Tourmalet Advisors LP

Item 5 – Fees and Compensation
All of Tourmalet’s Clients are Qualified Purchasers. Detailed information concerning
compensation and fees to Tourmalet and GITSIT will be included in each Fund’s private
placement memorandum or each SMA Client’s investment management agreement, as
applicable. In addition, the Firm may earn incentive fees as discussed in Item 6 – Performance-
Based Fees and Side-By-Side Management, below.

The fees charged to Private Funds are generally not negotiable; however, we have the discretion
to agree with certain investors to waive or reduce these fees with respect such investors through
side letter agreements. We may also waive fees for investors that are our affiliates or employees.
We may also individually negotiate fees with SMA Clients. The asset-based fee to GITSIT will
generally be paid monthly in advance. In the event the services agreement with GITSIT is
terminated before the end of any calendar month, the asset-based fees payable to GITSIT will be
subject to equitable proration. The performance-based fee will generally be deducted from a
Fund’s or SMA Client’s proceeds upon its liquidation or other disposition of assets.

Except as otherwise agreed with any particular Client in its governing documents or investment
management agreement, as applicable, each Client generally bears (and reimburses the Firm
for) its own organizational expenses, investment and trading expenses and accounting and
administrative expenses, including, without limitation:

               •      investment-related fees,
               •      brokerage commissions,

               •      interest on debt balances or borrowings,
               •      clearing and settlement charges,
               •      custodial fees,
               •      appraisal fees,
               •      investment banking expenses,
               •      fees and profit-sharing payments due to advisors, sub-advisors, and
                      consultants (including affiliates of the firm),
               •      specific expenses incurred in obtaining or maintaining systems, research
                      and other information and information service subscriptions,
               •      expenses relating to voting proxies,
               •      withholding or transfer taxes,
               •      accounting, audit, independent valuation, consulting, administration and
                      legal expenses,
               •      costs of any litigation or investigation involving the client,
               •      costs associated with reporting and providing information to existing and
                      prospective investors, and
               •      liability premiums for certain insurance.

For more information on brokerage transactions and costs, please see Item 9 – Brokerage
Practices.

Neither our firm nor any of our principals or employees receive any transaction-based
compensation for the sale of securities or other investment products.

Item 7 – Types of Clients
We provide investment advice to the Funds and to SMAs. Interests in the Funds are offered
pursuant to applicable exemptions from registration under the Securities Act and the 1940 Act.
Investors in the Funds are generally “qualified purchasers” as defined in the 1940 Act, and
include foundations, endowments, funds of funds, family offices, Adviser Investors and high-
net-worth individuals.

We do not have a minimum size for a Fund, but minimum investment commitments may be
established for investors in the Funds. The GP of a Fund may in its sole discretion permit
investments below the minimum amounts set forth in its offering documents.

SMA Clients are generally entities such as banks, investment advisers, pension plans or other
entities.

This Brochure is not an offer to invest in our funds.

Item 8 – Method of Analysis, Investment Strategies and Risk of Loss
In managing our Client accounts, our investment objective is to generate interest income and
capital appreciation principally from direct and indirect investments in pools of non-performing
and performing residential mortgages, real estate owned properties and certain other
instruments. We seek to identify and acquire mortgage loans with potential for capital
appreciation and actively monitor and manage individual loans to identify opportunities to
realize such appreciation. We expect to engage an affiliated mortgage servicer, GITSIT, to source
and manage the pools of mortgage loans indirectly acquired by our advisory clients. We can also
select and engage other experienced third-party servicers to manage the pools of mortgage
loans on behalf of our clients.

Despite our investment approach and methodology, investing in any securities and assets
involves a risk of loss that any of our clients or any of the investors in our clients must be prepared
to bear.

General Risks

No Operating History. A Client’s investment program should be evaluated on the basis that
there can be no assurance that the Investment Manager’s assessment of the prospects of
investments will prove accurate or that the Funds will achieve its investment objectives. Past

performance of the Investment Manager and Funds and accounts previously managed by the
Investment Manager is not necessarily indicative of future results of the Funds or SMAs.

Carried Interest and Performance Fees. The Carried Interest and/or other performance fees
allocable to GITSIT, an affiliate of the Investment Manager, may create an incentive for the
Investment Manager to make investments that are riskier or more speculative than would be the
case if this allocation were not made and with respect to certain assets where the Investment
Manager has discretion with respect to valuing such assets, to place the highest reasonable
value on such assets in order to create an attractive track record. The fact that Clients are not
subject to any management fees increases the risk of making more speculative investments,
however, GITSIT is not entitled to any Carried Interest until the Clients receive full invested
capital plus a preferred return.

Counterparty Exposure. Certain assets may be held by prime brokers or other entities or
counterparties of the Funds or a SMA Client account (including but not limited to, principal
brokers and sub- custodians). A Client will rank as an unsecured creditor to each of its prime
brokers and certain other lending counterparties with which it deals in relation to assets that
each such party borrows, lends or uses as collateral or otherwise and, in the event of the
insolvency of a prime broker or a lending counterparty, such entities might not be able to recover
equivalent assets in full. For example, the U.S. Securities Investor Protection Corporation,
provides limited protection up to a ceiling of $500,000 per customer, including a maximum of
$100,000 for cash claims, for any cash and securities maintained by such entities at accounts
of U.S. broker dealers meeting certain registration requirements. Additionally, bankruptcy law
applicable to all U.S. futures commission merchants (each, an “FCM”) requires that, in the event
of the bankruptcy of an FCM, all property held by the FCM, including property traceable to a
customer, will be returned, transferred or distributed to the FCM’s customers only to the extent
of each customer’s pro rata share of all property available for distribution to the customers.
Other custodians and counterparties may have similar types of risks. Assets held outside the
U.S. may be subject to different and/or diminished protection in the event of a counterparty
failure located in such jurisdiction. The recovery process for assets held by an insolvent prime
broker or lending counterparty may take a long time during which a Client may not have any
access to such assets, and if such assets represent a significant portion of a Fund’s portfolio,
the Fund may be forced to suspend its operations.

Manager Risk

Reliance on the Investment Manager and Certain Investment Professionals. The Investment
Manager will have complete discretion with respect to a Client’s investment activities.
Consequently, the success of the strategy will depend, in large part, upon the skill and expertise
of the employees of the Investment Manager who will manage and conduct the investment

activities. There can be no assurance that any particular investment professional retained by the
Investment Manager will continue to be active in the Firm’s trading activities. The loss of the
services of certain investment professionals could be adverse to Clients, possibly resulting in
losses.

Conflicts of Interest. In making investment and other decisions for Clients, the Investment
Manager (and General Partner, if applicable) and their affiliates are subject to certain conflicts
of interest, which may pose risks to Clients.

Exculpation and Indemnification. Pursuant to provisions of a Fund’s governing documents or
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