Steven Feldstein & Associates

Item 5         Fees and Compensation

Steven Feldstein and Associates will charge the client a management fee of 1% on assets, for
investment advice based on the net asset value of the client’s portfolio, including cash and its
equivalents. Clients with fixed income only portfolios have the following fee schedule:
.50% (50 basis points) for the first $3 million, .25% (25 basis points) for everything over $3
million. Steven Feldstein, a registered representative of FFG, the affiliated broker-dealer, receives
compensation for the sale of securities.

 In general, brokers that charge commissions on products that they suggest for clients involve a
 conflict of interest because brokers may recommend packaged products with higher commissions.
 However, here the Firm rebates commissions by deducting the commissions from any advisory
 fees collected. As such, the Firm has mitigated any potential conflict for this scenario. In the rare
 event that Mr. Feldstein does charge a commission and does not offset the commission against an
 advisory fee, the CCO will monitor such transactions and confirm that the commissions were
 reasonable under the circumstances.

The Firm generally does not recommend packaged products, unless requested by the client. In the
case of 529 Plans, the Firm does not bill the clients for that investment, nor does it include them
as assets under management. If there are any small commissions for these products, the Firm will
accept it as its total compensation for the work done.

Other than the two fee schedules described in the above paragraph, there are no other billing
arrangements. The Firm reserves the right to manage portfolios on a pro-bono basis for a few
selected clients, including family members, close friends or 911 victim family members.

The clients are billed on a quarterly basis or an annual basis, in some cases. All management fees
will be paid in arrears and based on the net asset value of the portfolio at the end of each quarter.
The Firm’s advisory fees will be generally paid by clients separate from their accounts, although
such fees may be deducted directly from client accounts, as authorized in writing by the client. In
the event, there is a credit balance for a client, it will be carried forward against client’s future
management fees owed. The outstanding credit balance is an internal accounting entry. Therefore,
if the client relationship is terminated there will be no refund to the client because fees have been
earned at that point. Statements are sent to the client when fees are due to the Firm. Otherwise,
statements available upon request.

The client expressly acknowledges that the fees paid under their agreement are for investment
advice only. Accordingly, Steven Feldstein is acting in the capacity of an investment adviser
representative when making analyses, commentaries, or recommendations concerning investment
or securities. Clients will also incur other fees as a result of the firm’s management of the account,
which may include custodian fees, brokerage and transaction charges, and mutual fund expenses.
Any expenses charged by a mutual fund are described in the fund’s prospectus. Please refer to Item
12 of this brochure for additional information regarding brokerage expenses which may be charged
to a client’s account.

Upon the firm’s receipt of written notification, clients may cancel their investment advisory
agreement with Steven Feldstein and Associates at any time, without penalty. Clients who
terminate their investment advisory agreement prior the end of the billing cycle will be billed for
services rendered during the quarter prior to termination.

In addition, clients have the option to purchase investment products that Steven Feldstein
recommends through broker or agents of their choosing, which may or may not be affiliated with
Steven Feldstein and Associates.

Item 7        Types of Clients

Most of the Firm’s clients are wealthy individuals and families. Many have maintained accounts
with the Firm for several years.

The Firm currently works with approximately 740 accounts with a majority living and working in
New Jersey, New York, and Connecticut. Steven Feldstein meets with each client at least quarterly
to review their portfolios and to keep them moving towards their objectives.

The Firm generally provides financial planning and asset recommendations to high-net-worth
individuals maintaining retail and qualified retirement accounts. There are no requirements, such
as minimum account size, for opening or maintaining an account.

The Firm currently services individuals, including high net worth individuals, trust, estates,
pension and profit-sharing plans, charitable organizations, and corporations.