Arco Global Management LLC

Item 5 – Fees and Compensation
AGM receives fixed management fees per year from the Client or its subsidiaries, payable quarterly
in advance. AGM deducts these fees directly from the Client’s account, usually, on a quarterly basis
or at such other times as it deems appropriate in order to accommodate the cash flow management of
the Client and its subsidiaries. In addition, the Client and its subsidiaries periodically reimburse AGM
for certain expenses incurred on behalf of the Client or its subsidiaries, including, without limitation,
deal pursuit costs, custodial fees, filing fees, insurance costs, office facilities, taxes and other expenses
paid on behalf of the Client from time to time, subject to the oversight of the Client’s board of
directors. Furthermore, and in order to facilitate the Client’s cash management function, it may also
make advances to AGM so that the latter pays for certain recurring and one-off expenses of the Client
directly. Finally, the Client may direct certain of its subsidiaries to directly pay certain of AGM’s
expenses and such payments are deducted from the payment of the relevant quarterly management
fee described above so that such directed payments do not result in an overpayment of management
fees to AGM.

In addition to the management and performance fees discussed in this item and Item 6, AGM may
earn other fees for other services provided to the Client, including deal related fees, consulting,
property management, acquisition or disposition of assets, finder’s fees, one-off transaction fees,
bonuses or supervisory fees related to certain assets of the Client.
To the extent that the management agreement is terminated by the Client prior to the end of the
relevant billing period, any unearned fee will be refunded to the Client. Furthermore, AGM’s
management agreement with the Client provides for incentive fees to AGM as described in Item 6
below.
We do not accept compensation for the sale of securities or other investment products including
asset-based sales charges or service fees from the sale of mutual funds.

The fees charged by AGM may be deemed to be higher than the fees typically charged by other
advisers for services similar to those provided by AGM to the Client.
AGM also enters into advisory arrangements whereby it charges management fees based on a
percentage of the assets being managed. AGM also enters into fee sharing arrangements with other
investment advisers whereby it charges a portion or percentage of the advisory fee charged by the
relevant adviser to another advisory client.

Item 7 – Types of Clients
AGM principally targets portfolio, asset management and consulting services to pooled investment
vehicles, financial institutions, insurance companies and private funds whose underlying investors
are financially sophisticated and some of which meet the definition of “qualified client,” “qualified
purchaser” or “qualified institutional buyer,” as defined by the relevant rules of the SEC, when they
became investors. AGM may also provide such services to high-net-worth individuals or persons
(natural or legal) which may or may not qualify as accredited investors.