Alden Global Capital LLC

FEES AND COMPENSATION

    A. Advisory Fees and Compensation.

        Compensation from the Clients received by Alden in its role as adviser to Clients consists of
fees based on a percentage of the net asset value of the Clients (“Management Fees”) and
Performance Fees. The applicable Management Fees and Performance Fees are disclosed in the
relevant Fund’s offering documentation or set forth in the relevant Client’s investment management
agreement.

        Management Fees are typically 2% per annum. Management Fees are generally payable
quarterly in advance and are pro-rated for partial periods.

         Performance Fees are generally 20% of net realized and unrealized capital appreciation, after
making up for any losses carried forward from prior periods. The timing of allocations/distributions
related to Performance Fees varies depending on the Client, as set forth in the documentation for the
relevant Client.

        Management Fees and/or Performance Fees may be waived, reduced, rebated or calculated
differently in the sole discretion of the general partner of the relevant Fund or Alden, as applicable.

    B. Payment of Fees.

        In general, Management Fees and Performance Fees are deducted from the assets of the
Clients. As discussed above, Management Fees are generally deducted on a quarterly basis.
Performance Fees are generally deducted on a periodic basis, depending on the Client. Such duration
is determined by the terms of the governing documentation for each Client.

    C. Additional Fees and Expenses.

         Investors in the Funds are generally responsible for the costs and expenses of a Fund, as set
forth in the Fund’s offering documentation.

         Generally, a Fund will bear all of its legal and other organizational expenses incurred in
connection with its formation, including any and all expenses related to capital raising activities. In
addition, the Fund will bear its own operating and other expenses, including, but not limited to:
investment-related expenses (e.g., costs, fees, and other out-of-pocket expenses directly related to the
investigation of investment opportunities (whether or not consummated) such as external fees and
transaction costs; all deal and access fees, whether paid to third party managers or brokers, for
transactions in which the Fund participates; the acquisition, ownership, financing, hedging, or sale of
its investments, including transaction and investment banking or similar costs, reasonable travel and
lodging expenses in connection with investment activities, fees, interest and other costs on margin
accounts or other financings or re-financings, borrowing charges on securities sold short, custodial
fees, bank service fees, any withholding or transfer taxes imposed on the Fund or any Fund investors,
any governmental, regulatory, licensing, filing, or registration fees or taxes incurred by the Fund in
compliance with the rules of any self-regulatory organization or any federal, state, or local laws
(including, but not limited to, all fees incurred in connection with the completion and filing of Form
PF or other regulatory filings made with respect to the Fund); all fees and expenses related to any
wholly-owned subsidiaries or other master funds or investment vehicles managed by Alden or its
affiliates that are utilized to facilitate Fund transactions (including legal, administrative, custodial,
audit, registered office, and other fees); legal and other expenses, brokerage commissions and other

costs of executing transactions, information-related expenses, costs and expenses of portfolio
construction tools and data services, costs and expenses of proxy research and voting services,
clearing and settlement charges, interest expenses, appraisal fees and other due diligence expenses, all
operational expenses, including legal (including responding to formal and informal inquiries and
indemnification expenses), ERISA bonding costs, auditing, tax preparation and accounting expenses
(including expenses associated with the preparation of financial statements and tax returns, if any),
direct expenses incurred in obtaining systems, research, and other information utilized for portfolio
management purposes that facilitate valuations and accounting (including the costs of statistics and
pricing services, service contracts for quotation equipment, and related hardware and software),
expenses incurred in the collection of monies owed to the Fund, insurance expenses, the Management
Fee, fees of the Fund’s administrator and any other service providers, and to the extent applicable, any
entity-level taxes, fees or other governmental charges levied against the Fund, extraordinary expenses
(such as litigation-related and indemnification expenses) and expenses comparable to the foregoing.

         For Funds that are organized in a “master-feeder” structure, expenses of the master fund
(other than the Management Fee) will be shared on a pro rata basis by the participating accounts in the
feeder funds unless otherwise specifically attributable and specially allocated to one or more such
participating accounts. Any expenses borne for the benefit of multiple Funds will be allocated among
the Funds on a basis deemed by Alden to be fair and equitable.

        Please see Item 12 for a discussion of Alden’s brokerage practices.

    D. Prepayment of Fees.

        As discussed above, Management Fees are generally payable quarterly in advance and are
pro-rated for partial periods. If an investor in a Fund makes a redemption/withdrawal other than as of
the last day of a fiscal quarter, such investor will only be charged a pro rata portion of the
management fee for that quarter (based on the actual number of days elapsed during the quarter) and
any remaining Management Fee previously charged but not owed will be refunded to the investor.

    E. Additional Compensation for the Sale of Securities or Other Investment Products.
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TYPES OF CLIENTS

       As noted in Item 4 above, Alden currently acts as a discretionary adviser to the Clients.

        The minimum subscription amounts for investing in the Funds, which are set forth in the
Funds’ respective offering documentation, are generally subject to applicable law and to change or
waiver at the discretion of Alden or a Fund’s general partner or board of directors, as applicable.

       Separately managed account relationship terms are negotiated on a case-by-case basis.