninety
(90) day quarter). For private investments, including alternative investments such as hedge
funds, Hudson Advisor Services will use the most recent valuation provided by the private
investment manager and carry forward that valuation to the next valuation period.

For the initial calendar quarter, fees will be adjusted pro rata based upon the number of
calendar days in the calendar quarter that the advisory agreement was effective. Fees are
earned as of the commencement of the investment advisory agreement and are prorated
when assets were not managed for the entire quarter.

B. Payment Method

There are two options a client may select to pay Hudson Advisor Services’ fees:

Direct Debiting

Each quarter, Hudson Advisor Services will notify the client’s qualified custodian of the
amount of the fee due and payable to Hudson Advisor Services pursuant to the firm’s fee
schedule and advisory agreement. The qualified custodian will not validate or check Hudson
Advisor Services’ fees, its corresponding calculation or the assets on which the fee is based
unless the client has retained their services to do so. With the client’s pre-approval, the
qualified custodian will “deduct” the fee from the client’s account or, if the client has more
than one account, from the account the client has designated to pay Hudson Advisor Services’
advisory fees.

Each month, the client will receive a statement directly from the qualified custodian showing
all transactions, positions and credits/debits into or from the client’s account. Statements
sent after quarter end will also reflect the advisory fee paid by the client to Hudson Advisor
Services. It is the client’s responsibility to verify the accuracy of the fee calculation.

Billing

Each quarter, Hudson Advisor Services will issue the client an invoice for the firm’s services
and the client will pay Hudson Advisor Services by check or wire transfer within sixty (60)
days of the date of the invoice, or as negotiated and documented in the client’s advisory
agreement.

C. Additional Fees and Expenses

Mutual Fund Fees

All fees paid to Hudson Advisor Services for investment advisory services are separate and
distinct from the fees and expenses charged by mutual funds to their shareholders. These
fees and expenses are described in each fund's prospectus. These fees will generally include a
management fee, other fund expenses, and a possible distribution fee. If the fund also
imposes sales charges, a client may pay an initial or deferred sales charge.

A client could invest in a mutual fund directly, without the services of Hudson Advisor
Services. In that case, the client would not receive the services provided by Hudson Advisor
Services which are designed, among other things, to assist the client in determining which
mutual fund or funds are most appropriate to each client's financial condition and objectives.

To the extent that client assets are invested in money market funds or cash positions, the
fees for monitoring those assets are in addition to the fees included in the internal expenses
of those funds paid to their own investment managers, which are fully disclosed in each
fund’s prospectus. Accordingly, the client should review both the fees charged by the funds
and the fees charged by Hudson Advisor Services to fully understand the total amount of fees
to be paid by the client and to thereby evaluate the advisory services being provided.

Trading and Other Costs

All fees paid to Hudson Advisor Services for investment advisory services are separate and
distinct from transaction fees charged by broker-dealers associated with the purchase and
sale of equity securities and options. Please see the section entitled “Brokerage Practices” on
page 19 of this disclosure brochure for additional information on brokerage and other
transaction costs.

Professional Fees

Fees do not include the services of any co-fiduciaries, accountants, broker dealers or
attorneys. Accordingly, the fees of any additional professionals engaged by a client, will be
billed directly by such professional(s).

D. Termination and Refunds

The investment management contract is ongoing and does not have a fixed term. The client
may terminate the advisory contract at any time upon written notice to Hudson Advisor
Services. As Hudson Advisor Services charges fees in arrears, no refund will be due clients
upon termination of the investment management agreement.

E. Important Additional Fee Information

Fees Negotiable

Hudson Advisor Services retains the right to modify fees, including minimum account sizes,
in its sole and absolute discretion, on a client-by-client basis based on the size, complexity
and nature of the advisory services provided. In addition, family accounts and accounts
controlled by the same client are often combined for the purpose of computing the fee.

Related Accounts

Certain related accounts (e.g., the accounts of family members) may pay a fixed fee for
advisory services. This option is limited to related accounts and is not currently offered to
non-related accounts.

Hudson Capital Advisory, Inc.

Hudson Advisor Services and Hudson Capital Advisory, Inc., an SEC-registered investment
adviser (“Hudson Capital”) have similar ownership structures and operate in an
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Item 7 - Types of Clients

Hudson Advisor Services provides investment advisory services to individuals (including
high net worth individuals), pension and profit sharing plans, trusts, estates, charitable
organizations, corporations and other types of business entities.

Engaging the Services of Hudson Advisor Services

All clients wishing to engage Hudson Advisor Services for investment advisory services must
sign an investment management agreement that governs the relationship with Hudson

Advisor Services. The investment management agreement describes the services and
responsibilities of Hudson Advisor Services to the client. It also outlines Hudson Advisor
Services’ fee in detail.

In addition to completing Hudson Advisor Services’ internal documents, clients must
complete certain broker-dealer/custodial documentation. Upon completion of these
documents, Hudson Advisor Services will be considered engaged by the client. A client has an
ongoing responsibility for ensuring that Hudson Advisor Services is informed in a timely
manner of changes in the client’s investment objectives and risk tolerance.

Conditions for Managing Accounts

Hudson Advisor Services requires new clients to have a minimum account of $1,000,000,
although Hudson Advisor Services retains the right to reduce or waive this minimum
account size. Accounts of less than $1,000,000 may be set up when the client and Hudson
Advisor Services anticipate the client will add additional funds to the accounts bringing the
total to $1,000,000 within a reasonable time.