Anchorage Capital Advisors LP

ITEM 5 – FEES AND COMPENSATION
Item 5.A   Describe how you are compensated for your advisory services. Provide your
           fee schedule. Disclose whether the fees are negotiable.

           The Advisors typically charge fees that are based upon a set percentage of assets
           under management and performance. Set forth below are summaries of the fees
           payable by Investors in the Funds. It should be noted that detailed disclosure
           about the fees and other expenses applicable to an investment in the Funds is
           provided in the relevant Fund’s confidential private placement memorandum,
           including any supplements, which are provided to prospective investors. Those
           governing documents should be carefully reviewed prior to making an investment
           in the Funds. Fee and related information for the Customized Funds are disclosed
           in their respective governing documents.

           Asset-based fees are generally charged monthly/quarterly in advance based on
           the value of the relevant assets as of the first day of the month/quarter. The range
           of annual asset-based fees in Funds other than the Structured Credit Vehicles and
           AMAC Funds is typically from 1.0% to 2.0% of each Investor’s assets with the
           applicable Fund. Annual asset-based fees in the AMAC Funds range between
           0.40% to 0.60% of each Investor’s assets.

           In addition, consistent with the Investment Advisers Act of 1940, as amended
           ("Advisers Act") and Rule 205-3 thereunder to the extent applicable, the
           Advisors or their affiliates receive incentive allocations or performance fees from
           certain Advisory Clients generally based upon net profits allocable to each
           Investor. The performance allocation or performance fee payable to the Advisors
           or their affiliates generally ranges from 15% to 25% of the net profits allocable
           to a particular Investor. For certain Funds, the performance allocation is subject
           to a hurdle or preferred return rate.

           Fee arrangements for the Customized Funds are individually negotiated and set
           forth in their respective governing documents.

           With respect to the Structured Credit Vehicles, collateral management fees
           generally range from 0.45% to 0.55% per annum of the aggregate amount of
           collateral principal, defaulted obligations and accrued interest as described in the
           vehicle’s governing documents. The Advisors have effectively waived or reduced
           collateral management fees with respect to investments made by the Funds in
           instruments/notes issued by the Structured Credit Vehicles. The Advisors may
           also be entitled to receive an incentive collateral management fee which is
           payable only after an incentive management fee threshold has been met. Please
           see each vehicle’s governing documents for a description of the applicable
           incentive collateral management fee and incentive management fee threshold.

           The fees and performance allocations detailed above are negotiable in that the
           Advisors reserve the right to reduce, waive or calculate differently such fees and
           performance allocations for certain Investors. Partners, employees and certain
           affiliates of the Advisors currently invested in the Funds are not charged such fees
           or performance allocations.

           Please also refer to Item 14 regarding Other Compensation.

           It is critical that Investors refer to their respective Fund’s governing
           documents for a complete understanding of how the Advisors are
           compensated for their advisory services. The information contained herein
           is a summary only and is qualified in its entirety by the relevant Fund
           governing documents.

Item 5.B   Describe whether you deduct fees from clients’ assets or bill clients for fees
           incurred. If clients may select either method, disclose this fact. Explain how
           often you bill clients or deduct your fees.

           Other than for certain Customized Funds whose investors are billed directly, the
           Advisors (or an affiliate thereof) deduct fees from Investors’ assets invested in
           the Funds. Such Investors do not have the ability to choose to be billed directly
           for fees incurred.

           It is critical that Investors refer to their respective Fund’s governing
           documents for a complete understanding of how fees are deducted from their
           assets. The information contained herein is a summary only and is qualified
           in its entirety by the relevant Fund governing documents.

Item 5.C   Describe any other types of fees or expenses clients may pay in connection
           with your advisory services, such as custodian fees or mutual fund expenses.
           Disclose that clients will incur brokerage and other transaction costs, and
           direct clients to the section(s) of your brochure that discuss brokerage.

           In addition to management/performance fees payable to the Advisors, Advisory
           Clients (and, therefore, Investors therein) are also subject to other costs and
           expenses related to their respective activities. The following sets forth various
           examples of the types of costs and expenses that will generally be borne by
           Advisory Clients, subject to the terms of such Advisory Client's governing
           documents:

           The Drawdown Funds and the AMAC Funds generally pay, as applicable:
              • organizational expenses;
              • offering expenses, including legal and accounting expenses, placement
                 fees, printing costs, travel and out-of-pocket expenses;
...

ITEM 7 – TYPES OF CLIENTS
Describe the types of clients to whom you generally provide investment advice, such as individuals,
trusts, investment companies, or pension plans. If you have any requirements for opening or
maintaining an account, such as a minimum account size, disclose the requirements.

The Advisors provide discretionary investment advisory services including, but not limited to, managing
and directing the investment and reinvestment of assets for the Funds and serving as investment manager
or collateral manager to certain structured credit vehicles.

Investors in the Funds, include, without limitation, pension funds, sovereign wealth funds, insurance
companies, financial institutions, foundations, endowments, fund of funds, family offices, and high net
worth individuals.

Minimum initial investments for Funds generally range from $1,000,000 to $20,000,000, subject to the
discretion of the general partner of the Fund.

Customized Funds may be set up for certain Investors at the sole discretion of the Advisors and will be
subject to individually negotiated terms.

It is critical that Investors refer to their respective Fund’s governing documents for a complete
understanding of each Fund’s requirements. The information contained herein is a summary only
and is qualified in its entirety by the relevant Fund governing documents.