BMO Asset Management Corp

Item 5 - Fees and Compensation

BMO AM charges clients asset management fees that are fair and reasonable and vary from client
to client. BMO AM charges clients asset management fees that are negotiated with each client
and set forth in the applicable investment management agreement or governing documents,
such as offering memoranda, offering circulars, advisory contracts, and side letters for each CLO
and private fund (“Governing Documents”). All BMO AM fees are charged and disclosed to the
client and established by agreement with each client. Such fees and expenses will be set forth in
the investment management agreement for each SMA or applicable Governing Documents.

Affiliate Compensation

When clients invest in Loans originated by BMO Sponsor Finance or other BMO affiliates, BMO
Bank N.A. or its affiliates at times receive origination, structuring, syndication, administrative
agent, original issue discount, or other transaction-related compensation. In addition, BMO AM
indirectly compensates BMO Sponsor Finance in connection with administrative services it
provides to BMO AM, including marketing services, loan sourcing, and performance
reporting. Such affiliate compensation is separate from the advisory fees paid to BMO AM and is
not offset against such fees unless expressly provided in the applicable Governing Documents.

Structured Product Origination – CLO Transactions

In connection with the formation and issuance of certain CLOs advised by BMO AM, an affiliated
broker-dealer, BMO Capital Markets Corp. (“BMO CM”), can act as arranger or provide structured
product origination services. When BMO CM performs these services, BMO AM will receive an
internal affiliate revenue allocation equal to a fixed percentage of the gross revenues generated
by the transaction up to 10% for CLO transactions arranged by BMO CM.

Compensation Arrangements

These compensation arrangements are enterprise-level internal arrangements among affiliates
and do not increase the fees, expenses, or compensation paid by the clients or their investors,
which are governed exclusively by the applicable transaction and Governing Documents.

CLO Fees and Expenses

As set forth in each CLO’s Governing Documents, BMO AM receives, to the extent that funds are
available, a senior collateral management fee, a subordinated management fee and incentive
compensation in the form of an incentive fee, each payable on each payment date or, in the case
of the senior management fee and the subordinated management fee, to the extent there are
not sufficient funds available therefor on such payment date, on a subsequent payment date.

BMO AM charges performance-based fees only with respect to certain CLOs, as disclosed in Part
1A.

BMO Asset Management Corp.
Form ADV, Part 2A

Each CLO has separate Senior Asset Management Fees, Subordinated Asset Management Fees,
or Incentive Asset Management Fees as set forth in the applicable Governing Documents.

The incentive compensation is payable to BMO AM or its related parties if and to the extent funds
are available for such purpose, but will not be payable on any payment date or redemption date
unless the CLO equity has achieved the internal rate of return thresholds set forth in the
indenture or investment management agreement, or if permitted by the Governing Documents
of the applicable CLO, as otherwise agreed with the holders of the CLO equity or variable dividend
notes, as applicable. Fees are negotiated on a case-by-case basis and, as such, there will be no
set CLO fee schedule.

Similarly, as set forth in its Governing Documents and investment management agreement, each
CLO bears all of its costs and expenses, including any cost and expenses reasonably incurred by
BMO AM on its behalf, such as:

(i) the costs and expenses of BMO AM incurred in connection with the negotiation and
preparation of the investment management agreement and all other agreements and matters
related to the issuance of notes from such CLO,

(ii) transfer fees necessary to register any collateral obligation in accordance with the indenture
governing such notes,

(iii) fees and expenses in connection with the acquisition, management or disposition of collateral
or otherwise in connection with such notes or such CLO (including (a) investment related travel,
communications and related expenses, (b) loan processing fees, legal fees and expenses and
other expenses of professionals retained by BMO AM on behalf of such CLO and (c) amounts in
connection with the termination, cancellation or abandonment of a potential acquisition or
disposition of any collateral that is not consummated),

(iv) taxes and governmental charges that are incurred or payable by such CLO;

(v) insurance premiums or expenses incurred in connection with the activities of such CLO by
BMO AM,

(vi) costs, fees, and expenses incurred in connection with the rating of such notes or obtaining
ratings or credit estimates on the debt obligations that provide security for the notes, and
communications with rating agencies,

(vii) costs, fees, and expenses incurred in connection with BMO AM communications with CLO
noteholders,

(viii) costs and fees of one or more firms that provide software databases and applications for
the purpose of modeling, evaluating, and monitoring the collateral and such notes pursuant to a
licensing or other agreement,

BMO Asset Management Corp.
Form ADV, Part 2A

(ix) fees and expenses for services to such CLO in respect of the collateral relating to asset pricing
and rating services,

(x) expenses incurred to comply with any law or regulation related to the activities of such CLO
and BMO AM to the extent relating to such CLO, BMO AM, and the collateral,

(xi) fees and expenses of any independent advisor employed to value or consider the notes or
the Collateral Obligations, and

(xii) costs and expenses in connection with any amendment or supplement (including any
...

Item 7 - Types of Clients

As noted above in Item 4, “Advisory Business”, our clients generally consist of discretionary
accounts managed for private funds, entities established in conjunction with structured finance
transactions (i.e., CLOs) and SMAs for institutional investors. Investors in our clients generally
consist of financial institutions, insurance companies and other institutional investors.

Products or services offered by BMO AM are only available to accredited investors that satisfy
qualified purchaser requirements. This information is available in the Governing Documents
associated with these types of investments.

BMO Asset Management Corp.
Form ADV, Part 2A