Hudson Street, a Goldman Sachs business, focuses on providing access to unique content and tools that can be integrated into our client's investment processes. Hudson Street provides two types of services to our clients: Hudson Street 3RB and Hudson Street Services. Hudson Street 3RB offers several different ways for clients to streamline the way they procure research and execute trades at Goldman Sachs. Hudson Street Services is a platform that offers investors access to a select offering of unique content and tools.

Goldman Sachs realizes our clients are demanding more primary, specialized content and investment tools. Clients are continuing to build their own research capabilities and need a means of measuring and organizing these inputs. Hudson Street Services aims to provide seamless access to the content and tools our clients need.

As regulatory changes require an increased level of transparency, clients are looking for a simplified means to pay for research and brokerage services. Hudson Street 3RB's payment solution reduces or eliminates many administrative tasks and delivers efficiencies through trade execution and processing activities.

Hudson Street 3RB's product offering includes traditional Client Commission Arrangements (CCA's) as well as two additional CCA programs that have been designed to meet client' needs: Research XPRESS and Introducing Broker.

Hudson Street Services' platform is comprised of independent research firms offering content and tools designed to aid in the investment process. There are currently nine firms on the platform; Asset4, Connoate, Investars, iSuppli, Medley Global Advisors, Lusight, Quantitative Services Group, TrimTabs and Wall Street on Demand. Additional firms will continue to be added in the coming months.

Hudson Street Services is separate but complementary to our own fundamental research product. None of the research providers on the platform provide fundamental (ratings driven) research that could be comparable to Goldman Sachs' research. Hudson Street offers clients access to content and tools but does not generate content.

If clients chose to enter into a relationship with one or more of our content providers, the relationship will be between the client and the content provider. Clients have several options to pay for their services: they can pay for services with hard dollars, they can pay for eligible services through soft dollars through their Hudson Street 3RB relationship or they can pay for eligible services with soft dollars through another broker.

Hudson Street provides access to a select offering of unique services and tools adding value to a client's investment process. Other research aggregators provide access to dozens of research firms that are more traditional, fundamental (buy/sell/hold) firms, often with overlapping coverage. Hudson Street Services has a direct link to Hudson Street 3RB's payment solutions, allowing for seamless access to the content and tools being offered.

A Client Commission Arrangements (CCA) (Client Sharing Arrangement (CSA) is the UK equivalent program) is an arrangement enabling the executing broker dealer to redirect part of its commission to one or more third parties selected by a money manager as payment for 28(e) eligible research and brokerage services. Hudson Street 3RB's CCA and CSA programs enable clients to obtain best execution with Goldman Sachs and accrue commission dollars in order to pay external research and brokerage providers.

Research XPRESS is a CCA program designed to consolidate the execution and provision of third party research and brokerage services through Goldman Sachs. Research XRPRESS enables the payment of research providers and broker dealers by allowing money managers to assign a value to the research.

Introducing Broker Arrangement is a type of CCA that allows clients to execute transactions at Goldman Sachs and credit, on a specific basis, key research providers acting as Introducing Brokers. Instead of commissions accruing in a pool as they do in Research XPRESS, an IB arrangement is a transaction based compensation arrangement. This type of arrangement allows clients to optimize trade execution and credit firms for the specific research and brokerage services they provide.

Each Hudson Street 3RB client is assigned a primary relationship manager, secondary relationship manager, and sales contact to address their account needs. Clients are offered access to the Hudson Street 3RB web site via the Goldman Sachs Institutional Portal where they access their account balance view and approve payments, access 3RB related trade detail as well as relevant industry news.

Section 28(e) of the Securities Exchange Act of 1934 provides a "safe harbor" for money managers who use commission dollars of their advised accounts to obtain research and brokerage services. On July 18, 2006 the SEC issued an interpretive release regarding the scope of brokerage and research services and client commission arrangements that are eligible for the safe harbor.

Hudson Street 3RB's services are backed by the firm's global resources. This sponsorship gives clients access to a worldwide trading network, state-of-the-art technology and reporting, plus our experienced third party research team. Whether clients choose to use one or more of our services, we can create a customized program to fit clients' specific needs. Clients have access to their CCA credits generated via the GS trading desk and REDIPlus all in one account. By consolidating execution with Goldman Sachs, clients can improve their ability to access valuable services of the firm. Furthermore, Goldman Sachs received a No Action Letter from the SEC on Research XPRESS on June 30, 2007, thereby positioning this program as an industry model.