Alfacap LLC D/B/A Reciprocal Capital

Item 5 – Fees and Compensation

Clients generally will have fee arrangements that differ depending upon the issuer or transaction
type. Our standard fee schedules are set forth below. These fee schedules are negotiable and
may vary on a per client basis. All management and performance fees will be billed to clients
directly.

Management Fee

Clients will sometimes be billed directly a management fee, typically 60 basis points per annum
on investor’s aggregate capital commitments to a Transaction (defined as the entire purchase
price paid by the investor, including any and all deferred payments, plus all unfunded obligations
assumed by the investor in connection with the transaction) for three years, paid to Reciprocal
Capital commencing with a closing of a Transaction.

Performance Fee

Additionally, we will charge a performance fee, which will be applied to the client’s aggregate
capital commitments to the Transaction. The performance fee will be calculated using a
“European Waterfall calculation” over the whole deal.

The standard calculation is outlined below in Tier 1 and Tier 2. The standard Preferred Return is
8% cumulative.

 Tier 1:   Performance fee of 5% of net investor gains will be paid to Reciprocal Capital once
           the Preferred Return has been achieved in relation to the client’s entire contributions
           to the Transaction; and

 Tier 2:   An additional performance fee of 10% of net investor gains paid will be paid to
           Reciprocal Capital once investors has received 1.5 times their entire contributions to
           the Transaction.

Additional Expenses

Our fees are exclusive of brokerage commissions, transaction fees, custodial fees, and other
related costs and expenses, all of which are incurred by the client.

Item 7 – Types of Clients

As noted in Item 4 above, we advise accounts for institutional asset managers, alternative asset
managers, corporations and family offices. Due to the nature of the investments, there is
generally no minimum dollar value for establishing an advisory account. However, clients
generally need to have significant funds to make recommended investments. As such, clients are
generally defined as qualified purchasers, as defined under Section 2(a)(51) of the Investment
Company Act of 1940.

Termination provisions for advisory contracts for client accounts are situational and subject to
negotiation.