CHARITABLE PROGRAMS Q & A

Q: What are the compliance issues involved in participating in the program?
A: We must establish in each case that no conflict of interest exists between the money management firm and the Charity. We also have to ensure that the commission rate charged on program trades does not exceed the standard rates typically paid by the money management firm.

Q: What feedback will the money manager get relative to the program?
A: The management firms will receive substantial feedback including a recognition letter from the charity and reports from Stone including a copy of an annual outside audit of the programs commissions and contributions.

Q: Does the money management firm get a tax deduction from the contributions?
A: No. The contributions are made by Stone Securities out of their commissions.

Q: Why 25%? Why not more?
A: Stone Securities is a small firm and is offering the program to existing customers so we may actually make significantly less money once the program commences. We wanted the program to be sustainable so we are starting with 25% with the idea that we would like to increase this percentage in the future as more firms participate. We think this percentage gives us a leg up on the wire houses.

Q: How does a customer participate?
A: A money manager simply designates a specific trade(s) for the program and designates a charity from our pre-approved list to be the beneficiary.

Q: What if my firm wants to contribute to a charity not included on the pre- approved list?
A: It is possible for charities to be added under certain circumstances however it can take up to several weeks for the firm to establish a relationship and conduct a review of the charity.

Q: When can money managers participate in the program?
A: Any day the markets are open. The program is ongoing.

Q: Are there any minimums for participating in the program?
A: No. All size trades are welcome.