Trishield Capital Management LLC

Item 5. Fees and Compensation

The Adviser is paid an asset-based fee of either 1.25% or 1.75% per annum of the net assets of the
Funds, based on when an investor made its initial investment in the Fund and calculated in accordance
with the governing documents of the Funds. This fee is paid monthly in arrears and is prorated for any
period that is less than a full month and for withdrawals made during the month.

Trishield Partners LLC, an affiliate of the Adviser, receives annual performance-based compensation
equal to 20% of the net capital appreciation of the assets of the Master Fund, subject to a loss
carryforward. This compensation is structured as a re-allocation of profits.

A Fund may waive, reduce the asset-based fee and the performance-based compensations for certain
investors.

In addition to paying the asset-based fee and performance-based compensation, the Funds are also
subject to other expenses such as legal, accounting, auditing and other professional expenses,
investment expenses such as commissions, research expenses, fees and expenses for consulting
(including risk management), the cost of business travel related to the Fund, expenses associated with
regulatory compliance matters in connection with the Fund’s investment activities, interest on margin
accounts and other indebtedness, insurance premiums, custodial fees and other reasonable expenses
related to the purchase, sale or transmittal of Fund assets.

The Adviser manages a master-feeder structure and accordingly, each Feeder Fund also bears its pro
rata share of the expenses of the Master Fund. As noted above, the Funds also incur brokerage and
other transaction costs. Please refer to Item 12 of this Brochure for a discussion of the Adviser’s

Item 7. Types of Clients

The Adviser’s clients consist of the Funds; however, the Adviser may in the future serve as investment
manager to other client accounts.

With respect to the Funds, the initial subscription minimums are disclosed in the offering memorandum for
the applicable Feeder Fund, which may be waived at the discretion of the Fund.