Catenary Alternatives Asset Management LLC

Item 5.    Fees and Compensation

Investors in Catenary Gangkhar pay fees of 1% management fee and 10% incentive allocation.

Management fees are paid in advance, as of the first business day of each calendar quarter. The
incentive allocation fees for the Funds are measured as an amount by which the net value of each
account as of the end of each calendar year exceeds the net market value of the account as of the
beginning of the year, payable after the end of each year. The incentive allocation fee is calculated
separately with respect to each series and class of shares, and is equal to the percentage set forth
above of the increase in the net asset value of each outstanding share each calendar year over any
decrease in the net asset value of such share in any prior calendar year which has not previously
been recouped. All investors and prospective investors should review the governing documents
for each Fund for more complete information on the fees and compensation payable with respect
to a particular Fund. The fees earned by CAAM or its general partner, as the case may be, are
deducted directly from the assets of the Funds by the fund administrators.

In general, the fees for the Funds are not negotiable; however, CAAM, in its sole discretion, may
modify management fees for certain investors.

The Funds will bear their own operating costs, including investment and trading expenses, director
fees, administrative, legal, accounting, audit, organizational and other expenses, as described in
greater detail in the governing documents for each Fund. CAAM seeks to allocate expenses fairly,
equitably and consistent with the documents governing CAAM’s relationship with each Fund.
When allocating expenses, CAAM must interpret the Funds’ governing documentation and make
determinations whether expenses are allocated and paid, in full or in part, by a Fund, Funds, and/or
CAAM, which creates a conflict of interest. CAAM has implemented written policies, procedures,
and guidelines designed to mitigate conflicts of interest.

With respect to the Strategic Investor SMA, CAAM is entitled to receive a quarterly management
fee calculated at a rate of 1.0% per annum based on the notional value of the managed account and
an incentive fee equal to 10% of the net profits for each fiscal year.

Neither CAAM nor its supervised persons will receive any compensation with respect to the
purchase or sale of securities or other investment products by any Fund or managed account.
CAAM, CAAM affiliates and their employees, supervised persons and family related accounts
may invest in the Funds and receive discounted fees. CAAM is required to act in the client’s best
interest and have policies and procedures to ensure that client’s interest always take precedence.

Item 7.      Types of Clients

CAAM provides its services to the Funds and the Strategic Investor who have engaged CAAM
under an investment advisory Agreement.

CAAM requires that each investor in Catenary Gangkhar be an “accredited investor” as defined in
Regulation D under the Securities Act of 1933 and a “qualified purchaser” as defined by the
Investment Company Act of 1940 (the “Investment Company Act”).

The stated minimum commitment to the Funds is $5 million. The Board of Directors of Catenary
Gangkhar do, however, maintain discretion to individually waive, increase or reduce the minimum
commitment required to invest in the Funds.