Southern Equity Advisors LLC

Item 5 – Fees and Compensation

Advisory Fees, Payment of Fees

Separately Managed Entities

Separately managed entities may include trusts, estates, and family investment entities. Fees for
such entities may include asset-based management fees and/or performance-based fees,
where permitted by law, as set forth in the applicable investment management agreement.

Private Funds

The fees and other compensation for advisory services to Clients are set forth either in the Private
Fund’s applicable Private Fund Governing Documents or, in the case of Direct Private Funds, via
the investment management agreement executed with the client.

Management Fees

With respect to the VC Funds, the Management Fee is typically 2.5% of the capital account
balances of each VC Fund as of the first day of each calendar quarter (the “Management Fee”).
The Management Fees are generally payable in advance for each calendar quarter. However, the
Management Fee for the VC Funds is reduced to 0.5% per year for fiscal quarters beginning after
the expiration of a specific VC Fund’s Investment Period.

In addition to a Management Fee (when charged), Southern Equity (or an affiliate of Southern
Equity which serves as the general partner of the Private Funds) is generally entitled to a
performance-based fee or “carried interest”, generally ranging from 10% to 20% of net profits
allocated to each Private Fund investor, subject to an applicable “high water mark” (the “Incentive
Fee”). The Incentive Fee is generally paid after investors have received distributions equal to their
invested capital and in some cases a preferred return.

The Private Fund Governing Documents permit Southern Equity (or the general partner of the
Private Funds) to reduce, waive, assign, participate or otherwise share the Management Fee or
Incentive Fee payable with respect to any investor. Certain of the Private Funds do not pay
Southern Equity a Management Fee and just pay carried interest to either Southern Equity or an
affiliate of Southern Equity.

Please refer to the individual Private Fund Governing Documents, including each Private Fund’s
Private Placement Memorandum, for additional detail regarding the calculation of the
Management Fee and Incentive Fee. (Item 6 provides further information regarding Incentive Fees,
including conflicts of interest).

For separately managed entities, Southern Equity will charge either a investment management fee
up to 2% per annum and/or carried interest fee. All fees are pursuant to the signed investment
management agreement signed by the client.

Private Fund Additional Fees and Expenses

Direct Private Funds

Southern Equity or an affiliate receives between 10% to 20% carried interest after expenses and
return of an amount equal to the investor’s capital account.

VC Funds

In addition to the Management Fee and Incentive Fees, the VC Funds generally will bear all of
their organizational expenses and will reimburse Southern Equity and/or the general partners, as
applicable, to the extent that any of them bears organizational or offering expenses on behalf of
the Private Funds. Southern Equity (or an affiliate) bears all normal operating expenses including,
without limitation, expenditures on account of salaries, wages, travel and other expenses of
employees of Southern Equity or an affiliate, overhead and rentals payable for space used by
Southern Equity or an affiliate, office expenses and expenses incurred in connection with research
and analysis of industry sectors in which the VC Funds are invested and identifying potential
investment opportunities.

Subject to the above, the General Partner will pay all normal operating expenses of the VC Fund,
including salaries, wages, rent, travel and all normal expenses incurred in the investigation of
investment opportunities (other than expenses borne by the Fund). The VC Fund will bear the out-
of-pocket expenses incident to the organization of the Fund and the General Partner (up to a
maximum of $150,000). The VC Fund will also bear all costs and expenses related to the purchase,
holding, sale or exchange of portfolio securities (including, legal, audit, accounting, banking and
consulting expenses and any placement fees, finder’s fees, and real or personal property taxes),
VC Fund meetings, Advisory Committee matters, indemnification obligations pursuant to the
Limited Partnership Agreement, liability and other insurance premiums, and any extraordinary
expenses of the Fund. Additionally, the VC Fund will bear all costs and expenses related to the
liquidation of the Fund’s assets upon termination of the Fund.

PC Funds

With respect to the PC Funds, profits are allocated first to investors, who receive a preferred return,
typically between 10% to 14% of each investor’s aggregate capital contributions depending on the
amount invested; allocated second to pay expenses of the PC Fund or to create a reserve fund for
payment of expenses of the PC Fund in the future (as determined by the General Partner); and
third, any remaining portion is paid in entirety to Southern Equity or its affiliate in the form of a
yield carry.

Current and prospective investors in the PC Funds should refer to the private placement
memorandum or other offering documents of the respective PC Funds for detailed information
with respect to the fees and expenses they may pay in connection with an investment in such PC
Fund. The information contained herein is a summary only and is qualified in its entirety by such
documents.

RE Funds

Southern Equity (or an affiliate) typically receives a 2% management fee and 20% of the carried
interest after return of capital, as agreed on individually, with each client and as delineated in the
client’s investment management agreement.

Additional Compensation

As noted in Item 4, Southern Equity may provide guidance to Clients on establishing legal entities
that comply with the Economic Development Commission (EDC) Program’s requirements of the
...

Item 7 – Types of Clients

Southern Equity manages and provides investment advisory services to member-managed limited
liability entities, limited liability partnerships, trusts, estates, family office entities, family
investment vehicles, and special purpose entities, including irrevocable trusts, non-grantor trusts,
and dynasty or multi-generational trusts.

Private Funds

Southern Equity manages and provides investment advisory services to Private Funds for which
its related persons act as general partner or sponsor. Underlying investors in Private Funds
typically include high net worth individuals, banks, thrift institutions, trusts, estates, charitable
organizations, foundations, pension funds, sovereign wealth funds, endowments and other
corporations. Generally, each underlying investor in a Private Fund must be an “accredited
investor” as defined under Rule 501(a) of Regulation D promulgated under the Securities Act of
1933, as amended (the “Securities Act”) and a “qualified client” as defined under the Investment
Advisers Act of 1940, as amended (the “Advisers Act”). Investors in the Private Funds must meet
certain suitability and other requirements, as set forth in the Private Fund’s Governing Documents.

The minimum initial investment by investors, as set forth in the applicable Governing Documents
ranges from $250,000 for the VC Funds to $1,000,000 for the PC Funds. Southern Equity or the
general partners to the Private Funds may, however, in their sole and absolute discretion, waive or
change the minimum investment amount.

Separately Managed Entities

Southern Equity manages and provides investment advisory services to member-managed limited
liability entities, limited liability partnerships and family office entities.

Private Fund Side Letter Agreements

Southern Equity and/or the general partners to the Private Funds have, and from time to time will,
enter into side letters or similar separate agreements with one or more Private Fund investors that
may alter the terms and conditions set forth in the Private Fund’s Governing Documents. Such
alteration of terms and conditions include, without limitation, with respect to the Management
Fees, Incentive Fees, transfers to affiliates and other parties, expenses, notices and reporting, and
disclosure.

The modifications may, among other things, be based on the size of the Private Fund investor’s
investment in the Private Fund or affiliated investment entity, an agreement by a Private Fund
investor to maintain such investment in the Private Fund for a significant period of time, or other
similar commitment by a Private Fund investor to the Private Fund. As a general matter, Southern
Equity owes certain fiduciary duties to its Clients, which require that Southern Equity act in good
faith and in what Southern Equity considers to be in the best interests of the Private Funds. In
doing so, Southern Equity also will endeavor to act in a manner that ensures the fair treatment of
Private Fund investors.