Argentic Investment Management LLC

Item 5. Fees and Compensation:

For services provided, Argentic is generally entitled to receive management fees and, to the
extent earned, performance-based fees. A general description of these fees is provided below
but the specific terms of these arrangements and the methods of calculation are detailed in
management agreements and other agreements that Argentic has executed with each Client.
Investors should review the fee arrangements in the governing documents.

Argentic reserves the right to waive, reduce or not charge fees in accordance with the
governing documents of the specific Client.

Fees may be deducted from a Client’s account, withheld from distributions, or invoiced at an
appropriate time, as dictated by the governing documents.

Fees are negotiated on a Client-by-Client basis.

Management Fees

Argentic’s management fees are payable quarterly in arrears. The base on which the fees are
charged vary by Client:

    •   The Real Estate Vehicles pay a management fee based on funded (or deemed funded)
        capital and certain other amounts.
    •   In addition to the above management fee, one of the Real Estate Vehicles also pays
        an additional management fee based on the original principal amount of loans
        originated or purchased during the period.
    •   Two of the CMBS Vehicles pay a management fee based on the market value of the
        securities under management and certain other amounts. The Majority Owned Non-
        Discretionary Vehicle does not pay a management fee.
    •   Argentic has waived its CLO management fee for so long as it or any of its affiliates
        serves as Collateral Manager for the CLO Issuers.

Item 7. Types of Clients:

Argentic provides management and investment management services to Clients as described
in Item 4 above. As of the date of this brochure, the Firm provides investment management
services to nine Clients. The investors in the Clients are “qualified purchasers”.

Investors in the CLO Issuers are be reasonably believed to be “Qualified Institutional Buyers,”
as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”),
“accredited investors” for purposes of Regulation D under the Securities Act, and qualified
purchasers or “non-U.S. persons” for purposes of Regulation S under the Securities Act.

Currently the Advisor has no stated minimum account size for opening or maintaining an
account with the Advisor.

This Brochure is not an offer to invest in the Clients.