Benjamin Securities Inc

Item 5. Fees and Compensation
Fees:

Our fee is calculated as a percentage of assets under management. The fee charged by Benjamin
Securities, Inc. is 2% or less annually for advisory clients. We do not have a fixed fee schedule, but

consider account size and investment objectives, and services required in determining our fee.
We may negotiate lower management fees on a case-by-case basis.

For Example:

$100,000 at 2% = $2000 per year in fees, which is billed monthly at $167
$100,000 at 1.5 % = $1500 per year in fees which is billed monthly at $125

Payment of Fees:
Fees may be collected or deducted directly from client accounts monthly in arrears. Fees may also
be invoiced and billed directly to the client monthly or quarterly in arrears. Clients may select the
method in which they are billed. We calculate the amount due based on the closing value of the
account at the end of the previous period. The custodian does not validate or check our fee, and
we recommend that clients do so.

Additional Fees and Expenses:

Clients are responsible for the payment of all third-party fees (i.e., Custodian fees, mutual fund
fees, transaction fees, etc.) Those fees are separate and distinct from the fees and expenses
charged by Benjamin Securities, Inc. Please see the section titled “Brokerage Practices” of this
brochure regarding brokers/custodians.

Money Market Sweep Revenue Sharing. The firm uses RBC Capital Markets, LLC (“RBC”) as a
clearing and custody firm. The firm receives revenue from sweep programs/money market funds
that RBC makes available as a cash sweep option, and the firm shares in some of that revenue.
Any payment the firm receives reduces the interest you receive. This additional compensation
received by the firm creates a conflict of interest with our clients. This compensation is retained
by the firm. Your advisory fee is not reduced or offset as a result of any revenue sharing the firm
receives.

Item 7 Types of Clients
We provide investment advice and services to the following types of clients:

       Individuals
       High-Net-Worth Individuals
       Trusts, Estates, and Charitable Organizations
       Corporations or Business Entities
       Pension and Profit-Sharing Plans

Benjamin Securities, Inc. requires a minimum account of $50,000 for advisory clients, although
we make exceptions on a case-by-case basis.

Item 8 Method of Analysis, Investment Strategies, and Risk of Loss
Method of Analysis

Benjamin Securities, Inc.’s methods of analysis include fundamental and cyclical analysis. We may
use our own analysis or third-party research to identify attractive investment opportunities.
Through our analysis we seek to identify companies that appear to be undervalued in our opinion
based on cash flows, earnings, growth potential, or assets.

Investment Strategies

Benjamin Securities, Inc. uses primarily a long-term investment strategy in portfolio planning.
However, we use a short-term investment strategy for our Covered Call writing advisory clients
as well as our performance fee-based strategies.

Risk of Loss

All investments in securities include a risk of loss that you, as a client, should be prepared to bear.
Other risks include but are not limited to:

    Interest-rate Risk. Fluctuations in interest rates can cause investment prices to
    fluctuate. For example, when interest rates rise, yields on existing bonds become less
    attractive, causing their market values to decline.

    Inflation Risk. When any type of inflation is present, a dollar today will buy more than
    a dollar next year, because purchasing power is eroding at the rate of inflation.

    Currency Risk. Overseas investments are subject to fluctuations in the value of the dollar
    against the currency of the investment’s originating country. This is also referred to as
    exchange rate risk.

    Reinvestment Risk. This is the risk that future proceeds from investments have to be
    reinvested at a potentially lower rate of return (i.e., interest rate). This primarily relates
    to fixed income securities.

    Liquidity Risk. Liquidity is the ability to readily convert an investment into cash.
    Generally, assets are more liquid if many traders are interested in a standardized
    product. For example, Treasury Bills are highly liquid, while real estate properties are
    not.

    Management Risk. The advisor’s investment approach can fail to produce the intended
    results. If the advisor’s assumptions regarding the performance of a specific asset class
    or fund are not realized in the expected time frame, the overall performance of the
    Client’s portfolio can suffer.

    Options Trading. The risks involved with trading options are that they are very time-
    sensitive investments. An options contract is generally for a few months. The buyer of
    an option could lose his or her entire investment even with a correct prediction about

the direction and magnitude of a particular price change if the price change does not
occur in the relevant time period (i.e., before the option expires). Additionally, options
are less tangible than some other investments. An option is a “book-entry” only
investment without a paper certificate of ownership.

Trading on Margin. In a cash account, the risk is limited to the amount of money that
has been invested. In a margin account, risk includes the amount of money invested
plus the amount that has been loaned. As market conditions fluctuate, the value of
marginable securities will also fluctuate, causing a change in the overall account balance
and debt ratio. As a result, if the value of the securities held in a margin account
depreciates, the Client will be required to deposit additional cash or make full payment
of the margin loan to bring the account back up to maintenance levels. Clients who
cannot comply with such a margin call will be sold out or bought in by the brokerage
firm.

Exchange-Traded Funds. ETFs are a type of index fund bought and sold on a securities
exchange. The risks of owning an ETF generally reflect the risks of owning the
underlying securities they are designed to track, although lack of liquidity in an ETF
could result in it being more volatile and ETFs have management fees that increase their
costs. ETFs are also subject to other risks, including: (i) the risk that their prices do not
correlate perfectly with changes in the underlying reference units; and(ii) the risk of
possible trading halts due to market conditions or other reasons that, in the view of the
exchange upon which an ETF trades, would make trading in the ETF inadvisable.

Mutual Fund Risks. An investment in mutual funds could lose money over short or even
long periods. A mutual fund’s share price and total return are expected to fluctuate
within a wide range, like the fluctuations of the overall stock market.

Common Stocks and Equity-Related Securities. Certain ETFs or mutual funds hold
common stock. Prices of common stock react to the economic condition of the
company that issued the security, industry and market conditions, and other factors
which can fluctuate widely. Investments related to the value of stocks can rise and fall
based on an issuer’s actual and anticipated earnings, changes in management, the
potential for takeovers and acquisitions, and other economic factors. Similarly, the
value of other equity-related securities, including preferred stock, warrants, and options
may also vary widely.

Small- and Mid-Cap Risks. Certain ETFs and mutual funds hold securities of small- and
mid-cap issuers. Securities of small-cap issuers may present greater risks than those of
large-cap issuers. For example, some small- and mid-cap issuers often have limited
product lines, markets, or financial resources. They may be subject to high volatility in
revenues, expenses, and earnings. Their securities can be thinly traded, and be followed
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