Basso Capital Management LP

ITEM 5: FEES AND COMPENSATION

Advisory Fees and Performance-Based Compensation

        Client Accounts are typically charged a quarterly advisory fee, payable in advance, based on their
account balances. Basso does not currently anticipate charging the Client Accounts performance-based
fees. The generally applicable Client Account fee schedule is as follows, but Basso does negotiate different
fee rates with certain investors:

                           Account NAV (rounded)                Annual Fee Rate
                               First $2,000,000                    1 percent
                             The next $2,999,999                  .8 percent
                             The next $4,999,999                  .7 percent
                             The next $9,999,999                  .6 percent
                            The next $29,999,999                  .5 percent
                           The next $199,999,999                  .4 percent
                            Above $250,000,000                    Negotiable

       If a Client Account is terminated before the end of a given quarterly advisory fee period, Basso will
refund a pro-rated portion of the fee based on the number of days remaining in that quarter. Client
Accounts may, at their discretion, compensate the firm for its provision of non-discretionary services.

        Basso Select investors are charged an annual management fee and Basso may receive a carried
interest for managing this fund, each as more fully described in the fund’s Confidential Private Placement
Memorandum (the “Basso Select PPM”). The Sub-advised Account is charged performance-based
compensation, as agreed in the Sub-advisory Agreement. The Sub-advised account is not open to
additional investors.

       Basso Omni is not charged fees and is not open to additional investors.

         Basso does not act as a broker-dealer, nor does it receive compensation for any broker-dealer
activities. In addition, neither Basso nor any of its supervised persons accepts compensation that is solely
transactional in nature, such as in connection with the sale of investment products or securities.

Expenses

       i)         The Client Accounts pay:

              •   Investment expenses such as brokerage commissions and other transaction charges;
                  interest on margin accounts and other indebtedness; taxes and other governmental charges;
                  custodial fees and expenses, clearing fees, reporting (including certain regulatory reporting)
                  fees and other similar investment fees and expenses incurred in connection with reporting,
                  trading and maintenance of positions; legal fees in reviewing and negotiating trading
                  documentation (“Investment Expenses”);
              •   Fees and expenses charged by the mutual funds, ETFs and similar entities that the Client
                  Accounts may be invested in; and
              •   Indemnification payments, if applicable.

       ii)        Basso Select investors pay a range of expenses, as described more fully in the Basso Select
                  PPM: these include brokerage, banking, legal and regulatory, administration, third party
                  management and performance-based, consultant, special purpose vehicle, organizational
                  and other fees, as well as indemnification payments, if applicable.

       iii)       The Sub-advised Account pays expenses as agreed in the Sub-advisory Agreement.

       iv)        Basso Omni pays all of its own expenses, including its Investment Expenses.

       v)         Family offices receiving non-discretionary advisory services are fully responsible for their
                  own expenses.

     None of the Investment Vehicles directly pays any of Basso’s internal expenses, such as office rent
and overhead, or employee salaries and health care.

ITEM 7: TYPES OF CLIENTS

       The Client Accounts are established by family offices and high net worth and other individuals.
These investors may also include their associated trusts, estates, charitable organizations, family
partnerships, foundations and business entities. Basso Select investors are expected to include most of
these same types of individuals and entities.

        The Sub-advised Account represents a portion of a multi-manager, pooled investment vehicle. This
vehicle is advised by an SEC registered investment adviser unaffiliated with Basso.

       Basso Omni is a proprietary-money-only fund holding a portion of the family assets of a Basso
partner.