Brevan Howard US Investment Management LP

Item 5.   Fees and Compensation

          Fund Clients

          As compensation for the investment management services which it provides to its
          Clients, BHUSIM will be paid fees by BHCM out of the fees that BHCM receives for
          acting as manager of each Client fund. Fees paid to BHUSIM for investment
          management services ensure that it is able to cover its operating costs and should the
          global Brevan Howard business be profitable, realize an annual profit calculated by
          reference to these global profits.

          Fees paid by Clients to BHCM normally comprise monthly management fees and also
          performance fees which may be paid annually, semi-annually or at the end of the life

of the investment. Where such fees are applicable, monthly management fees are
between 0.5% to 2% per annum of the NAV of the assets of each Client fund and
performance fees are between 10% and 30%, calculated as a percentage of any
positive returns achieved for each Client fund or each underlying trader book,
depending on the Client fund. In respect of certain Client funds, BHCM receives an
additional operational services fee of 0.5% of the total value of the NAV of the assets.

Investors in certain of the Client funds for which BHUSIM acts as investment manager
may be subject to certain lock-in provisions and early redemption penalties, which
enables Brevan Howard to invest effectively and manage liquidity requirements.
Where a Client fund invests in any other Brevan Howard managed fund, the
administrator will make an adjustment in the fee calculations to ensure that Client funds
and their investors do not suffer two layers of fees. Further details of the fees payable
by Clients of BHUSIM are set out in the offering memoranda for each Client fund.

Pass Through Expenses

Certain Client funds (and therefore such Client funds’ investors) will be responsible for
Fixed Expenses, Variable Expenses and Other Expenses (each as defined below)
(together, “Pass Through Expenses”). Specifically, the applicable master fund will
reimburse BHCM for its portion of Pass Through Expenses. Each class and series of
master fund shares held by a Client fund will bear its pro rata share of the relevant
Pass Through Expenses.

Fixed expenses generally include the following: salaries of portfolio manager and
portfolio management teams; fixed fees and/or advance drawings; employment-related
costs, including bonuses, payroll and similar taxes, social security contributions,
healthcare contributions, pension contributions, medical insurance premiums, costs of
employing the portfolio management team and costs of certain minimum compensation
guarantees (“Employment-Related Costs”) with respect to such portfolio managers,
portfolio management teams and the personnel of the manager, investment managers
(excluding external investment managers) and affiliates thereof that exercise discretion
in placing trades; advances on certain performance fees payable to an investment
adviser by the relevant investment manager (such expenses, “Fixed Expenses”).
Variable expenses generally include certain compensation and/or fees paid or payable
to certain portfolio managers, investment managers and/or investment advisers (such
expenses, “Variable Expenses”).

Other Expenses generally include the following: where applicable, any portfolio
manager, portfolio management team and support personnel recruitment sign on and
retention fees, bonuses and expenses, including recruitment consultancy fees and
buy-outs of previous employers’ deferred compensation awards, including social
security payments (if any); costs associated with the creation, production and printing
of marketing materials relating to Client funds; legal fees and other costs associated
with registering and protecting or verifying the registration or protection of intellectual
property; fees for legal services and advice, tax services and advice and other
professional services and advice; and the following costs and expenses (as reasonably
determined by BHCM) in relation to the portfolio managers, portfolio management
teams and support personnel as applicable to the relevant Client fund:

    •   hardware-related expenses, depreciation and amortization such as costs of
        purchasing or leasing equipment including servers, computers, co-located
        servers, monitors, mobile devices, other information technology hardware,
        other computer and communications equipment and installation, licensing,
        market information, maintenance, and consultation service charges in
        connection with such equipment;

    •   software-related expenses, depreciation and amortization such as costs of
        software and other technology licensing, installation, implementation, data
        management and recovery services and custom development;
    •   travel expenses such as normal business – related travel and other similar
        expenses;
    •   market data, including data services and feeds, used for any purpose
        including, without limitation, license fees and other expenses relating to the
        acquisition, collection and use of such data and any computer hardware and
        connectivity hardware incorporated into the cost of obtaining such data);
    •   overhead expenses in relation to premises utilized by certain portfolio
        managers, portfolio management teams and support personnel, such as rent,
        business rates, service charges, costs in respect of leasehold dilapidations
        and improvements, office repairs and maintenance (including cleaning),
        utilities, supplies, secretarial and other support services, office design,
        construction and moving expenses and charges for furniture and fixtures;
    •   professional development program expenses, professional body fees and
        professional training costs such as those relating to the training and
...

Item 7.   Types of Clients

          BHUSIM primarily provides investment management services to private funds which
          are pooled investment vehicles. BHUSIM also provides advisory services to a
          separately managed account.