Valhum Asset Management LLC

Item 5.      Fees and Compensation
The Management Fee
Separately Managed Accounts (“SMA”) Fees

For managed accounts (i.e., accounts of clients which are actively managed by Valhum),
management fees will be negotiable within the range of zero to 75 bps. For avoidance of conflicts,
Valhum does not charge Performance Fees.
Other Fees & Expenses
Clients (as well as, indirectly, any investors therein) may bear, in addition to the fees described above,
other fees and expenses, including (without limitation) (1) costs and expenses with respect to any
workout, restructuring, recapitalization, amendment, waiver or consent of or with respect to certain
investments and the protection or enforcement of rights thereunder; (2) legal, custodial, accounting and
related costs and expenses; (3) pricing service costs incurred in valuing investments; (4) expenses
incurred in obtaining credit ratings on investments; (5) out-of-pocket travel costs and related expenses
incurred in connection with the management of certain investments or Fund offerings including, but not
limited to, travel expenses in connection with attendance at Advisory Committee meetings and annual
meetings of general and limited partners of a Client; (6) all taxes imposed on a Client and all litigation
expenses (and any judgments or settlements paid in connection therewith) and other extraordinary
expenses; (7) the costs of forming and maintaining any alternative investment vehicle and (at the
discretion of the general partner of a Client) the costs of maintaining any other pooled investment vehicle
through which to invest in the Client (e.g., feeder funds, offshore funds and funds established for
employees and former employees); (8) costs and expenses in connection with the acquisition of insurance,
such as director and officer insurance; (9) fees of outside auditors and tax preparers and the costs of
preparation of the books and records and tax returns of a Client, including periodic reports to limited
partners, and fund administration service provider expenses; (10) costs of liquidation and termination of
a Client; (11) expenses, including travel costs, in connection with the ongoing offering of Fund interests;
(12) portfolio management and monitoring software; (13) market data and modeling services; (14) certain
research and diligence costs; (15) transaction-related expenses, hedging costs, transfer fees, and
commissions; (16) Client-related compliance and regulatory costs; (17) all other costs incurred in
connection with the administration of a Client or otherwise that may be authorized by Fund Governing
Documents, Account Documents, partnership agreements or approved by a majority in interest of the
limited partners or an advisory committee; (18) any other expenses actually incurred on behalf of the
Funds and Accounts and paid by the Advisor in connection with the management of certain investments;
and (19) certain other fees and expenses that may be authorized under a Fund’s Governing Documents
or an Account’s Account Documents.
For a more complete discussion of transactions costs that may be incurred, please refer to Item 12.

Item 7.     Types of Clients
The Adviser provides investment supervisory services to Clients. Initially, Clients will be insurance and
reinsurance companies that focus on annuities, life and other long-duration liabilities whose assets are
being managed by Valhum.
As asset management grows, funds and other separate accounts may be added.