Johkim Capital Partners Management LLC

5. Fees and Compensation

Fees

As discussed in the relevant Fund offering documents, the Funds offer separate classes of limited
partner interests which are not available to all investors. Each class of interest has different fees,
performance allocations, add-on and withdrawal rights, and reporting and information rights. Some
classes have been shut down permanently and a particular class may only be available during different
phases of the credit cycle as determined by Johkim.

Generally, Johkim as the Investment Manager, is entitled to a management fee (the “Management
Fee”) based on a percentage of assets under management. The Management Fee is calculated and paid
each calendar quarter in advance. The Management Fee varies by class and assets under management.

The General Partner is entitled to a performance-based allocation (the “Performance Allocation”) if a
“high-water mark” has been reached in the investors’ capital accounts, which is paid to an affiliate,
Johkim Capital Special Partners LP, a Delaware limited partnership. If the applicable high-water mark
is met, the Performance Allocation is generally calculated and paid at the end of each calendar year (or
upon certain capital account events such as closure or redemption by an investor). The Performance
Allocation varies by class and some classes have annual return hurdles that must be met prior to earning
Performance Allocation.

Across the various classes of limited partners interest, Johkim charges Management Fees in the range
of 1.0%-1.5%. Performance Allocation ranges from 15% to 17.5% and is subject to a “high-water
mark.” For some classes of limited partner’s interest, the Performance Allocation is also subject to a
5% annual hurdle and Johkim can catch up at the rate of 50%-82.5% after the annual hurdle has been
met.

Across the various classes of limited partners interest, investors are subject to an initial lockup period
of 24 months. Some classes of limited partners interest can redeem their interest after 12 months by
paying an early redemption fee of 3%. Subject to certain withdrawal restrictions, a Limited Partner
may withdraw 25% of its Capital Account balance on 90 calendar days’ prior written notice at the last
day of each calendar quarter and/or such other days as the General Partner may determine in its sole
discretion.

The General Partner may, in its discretion, waive or reduce the Management Fee, and Performance
Allocation, lockup, early redemption fees, and notice period with respect to any or all investors.

The Master Fund or the General Partner has entered into and may in the future, in its sole discretion,
enter into “side letter” agreements with certain limited partners pursuant to which the Master Fund
gives certain limited partners rights not granted to other limited partners, including one or more of the
following: (i) reduced Management Fees, (ii) reduced Performance Allocation, (iii) the right to
withdraw all or a portion of their investment in the Master Fund on shorter notice with or without
paying the early redemption fee and/or with more frequency than the terms described in the offering
documents and (iv) different reporting and information rights.

In computing net asset values on which to charge fees/allocations, Johkim applies the guidelines in its
written valuation policy. All assets managed by Johkim are valued according to the valuation
methodologies contained in its valuation policy and in accordance with U.S. Generally Accepted
Accounting Principles (GAAP) – Accounting Standards Codification Topic 820, Fair Value
Measurement (“ASC 820”).

Other Fees and Expenses

The fees and expenses described below are general in nature and not intended to be exhaustive.
Investors should refer to the applicable offering documents for additional details.

Investors are subject to the following expenses associated with their investments in the Funds, in
addition to the Management Fee and Performance Allocation described above:

Trading expenses. Each Client bears its pro rata share of trading expenses including but not limited
to: commissions and other trading costs; interest on margin and other borrowings; borrowing charges
on securities sold short; audit, accounting, legal and custodial fees.

Ongoing operating expenses. The Funds bear their pro rata share of operating expenses, including but
not limited to: investment research, data feeds, order management and portfolio management software
and licenses, industry research, industry publications and expert networks; data terminals, including
Bloomberg; legal fees (including fees paid to Johkim’s counsel for services for the Funds’ benefit); tax
return preparation and other compliance reporting, and other professional fees and expenses;
governmental fees and taxes (excluding withholding taxes attributable to particular investors); costs of
reporting and making information available to investors; costs of Fund governance activities, including
costs of any Fund independent advisors or an advisory committee, if created; costs of compliance with
regulatory, tax, and other filing and reporting requirements applicable to the Fund (including costs of
preparing and submitting Form D, and Schedules 13D, 13G or 13H); fees and expenses paid or
reimbursed to the administrator; costs of the ongoing offer and sale of interests in the Funds; and all
other reasonable expenses related to the Funds’ operations or asset purchases, sales, transmittals, or
record keeping.

Soft dollars. A portion of the commissions generated on advisory Clients’ brokerage transactions may
generate “soft dollar” credits that Johkim is authorized to use to pay brokers and other providers for
research and other research related services and products used by Johkim. See Item 12 for more
information.

Fees Paid in Advance

The Management Fee is payable in advance, quarterly, as discussed above. When the circumstance
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7. Types of Clients

As mentioned in Item 4, Johkim provides advisory services on a discretionary basis to privately offered
pooled investment vehicles. Johkim also has in the past and may in the future provide non-discretionary
advisory or consulting services.

Investors in the Funds must be qualified purchasers within the meaning of the Investment Company
Act of 1940, as amended. Generally, the minimum commitment by a limited partner to a Fund is
$1,000,000. However, Johkim reserves the right to accept commitments of lesser amounts and has in
the past accepted initial commitments of lesser amounts.