Castle Hill Asset Management LLC

ITEM 5  FEES AND COMPENSATION

Advisory Fees and Compensation

Fee Schedules: All clients of Castle Hill are “qualified purchasers” as defined in Section 2(a)(51) of the Investment
Company Act of 1940, as amended. Consequently, Castle Hill has not included specific fee information in this
brochure relating to its clients. An investor in a pooled investment vehicle advised by Castle Hill should review
the governing documents of such pooled investment vehicle in conjunction with this brochure for more complete
information on the fees and compensation payable with respect to such pooled investment vehicle.

Deduction of Fees

Management fees and performance allocations charged to a Castle Hill Fund are typically deducted directly from
the assets of such Castle Hill Fund. With respect to the Lighthouse Fund, Castle Hill’s management fees and
performance allocations are paid directly by Lighthouse or an affiliate thereof and Castle Hill does not have the
authority to deduct such management fees and performance allocations from the assets of the Lighthouse Fund.

Other Fees and Expenses

Except as noted below and subject to the terms set forth in the relevant governing documents, clients of Castle Hill
are typically responsible for all costs and expenses incurred in connection with the investments in their accounts,
including brokerage commissions; clearing fees; fees, interest and other costs in connection with margin accounts
or other borrowings; borrowing charges on securities sold short; custodial fees; bank service fees; costs of any
outside appraisers, accountants, attorneys or other experts or consultants engaged by Castle Hill in connection with
specific investments (including transactions that fail to close); costs of research and data services; and any legal
fees and costs arising in connection with any litigation or regulatory investigation instituted against Castle Hill or
any client. Clients typically also pay all of their operating costs, including administrative, legal, accounting,
auditing and insurance costs and expenses, as described in greater detail in the governing documents for each client
account. In the case of certain clients, the governing documents may require or permit Castle Hill to pay certain
expenses out of its own pocket and subsequently seek reimbursement for such expenses from the applicable client,
subject to expenses caps (if any).

The section below titled “Brokerage Practices” describes the factors Castle Hill considers in selecting or
recommending broker-dealers and determining the reasonableness of their compensation.

Timing of Payments

Castle Hill’s fees for its investment advisory services are generally payable monthly, quarterly or annually in
arrears. In addition to the foregoing advisory fees, Castle Hill may charge a client a fixed fee in advance for
participating in a committee of lenders in relation to specific securities held in a client account with respect to
which Castle Hill provides investment advisory/supervisory services. In such cases, no such additional fee is
payable by the applicable client in relation to any period after Castle Hill ceases to participate in such committee.

Upon termination of Castle Hill’s investment advisory services with respect to a client account, any prepaid,

                              Castle Hill Asset Management LLC • Form ADV Part 2 •Page 6

unearned fees will be promptly refunded (determined on a pro rata basis on the number of days elapsed in the
applicable payment period), and any earned, unpaid fees will be immediately due and payable by the applicable
client.

Please refer to the governing documents of the applicable Castle Hill client account for more complete information
on the timing of advisory fee payments by such client account.

Transaction-Based Compensation

Neither Castle Hill nor its supervised persons will receive any form of compensation as broker or agent for the sale
of securities or other investment products by any client account.

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Types of Clients

As noted under Item 4 (“Advisory Business”) above, Castle Hill provides discretionary and non-discretionary
advisory services to: (i) the Castle Hill Funds; and (ii) the Lighthouse Fund, where Castle Hill serves as a
discretionary sub-adviser. Castle Hill’s clients and the investors in the Castle Hill Funds may include corporations,
insurance companies, endowments, foundations, trusts, estates, high net worth individuals and pension and profit
sharing plans. Currently, only one Castle Hill Fund is offered in the U.S., and the remaining Castle Hill Funds are
exclusively offered from outside the U.S. solely to non-US investors. The sole Castle Hill Fund that is offered in
the U.S. is offered exclusively to investors who qualify as “accredited investors” as defined in Regulation D under
the Securities Act of 1933, as amended, and “qualified purchasers” as defined in Section 2(a)(51) of the Investment
Company Act of 1940, as amended (the “Investment Company Act”), and is therefore not required to register as
an investment company under the Investment Company Act in reliance upon certain exemptions available to funds
whose securities are not publicly offered.

Minimum Investment Requirements

Generally, investors must invest a minimum dollar amount of US$100,000 (or its equivalent in foreign currency
for foreign currency denominated interests) to invest in each Castle Hill Fund. The board of directors of each Castle
Hill Fund may, in their discretion, waive the minimum investment amount (subject to applicable regulatory
requirements).

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