CNL Residential Credit Manager LLC

Item 5 – Fees and Compensation

Pursuant to the Advisory Agreement executed between us and our Client, we will be paid a
Management Fee and Total Return Incentive Fee. In addition to the fees listed above, the Client
shall pay all of its costs and expenses directly or reimburse us or our Affiliates for costs and
expenses we incurred on behalf of the Client.

Management Fee. The Management Fee is calculated for each share class at an annual rate of (i)
1.25% of NAV for Class A Common Shares, Class I Common Shares, Class D Common Shares
and Class T Common Shares (collectively, the “Non-Founder Shares”), and (ii) 1.0% of NAV for
the Class FA Common Shares (collectively, the “Founder Shares”) in each case, per annum and
payable monthly in arrears and before giving effect to any accruals for the Management Fee,
Distribution and Stockholder Servicing Fees and Total Return Incentive Fee. No Management Fee
will be payable with respect to Class E Common Shares. The Management Fee for a certain month
shall be calculated on a class-by-class basis based on the NAV for each applicable Share class at
the end of that month and shall be due and payable no later than thirty (30) calendar days following
the end of the applicable month. The base management fee or other reimbursable expenses of the
Client may be reduced or deferred by us and the Sub-Advisor pursuant to the terms of any Expense
Support and Conditional Reimbursement Agreement currently effective among the parties hereto
(the “Expense Support Agreement”).
In accordance with the Sub-Advisor Agreement executed between us and the Sub-Advisor, the
Sub-Advisor shall earn a fee equal to 50% of the Management Fee and Total Return Incentive Fee
from the compensation paid from the Client to us, subject to any reduction or deferral of any such
fees pursuant to the terms of any Expense Support Agreement currently effective among the parties
hereto. The Management Fee shall be paid monthly in arrears by the Client, at the same time fees
are paid to the Advisor pursuant to the Advisory Agreement, but not later than monthly in arrears.
The Client has entered into the Administrative Services Agreement with us as the Administrator,
pursuant to which we will provide the Client with administrative services and are entitled to an
administrative services fee that shall be calculated at an annual rate of 0.25% per annum of the
NAV for each of Client’s share classes and reimbursement of third-party costs and expenses
incurred on behalf of the Client in providing such administrative services.
The Client (or a subsidiary of the Client) will pay a “master servicing fee” to PRP Advisors, LLC
(“PRPA”) an affiliate of the Sub-Advisor, equal to an amount up to 0.25% per annum of gross
asset value of the serviced assets, payable quarterly in arrears. PRPA provides services for Client
mortgage loans, MSRs and other assets, including (i) sourcing, performing due diligence and
assisting in the acquisition of assets, (ii) monitoring the performance of each unaffiliated mortgage
servicer and maintaining appropriate records, (iii) managing the loan modification, forbearance,
foreclosure and other loss mitigation efforts, and (iv) the management and disposition of
foreclosed properties and certain loan dispositions. In certain circumstances, PRPA may continue
to receive certain fees after we have sold the relevant asset, either paid by the purchaser of such
investment or paid at the investment level.
CRCM and the Sub-Advisor have entered into the Expense Support and Conditional
Reimbursement Agreement with the Company, pursuant to which each of CRCM and the Sub-
Advisor agrees to reduce the payment of management fees, total return incentive fees and the
reimbursements of reimbursable expenses due to the Advisor and the Sub-Advisor under the
Advisory Agreement and the Sub-Advisory Agreement, as applicable, to the extent that our annual
regular cash distributions exceed our annual net operating income (with certain adjustments).
Subject to the terms of the terms of the Expense Support and Conditional Reimbursement
Agreement, the reimbursement of fees waived shall be made from excess operating funds, if any,

at the end of the calendar year. The Client’s obligation to reimburse fees waived shall terminate
three years following the date on which the expense support was provided to the Client

Item 7 – Types of Clients

We are the Advisor to CNL Strategic Residential Credit, Inc., who will be our sole Client. Our
Client will raise capital for operations through one or more offerings. We do not intend to have
any other clients.