Arthur M Cohen & Associates LLC

Fees and Compensation

The specific manner in which we charge clients is established in our written agreement with each
client. Fees, except in special circumstances, are not negotiable.

Fees for investment advisory clients are generally based on the amount assets under
management. The fee for equity-only or balanced accounts will generally be 1% of assets under
management up to $2,000,000 and 0.75% of the next $5,000,000, as laid out in our agreement
with each advisory client. Fees based upon the value of assets under management on or around
the applicable period end will be determined based on the account statements provided from the
applicable qualified custodian or, in the case of other assets like private investment companies,
as provided by the issuers of those securities.

For clients whose assets are invested in Peter Schoenfeld Asset Management, we charge a fee
that is equal to the amount the manager reduces his fee that is charged to the client. The client
still pays the remainder of the fee to the money management firm. We are able to charge this
fee, even though the clients' assets are managed by an outside firm, based upon the referral of our
clients and ongoing due diligence we provide with respect to that manager. Clients do not pay
anymore under this arrangement than if they were to invest directly with the third party money
manager.

Our financial planning clients generally pay a flat fee based on the complexity of clients’
financial situation starting at a minimum of $500. An hourly rate of $200 to $400 may be
charged in lieu of a flat rate, should the client desire.

Fees may be billed quarterly or semi-annually and are established in the written agreement with
each client. A client may either pay its fee directly to the firm or opt to have the fee deducted
from the client’s custody account. When a client’s fees are automatically deducted from the
client’s account, the client will be provided with an invoice at least 7 to 10 days in advance of
deducting such fees from the client’s account. Financial planning clients, paying on a yearly
basis, sign an annual agreement with fees stated. Investment advisory clients sign an agreement
stipulating the fee.

The agreement and fees may be terminated at any time with 30 days written notice. Unearned
fees, minus expenses, will be returned to the client. Such fees will be billed at a time and in the

manner specified in each client’s investment advisory agreement with firm. Clients are billed in
advance whether investment advisory or financial planning clients.

No supervised person receives any commission or compensation for the sale of securities or
other investment products.

Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred by the client. Clients may incur certain charges imposed by
custodians, brokers, third party investments and other third parties, such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds, exchange-traded funds and other pooled investment vehicles such as
private investment companies also charge internal management fees, which are disclosed in a
fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition our fee,
and Arthur M. Cohen & Associates, LLC shall not receive any portion of these commissions,
fees, and costs.

The Brokerage Practices section further describes the factors that we consider in selecting or
recommending broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).

Performance-Based Fees and Side-By-Side Management

We do not charge a performance fee - a fee based upon a share of capital gains or capital
appreciation - in any of our strategies.

Types of Clients

We provide portfolio management services to individuals, high net worth individuals, corporate
pension and profit-sharing plans, trusts, charitable institutions, foundations and other entities.

Methods of Analysis, Investment Strategies and Risk of Loss

Method of Analysis

In order to formulate an investment strategy for each client, we first develop an understanding of
the time horizon of each individual client. We then determine which assets are appropriate to
invest in such as stocks, bonds and cash and formulate target percentages for each. We generally
invest based on fundamental analysis. The main sources of information include Morningstar
data, Value Line data, prospectuses, financial newspapers and magazines, research materials

prepared by others, attendance at on and off site visits with portfolio managers, conference calls
and industry conferences. Investing in all securities involves risk of loss and client should be
prepared to bear that loss.
Risks

Market risk is the risk that the value of your investments will fluctuate. This could cause the value
of investments to fall below your original purchase price or below the principal value. Market
value fluctuates in response to various factors. These can include changes in interest rates,
inflation, the financial condition of a security’s issuer, perceptions of the issuer, or ratings on a
security. Investing in all securities involves risk of loss and client should be prepared to bear that
loss.

Interest rate risk is the risk that the value of securities will fall if interest rates, in general, increase.
Your fixed income securities typically fall in value when interest rates, in general, rise and rise in
value when interest rates, in general, fall. Securities with longer periods before maturity are often
more sensitive to general interest rate changes.

Dividend payment risk is the risk that an issuer of a security is unwilling or unable to pay income
on a security. Stocks represent ownership interests in the issuers and are not obligations of the
issuers. Common stockholders have a right to receive dividends only after the company has
provided for payment of its creditors, bondholders and preferred stockholders. Common stocks do
not assure dividend payments. Dividends are paid only when declared by an issuer’s board of
directors and the amount of any dividend may vary over time.

Call risk is the risk that the issuer prepays or “calls” a bond before its stated maturity. An issuer
might call a bond if interest rates, in general, fall and the bond pays a higher interest rate than the
current market rate or if it no longer needs the money for the original purpose. If an issuer calls a
bond, you may receive a distribution of principal but your future interest distributions will fall.
You might not be able to reinvest this principal at as high a yield. A bond’s call price could be less
than the price you paid for the bond and could be below the bond’s par value.

Municipal Bond Risks. Municipal bonds are debt obligations issued by states or by political
subdivisions or authorities of states. Municipal bonds are typically designated as general obligation
bonds, which are general obligations of a governmental entity that are backed by the taxing power
of such entity, or revenue bonds, which are payable from the income of a specific project or
authority and are not supported by the issuer’s power to levy taxes. Municipal bonds are generally
long-term fixed rate debt obligations that generally decline in value with increases in interest rates,
when an issuer’s financial condition worsens or when the rating on a bond is decreased. Many
municipal bonds may be called or redeemed prior to their stated maturity, an event which is more
likely to occur when interest rates fall.

Bond quality risk is the risk that a bond will fall in value if a rating agency decreases the bond’s
rating.

Original issue discount bonds are bonds which are initially issued at a price below their face (or
par) value. These bonds typically pay a lower interest rate than comparable bonds that were issued
at or above their par value. In a stable interest rate environment, the market value of these bonds
tends to increase more slowly in early years and in greater increments as the bonds approach
maturity. The issuers of these bonds may be able to call or redeem a bond before its stated maturity
date and at a price less than the bond’s par value. Zero coupon bonds are a type of original issue
discount bond. These bonds do not pay any current interest during their life. If an investor owns
this type of bond, the investor has the right to receive a final payment of the bond’s par value at
maturity. The price of these bonds often fluctuates greatly during periods of changing market
interest rates compared to bonds that make current interest payments. The issuers of these bonds
may be able to call or redeem a bond before its stated maturity date and at a price less than the
bond’s par value.

Premium Bonds. You may invest in some bonds whose current market values were above the
principal value when you invested in the bonds. A primary reason for the market value of such
bonds being higher than the principal value is that the interest rate of such bonds is at a higher rate
than the current market interest rates for comparable bonds. The current returns of bonds trading
at a market premium are initially higher than the current returns of comparable bonds issued at
currently prevailing interest rates because premium bonds tend to decrease in market value as they
approach maturity when the principal value becomes payable. Because part of the purchase price
is effectively returned not at maturity but through current income payments, early redemption of a
premium bond at par or any other amount below your purchase price will result in a reduction in
yield. Redemption pursuant to call provisions generally will, and redemption pursuant to sinking
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