Castlelake LP

Item 5     - Fees and Compensation

Management Fees

        In general, Castlelake receives management fees (calculated and payable either monthly or
quarterly) as well as certain servicing fee compensation, all of which are described in detail in the
respective Offering Documents and for which additional information is provided later herein.
While management fees of certain Funds are subject to an offset by all or the specified portion of
the servicing fees and compensation and other similar consideration (all net of expenses) relating
to the making, disposition or management of Fund investments received by Castlelake or its
management company affiliates, management fees are not offset for servicing and other fees
received in certain of the circumstances described in the following paragraph. In certain
circumstances, Castlelake management fees may be reduced for certain investors subject to agreed
upon terms and conditions of a Fund’s Offering Documents and/or Side Letters. In addition,
Castlelake expects that co-investors or other parties will negotiate the right to share a portion of
certain fees from a particular investment, and the above-described offset will be applied after
excluding any amounts paid to such persons.

Servicing and Other Fees

         Castlelake or its affiliates, including Platform Servicing Companies, receive servicing fees,
facility management fees, origination fees and/or other similar fees (collectively referred to as
“servicing fees”) through the Accounts or similar securitization vehicles, warehouse facilities, term
facilities, trust structures, joint ventures and other structured investments. Castlelake receives fees
and compensation earned by, paid to, either directly or indirectly for structuring, arrangement,
origination, placement, syndication and other similar services provided in respect of a portfolio
investment or portion thereof (including, for the avoidance of doubt, (i) with respect to the Fund’s
allocable portion of any portfolio investment, where another portion of such portfolio investment

(whether relating to different parts of the debt or capital structure or otherwise) is syndicated,
placed or otherwise sold to, or arranged or structured (or re-structured) in respect of, another person
following the Fund’s investment therein or (ii) where such services are with regard to financing
facilities, loan structuring, securitizations, securitization like transactions and other financing or
refinancing transactions related to the Fund’s allocable portion of portfolio investments).
Castlelake also receives servicing fees through co-investments or other structures or loan offerings
with respect to assets, investments or debt that are not owned by a Fund, or activities that are not
on behalf of a Fund (including, without limitation, providing services to any persons other than a
Fund participating in, or providing financing to, the same investment, or with respect to any other
activities undertaken by such persons for the benefit of any third parties, or providing services with
respect to assets owned by third parties). Certain of these fees could be asset-based fees, based on
collections of premiums, rent, principal and interest or based on certain performance criteria (as
described below) and such fees can be paid upfront, over time and/or upon monetization of an
asset or investment. Castlelake’s ability to retain such amounts provides it with an incentive to
increase the portion of each relevant investment held by non-Fund parties. See also “Conflicts of
Interest” in Item 10.

Carried Interest and Performance Fees

        Castlelake is entitled to receive carried interest or performance fees or allocations
(collectively referred to herein as “Carried Interest”) with respect to certain of the Funds. Carried
Interest is generally equal to a percentage of net profits, subject to a preferred return or hurdle
return, as more fully described in an applicable Fund’s Offering Documents. Carried Interest is
generally equal to a percentage of profits after application of preferred return threshold or above
an agreed upon threshold, as more fully described in an applicable Fund’s Offering Documents.
Certain Vehicles or similar securitization vehicles or other managed accounts, warehouse facilities,
term facilities, trust structures and joint ventures may also pay Carried Interest to Castlelake. The
timing of payment of Carried Interest varies by Vehicle and may be paid later in the life of the
Vehicle or, less frequently, annually.

        Additionally, the Accounts are permitted to invest in loans or other debt instruments which
have been sourced by a Platform Servicing Company and are, directly or indirectly, originated and
serviced, on a temporary or permanent basis, by a Platform Servicing Company. The Accounts
could pay origination, upfront, servicing, administration, compensation (including salary and/or
bonuses), incentive based or other similar fees to, or enter into profit sharing or expense
reimbursement arrangements with, a Platform Servicing Company (as defined herein later) and
any of such will not offset the management fee.

        Any Insurance Servicing fee offsets will generally be pro-rated in proportion to the capital
invested directly by the Accounts relative to the total principal amount of the applicable loans (or
other financing) reinsured by an Account owned reinsurance vehicle in respect of which such
Insurance Servicing Fees were generated, as further defined in the Fund’s Offering Documents,
and there will generally be no offset for loans or other financings where the Fund does not
participate in the reinsurance.

Other Information

         Castlelake is permitted to exempt investors in the Funds from payment of all or a portion
of management fees and/or Carried Interest. For certain Funds this includes Castlelake, its General
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Item 7    - Types of Clients

        Castlelake provides investment advice to the Accounts. Account investors generally
consist of state, local and corporate pension and profit-sharing plans, trusts, estates, charitable
organizations, endowments, corporations, insurance companies, business entities, private
fund-of-funds, foreign sovereign wealth funds, family offices and/or high net worth individuals.
Employees of Castlelake who qualify as “knowledgeable employees” under Rule 3c-5 of the
Investment Company Act of 1940 are also permitted to invest (directly or indirectly) in the Funds.

        The Funds may include alternative investment vehicles established from time to time in
order to permit one or more investors to participate in one or more particular investment
opportunities in a manner desirable for tax, regulatory or other reasons. Alternative investment
vehicle sponsors generally have limited discretion to invest the assets of these vehicles independent
of limitations or other procedures set forth in the organizational documents of such vehicles and
the related Fund.

       Generally, the Accounts impose minimum investment requirements upon investors that can
be waived in certain circumstances, as set forth in the respective Offering Documents.