Castle Creek Advisors IV LLC

ITEM 5 – FEES AND COMPENSATION

A. & B. Describe how the firm is compensated for its advisory services. Provide the fee
schedule. Disclose whether the fees are negotiable. Describe whether the firm deducts
fees from clients’ assets or bills clients for fees incurred. Explain how often the firm bills
clients or deducts its fee.

The Company and/or its affiliates receive management fees and/or carried interest or similar
performance fees from the Funds and the Managed Accounts. The Funds may also indirectly
incur or generate other fees payable to the Company and its affiliates, depending on the nature
of their portfolio activities. The Company or its affiliates are permitted, for example, to earn
fees and other compensation from prospective and actual portfolio companies, purchasers,
sellers and other parties as compensation for services (collectively, “Other Fees”). These Other
Fees can include structuring, break-up, directors’, organizational, closing, advisory, and
similar fees in connection with the purchase, monitoring, or disposition of underlying
investments or from unconsummated transactions. The organizational documents of the
relevant Fund (or the investment advisory agreement between the Company and such Fund)
or the investment advisory agreement between the Company and the relevant Managed
Account sets forth the fee structure relevant to such Fund or such Managed Account. In the
case of Funds, to the extent provided in the applicable organizational documents or investment
advisory agreements for such Funds, the Company’s management fees for certain Funds are
reduced by 100% of the Other Fees that are borne by such Fund.

For most Funds, the annual management fee typically ranges from one-half percent to two
percent of third-party investors’ committed capital during the relevant Fund’s investment
period, and afterward, the fee percentage is typically applied only to the amount of third-party
capital remaining in investments that have not yet been exited. In some situations, a Fund pays
management fees based on the cost basis of the investments held by such Fund during and after
the investment period. For most Managed Accounts, the annual management fee typically
ranges from one-half percent to one percent of the cost basis of the investments held by such
Managed Account.

The amount of management fees generally will not correspond with fluctuations in the net
asset value of individual investments, aggregate investments in a portfolio company or of a
Fund, including following the stepdown date, and will not be reduced in connection with any
write-downs, except in the case of investments that have been permanently written off for tax
purposes in accordance with United States generally accepted accounting principles
(“GAAP”). Permanent write-down determinations are made in the discretion of the valuation
committee in accordance with the relevant governing documents and the Company’s valuation
policy. In addition, management fees generally will not be reimbursed or refunded under the
governing documents in the event of realizations, dispositions or partial write-downs that occur
partway through the relevant calculation period. In most circumstances, the post step-down
management fee base will include capitalized expenses of unrealized investments.

The receipt of certain fees and expenses are offset against the management fee payable by the
Funds and Managed Accounts, as described in each Fund and Managed Account’s governing
documents. For example, management fees are reduced by, as applicable: (i) the amount of
fees and expenses paid to a placement agent in connection with the offer and sale of interests
in such Fund; (ii) costs incurred by the Company in connection with the organization of a Fund
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that exceed a limit as specified in such Fund’s organizational documents; (iii) an allocable
share of Board of Director fees received by the Company in connection with actual or
prospective portfolio company and (iv) Special Contributions received by each Fund.

For the Funds, management fees are generally paid by or on behalf of each such Fund by (i)
requiring investors in such Fund to make capital contributions in respect of such fees, or (ii)
withholding the amount of such fees from investment proceeds that would otherwise be
distributable to the investors of such Fund. In addition, the Company often has the ability to
cause a Fund to borrow money for the payment of such fees. For Managed Accounts,
management fees are generally invoiced to the applicable Managed Account’s owner
quarterly.

Depending on the Fund or the Managed Account, management fees may be paid in advance or
in arrears. If management fees with respect to a Fund or a Managed Account are assessed in
advance, they are generally required to be returned to the investors in such Fund or owner of
such Managed Account should Castle Creek’s management services to such Fund or such
Managed Account be terminated prior to the end of the period in respect of which the fees have
been paid (including, for example, situations where the final distribution from a Fund or the
termination of an investment advisory agreement with a Managed Account occurs prior to the
end of a period for which management fees have already been paid). In general, the amount of
such fees to be returned is calculated based on the number days remaining in the applicable
period. Management fees payable by the Funds and Managed Accounts generally are paid on
a quarterly basis.

C. Describe any other types of fees or expenses clients may pay in connection with the
firm’s advisory services, such as custodian fees or mutual fund expenses. Disclose that
clients will incur brokerage and other transaction costs, and direct clients to the section(s)
of your brochure that discuss brokerage.
BROKERAGE EXPENSES
...

ITEM 7 – TYPES OF CLIENTS
Describe the types of clients to whom the firm generally provides investment advice, such
as individuals, trusts, investment companies or pension plans. If the firm has any
requirements for opening or maintaining an account, such as a minimum account size,
disclose the requirements.

The Funds are pooled investment vehicles or investment funds with entities affiliated with the
Company acting as the general partners of such Funds. The Company and its affiliates require
that each third-party investor in a Fund be an “accredited investor” as defined in Regulation D
under the Securities Act and a “qualified purchaser” as defined in the 1940 Act. The Managed
Accounts for which the Company acts as investment adviser are managed on both a
discretionary and non-discretionary basis. The Company requires the owner of a Managed
Account to be a “qualified client” as defined in the Advisers Act.

Other than customized “fund of one” Funds and Managed Accounts, typically a minimum
investment amount is imposed on third parties investing in a Fund. This minimum investment
often is set at $10 million but can be subject to a reduction upon prior agreement with the
Company or an affiliate (subject to applicable legal requirements). A minimum investment
amount can also be established pursuant to the laws of the jurisdiction in which the investment
vehicle was established.

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