Brigade Capital Management LP

ITEM 5 – FEES AND COMPENSATION
Brigade Capital generally charges each applicable Advisory Client an asset-based investment management
fee based on the value of that Advisory Client’s assets under management. In addition, certain Advisory
Clients also pay Brigade Capital a performance-based fee or incentive allocation. These fees/allocations
are compensation to Brigade Capital that is based on a share of capital gains on or capital appreciation of
the assets of the respective Advisory Client. Fund Investors generally are subject to these management fees
and/or performance-based fees or incentive allocations, as applicable, indirectly through their investment
in a particular Fund. Brigade Capital’s fees are generally deducted from each Fund account by the
respective Fund’s custodian/administrator upon Brigade Capital’s instructions. Brigade Capital generally
bills the Accounts for fees incurred at such times and in such manner as agreed upon with each Account.
Brigade UK will receive a portion of such fees and compensation that Brigade Capital receives from the
Advisory Clients. BCEM receives management fees and may receive performance based fees in connection
with its serving as the collateral manager, sponsor and/or originator to the ECLOs. With respect to certain
Advisory Clients, the performance-based compensation is paid to Brigade Capital’s affiliate (instead of
Brigade Capital). Accordingly, to the extent applicable, Brigade Capital and such affiliate are collectively
referred to in this Item 5 and Item 6 as “Brigade Capital”.

The majority of management fees are charged quarterly in advance based on the value of the relevant assets
as of the first day of the relevant quarter, although certain Funds are charged quarterly in arrears. Brigade
Capital generally charges annual management fees to applicable Funds in an amount which ranges from
0.30% to 1.5% of each applicable Fund's assets under management. Brigade Capital refunds the unearned
portion of any pre-paid management fees if a withdrawal/redemption is made from a Fund before the end
of a billing period. Brigade Capital generally determines the amount of the relevant refund on a pro rata
basis, based upon the portion of the relevant period during which it provided services. Certain Funds are
not subject to an asset-based fee.

Brigade Capital generally charges performance-based compensation to applicable Funds in an amount
which ranges from 15% to 25% of the net profits (including realized and unrealized gains and losses) on an
annual basis or in limited circumstances for certain Funds when investments are realized. With respect to
certain Funds, a hurdle rate and/or other factors apply to the calculation of the performance-based
compensation. Certain Funds are not subject to a performance-based fee.

The Mutual Fund pays Brigade Capital an annual management fee of 0.50% and an annual administration
fee of 0.05%, each based on the Mutual Fund’s average daily net assets and payable monthly. Other factors
may apply to the calculation of the Management Fee as detailed in the Mutual Fund’s prospectus.

Fee arrangements with the Accounts are individually negotiated. In addition, some Accounts or Fund
Investors pay more or less than other Accounts or Fund Investors for the same management services,
depending, for example, on when a Fund Investor subscribes (e.g., on a Fund’s inception date), investment
strategy, number of related investment accounts or total client assets under management with Brigade
Capital. In this regard, Brigade Capital has waived or modified fees (and may continue to do so) for
Advisory Clients owned by, or Fund Investors that are, members, principals, employees or affiliates of
Brigade Capital and relatives of such persons and certain early, large or strategic investors.

In addition to paying investment management fees and/or incurring performance-based fees/allocations, as
applicable, Advisory Clients, including the Funds, typically will also be subject to other investment
expenses which may include:

       custodial charges, brokerage fees, commissions and related costs;

       interest expenses;
       taxes, duties and other governmental charges;
       transfer and registration fees or similar expenses;
       costs associated with foreign exchange transactions;
       insurance expenses; and
       other portfolio expenses.

In addition, Fund Investors generally bear their pro rata share of the relevant Fund’s operating and other
expenses (which are capped for certain Funds) including, in addition to those listed above: legal, auditing,
accounting, compliance (including fees of persons who serve as the relevant Fund’s Anti-Money
Laundering Compliance Officer, Money Laundering Reporting Officer and/or Deputy Money Laundering
Reporting Officer) consulting and other professional expenses; administration expenses; research expenses;
pricing expenses; insurance expenses (including the majority of E&O and D&O insurance for Brigade
Capital); investment expenses such as commissions; expenses attributable to regulatory filings which are
made with respect to the assets of the relevant Fund (including Section 13, Section 16 and Form PF filings);
interest on margin accounts and other indebtedness; custodial fees; bank service fees; fees and expenses
paid to the board of directors (if applicable); fees and expenses of the relevant Fund’s administrator; and
other expenses related to the purchase, preservation, sale or transmittal of the Fund’s assets. Organizational
expenses of the Funds will typically be borne by the Funds, subject to a cap for certain Funds. In the case
of Funds structured as a “master-feeder” fund, such feeder fund investors bear a pro rata share of the
expenses associated with the related master fund. Fees and expenses borne by Advisory Clients, other than
the Funds, are individually negotiated and are disclosed within the relevant investment management
agreement with Brigade.
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ITEM 7 – TYPES OF CLIENTS
As previously described in Item 4, Brigade Capital’s clients consist of Private Investment Funds, a Mutual
Fund, CLO/CDO Funds, Accounts (including RICs), JVs and other institutional or sophisticated investors;
Brigade Capital is the only client of Brigade UK. With respect to the Funds/Mutual Fund, any initial and
additional subscription minimums are disclosed in the relevant offering documents/prospectus. With
respect to the Accounts, Brigade Capital determines the minimum investment amounts on a case-by-case
basis with each Advisory Client. In general, such Accounts involve significant minimum investments.