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Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.

ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

FIRM FACTS1
Year Founded Firm AUM AUM Breakdown 1995 $3.3 billion Distressed Debt: $2.6 billion Real Estate: $185 million Other: $680 million Greenwich, CT 55

PRODUCT FACTS1: Contrarian Distressed Real Estate Debt Fund II, L.P.
Investment Style Fund Structure Assets in Strategy Real Estate Debt Delaware Limited Partnership $450 million invested in real estate since inception; $185 million in active real estate strategies and an additional $127 million closed to date for Fund II 1991 $350 million Gil Tenzer Other Products in Strategy Approximate # of Investments Average Investment Size Contrarian Real Estate Fund I 20-25 $5 - $25 million

Office Locations # of Employees

Inception of Strategy Target Size of Fund Fund Portfolio Managers

Fund Currency Denomination Diversification

$US No more than 35% in a single sector; no more than 15% in debt secured by raw land, development projects or for-sale residential; no more than 20% in structured debt; no more than 20% in direct equity investments. No investments may be made outside of the United States

% Employee Owned

100%

RIA Auditors Legal Counsel Contact

Yes Eisner LLP Jones Day

Investment Team Size Maximum Leverage

4 dedicated investment professionals Acquisition debt not to exceed one-third the sum of invested capital plus commitments to be drawn in the future unless approved by the Advisory Committee. 20% gross IRR; 15% net IRR

Geographic Limitations

Tim Percarpio: 203-862Target Return 8206 1All data as of December 31, 2010 unless otherwise specified.

June 16-17, 2011

OPEN - FIN - 2j
Last Updated: March 10, 2011

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

Strategy Description Firm History

Contrarian seeks to invest in small to mid-sized real estate debt opportunities. Contrarian will seek to purchase at a discount real estate whole loansfrom financial institutions, portions of larger syndicated loans and real estate debt through corporate bankruptcies. Contrarian Capital Management, LLC is a Connecticut based credit manager founded in 1995 by Jon Bauer, Janice Stanton and Gil Tenzer. Prior to establishing the firm, the three founders worked together at Oppenheimer & Co., where Bauer ran the Distressed Securities business, Stanton led the Bank Debt & Trade Claims desk, and Tenzer served as the co-head of the High Yield Real Estate Group. The firm flagship product is its $2.6 billion corporate distressed debt s hedge fund which is headed by Jon Bauer, and it also invests in trade claims and real estate. In 2003 the firm launched Contrarian Real Estate Fund, L.P. (Fund I), a distressed debt and equity focused real estate fund with an evergreen structure. Contrarian decided to suspend the investment of Fund I in late 2010 and raise Contrarian Distressed Real Estate Debt Fund II in a more traditional closed-end vehicle. Contrarian is 100% owned by Jon Bauer, Janice Stanton and Gil Tenzer. Bauer owns 60% of the management company while Tenzer and Stanton each own 20%. Contrarian believes the impact of the credit crisis will provide an attractive opportunity set in the distressed real estate debt space over the next three to four years. Due to the 30% to 50% decline in commercial real estate values since 2008, financial institutions, special servicers and corporate entities hold significant quantities of troubled commercial real estate loans. Contrarian believes that as debt maturities approach and operating fundamentals continue to lag, it will be able to identify inefficiently priced small-to-mid sized debt investments that are senior in the capital structure of the asset. Also, by leveraging the firm multis strategy distressed debt investing platform, Contrarian feels that it is in a position to source, evaluate and close on a unique set of transactions, such as those driven by the corporate bankruptcy process. By purchasing private debt with little or no leverage at prices which Contrarian feels represents a discount the intrinsic value of the underlying real estate, Contrarian believes it can limit downside risk while earning attractive returns for investors. Contrarian dedicated real estate team consists of four individuals, all of whom have over ten years experience in the real estate industry. Gil Tenzer leads the s group and has done so since the firm inception in 1995. Fund II will target real estate s whole loansfrom regional and local financial institutions. It will also target portions of large syndicated loans and debt backed by real estate assets on the balance sheets of public and private bankrupt companies. Deals will be sourced through the team network of relationships with real estate market participants (both borrowers and lenders), as well as through the origination s channels available through Contrarian broad distressed debt platform and trade claims desk. The Fund will target small-to-mid sized debt transactions in the s United States which require total commitments of $5 million to $25 million. Contrarian intends to acquire the majority of assets on a substantially un-levered basis. When a potential investment is identified, it is directed to the regional expertwithin the fund team, who is charged with conducting a preliminary review. Opportunities deemed attractive will be reviewed by the entire Fund Team and a one to two page deal memo is constructed, detailing estimated returns and potential risks. Upon favorable completion of this analysis the team will submit an indicative bid. If the bid is accepted, the team begins formal due diligence, preparing full cash flow models, and stress testing assumptions including recovery time, percentage of recovery and holding periods. The team also performs due-diligence on any potential counterparties in the deal. Once on-site property reviews are completed and the team has underwritten the physical property, financials, lease terms and tenants, the team will generally engage third party counsel to assist with the legal review of documentation. Investment decisions are made by the investment committee consisting of Gil Tenzer, Brett Rowland, Michael Halperin, Drew Herold and Jon Bauer. Unanimous investment committee approval is required for the fund to close on an investment. Post close of the investment, all deals are monitored by the team which

Firm Ownership

Philosophy & Process

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June 16-17, 2011


Last Updated: March 10, 2011

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

prepares a quarterly hold/sell analysis on each position in the Fund. The real estate team and the broader firm have extensive workout experience and will, at times, acquire certain loans knowing that a workout is likely. Unanimous consent is also required by the investment committee for any dispositions from the fund. Governance Fund Key Personnel The Fund will establish an Advisory Committee comprised of the largest Limited Partners. Jon Bauer Founding member and Chief Investment Officer of Contrarian Capital. Bauer is responsible for the firm overall investment strategy s and sits on the investment committee for Distressed Real Estate Debt Fund II. Gil Tenzer Founding member and Chief Operating Officer of Contrarian Capital. Tenzer is the Portfolio Manager for the firm real estate fund s series and sits on the investment committee for Distressed Real Estate Debt Fund II. Prior to founding Contrarian in 1995, Tenzer was the co-head of the High Yield Real Estate Group at Oppenheimer. Brett Rowland Senior Vice President; Rowland joined Contrarian in 2003 from J.P. Morgan Partners Private Equity Real Estate Group. Rowland sits on the investment committee for Distressed Real Estate Debt Fund II. Michael Halperin Senior Vice President; Halperin joined Contrarian in 2004 from Oaktree Capital Management real estate group. Halperin sits on s the investment committee for Distressed Real Estate Debt Fund II. Drew Herold Vice President; Herold joined Contrarian in 2006 from Blackacre Capital (Cerberus). Halperin sits on the investment committee for Distressed Real Estate Debt Fund II. 1.5% per annum of aggregate commitments during the investment period. Thereafter the management fee will be calculated based on aggregate capital contributions. Fund II will bear all legal and organizational expenses incurred in the formation of Fund II up to a maximum amount of $750,000. All organizational expenses above this amount will be borne by the General Partner. 20% 9% 50/50 until the GP has received 20% of aggregate distributions. Commitment period will expire three years from the initial closing, though the General Partner has the ability to extend, in its discretion, for one additional year. The term of the fund will expire eight years from the initial closing, though the General Partner has the ability to extend for two additional one-year periods. $10 million, though the GP reserves the right to accept commitments for lesser amounts. 5% up to a maximum of $17.5 million No; the incentive fee is not charged until investors receive cumulative cash distributions in excess of the preferred return which should eliminate the need for a clawback, according to Contrarian. Gil Tenzer is to remain actively involved in Fund II and, during the commitment period, to devote substantially all of his business

Terms and Conditions*

Management Fee: Organizational Expenses: Carried Interest: Preferred Return: Catch-up: Term/Commitment Period: Minimum LP Commitment: GP Commitment: Clawback: Key Man:

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June 16-17, 2011


Last Updated: March 10, 2011

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

time and attention to Fund II investments. If Gil Tenzer cannot fulfill his obligations mentioned above, the commitment period will be suspended while the GP will seek a qualified replacement to be approved by the Advisory Committee. *All terms represent those from the Supplement to the Private Placement Memorandum dated October 2010 and may be subject to change.

Track Record

Since 1991, Gil Tenzer and team have made 67 distressed debt investments in the U.S. Overall, Contrarian projects that the distressed debt investments will generate an unleveraged gross IRR of 22.6%. The majority (~94%) of Contrarian track record in the distressed real estate debt space has been realized. Of s the 62 realized distressed debt transactions executed by Contrarian, 58 have been profitable. Losses represent less than 1% of total invested capital. It should be noted that Contrarian Real Estate Fund, L.P. also invested in real estate equity deals which are not reflected in this track record as it is not a part of the investment mandate for Fund II. From 2005 to 2009, Contrarian was cautious about investing new capital. In hindsight, Contrarian decision not to invest s much capital from 2005 to 2009 was a good decision and has aided performance relative to competitors.

Performance of All Distressed Debt Deals as of December 31, 2010


Dates Number of Actual/Projected Invested Investments Investment 1991 - 2003 51 $340,122 2003 - 2010 16 11 5 67 $115,149 $88,109 $27,040 $455,271 Actual/Projected Profits $174,528 $59,716 $50,838 $8,878 $234,244 Actual/Projected Investment Multiple 1.5X 1.5X 1.6X 1.3X 1.5X Actual/Projected Gross Unleveraged Actual/Projected Net IRR Unleveraged IRR 22.20% 17.30% 23.80% 32.70% 7.80% 22.60% 18.70% N/A N/A

Pre-Fund I (Fully Realized) Contrarian Real Estate Fund, L.P. Realized Unrealized Total

1991 - 2010

All performance figures provided by Contrarian Capital Management.

Strengths

Contrarian Capital is 100% owned by its three founders, it has been stable and conservatively managed since its inception. The firm has a diversified client base and manages several different strategies. Gil Tenzer is an experienced investor in real estate and a strong leader of the real estate team. While investing Contrarian Real Estate Fund I, Tenzer

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June 16-17, 2011


Last Updated: March 10, 2011

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

Weaknesses

showed patience and conservative underwriting. He generally avoided making large mistakes and overpaying for real estate at the peak of the market. The three person real estate team surrounding Tenzer consists of experienced real estate investors. All three worked previously outside of Contrarian on the financial and operational aspects of real estate investment. Drew Herold, the newest member of the team, joined in 2006, while Brett Rowland and Michael Halperin joined in 2003 and 2004, respectively. The team appears to into Tenzer philosophy and focus on conservative buy s underwriting and preservation of capital. The investment team is aligned with LP as it is entitled to 52% of the carried interest from Fund II. Also, Contrarian Capital Management as the GP s has committed to invest 5% of the fund up to $17.5 million alongside LPs, 25% of which will come directly from the dedicated real estate team. The distressed debt and trade claims desks at Contrarian should help provide the real estate team with differentiated deal flow and additional resources for underwriting real estate deals. Despite continued softness in commercial real estate fundamentals and the potential for fundamentals to experience further decline, Contrarian appears to have an attractive opportunity set driven by the large quantity of troubled real estate loans as a result of the financial crisis. Contrarian s distressed investment philosophy should be well positioned to capitalize on such a market environment. Gil Tenzer has been an investor in distressed real estate debt since 1991 and has compiled a strong track record. The 67 distressed debt deals Tenzer completed in the U.S. are projected to generate an unleveraged gross IRR of 22.6%. Performance has been consistent as 58 of 62 realized deals generated positive returns. Gil Tenzer is key to the real estate efforts at Contrarian, if he were to cease actively working on this fund; it would likely have a negative effect on the effort. Although, the fund Key Man clause would be triggered if Tenzer were to cease actively managing the fund, it is uncertain if the GP would be s able to find a replacement of equal caliber. Contrarian is a relatively small firm. The firm flagship product, Contrarian Capital Fund, is a multi-strategy hedge fund and represents most of the s firm $3.3 billion in assets under management. The success and stability of Contrarian is largely dependent on the Contrarian Capital Fund. If s Contrarian Capital Fund were subject to significant capital outflows, it could put pressure on the overall Contrarian organization. Contrarian has an institutional client base of over 200 investors, however, which remained largely in tact through 2008 and 2009, a period of significant redemptions to hedge funds. Also, Contrarian feels that the firm has relatively low overhead costs and could sustain full operations even if it were to experience significant outflows of capital from the hedge fund. The investment team, at four dedicated investment professionals, is relatively small. The team consists of senior level professionals, however, and also has access to the 50 people on the distressed debt team as well as the back-office infrastructure of the firm. Fund II is targeting 20 to 25 debt investments, which Contrarian feels is a manageable workload for the team. The Contrarian team has only invested $450 million in distressed real estate debt since inception of the track record. While performance for real estate investments have been strong, Contrarian will need to invest more capital, at a quicker pace than it has in the past if it raises the full $350 million target. ERISA capacity for Fund II is limited to 25% of commitments. One large investor has already spoken for much of the ERISA capacity of the Fund at its target size. It may be difficult for ERISA investors to gain access to Fund II.

OPEN - FIN - 2n

June 16-17, 2011


Last Updated: March 10, 2011

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

Status of Fund Raising

Contrarian Distressed Real Estate Debt Fund II held an initial close in December 2010 on $127 million. It is expected to hold rolling closes throughout 2011.

ROCATON RATING: Recommended


Contrarian Distressed Real Estate Debt Fund II is rated Recommended based on the experience and disciplined investment process of Gil Tenzer and the Contrarian Capital real estate team. Although the dedicated investment team is small at four investment professionals, the team is senior in nature and the broader Contrarian distressed debt platform provides greater depth and resources to the real estate effort.

Notes About This Information This document sets forth Rocaton current summary evaluation of this investment strategy as of the date noted at the beginning of the s document. This evaluation represents a summary of Rocaton assessment of certain key attributes of the manager and the strategy(ies) and is s not intended to fully describe all aspects of the strategy(ies) that may be employed by the manager. This document is not a substitute for a client full review of the offering memorandum and other fund documents before investing. s Any performance information contained herein is based on information provided by the manager directly or via a database. Because of the performance-based fee component typical in many partnership investments, future fees may vary from fees incurred in the past. Clients should consider the impact of fees and expenses on performance results. Performance figures for time periods greater than one year are annualized unless otherwise noted. Volatility measures are generally annualized and are calculated using monthly return series when available. Past performance does not guarantee future results. Performance expectations are based on Rocaton assessment of the strategy potential s s returns over a market cycle and may not be realized. Investments in private partnerships involve risks, including performance volatility, illiquidity and the risk of loss of the full investment. Please review the fund offering memorandum and other related documents provided by s the fund manager for additional information regarding risks. Additional definitions of terms are available upon request. This document is prepared substantially based on information and representations provided by the investment manager and is taken from other sources we believe to be reliable. However, we provide no representations or warranties as to the accuracy of the information and we assume
June 16-17, 2011
Last Updated: March 10, 2011

OPEN - FIN - 2o

Contrarian Capital Management, LLC Contrarian Distressed Real Estate Debt Fund II, L.P.
ROCATON INVESTMENT PRODUCT PROFILE CONFIDENTIAL

no responsibility or liability (including liability for consequential or incidental damages) for any error, omission, or inaccuracy in this report. Private partnerships and their managers are not necessarily subject to the regulatory requirements or oversight applicable to other types of investment vehicles, such as mutual funds, and thus are subject to additional risks. Rocaton will provide updated version(s) of this document to clients upon request. Over time, there may be material changes to the manager, its strategies and its performance. There is no guarantee that the manager will continue to maintain the current policies, procedures, terms or conditions described herein. Confidentiality This report has been prepared solely for your confidential use. This document may contain information that is not publicly available and which Rocaton may have entered into an implied or express agreement to limit redistribution to its direct clients. Accordingly, no part of this report may be redistributed beyond the client organization without our written permission. s

June 16-17, 2011 OPEN - FIN - 2p


Last Updated: March 10, 2011

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