Quad Investment Management Corp

Item 5 – Fees and Compensation
  A. Basic Fee Schedule

     In general, fees include a management fee (based on net asset value) and a performance fee
     (based on capital gains or appreciation of the client’s assets). A high-water mark or hurdle may
     be applied to performance fees.

     For SMAs, fees are negotiated with clients based on the size, complexity, investment objectives,
     and other characteristics of each client. Such fees are agreed upon and documented in an
     investment advisory agreement or similar documents. Fees may be structured to include
     separate management and performance fees or on a flat-fee basis.

     For private funds, fees are not negotiable and are clearly stated in documentation provided to
     each prospective client.
                                                                                             Quad DDQ | 3

  B. Deduction of Fees and Frequency of Billing

     For SMA’s, clients may choose to have management fees deducted from their account assets or
     be billed separately for fees incurred. Clients may also choose to have such fees deducted or
     billed on a monthly or quarterly basis. Performance fees typically based on annual performance
     and thus may be billed on an annual basis.

  C. Other Fees or Expenses

     For SMA’s, clients will be subject to administration fees, custodian fees, commissions to
     brokerages, taxes, and other related expenses.

     For private funds domiciled in South Korea, clients will be subject to administration fees,
     custodian fees, commissions to brokerages, taxes, fees to sales agencies, and other related
     expenses.

  D. Payment of Fees in Advance

     Fees are not payable in advance.

  E. Compensation For Sale of Securities

     Not applicable.

Item 7 – Types of Clients
  Quad provides investment management and advisory services to institutional investors including
  sovereign wealth funds and other investment management companies. Quad does not require a
  predetermined minimum account size for clients investing through a SMA. However, clients choosing
  to invest directly into Quad’s private funds domiciled in South Korea will need to meet minimum
  investment requirements – typically KRW 300,000,000.