Global Credit Advisers LLC

Item 5 Fees and Compensation (cont’d)

Separately Managed Accounts

A.     Compensation - Fees

GCA Separately Managed Accounts would pay a management fee based on a percentage of the
assets under management and a performance allocation or fee and would be pursuant to a written
investment advisory agreement. Such fees would comply with Rule 205-3 under the Investment
Advisers Act of 1940 (“Advisers Act”).

Typically, Global Credit would charge a quarterly management fee of up to 0.5% (i.e.,
approximately 2% annually) of the GCA Separately Managed Account’s assets under
management, net of certain expenses, payable in advance and GC Capital would charge a
performance allocation or fee of up to 20% of the appreciation of the GCA Separately Managed
Account’s assets in arrears and net of certain expenses, but that may be subject to negotiation
depending on the amount of assets managed and other factors.

B.     Fees Deducted from Client Accounts

GCA Separately Managed Accounts would be billed by invoice sent to the custodian each
calendar quarter for the management fee and annually for the performance allocation or fee.
With the custodian’s approval, the fees could then be paid from the GCA Separately Managed
Account’s account.

C.     Expenses

GCA Separately Managed Accounts would pay all of the trading, custodian and other related
expenses, including: brokerage commissions, margin interest and other transaction, borrowing,
custodial and money market expenses.

Please refer to Item 12 for more information on brokerage practices.

D.     Prepayment of Fees

The management fee (see subparagraph A above) typically would be paid quarterly in advance.
If an investment management agreement is terminated, the management fee would be pro-rated
and charged for that quarter only up to the date of termination. Any unearned fees would be
credited back to the GCA Separately Managed Account.

E.     No Compensation for Sale of Securities or Other Investment Products

Neither Global Credit, GC Capital nor any of its supervised persons would accept compensation
for the sale of securities or other investment products.

Item 7 Types of Clients

Types of Clients and Minimum Account Size

Please refer to Item 4 above.