Scoggin Capital Management

II LLC

Fund Investment Objectives

Scoggin Capital Management II LLC1 (SCM II and the Fund) is a global, opportunistic, multi-strategy event fund focused on identifying fundamental long/short investments. The Fund invests in three primary strategies including event driven equities with a catalyst, special situations and distressed credit opportunities. The Fund's General Partner employs a research-intensive, bottom up approach to building the portfolio while adhering to a conservative risk profile. The investment objective of the Fund is to seek to maximize capital appreciation while investing across the entire capital structure with minimal leverage. The Fund has historically achieved attractive, absolute non-correlated returns with significant out-performance even during periods of extreme market dislocations. Prior to November 2000 the Fund reported as SCM, inception October 1988 (on January 1, 2010 both funds converted from a limited partnership to a limited liability company). MANAGEMENT FEE: 20% on the first 10% of net capital appreciation and 30% of any net capital appreciation in excess of 10% from 1993 through 2009. REDEMPTIONS: Effective January 1, 2010 existing investors (with respect to new investments only) and new investors (new investments ): a 12-month holding period will be required for each Share purchased; redemptions of Shares will be permitted without any redemption fee on 90 days notice on the first quarter-end occurring on or after the date the Holding Period expires for those Shares (the Anniversary Date); any redemptions which do not take place on the first Anniversary Date or any subsequent Anniversary Date will be permitted at a quarter-end on 60 days notice upon payment of a 5% redemption fee (which will be paid to the Fund), including at a quarter-end before the expiration of the Holding Period referred to above. The fund's actual trading inception date is January 2, 2001.