Innovative Capital Advisors LLC

Item 5 - Fees and Compensation

Fees paid to Innovative Capital are for Innovative Capital’s advisory services only. The fees do
not include, for example, the fees charged by third parties such as accountants and attorneys
assisting with providing the Client with accounting and legal advice, or UMB for its custodial
services. Commissions on transactions and other account fees will also be charged by the account
custodian in accordance with the custodian’s normal fee schedule.

Fees Due From Trust Clients For Services

As described above, Innovative Capital continues to provide both Master Servicing and
Investment Adviser services for trust Clients. The fees for these services are as follows:

Master Servicing Fees

In exchange for performing the master servicing services, Innovative Capital receives an annual
fee equal to one-tenth of one percent (0.1%) of the amortized book value of the principal amount

of the Loans in the trust outstanding from time to time. The fee is paid monthly in advance on the
first day of each calendar month. The fee is calculated based on the amortized book value of the
aggregate principal amount outstanding under all of the Loans, including, but not limited to, any
Loans in default or for which a payment deficiency exists, on the twentieth (20th) day of the
previous calendar month. The fee for any partial month is pro-rated and any excess fee received
is returned to the trust. The “amortized book value” means the principal amount of a Loan then
outstanding, plus any amortized premium paid by the trust for such Loan or minus any accrued
discount received by the trust for such Loan.

Innovative Capital may also be reimbursed for any tax expenses it incurs with regard to a trust.

Investment Adviser Services Fees

Innovative Capital receives from each trust Client an annual advisory fee equal to four-tenths of
one percent (0.4%) of the amortized book value of the principal amount of the Loans outstanding
from time to time. The fee is paid monthly in advance on or before the first day of each calendar
month and calculated based on the amortized book value of the aggregate principal amount
outstanding under all of the Loans including, but not limited to, any Loans in default or for
which a payment deficiency exists, on the twentieth (20th) day of the previous calendar month.
The fee for any partial month or payment period is pro-rated and any excess, unearned fee is
returned to each Client.

Trust Clients have authorized Innovative Capital to deduct any and all fees due Innovative
Capital from the liquid loan proceeds held in the Client’s loan interest account with the
custodian. These are only paid from loan payments made by the borrower/obligors.

Innovative Capital may also be reimbursed for any liquidation or tax expenses it incurs with
regard to a trust or its Loans.

Fees Due From Insurance Company Clients for Services

       •       Each insurance company Client agrees to compensate Innovative Capital for its
               services to administer, service and resolve Loans, Innovative Capital receives a
               monthly fee with respect to each Loan in the amount of .04167% of the amortized
               book value of the principal amount of such Loan, calculated as of the 20th day of
               the calendar month immediately preceding the calendar month for which such
               monthly fee is due.

Insurance company Clients authorize Innovative Capital to deduct any and all fees due
Innovative Capital from the proceeds held in the Clients’ accounts with the custodian.

Innovative Capital may also be reimbursed by each Client for its pro-rata share of any
liquidation, tax or other expenses or liabilities Innovative Capital incurs with regard to any Loans
in which such Client may hold an Interest.

Item 7 - Types of Clients/Minimum Account Size

Innovative Capital makes advisory services available to insurance companies and grantor trusts
in which insurance companies are the beneficiaries.

Innovative Capital does not generally impose any minimum condition/minimum account size for
providing its services to insurance companies. However, due to the need for contributions from
several Clients to advance Loans, Innovative Capital asks Clients to commit to contributing to
their accounts certain sums over a fixed period of time, often twelve months in duration, so
Innovative Capital can anticipate that funds will be available from multiple Clients to advance
Loans.