Flatiron RR LLC Manager Series

Item 5: Fees and Compensation

A.     FEES AND EXPENSES
The fee for investment advisory and management services (including collateral management
services) provided by us to CLOs generally consists of a senior management fee, a subordinated
management fee and a performance fee (also referred to as an incentive management fee). The
rate, calculation method, and payment method for our fees are set forth in the collateral
management agreement between the Adviser and the CLO, or in the organizational documents
for the CLO, and are customarily disclosed in the private placement memorandum or other
offering documents for the CLO. There is no standard fee schedule for services provided by the
Adviser to CLOs. The amount of such fees are calculated and billed by the trustee or
administrator of the CLO.

The Adviser does not currently engage in any directed brokerage arrangements with any of its
clients or participate in any soft dollar relationships with other firms for research or any other
service. Brokerage fees, which are not included in the fee for investment advisory and
management services that you pay to us, affect your account during the trade execution process.
Please refer to “Brokerage Practices” section below for additional information regarding our
process for selecting brokers to execute transactions in client accounts.

CLO investors will be subject to certain other fees and expenses, such as the payment of issuer
and co-issuer taxes, governmental fees and registered office fees, as disclosed in the applicable
offering and governing documents. CLO investors will also be subject to certain administrative
expenses. Administrative expenses are fees, expenses (including indemnities) and other amounts
due or accrued and payable in the following order by the issuer or the co-issuer: first, to the
trustee pursuant to the indenture, second, to the bank (including in its capacity as collateral
administrator), third, on a pro rata basis, the following amounts (excluding indemnities) to the
following parties: (a) the independent accountants, agents (other than the collateral manager) and
counsel of the issuer for fees and expenses; (b) the rating agencies for fees and expenses
(including any annual fee, amendment fees and surveillance fees) in connection with any rating
of the rated notes or in connection with the rating of (or provision of credit estimates in respect
of) any collateral obligations; (c) the collateral manager, including expenses relating to
compliance by the issuer and the collateral manager with the Commodities Exchange Act (but
excluding management fees payable to the collateral manager); (d) the administrator pursuant
and the anti-money laundering service provider; and (e) any other person in respect of any other
fees or expenses permitted under the indenture and the documents delivered pursuant to or in
connection with the indenture (including any costs or expenses arising from complying with the
Foreign Account Tax Compliance Act (“FATCA”) and/or the Cayman FATCA legislation, any
costs associated with satisfying European Union and United Kingdom retention requirements
(including any costs or fees related to additional due diligence or reporting requirements), costs
related to any issuer subsidiary, the payment of facility rating fees and all legal and other fees
and expenses incurred in connection with the purchase or sale of any collateral obligations and
any other expenses incurred in connection with the collateral obligations) and the notes,
including but not limited to, amounts owed to the co-issuer pursuant to the indenture and any
amounts due in respect of the listing of the notes on any stock exchange or trading system; and
fourth, on a pro rata basis, indemnities payable to any person pursuant to any transaction
document or the purchase agreement.

ITEM 7: TYPES OF CLIENTS
As discussed in detail in the “Advisory Business” section above, the Adviser serves as the
collateral manager of and provide discretionary management services to the CLOs. CLOs
generally impose certain terms and conditions on their investors as described in more detail in
the CLO’s offering documents. Generally, investors in a CLO are qualified institutional buyers,
accredited investors, or non-US persons.