Contrarian Capital Management LLC

Item 5. Fees and Compensation

Generally, the Adviser charges each client an investment management fee based on the value of the client’s
assets under management ranging from 0.75% to 2.0% per annum. In certain circumstances, the investment
management fee may be based on capital commitments or invested capital.

Generally, investment management fees are charged each quarter in advance based on the total market
value of the assets in the client account (including net unrealized appreciation or depreciation of
investments and cash, cash equivalents and accrued interest), total drawn capital or total committed capital,
as applicable, on the first day of the quarter. If a new client account is established during a quarter or a
client makes an additional contribution to its account during a quarter, the investment management fee
will be charged as of the effective date of the investment management agreement or the date of such
additional contribution based on the value of the assets as of the applicable date and will be prorated for
the number of days remaining in the quarter.

If the advisory contract is terminated or a withdrawal is made from the account before the end of a quarter,
the amount of investment management fees refunded will be determined on a pro rata basis calculated
based on the number of days remaining in the quarter.

The Adviser, its members and related entities, and their respective partners, directors and employees may
invest in the Adviser’s private investment funds without being subject to any management fees. In certain
circumstances, the Adviser has agreed to lower the management fee payable by certain affiliated or
strategic investors. In addition, these fees may be negotiable for separately managed account clients.

The Adviser will also be paid performance-based compensation (either as a performance fee or allocation),
which is compensation that is based on a share of capital gains on, or capital appreciation of the assets of a
client (e.g., a private fund or other pooled investment vehicle). This compensation will be allocated to the
Adviser or to a related person of the Adviser and will generally equal 20%. Under certain circumstances,
receipt of performance-based compensation may be subject to a preferred rate of return.

The Adviser, its members and related entities, and their respective partners, directors and employees may
invest in the Adviser’s private investment funds without being subject to any performance-based
compensation. In certain circumstances, the Adviser has agreed to lower the performance-based
compensation payable by certain affiliated or strategic investors. In addition, the performance-based
compensation may be negotiable for separately managed account clients.

Investment management fees are deducted on a quarterly basis from client accounts by the third-party
administrator.

With respect to certain private funds managed by the Adviser, investors that withdraw from the private
fund during or prior to a specified investment period are charged an early withdrawal fee of up to 4% of
the withdrawal proceeds, which is for the benefit of the non-withdrawing investors (including the General
Partner and affiliated investors) in the applicable private fund.

In addition to paying investment management fees and performance-based compensation, each client
account will also be subject to other expenses which are set forth in the respective investment management
agreement, limited partnership agreement, offering memorandum or other relevant document. Expenses
for certain client accounts managed by the Adviser may include, without limitation, the following
categories and the expenses borne by a particular client account are set forth in that account’s governing
documents:

1) third-party expenses incurred in connection with the sourcing, evaluation, acquisition, monitoring,
   holding or disposition of investments (whether or not consummated), including:

      a)    private placement fees;

      b)    sales commissions;

      c)    appraisal fees;

      d)    taxes;

      e)    brokerage fees and commissions;

      f)    interest on margin accounts and other indebtedness;

      g)    borrowing charges on securities sold short;

      h)    underwriting commissions and discounts;

      i)    legal, accounting, investment banking, consulting fees (including without limitation, fees
            payable to research consultants), financing commitment fees and professional fees;

      j)    research and research-related fees and expenses (including out of pocket travel and travel-
            related expenses incurred in connection with research of investment opportunities which
            includes the expense of conferences, travel, lodging and meals);

      k)    data and information service providers (e.g., Reorg Research, general market research with
            respect to trading models and industries, etc.); and

      l)    other transaction costs;

2) expenses incurred in connection with the formation of alternative investment vehicles to the extent
   permitted under the client account’s constituent documents;

3) expenses incurred in connection with the formation, maintenance and operation of special purpose
   vehicles through which the fund makes, holds or manages investments, including:

      a) taxes and other governmental charges;

      b)    administrator fees; and

      c)    professional fees incurred with respect to tax planning and tax compliance;

4) compensation and other similar expenses of third-party consultants (including industry
   executives, advisors, operating executives or other persons acting in a similar capacity (including
   with respect to potential or existing portfolio investments));

5) fees and expenses of a third-party administrator;

6) organizational expenses of the client account and related entities, including fees and expenses of
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Item 7. Types of Clients

The Adviser’s clients consist of (i) institutional investors (e.g., pension or profit-sharing plans subject to
ERISA, endowments, foundations, insurance companies, fund-of-funds and family offices); and (ii) pooled
investment vehicles such as private investment limited partnerships formed or advised by the Adviser and
offshore corporations to which the Adviser acts as the investment manager.

With respect to any client that is a pooled investment vehicle, any initial and additional subscription
minimums are disclosed in the offering memorandum for the pooled investment vehicle. The minimum
size for non-pooled investment vehicles is determined by the Adviser on a case-by-case basis.