BSP CLO Management LLC

Item 5.    Fees and Compensation

The Adviser or its affiliates generally receive management fees (the “Advisory Fees”) and may
receive Incentive Allocations (as defined below) from each CLO. Further details about certain
common fees and expenses are set forth below.

Management Fees

In respect of each CLO, the Adviser is typically paid a quarterly Advisory Fee, which is paid
either in advance or in arrears, in accordance with each such CLO’s organizational and issuing
documents by such CLO. The Advisory Fee is typically comprised of two components, both
payable out of cash flow proceeds distributed by each CLO on such quarterly basis. The first, a
senior management fee, is paid near the top of the cash flow proceeds distribution by the CLO,
generally ahead of investors in the CLO, based upon the specifics of each CLO’s organizational
and issuing documents. The second, a subordinated management fee, is paid lower in the
distribution, based upon the specifics of each CLO’s organizational and issuing documents.

The precise amount of, and the manner and calculation of, the Advisory Fees for each CLO, if
any, is disclosed in the organizational and offering documents of such CLO at the time each
investor invests in the CLO, or the relevant advisory agreements.

Such Advisory Fees may be subject to waiver or reduction by the Adviser for certain investors
within a CLO. For example, the Adviser, its affiliates, certain of its principals and employees,
and their family members and related vehicles may invest in certain of the CLOs, and the
Advisory Fees assessed on such investments are typically substantially reduced or waived
entirely. Certain large or strategic investors may also be eligible for a reduction, rebate, or waiver
of their fees.

Other Fees and Expenses

CLO investors and prospective investors in CLOs should refer to the offering documents of the
respective CLO for detailed information with respect to the fees associated with such CLO. The
information contained herein is intended as a summary of such offering documents and is
qualified in its entirety by such documents.

BSP CLO MANAGEMENT L.L.C.                                                     Form ADV Part 2A

Item 7.   Types of Clients

The Adviser provides investment advisory services to the CLOs.

The minimum investment commitments for CLOs is generally at least $250,000.

BSP CLO MANAGEMENT L.L.C.                                                     Form ADV Part 2A