Spectrum Group Management LLC

Item 5 - Fees and Compensation

Compensation and Fee Schedules

All Clients are “qualified purchasers” as defined in Section 2(a)(51) of the Investment
Company Act of 1940, as amended, and therefore this information is not required.

Deduction of Fees

Spectrum is authorized under the Governing Documents to charge and deduct advisory
fees, including a management fee and either an annual performance allocation or a
private equity-style carried interest. A management fee is usually deducted directly from
the assets of each account as such fees become payable, which is generally monthly in
advance. A performance allocation is usually payable annually in arrears. A private
equity-style carried interest is usually paid as a percentage of net distributions to
investors in excess of their invested capital.

Upon termination of any account, any prepaid, unearned fees will be promptly refunded,
and any earned, unpaid fees will be due and payable.

Other Fees and Expenses

The Clients of Spectrum are responsible for all costs and expenses incurred in connection
with the investments in their accounts, including brokerage commissions and other costs
of executing transactions; interest expense; audit, legal, due diligence, third-party
administration and accounting and tax-related expenses, including but not limited to legal
expenses incurred in negotiating and documenting investments (whether or not
consummated) and accounting expenses for preparation of tax returns; fees for third-party
consultants and others engaged to provide research, evaluation, investigative and other
similar services in connection with the Client’s investments and other out-of-pocket
research expenses, including attendance at industry conferences; insurance costs; costs of
regulatory filings; expenses resulting from litigation, regulatory inquiries or
administrative proceedings; non-audit accounting expenses and fees for data, quotations,
news services and other information. The Spectrum Funds also pay all of their operating
costs, including administrative, legal, accounting, auditing and insurance costs and

expenses, as described in greater detail in the Governing Documents for each Spectrum
Fund.

See “Brokerage Practices” below for more information about brokerage costs.

Transaction-Based Compensation

Generally, neither Spectrum nor its supervised persons will receive any compensation
with respect to the purchase or sale of securities or other assets by any Client. However,
Spectrum Origination LLC (“Spectrum Origination”), an affiliate under common control
with Spectrum, may originate loans that are subsequently resold to Clients of Spectrum,
and may receive from the borrower origination, commitment or similar fees in an amount
typically equal to 0.25% of any such loan.

Item 7 - Types of Clients

Spectrum provides advice to pooled investment vehicles, including the Spectrum Funds.
The limited partners of the Spectrum Funds may include corporations, endowments,
foundations, trusts, estates, individuals and pension and profit-sharing plans. The
Spectrum Funds are offered exclusively to accredited investors as defined under
Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and to
qualified purchasers as defined under Section 2(a)(51) of the Investment Company Act of
1940, as amended (the “Investment Company Act”), and are therefore not required to
register as investment companies under the Investment Company Act in reliance upon the
exemption under Section 3(c)(7) for funds whose securities are not publicly offered.

Spectrum may in the future also provide investment management and supervisory
services to separately managed accounts (“SMAs”). Certain SMAs may invest in existing
or future Spectrum Funds.

Spectrum Funds have minimum investment amounts, as described in the Governing
Documents for each Spectrum Fund, subject to waiver at the discretion of Spectrum (or
the general partner of the relevant Spectrum Fund).

Please refer to the Governing Documents of the applicable Spectrum Fund for more
complete information on the minimum investment requirements of such Spectrum Fund.