Stelac Advisory Services LLC

Item 5 - Fees and Compensation

                         INVESTMENT SUPERVISORY SERVICES

Our annual fees for ISS are based upon a percentage of assets under management/supervision
and generally range from 0.40% to 1.00%, depending on the size and complexity of the client.
Billing is generally done quarterly in arrears based on the average monthly value of the gross
assets in the applicable quarter. The client may pay fees directly to Stelac or authorize a deduction
of the fees from their account.

Limited Negotiability of Advisory Fees: Although Stelac has established the aforementioned
fee schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis.
Client facts, circumstances, and needs are considered in determining the fee schedule. These
include the complexity of the client, level of assets to be placed under management, anticipated

future additional assets, related accounts, portfolio style, account composition, and reports,
among other factors. The specific annual fee schedule is identified in the contract between Stelac
and each client.

There are no required minimums of assets under management for Stelac’s investment supervisory
services at this time.

Discounts, not generally available to our advisory clients, may be offered to family members and
friends of associated persons of our firm.

                              MANAGER OF MANAGERS FEES

Stelac, in its role as investment manager of SPC and Paladin, charges certain non-advisory
sophisticated investors (i.e., not existing Stelac investment supervisory clients), an annual
management fee on such client’s net asset value in SPC and/or Paladin. Such management fee, if
charged, is billed monthly in arrears based on the net asset value of the investor at the end of the
month. All calculations of net asset value and fees are done by each of SPC’s and Paladin’s
independent administrator. Existing Stelac investment supervisory clients already pay an annual
fee for Stelac’s services in which the investment in SPC and/or Paladin is already considered as
part of their gross assets. Therefore, no additional fees are charged to Stelac investment
supervisory clients as it relates to their investment in SPC and/or Paladin. We do not receive or
collect any fees from any third-party asset managers we may recommend to clients as part of their
overall portfolio strategy. Any fees charged by such third-party asset managers are charged
directly to the client by the third-party asset manager as part of their relationship with the client.

In addition to the above, Stelac charges an annual management fee of up to 2% t0 investors in one
or more special purpose vehicles (“SPV”) formed and managed by Stelac. The management fee is
generally paid annually in advance based on each SPV investor’s initial capital contribution.
Stelac, in its discretion, may reduce the management fee for a particular period.

Item 7 - Types of Clients

Stelac currently provides advisory services primarily to international (non-US) high-net-worth
individuals, families, and institutions. These individuals may use trusts or other entities to control
their liquid assets. Such entities on some occasions can become the contracted client of the firm.