Alpenglobal Capital LLC

Item 5 - FEES AND COMPENSATION

INVESTMENT MANAGEMENT FEES
For its portfolio management services, AlpenGlobal charges an investment management fee
based on a percentage of assets under management. All management fees are payable
quarterly in advance, based on the market value of the portfolio on the last day of the preceding
calendar quarter. For new accounts, AlpenGlobal charges a fee based on the value of assets
placed in the account, prorated to the portion of the calendar quarter during which the assets
were under management by the Firm. AlpenGlobal’s standard fee schedule is as follows:

Portfolio Value of Assets Under Management             Annual Fee as a % of Assets
On the First            $ 5,000,000                    2.00%
Above                   $ 5,000,000                    1.50%

AlpenGlobal requires a minimum of $100,000 placed under management per client relationship.
Multiple accounts of a client may be aggregated to meet this minimum. Under certain
circumstances, and at the Firm’s sole discretion, we may waive the minimum account size and/or
minimum fee requirements or may negotiate an alternative fee based upon the nature of the
account.

The management fee is determined in accordance with the above standard fee structure, with
exceptions negotiated on a case-by-case basis at our discretion. Any deviations from the
standard fee structure are based upon a number of factors including the amount of work
involved, the amount of assets placed under management and the attention needed to manage
the account.

To the extent that a client authorizes the use of margin, and margin is thereafter employed by our
portfolio managers in the management of the client’s portfolio, the market value of the client’s
account and corresponding fee payable by the client to AlpenGlobal may be increased. As a
result, in addition to understanding and assuming the additional principal risks associated with the

use of margin, clients authorizing margin are advised of the potential conflict of interest whereby
the client’s decision to employ margin may correspondingly increase the management fee
payable to the Firm. Accordingly, the decision as to whether to employ margin is left to the sole
discretion of client.

Clients authorize AlpenGlobal to deduct its quarterly investment advisory fee directly from their
custodial account. This authorization is granted under the terms of the client’s signed investment
management agreement. We send clients a copy of the investment advisory fee invoice at the
same time we request payment from the client’s custodian. It is the client’s responsibility to verify
the accuracy of the fee calculation, as the custodian will not determine whether the fee is
properly calculated.

GENERAL FEE DISCLOSURE
AlpenGlobal’s fee is comprehensive of many services that the clients of other investment advisors
may pay additional fees for, either directly to the advisor and/or indirectly as transaction costs or
as fund management or other security-related fees. As a result, the AlpenGlobal’s fees may
appear higher than advisory fees charged by other investment managers. However, the Firm’s
fee structure is based upon the experience, expertise, and investment style of its principal and
includes the active management of clients’ global portfolios. AlpenGlobal Capital believes that
this extensive due diligence is critical to reducing risk and improving performance in client
portfolios. Moreover, AlpenGlobal’s fee reflects the fact that, unlike most other investment
managers, AlpenGlobal pays for most client brokerage transaction, commission, and other
associated trading costs. Other investment managers may provide some individual services for
lower compensation, while others may charge more for the same or fewer services.

AlpenGlobal receives no commissions on investment products purchased or sold for client
accounts.

We do not provide clients advice as to the tax deductibility of our advisory fees. Clients are
directed to consult a tax professional to determine the potential tax deductibility of the payment
of advisory fees.

CUSTODIAN AND BROKERAGE FEES
Clients may incur certain charges imposed by their custodians and other third parties such as
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Additionally, clients may incur charges by the executing broker-dealer in the form of brokerage
commissions and transaction fees on the investment transactions entered into for their account(s).
All of these charges, fees and commissions are apart from AlpenGlobal’s investment
management fee.

FUND DISCLOSURES
Mutual funds, closed-end funds, exchange traded funds and alternative investment funds are
investment vehicles and the investment strategies, objectives and types of securities held by such
funds vary widely. In addition to the advisory fee charged by AlpenGlobal, clients indirectly pay
for the expenses and advisory fees charged by the funds in which their assets are invested. All
such funds incur operating expenses in connection with the management of the fund. Investment
funds pass some or all of these expenses through to their shareholders (the individual investors in
the funds) in the form of management fees. The management fees charged vary from fund to
fund. In addition, funds charge shareholders (individual investors in the funds) other types of fees
such as early redemption or transaction fees. These charges also vary widely among funds. As a

result, clients will still pay management fees and other, “indirect” fees and expenses as charged
by each mutual fund (or other fund) in which they are invested.

Clients are provided a copy of a fund prospectus for each fund in which they invest by their
custodian or by the fund sponsor rather than by AlpenGlobal. As required by law, a prospectus
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Item 7 - TYPES OF CLIENTS
Our clients include individuals, high net worth individuals, companies, trusts, estates, charitable
organizations and other entities. As a result of our minimum account size and management fee
requirements disclosed above, our services may not be appropriate for everyone. Particularly for
smaller accounts, other investment advisors may provide somewhat similar services for lower
compensation, although still others may charge more for similar services.