Bracebridge Capital LLC

ITEM 5. FEES AND COMPENSATION

Compensation and Fee Schedules

As the investment manager and/or general partner to the Funds, Bracebridge typically charges a
management fee (“Management Fee”) and a performance fee or allocation (“Incentive Fees”), as described
in the relevant governing documents and/or investment management agreements of the Funds. The fees and
other compensation payable to Bracebridge by a Fund may vary from Fund to Fund, as well as among
investors in the same Fund, and in certain circumstances, the fees payable to Bracebridge may be negotiated
and set forth in subscription documentation in respect of a particular Fund investor and/or waived in whole
or in part. Bracebridge generally waives the Management Fee and Incentive Fee for investments by
Bracebridge, employees of Bracebridge, its principals, or their related persons, including estate planning
vehicles of such persons and certain other persons or entities associated with such persons. All investors
should review the governing documents of the relevant Fund in conjunction with this brochure for complete
information on the fees and compensation payable with respect to that particular Fund. All Fund investors
of Bracebridge are “qualified purchasers” as defined in Section 2(a)(51) of the 1940 Act and therefore
specific fee information is not disclosed in this brochure.

Deduction of Fees; Timing of Payments; Termination

Bracebridge is authorized under the governing documents and investment management agreements of the
Funds to charge and deduct Management Fees and Incentive Fees from the assets of the Funds for its
services. Generally, the Funds pay Management Fees in advance. If the investment management agreement
is terminated (or an investor withdraws all or a portion of its investment) before the end of the billing period,
Bracebridge refunds a pro rata portion of the pre-paid Management Fee to the Funds’ (or the investor’s)
accounts. The Incentive Fees will be deducted and paid as of the close of each fiscal quarter or fiscal year
(and as of each other date on which Bracebridge determines it is appropriate or necessary to make a

determination of the Incentive Fee with respect to an investor, i.e., a date on which an investor withdraws
all or a portion of its investment).

Other Expenses

In addition to the fees disclosed above, an investor also bears its allocable share of a Fund’s investment
expenses (e.g., expenses which, in Bracebridge’s determination, are related to investments or prospective
investments (whether or not consummated) of the Fund, including without limitation, brokerage
commissions; interest expense; expenses related to clearing transactions and other transaction costs, transfer
taxes and stamp duty; expenses related to sourcing, structuring or pooling investments, including expenses
related to investment vehicles established for such structured or pooled investments and any operations and
employees of such vehicles, investment due diligence or to the ongoing maintenance of investments;
translation expenses; travel expenses incurred in connection with investments or prospective investments
of the Fund, including, without limitation, to attend board meetings of investment vehicles, and expenses
related to investments in other pooled investment vehicles, including, without limitation, asset-based and/or
performance-based fees payable to the managers of such pooled investment vehicles); expenses of industry
experts or other consultants retained for investment research or to provide specialized advice regarding
investments or prospective investments; legal expenses (including, but not limited to, expenses associated
with compliance with applicable laws and regulations, any and all filings made by the Fund, and expenses
related to investments or prospective investments of a Fund), auditing and tax preparation expenses, tax
reporting and compliance expenses, domiciliation fees, expenses relating to the offer and sale of a Fund’s
interests, fees and expenses of an administrator and/or relating to administration of a Fund, fees and
expenses of other service providers including but not limited to custodian fees, director’s fees, fees and
expenses of third-party valuation, pricing and appraisal services and extraordinary expenses. A Fund will
also bear its allocable share of any such expenses incurred by a subsidiary of the Funds that is formed to
make or hold investments or prospective investments. From time to time, brokerage, investment banking
and other investment firms may present Bracebridge with potential investment opportunities for which, if
consummated, a Fund may pay a commission, consulting or similar "finder's fee." A Fund will be
responsible, or will reimburse Bracebridge, for the Fund’s reasonable portion, as determined by
Bracebridge in its sole discretion, of any costs and expenses (including, but not limited to, periodic
insurance premiums) incurred by Bracebridge in connection with one or more insurance policies pursuant
to which the Fund is a beneficiary including, but not limited to, directors and officers liability, errors and
omissions liability and other risk insurance. Any expenses of a Fund that are paid for by Bracebridge will
be reimbursed by the Fund.

Please refer to Item 12 below for additional information regarding Bracebridge’s brokerage practices.

Bracebridge and its supervised persons do not accept compensation or commissions for the sale of securities
or other investment products.

ITEM 7. TYPES OF CLIENTS

Bracebridge provides investment advisory services solely to the Funds. Investment advice is provided
directly to the Funds and not individually to the investors in the Funds. In addition, certain Funds managed

by Bracebridge pursue specialized investment strategies on behalf of one or more classes of interests.
Further information about each of these Funds, their classes of interests, and their applicable strategies is
provided in the offering documents of the applicable Fund. Bracebridge may also in the future provide
advisory services to other funds or to separately managed accounts.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the 1940 Act
and the Securities Act. Investors in the Funds may include high net worth individuals, trusts, estates,
charitable organizations, pension plans, foundations, endowments, sovereign wealth funds, corporations,
limited partnerships, limited liability companies and similar entities. Bracebridge also allows certain
qualified employees to invest in the Funds.

The Funds impose minimum initial investment requirements which may be waived at the discretion of the
respective board of directors or general partner (subject to the requirements of applicable law).