CFI Partners LLC

Item 5: Fees and Compensation

Summary of Fees

The description below of CFIP’s fees and compensation is intended to provide a brief summary of the
more typical fee structures shared by certain types of accounts and is not intended to depict every
scenario where such structures may differ. The governing documents for each Client will contain the
specific details regarding the applicable fees and expenses.

   SMAs: For SMAs, CFIP generally is paid a monthly or quarterly management fee, which is usually based
on assets under management or the net asset value (as defined in each IMA) of assets held in a SMA’s
account. In certain instances, the fee may be based upon the aggregate acquisition cost of the portfolio
under management. The management fee is typically equal to a mutually agreed annual fee that is pro-
rated and multiplied by assets under management or net asset value as of each calendar month or
quarter. The management fee is typically payable on an accrual basis and paid in advance or arrears. If
fees have been paid in advance, in the event of withdrawal, the SMA would receive a pro rata rebate of
the allocable portion of the fee not earned by CFIP for the related period. All management fees are subject
to different payment and calculation terms as further set forth in the SMA’s governing documents. Fees
are individually negotiated with each SMA based upon the type of service provided, size of the account,
and relationship between the SMA and CFIP. Performance-based compensation, if any, will also be set
forth in each SMA’s governing documents.

SMAs are generally billed directly for management fees and performance-based compensation, if any. As
permitted by the SMA, CFIP will also invoice an administrator or custodian for payment of such fees
whereby the administrator or custodian will be authorized to pay the applicable fees to CFIP.

   Private Funds: For its closed-end and open-end Private Funds, CFIP earns management fees and
generally has the potential to earn performance-based compensation in the form of performance fees or
profit/incentive allocation. The amount of such management fees and performance-based compensation
and the calculation and timing of payment of such compensation are set forth in the terms of the
governing documents of each such Private Fund.

For CFIP’s closed-end Private Funds, management fees are typically calculated as a fixed percentage,
based on total invested capital, which includes drawn or invested capital (or borrowings incurred in lieu
of drawing capital) and are earned on a retroactive basis to the start of such fund’s investment period.
Generally, for closed-end Private Funds, CFIP is entitled to receive realized profits of a fund’s aggregate
investments after such fund first distributes all contributed capital from the inception of the Private Fund
plus an annual preferred return to its investors. As a result, CFIP generally receives a profit or incentive
allocation from a closed-end Private Fund, if any, in the latter part of such fund’s life, although earlier in
such fund’s term CFIP is permitted to receive tax distributions to cover CFIP’s allocable share of income
taxes.

For CFIP’s open-end Private Funds, management fees are based on a fixed percentage of the gross asset
value (i.e., net asset value grossed up for any uncrystallized incentive fees or profit allocations to CFIP) of
the relevant fund. Generally, for open-end Private Funds, CFIP receives annual performance-based
compensation as a percentage of the year’s profits, subject to either a high-water mark or hurdle rate. A
highwater mark refers to the highest historical net asset value attributable to an investor’s account. For
funds that have a high-water mark, this means that CFIP does not earn annual performance fees with
respect to an investor in such fund if such investor’s year-end net asset value is lower than any prior year’s
net asset value (taking into account contributions and redemptions). A hurdle refers to the annual
performance attributable to an investor’s account. For funds that have a hurdle, this means that CFIP does
not earn annual performance fees with respect to an investor in such fund if the investor’s annual
performance does not exceed the agreed annual hurdle amount (taking into account contributions and
redemptions).

For Private Funds, management fees are typically deducted from the assets of the Private Fund and
performance-based compensation is typically allocated and then deducted from the assets of the Private
Fund. The billing and deduction of fees are governed by the specific governing documentation for each
Private Fund.

Depending on the Private Fund, management fees are charged either quarterly or monthly and paid in
advance or arrears as set forth in the applicable governing documents. To the extent that a Private Fund
is in existence for less than a full payment period, the management fee will be pro-rated. Investors in an
open-end Private Fund typically have the ability to voluntarily withdraw from the fund pursuant to the
terms and conditions set forth in the applicable governing documents. However, investors are generally
not permitted to withdraw prior to the period covered by such fees. For closed-end Private Funds,
investors do not have the ability to withdraw, except under certain limited circumstances as set forth in
the applicable governing documents.

    CLO Vehicles: For CLO Vehicles, CFIP is typically entitled to receive management fees in the form of a
senior fee and a subordinate fee, both of which are based on a fixed percentage of the assets (measured
in accordance with the applicable governing documents but typically the sum of (i) the aggregate par value
of credit instruments and securities and (ii) any cash on hand) of a respective CLO Vehicle. Separate from
these fixed fees, CFIP is entitled to receive an incentive fee or profit allocation based on the performance
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Item 7: Types of Clients

CFIP provides investment management and advisory or sub-advisory services to SMAs, Private Funds and
CLO Vehicles. SMAs include independently negotiated investment management agreements with
institutional investors, including insurance companies such as the Affiliated Insurance Companies, other
financial institutions, pension and profit-sharing plans, U.S. and non-U.S. governmental entities, colleges,
hospitals, charitable organizations, and endowment funds and foundations and the related Intermediaries
of any of the foregoing, as applicable, as well as certain high net worth individuals and their affiliated
trusts. Private Funds include commingled closed-end and open-end funds that are limited to similar
institutional investors and certain high net worth individuals. CLO Vehicles are generally securitized
vehicles governed by a related indenture trust agreement for which CFIP acts as collateral manager
pursuant to a collateral management agreement.

For SMAs, CFIP frequently seeks a minimum account size for its investment strategies, as is determined
on a case-by-case basis in CFIP’s sole discretion. For Private Funds and CLO Vehicles, underlying investors
are subject to separate suitability requirements and minimum investment amounts. Each Client is subject
to its own investment guidelines, restrictions and parameters, as set forth in the respective governing
documents.