Duration Capital Partners LLC

Item 5         Fees and Compensation

Each Fund’s Governing Documents describe the fees, compensation and expenses that are borne
by such Fund. Investors in the Funds should refer to the Governing Documents for a detailed
description of each Fund’s fees, compensation and expenses.

Management Fees

In consideration of Duration’s investment advisory and other services, Duration is typically
entitled to receive management fees from the Funds, which are generally equal to a percentage of
such Fund’s net assets, commitment or invested capital. Duration does not receive management
fees or carried interest from certain co-investment vehicles. The management fee percentage
and/or the base upon which the management fee is calculated will typically vary with the size of
an Investor’s commitment to a Fund and will also typically vary over the life of the Funds, as
negotiated and determined at the time the Fund is established and as set forth in its Governing
Documents. A Fund’s management fee percentage generally varies from approximately 0.45% per
annum to 1.5% per annum subject to terms as negotiated by Investors as described above. A
management fee will be payable in advance or in arrears, depending on the circumstances, as more
fully described in the relevant Governing Documents. To the extent any fees are paid in advance,
Duration will provide a pro rata refund to the relevant client if the investment advisory agreement
were terminated prior to the end of a billing period, subject to the provisions of the applicable
Governing Documents.

The Governing Documents set forth the full detailed list of terms under which Management Fees
will be reduced, offset or otherwise be limited, and consequently Investors should expect to bear
the specified Management Fee rate in the Governing Documents until they are reduced under the
circumstances and on the date(s) specified therein.

Incentive Allocation

Duration and its affiliates have the potential to earn performance-based compensation in the form
of performance fees or incentive allocations from certain of the Funds. The amount of such
performance-based compensation and the calculation and timing of payment of such compensation
are set forth in the terms of the Governing Documents of each Fund. Duration typically receives
annual performance-based compensation up to 20% of the year’s profits, subject, in certain cases,
to either a high-water mark or hurdle rate. A high-water mark refers to the highest historical net
asset value attributable to an Investor’s account. For such Funds that have a high-water mark, this
means that Duration does not earn annual performance fees with respect to an Investor in such
Fund if such Investor’s year-end net asset value is lower than any prior year’s net asset value,
excluding any contributions or redemptions. In the case of certain Funds, in addition to charging
the regular management fee applicable to the relevant strategy (which may be subject to special
economic arrangements), Duration has the potential to earn performance-based fees, typically in
reference to a relevant benchmark index or hurdle rate.

Carried Interest

A Fund’s General Partner is generally expected to receive certain allocations and distributions
calculated and charged based on a share of distributions of the assets of the Funds, as negotiated

and determined at the time the Fund is established and as set forth in its Governing Documents.
These allocations and distributions are commonly known as “carried interest.” The General
Partner generally will not receive carried interest until all Investors have received aggregate
distributions equal to the sum of their capital contributions to the Funds and a preferred return on
such capital contributions. The carried interest distributed to a General Partner is subject to a
potential clawback at the end of the life of a Fund if the Fund’s General Partner has received excess
cumulative distributions. A General Partner is generally expected to receive carried interest
ranging from 15% to 20% of all distributions in excess of the Investor’s capital contributions,
provided that such Investors have first received a preferred return, typically 8% per annum.

Other Expenses

Each Fund will bear all of its own expenses (ordinary and extraordinary), as more fully described
in the relevant Governing Documents.

Organizational Expenses

Each Fund will bear offering and organizational expenses incurred by the Fund (collectively
“Organizational Expenses”), subject to certain limits. A Fund’s share of any Organizational
Expenses in excess of such limit will generally be paid by a Fund but borne by Duration through
an offset to the management fee.

Fund Expenses

Each Fund will typically bear all other out-of-pocket costs, fees, expenses and liabilities that are
incurred by, or arise out of the operation and activities of or otherwise are related to, such Fund,
including those incurred by a General Partner or Duration on behalf of or allocable to the
relevant Fund, including but not limited to : (a) costs, fees, expenses and liabilities relating to the
sourcing, developing, evaluating, negotiating, structuring, acquiring, holding, administering,
monitoring, financing, refinancing, managing, disposing and hedging investments (and proposed
but unconsummated investments, as applicable) (including (i) costs and expenses incurred in
connection with managing and facilitating stakeholder relationships and (ii) reasonable travel
and related expenses associated therewith, which can include business or first class airfare and,
in limited circumstances, private air travel (including reimbursement of Duration or its
employees for use of aircraft owned or leased by them), in each case, consistent with Duration’s
travel policies, provided that such expenses do not exceed the cost of comparable business class
airfare), including appraiser, retainer, finder, placement, adviser, consultant (including industry
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Item 7         Types of Clients

Duration provides investment advice to pooled investment vehicles and expects to provide
investment advice to certain separately managed client accounts. References throughout this
Brochure to “clients” and to Duration’s related duties to and practices on behalf of its clients should
be construed accordingly.

The Funds generally include investment entities formed under U.S. or non-U.S. laws and operated
as exempt from certain regulatory regimes, including the Investment Company Act of 1940, as
amended (the “Investment Company Act”). Investors participating in the Funds are generally
expected to include individuals, banks or thrift institutions, other investment entities, university
endowments, sovereign wealth funds, family offices, pension and profit-sharing plans, trusts,
estates or charitable organizations or other corporations or business entities, including (as
described in “Item 4: Advisory Business” above) Oaktree, the Principals and other employees of
Duration and its affiliates and members of their families, operating partners or other service
providers retained by Duration, as well as executives of the Funds’ portfolio investments.

Interests in the Funds are typically available only to “qualified purchasers” within the meaning of
the Investment Company Act. Investors are expected to include qualified employee benefit plans
subject to the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and governmental plans or units that are subject to various state law restrictions, as well as tax-
exempt organizations not subject to ERISA or any comparable state law, and other institutional
and individual Investors.

The minimum initial capital commitment generally required for an Investor in a Fund is
$10 million (subject to a General Partner’s discretion to accept a lesser amount).