Hudson Oak Wealth Advisory LLC

Item 5 Fees and Compensation
Wealth Management Advisory Services Fees
HOWA’s fee for its wealth management advisory services is a combination of a monthly planning fee for financial
planning services and an annual asset-based fee charged quarterly for investment portfolio management services.

Generally, if a client is considering engaging HOWA to provide investment portfolio management, the amount of
the assets under our management will dictate whether the client will pay one or both of the fees. Clients with larger
portfolios brought to our management may not be assessed a planning fee. Note: Some clients choose to receive
just our financial planning service or just our investment portfolio management service. The components of our
wealth management advisory service a client elects to receive and the specific fees assessed for the elected services
are identified in the service agreement we will execute.

As stated in Item 4 Advisory Business above, generally a relationship with HOWA begins with an introductory
phone call or web-based meeting. During the call, it is decided whether the relationship will move forward to the
next step, the Discovery Process. This process is used to obtain certain information and documents necessary to
assess a client’s current financial situation and circumstances and to identify financial and wealth goals. HOWA will
organize and prepare a review of the information with cursory recommendations or projections. A second
consultation meeting may be held to present this review and to further describe what to expect in working with us.
We may also demonstrate a web-based planning tool we encourage our clients to use. HOWA, at our discretion,
may charge a nominal fee ($200 to $400) for this consultation, as some recommendations and ideas discussed could
benefit the prospective client without the relationship advancing. Payment will be required prior to the meeting. We
will send a notification generated through a third-party payment processor to submit payment via electronic funds
transfer. We do not accept credit card payments. If it is decided the relationship will move forward to a wealth
management advisory relationship, we will apply this payment as a credit towards the client’s first fees due.

Prior to entering into a service agreement, we provide the prospective client with a proposal describing our services
and fees. The proposal is designed to assist the prospective client in understanding the wealth management advisory
services we intend to offer and the two components of our fee: the planning fee and the investment portfolio
management fee. The planning fee established at the start of the relationship is highly contingent upon the planning
needs the prospective client presents and will vary by prospective client.

Over time, the intention and plan is to reduce and eventually eliminate the
financial planning fee as the client’s assets under management with HOWA rise,                         Financial
                                                                                                     Planning Fee
if applicable. This leads to ultimately providing our wealth management advisory
services for the single investment portfolio management fee. If a client does not
make use of our investment portfolio management services or their assets under
our management do not meaningfully increase over time, we are not obligated
                                                                                             Assets Under
to reduce or eliminate the client’s monthly planning fee. Although it is the                 Management
intention to reduce the planning fee as assets under management increase,
reducing the planning fee remains at HOWA’s discretion.

Financial planning fees are assessed monthly in advance. We request this fee be paid automatically via electronic
funds transfer through a third-party payment processor. Notwithstanding the foregoing, fees that remain unpaid
30 days after the monthly due date are subject to the application of interest at a rate of 1.5% per month. We do not
accept credit card payments. Fees for partial periods are prorated.

If financial planning services are provided in conjunction with investment portfolio management services, the
services may be terminated as outlined under the investment portfolio management section below. If the client
receives financial planning services only, services will continue on a month-to-month basis until the engagement is
terminated by either party with a 15-day written notice. If verbal notification of termination is given and, if in three
business days following the verbal notice we have not received a written termination notification, we will prepare
and deliver to the client written notice of the termination as a substitute. If the services are terminated before the
end of a billing period, the monthly financial planning fee paid in the month of termination will not be returned, nor
will any upfront planning or consultation fees paid, if applicable.

For investment portfolio management, we charge an
annual fee based upon a percentage of the market value of        Investment Portfolio Management Fee Schedule
the portfolio managed. Each quarter an effective annual fee         Market Value of Assets Managed       Annual Fee
rate (also known as a blended rate) is calculated and               First $500,000                           1.00%
applied to each account’s quarter-end market value                  Next $500,000                            0.80%
(including all securities and cash and cash equivalents held).      Next $2,000,000                          0.70%
The custodian provides the valuation of the securities held         Next  $2,000,000                         0.60%
                                                                    Next $5,000,000                          0.50%
in the client’s accounts. In the rare event your portfolio
...

Item 7 Types of Clients
HOWA offers its services to individuals, high net worth individuals, families, trusts and estates, charitable
organizations, small businesses, and other closely-held entities. Our Discovery Process will determine whether our
services and fees are appropriate for a certain prospective client. If the scope of services the prospective client
presents does not fit our service and fee model, we most likely will not enter into an advisory relationship with the
prospective client. We do not require a minimum amount of investable assets to receive our services.

Sub-advisors we recommend may have established account minimums. Generally, account minimums are
negotiable on a case-by-case basis and dependent upon a variety of factors, including, but not limited to, other
accounts in a client household.

We may decline our services to a prospective client for any non-discriminatory reason.