Steinberg Asset Management LLC

Item 5. Fees and Compensation
SAM’s advisory fees are agreed to in advance pursuant to a written investment advisory contract
with separate account clients. SAM has adopted the following basic advisory fee schedule for new
separate account clients: 1% of assets under management each year, payable quarterly. Clients may
elect to pay either in advance or arrears. Clients may also elect to either be sent a quarterly invoice
for SAM’s advisory services or have SAM deduct its fee directly from the client’s account.

Clients who pay SAM their quarterly advisory fee in advance who terminate their advisory
agreement with SAM will receive a refund of the unused portion of their advisory fee. SAM prorates
the advisory fee paid in advance to the termination date and refunds the balance.

In certain circumstances, SAM’s basic advisory fee may be negotiable. Certain clients pay advisory
fees of less than 1% on some or all of the assets managed by SAM based on the strategy, size, or
history of the client relationship with SAM or the relationship which the financial consultant
advising the client maintains directly with SAM.

SAM calculates its quarterly advisory fee for separate account clients based on the value of each
client portfolio as of the last business day of the quarter unless a client directs SAM to use a different
calculation methodology. Client portfolios generally hold market-traded securities and may hold
mutual funds, as well as cash and cash equivalents. SAM prices all market-traded securities and
mutual funds with an independent third-party pricing source, typically the account custodian. The
advisory fee for client accounts is charged on the asset value maintained in SAM’s accounting
system as of the applicable billing date. In certain cases, the actual assets under management on a
client’s custodial statements may differ from the amount shown in SAM’s system due to, among
other things, pending transactions, interest earned on money market funds, accrued dividends,
amounts deposited, and amounts withdrawn.

Clients pay brokerage costs, including commission charges, as well as any applicable custodial fees
in addition to the advisory fee they pay SAM. Please see below the item entitled Brokerage
Practices for further information on costs associated with trading.

Clients can choose how and whether cash balances are reinvested. Clients generally arrange inde-
pendently for the cash balance of their portfolios to be invested in money market funds, other
registered investment companies or cash management products offered by their custodian bank.
Such funds or products charge management fees or other fees that are in addition to the advisory
fee charged by SAM.

Although not part of SAM’s regular investment process, SAM may, from time-to-time depending
on market conditions, invest client assets in mutual funds or exchange-traded funds (ETFs). Clients
may also specifically request that SAM invest a portion of their portfolio in mutual funds or ETFs.
SAM will continue to charge its normal advisory fees on those funds invested in mutual funds or
ETFs, thereby resulting in a possible reduction in the client’s performance because of additional
expenses. Clients should be aware that they can invest directly in these mutual funds or ETFs to
avoid incurring advisory fees in addition to the mutual fund and ETF expenses.

Item 7. Types of Clients
SAM generally provides investment advisory services to: (1) Individuals; (2) high net-worth
individuals and their associated trusts, IRAs; (3) foundations; (4) pensions and profit-sharing plans;
(5) and other institutional clients, corporations or business entities.

SAM generally requires that an account have a minimum market value of $1,000,000 to be accepted
as an investment advisory client. SAM may waive account minimums in certain situations
including, but not limited to, difficult market conditions or a historical relationship with a client or
its adviser.