Alterna Equity Partners Management LLC

Item 5        Fees and Compensation
A. DESCRIPTION OF FEES

   Management Fee
    Alterna is paid a quarterly management fee computed on the value of each Fund’s capital
    accounts/net asset value. These fees can range up to 2% depending on the Fund or any
    applicable share class. The respective managing member or general partner of the Fund
    may, in its sole discretion, waive, reduce or calculate differently the management fee with
    respect to certain investors. Please refer to each Fund’s respective Offering Documents for
    their specific fee schedule.

   Performance Fee or Carried Interest (incentive fee)
    In addition, the applicable Fund’s managing member or general partner receives an
    incentive allocation if net profits allocated to the respective Fund’s capital account exceed
    net losses allocated to that account, subject to a loss carryforward provision. The incentive
    allocation ranges up to 20% of net profits, depending on the Fund. The respective managing
    member or general partner may, in its sole discretion, waive, reduce, or calculate differently
    the incentive allocation with respect to certain investors. The relevant Offering Documents
    contain a detailed description of applicable fees.

B. BILLING PROCEDURES
    The advisory fees are generally payable on a quarterly basis in arrears and in accordance
    with the terms agreed upon by Alterna and described in each Fund’s Offering Documents.
    Fund Investors are directed to the applicable disclosures in the Offering Documents for a
    complete listing and description of the fees and expenses related to each specific Fund.

C. OTHER COMPENSATION
   Neither the Firm nor its principals accept compensation for the sale of securities or other
   investment products, including asset-based sales charges or service fees from the sale of
   mutual funds.

Item 7       Types of Clients
   Alterna provides discretionary advisory services to private funds. The Funds typically
   qualify for the exemption from the definition of “investment company” under Section
   3(c)(1) or Section 3(c)(7) of the Investment Company Act, as amended and offers interests
   to investors pursuant to Regulation D promulgated under the Securities Act of 1933, as
   amended (“the ’33 Act”) and/or Regulation S under the ’33 Act. The Private Funds have
   investor suitability criteria which are set forth in their respective Offering Documents and
   subscription application materials. Investors will be required to make certain
   representations when investing in a Fund, including but not limited to that: (i) they are
   acquiring interests for their own accounts; (ii) they received or had access to all
   information they deem relevant to evaluate the merits and risks of the prospective
   investment; and (iii) they have the ability to bear the economic risk of an investment in
   the applicable Fund.

   In addition, the Offering Documents for each Fund will set minimum amounts for
   investment by prospective investors. We may modify or waive such minimum investment
   requirements from time to time; however, investors in any Fund must be: (i) "accredited
   investors"; (ii) meet other suitability requirements, including that for certain Funds, the
   need to be “qualified purchasers” or "knowledgeable employees"; or (iii) meet other
   suitability requirements. Each Fund’s stated minimum investment is described in the
   Offering Documents.