Hudson Valley Wealth Management Inc

Item 5. Fees and Compensation
  Financial Planning and Consulting Fees
  Hudson may provide financial planning and/or consulting services (including investment and non-
  investment related matters, including estate planning, insurance planning, etc.) on a stand-alone fee basis.

Disclosure Brochure                                                                 Hudson Companies

  Hudson’s planning and consulting fees are negotiable, depending upon the level and scope of the
  service(s) required and the professional(s) rendering the service(s), but generally range up to $10,000 on a
  fixed fee basis and/or from $150 to $500 on an hourly basis.

  If the client engages Hudson for additional investment advisory services, Hudson may offset all or a
  portion of its fees for those services based upon the amount paid for the financial planning and/or
  consulting services. For these arrangements, Hudson either charges the entire fee in arrears or requires
  one-half of the fee (estimated hourly or fixed) payable upon execution of the Advisory Agreement with the
  outstanding balance due upon delivery of the financial plan or completion of the agreed upon services.

  Investment Management and Retirement Plan Consulting Fees
  Hudson’s annual investment advisory fee shall vary from negotiable up to 1.25% of the total assets placed
  under Hudson’s management/advisement and shall be based upon various objective and subjective factors
  including but not limited to: the representative assigned to the account, the amount of assets to be invested,
  the complexity of the engagement, the anticipated number of meetings and servicing needs, related
  accounts, future earning capacity, anticipated future additional assets, and negotiations with the client. As a
  result, similar clients could pay different fees, which will correspondingly impact a client’s net account
  performance. Moreover, the services to be provided by Hudson to any particular client could be available
  from other advisers at lower fees.

  Clients may elect to have Hudson’s advisory fees deducted from their custodial account. Both Hudson’s
  Agreement and the custodial/clearing agreement may authorize the custodian to debit the account for the
  amount of Hudson’s investment advisory fee and to directly remit that advisory fee to Hudson in compliance
  with regulatory procedures.

  In the limited event that Hudson bills the client directly, payment is due upon receipt of Hudson’s invoice.

  As discussed below, unless the client directs otherwise or an individual client’s circumstances require,
  Hudson shall generally recommend that LPL Financial (“LPL”) serve as the broker-dealer/custodian for
  client investment management assets.

  Broker-dealers such as LPL charge brokerage commissions, transaction, and/or other type fees for effecting
  certain types of securities transactions (i.e., including transaction fees for certain mutual funds, and mark-
  ups and mark-downs charged for fixed income transactions, etc.). The types of securities for which
  transaction fees, commissions, and/or other type fees (as well as the amount of those fees) shall differ
  depending upon the broker-dealer/custodian.

  Clients will incur, in addition to Hudson’s investment management fee, brokerage commissions and/or
  transaction fees, and, relative to all mutual fund and exchange traded fund purchases, charges imposed at the
  fund level (e.g., management fees and other fund expenses).

  Hudson's annual investment advisory fee shall be prorated and paid monthly, in advance, based upon the
  market value of the assets on the last day of the previous quarter, adjusting for any inflows or outflows.

  With the exception of a financial planning engagement on a project basis, which may automatically
  terminate upon the completion of the project, agreements between Hudson and the client will continue in

Disclosure Brochure                                                                Hudson Companies

  effect until terminated by either party by written notice in accordance with the terms of the Agreement.
  Upon termination, Hudson shall refund the pro-rated portion of any advanced advisory fee paid to Hudson
  based upon the number of days remaining in the billing quarter.

  Fee Discretion

  Hudson may, in its sole discretion, negotiate to charge a lesser fee based upon certain criteria, such as
  anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
  managed, related accounts, account composition, pre-existing/legacy client relationship, account retention
  and pro bono activities.

  Account Additions and Withdrawals

  Clients may make additions to and withdrawals from their account at any time, subject to Hudson’s right
  to terminate an account. Additions may be in cash or securities, provided that Hudson reserves the right
  to liquidate any transferred securities or declines to accept particular securities into a client’s account.
  Clients may withdraw account assets on notice to Hudson, subject to the usual and customary securities
  settlement procedures. However, Hudson generally designs its portfolios as long-term investments and
  the withdrawal of assets may impair the achievement of a client’s investment objectives. Hudson consults
  with its clients about the options and implications of transferring securities. Clients are advised that when
  transferred securities are liquidated, they may be subject to transaction fees, short-term redemption fees,
  fees assessed at the mutual fund level (e.g., contingent deferred sales charges) and/or tax ramifications.
  Hudson does not provide tax advice.

Item 7. Types of Clients
  Hudson offers services to individual and high-net-worth clients, as well as pension and profit sharing plans,
  trusts, estates, charitable organizations, corporations and business entities.

  Minimum Account Requirements

  Hudson does not impose a stated minimum fee or minimum portfolio value for starting and maintaining an
  investment management relationship.