Selective Capital SRL

Item 5: Fees and Compensation

For our advisory services we will charge our customers 1.5% (negotiable per each particular
advised customer) per year applied to the customer’s account Net Liquidation Value,
considering the followings:

Customer will open a single account with the Broker-Dealer/Futures Commission Merchant/
Interactive Brokers LLC and this account will be used for all trading programs that Selective
Advisors is offering in the Item 4: Advisory Business in Section C: Strategies and Stocks, Bonds,
Exchange Traded, Closed End and Mutual Funds.

Example: account value of USD 100 000- with the following distribution over the trading
programs:

Strategies Program                                                        USD 50 000-

Stocks, Bonds, Exchange Traded, Closed End and Mutual Funds               USD 50 000-

The amount allocated to each program will be specified in the Advisory Agreement.
Net Liquidation Value =
= Total cash Value (transactions fees and commissions are deducted from the cash value)
+ short term stock positions P&L (for open positions)
+ stock value + bond value + mutual funds/ETFs value
+ securities options value

Management fee of 1.5% per year will be calculated on a daily basis by applying the
percentage to the end of the trading day Net Liquidation Value.

Management fee as percentage of the Net Liquidation Value entered as an annualized
percentage (1.5% per year) will be applied on a daily basis (252 business days are applied in
this calculation method).

Specified 1.5% of The Net Liquidation Value as an annualized percentage, and client’s day
ending account value = USD 100,000.

Management fee for the given day will be: 1.5%*USD 100,000/252=USD 5.95.

Fees are deducted directly from the client’s account(s) daily by the custodian or broker-
dealer/Interactive Brokers that holds the client’s assets. Periodically as per Selective Advisors
invoices, Interactive Brokers could transfer accordingly to instructions the total amount of fees
collected by the invoice issuing date. No fees are collected in advance of service. In addition to
our fee, each client is responsible for paying any transaction costs associated with purchasing
and selling securities, including mutual funds, as part of the fee based service. Selective
Advisors fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may incur certain charges imposed
by custodians, brokers, third party investment and other third parties such as fees charged by
managers, 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.

Mutual funds and exchange traded funds also charge internal management fees, which are
disclosed in a fund’s prospectus.

Please see the section titled “Item 12: Brokerage Practices” for more information on the
firm’s brokerage practices.

Percentage of the total management fee that will influence the performance of the Option
Strategies and Stocks, Bonds, Exchange Traded, Closed End and Mutual Funds programs and will
be the percentage of the initial deposit used for those programs. (in the example (USD 30 000
+USD 50 000)/USD 100 000=80%; if a Management fee of USD 1 500 is paid in one year, 80% - USD
1200 will influence the performance of the Option Strategies and Bonds, Stocks, Mutual
Funds/ETFs programs).

Any future withdrawals or new deposits will be recorded by addendum to the Advisory
Agreement and would be reflected in the Total cash Value component of the Net Liquidation
Value.

Item 7: Types of Clients

We offer investment advisory services to individuals, high net worth individuals, individuals,
corporations and other business entities.

Minimum Account Size

We have established account minimums at $50,000 although we will occasionally make
exceptions for friends, relatives or business associates of current clients.