Hudson Structured Capital Management Ltd

ITEM 5: FEES AND COMPENSATION

HSCM generally receives, either directly or indirectly, advisory fees and performance-based allocations or
fees in connection with the investment management services it provides to its Clients. The fees HSCM
charges each Client generally are established in the written investment management agreement as agreed
between HSCM and the Client. Typically, HSCM charges each HSCM Fund an asset-based advisory fee
monthly ranging from 0.5% to 2.00% of the net asset value of such HSCM Fund as of the first day of the
calendar month. HSCM reserves the right to waive, reduce or rebate all or a portion of the advisory fee with
respect to management affiliates or any other investors or receive payment of the advisory fees in arrears.

HSCM also receives, either directly or indirectly, an annual performance fee or allocation from the HSCM
Funds calculated with respect to each investor in those funds. Certain HSCM Funds also pay a performance
fee or allocation at each performance period, which may begin on the commencement of the HSCM Fund’s
operations or such other period and end on the date of termination of the management agreement with
HSCM and the date of the final distribution of assets attributable to such investor’s shares of the HSCM
Fund (or as otherwise agreed). The performance fee or allocation borne by an investor in an HSCM Fund
is calculated as a percentage ranging from 5% to 27.5% of the net profits of such HSCM Fund attributable to
each investor’s shares of the HSCM Fund may be structured to be in excess of a hurdle amount, which is
generally calculated in relation to net asset value as of the first day of the relevant performance period. A
performance fee or allocation may also be due in connection with any non-year end withdrawal or
redemption from an HSCM Fund with respect to the amount so withdrawn or redeemed. HSCM reserves
the right to waive, reduce or rebate all or a portion of the performance fee with respect to management
affiliates or any other investors.

Advisory fees are generally paid monthly at the beginning of the month from an HSCM Fund’s assets.
Performance fees or allocations are calculated and paid, or made, annually (or upon a redemption) by
deducting fees directly from an HSCM Fund’s assets or reallocating the performance amount to the capital
account of HSCM.

The fees charged to Clients and HSCM Funds in the future may be the same as or different than the fees
described herein and may be paid in advance or in arrears. Additionally, due to strategic and other
relationships, classes and side letters entered between certain HSCM Funds, HSCM and/or investors,
different investors in the same HSCM Fund may be charged different fees.

The fees and expenses charged to separate account and co-investment account Clients are individually
negotiated and may vary from Client to Client.

From time to time, HSCM receives from third-parties monitoring fees, loan origination fees, directors’ fees,
salary, fees or other compensation in connection with serving as a director, officer or an employee of a
portfolio company, consulting fees, advisory fees, transaction fees, closing fees, break-up fees or similar
fees in connection with an investment on behalf of an HSCM Fund. HSCM also, from time to time,
structures investment vehicles or co-investment vehicles for investments in which an HSCM Fund
participates whereby HSCM will receive a performance allocation or carried interest with respect to such
vehicle or the investment(s) held therein. If applicable, such fees or compensation will be allocated between
the HSCM Fund and any co-investing entities generally on the basis of relative invested capital, unless
HSCM determines in good faith that another allocation method is appropriate. For the avoidance of doubt,
members of the Boards of Advisors of HSCM’s strategies are not employees or affiliates of the Manager
but are independent contractors. Therefore, any fees or compensation received by member of the Boards
of Advisors (including at HSCM’s request) for acting as a director, officer or in any other capacity with
respect to a portfolio company will not be offset against management fees of HSCM Funds or co-investing
entities.

Members of HSCM’s Boards of Advisors are not employees of HSCM but are independent contractors. As
such, members of the HSCM’s Boards of Advisors are compensated with cash payments, investments into
HSCM Funds and/or a percentage of the economics received by HSCM or an affiliate from its applicable
clients. Members of HSCM’s Boards of Advisors are retained by HSCM for the purposes of generally
assisting HSCM and its applicable Investment Committee with the review and management of the
investment portfolios within an investment strategy.

HSCM Funds incur other expenses, including, but not limited to organizational, offering and operating
expenses, including, without limitation, investment-related expenses (e.g., brokerage commissions, interest
on margin accounts and other indebtedness, borrowing charges on securities sold short, custodial fees,
clearing and settlement charges and interest expense); interest and other fees and costs of borrowing; the
fees of the HSCM Fund’s administrator, the HSCM Fund’s custodian and any other third-party service
providers; legal expenses; legal fees and other expenses incurred in connection with regulatory filings
required of the HSCM Fund or necessitated by its operations or investments, including those of HSCM such
as Form PF and Form CPO-PQR, if applicable; additional legal fees associated with the documentation and
review of HSCM Fund investments; travel and lodging expenses incurred in connection with the
investments (which may include joint ventures and other structured investments), business, operations or
management of the HSCM Fund (including without limitation in connection with the research and due
...

ITEM 7: TYPES OF CLIENTS

HSCM provides investment management services, as described above in response to Item 4, to HSCM
Funds, Blackstone, the NS Funds and various separate and co-investment account Clients.

Investors in HSCM Funds and managed account and co-investment account Clients generally include,
among others, U.S. and non-U.S. institutional investors, pension plans, including investors regulated under
the U.S. Employee Retirement Income Security Act of 1976, profit sharing plans, endowments, charitable
organizations, foundations, investment funds including fund-of-funds, family offices, high net-worth
individuals, and other types of investors.

HSCM Funds are not registered or required to be registered under the Investment Company Act and their
securities are not registered or required to be registered under the Securities Act and are privately placed to
qualified investors in the United States and elsewhere. HSCM Funds have a specified minimum initial
investment as set forth in their offering documentation; generally, $1 million or more. Northern Shipping
Fund IV LP and Hudson Northern Shipping Fund V LP have a specified minimum initial investment as set
forth in their offering documentation; generally, $5 million or more. The minimum initial investment
amount may be waived or reduced in the sole discretion of HSCM.