Arcadius Capital Partners Inc

5 – Fees and Compensation, above. Such placement arrangements are generally based on a
percentage of commitments to the Fund. Future arrangements with any existing or future Funds
may have similar or different arrangements.

ITEM 7       TYPES OF CLIENTS

        Arcadius’ clients are its Funds. Arcadius (SW) Fund is a Delaware limited partnership,
which operates as exempt investment pool under the Investment Company Act of 1940, as
amended (the “1940 Act”). Arcadius Funds may include investment partnerships or other
investment entities formed under domestic or foreign laws and operated as exempt investment pools
under the 1940 Act. The Investors participating in the Arcadius Funds may include individuals,
banks or thrift institutions, other investment entities, pension and profit-sharing plans, sovereign
wealth funds, trusts, estates or charitable organizations or other corporations or business entities and
may include, directly or indirectly, principals or other employees of Arcadius and its affiliates.

        The Fund generally has a minimum investment amount of $5 million for third-party
investors, and the Fund’s interests are offered and sold solely to “accredited investors” as defined
under Rule 501 Regulation D of the United States Securities Act of 1933, as amended (the
“Securities Act”) and “qualified clients” as defined under the Advisers Act. Accredited investors
are generally (i) individuals with $1,000,000 of net worth (excluding their primary residence) or
who have made $200,000 in each of the two previous years (or $300,000 joint income with one’s
spouse) or (ii) entities with assets totaling over $5,000,000. Qualified clients are individuals or
entities with over $2,200,000 of net worth (excluding the value of the individual’s primary
residence) or who placed at least $1.1 million under the firm’s management, at the time that the
individual became an investor in one of the firm’s Funds. Non-U.S. investors are not subject to
any particular wealth requirements. Such minimum investment amount may be reduced by
Arcadius at the discretion of the General Partner, subject to applicable legal requirements. It is
currently expected that any future Arcadius Funds will have similar eligibility requirements.