Eagle Point Credit Management LLC

Item 5. Fees and Compensation

General

Eagle Point generally receives advisory fees in connection with the investment management services it provides
to the Accounts. In addition, with respect to certain Accounts, including certain Private Funds and the Registered
Funds, Eagle Point and/or the applicable General Partner is entitled to receive certain performance-based
allocations or payments (generally referred to in this Brochure as “incentive allocations”). The particular fees
applicable to an Account are set forth in the investment advisory agreement applicable to such Account or, in the
case of a Private Fund or a Registered Fund, are also described in the applicable Governing Documents or
disclosure documents, as applicable.

Prospective investors and clients should be aware that Eagle Point’s fees change over time and that different fee
schedules will likely apply if Eagle Point adopts new investment strategies or establishes additional Accounts in
an existing strategy, or a prospective investor or client negotiates a different fee schedule. Specific fee
arrangements applicable to any Account are generally subject to negotiation in Eagle Point’s sole discretion based

on, among other factors, the nature of the strategy and services to be provided by Eagle Point, total dollar amount
invested (or the amount committed to be invested) with Eagle Point or its affiliates, regulatory and reporting
requirements, the time that a particular Account commences operations, requested customization, and any other
relevant factors, including employment or familial relationships with Eagle Point, its affiliates or the principals
thereof. As such, one or more separately managed accounts or other Private Funds managed by Eagle Point that
pursue the same or a substantially similar strategy as a Private Fund or other Account could likely have different
fee arrangements, which difference could be material. In addition, a General Partner may waive or reduce
management fees and/or incentive allocations in respect of an investor’s investment in a Private Fund or other
Account in its sole discretion.

It is important that clients refer to the respective Governing Documents, Account agreements or other disclosure
documents, as applicable, for a complete understanding of fees and other forms of compensation. The
information contained herein is a summary only and is qualified in its entirety by such materials.

Fees

Eagle Point does not maintain a fixed fee schedule for client Accounts. Generally, an Account may pay a
management fee of up to 2.25% (on an annualized basis) based on a percentage of either the net asset value of
an Account, the gross asset value of an Account, the capital committed by a client to an Account, the capital
invested by a client, or such other reference amount as negotiated with a client. The management fee is generally
payable on a quarterly basis and may be deducted from an Account or otherwise billed to a client as set forth in
the applicable investment advisory agreement. Management fees are generally payable in arrears. However, in
the event that an Account pays fees to Eagle Point in advance, a pro rata portion of such fees will be refunded in
the event that an Account is terminated prior to the end of the applicable billing period based on the number of
days elapsed during such period. The management fees payable by the Private Funds and Registered Funds are
set forth in their applicable Governing Documents or public filings, as applicable.

In addition, certain Accounts, including the Private Funds and the Registered Funds, are assessed an incentive
allocation of up to 20% (or such other percentage if agreed by a client) of all net profits (or, in the case of a
Registered Fund, net investment income) allocable to the Account during a particular performance period, which
may be quarterly or annually or may extend to the life of the Account. Such incentive allocation may be, and in the
case of the Private Funds and the Registered Funds is, subject to certain specified preferred returns or hurdle
amounts. Further, in the case of certain Private Funds or Accounts, such incentive allocation is also subject to a
loss recovery account, or “high water mark.” As with the other fees applicable to an Account, the incentive
allocation applicable to an Account is described in the applicable investment advisory agreement and/or
Governing Documents (or other similar disclosure document).

Expenses of the Investment Manager

Eagle Point is generally responsible for the payment of its normal operating overhead and administrative
expenses, including, but not limited to, the compensation of its employees, office rental, secretarial, clerical and
bookkeeping expenses and travel and entertainment expenses (excluding investment-related travel expenses).

Other Expenses

Each Account, including each Private Fund and Registered Fund, pays certain other fees, expenses and costs (in
addition to the Firm’s management fee and incentive allocation), which may include, among others: (1)
organizational and offering expenses (including expenses associated with the organization of investment
subsidiaries or other subsidiaries); (2) fees, costs and expenses related to the origination, purchase, holding,
monitoring, transfer and disposition of assets (to the extent not reimbursed); (3) costs and expenses related to
borrowings or other forms of indebtedness incurred by the Accounts; (4) fees, costs and expenses related to
CLOs, loan accumulation facilities or other financing vehicles, and other types of pooled investment vehicles
(including, for example, any management or similar fees payable to a CLO’s collateral manager or a fund’s

investment adviser), to the extent that an Account has a direct or indirect equity interest therein; (5) taxes, fees or
other governmental charges levied against an Account; (6) other investment-related expenses (including, as
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Item 7. Types of Clients

As discussed in “Item 4 – Advisory Business,” Eagle Point currently provides discretionary investment
management services to the Accounts. As described above, the terms and conditions of the Accounts vary
depending on the type of services provided or the type of client, and these terms and conditions also vary among
Accounts. The minimum investment applicable to an Account is subject to negotiation between Eagle Point and
the applicable client. In addition, the Private Funds generally impose a minimum initial investment (or capital
commitment) of $5,000,000 for most institutional investors. In certain circumstances, such investment
minimums may be reduced by the applicable General Partner in its sole discretion.

Because each of the Private Funds is exempt from registration under the Investment Company Act pursuant to
Section 3(c)(7) thereof, interests in the Private Funds are restricted to certain investors. Specifically, investors
who are eligible to invest in the Private Funds must be (1) persons who are not “U.S. persons” as defined in
Regulation S under the Securities Act of 1933, as amended (“Securities Act”), who are also “Non-United States
Persons” as defined in Commodity Futures Trading Commission Rule 4.7, or (2) persons who are both “accredited

investors” (as defined in Regulation D under the Securities Act) and “qualified purchasers” or “knowledgeable
employees” of the Firm (each as defined under the Investment Company Act).

Separately managed accounts are generally managed on behalf of institutional investors or high net worth
individuals. In such cases, clients must generally qualify as one or more of the following: (1) a “qualified
purchaser” as defined under the Investment Company Act; (2) a “qualified institutional buyer” as defined under
Rule 144A under the Securities Act; and/or (3) a “qualified client” as defined under the Advisers Act.