Four Corners Capital Management LLC

Item 5 – Fees and Compensation
FCCM charges its clients a base management fee for investment advisory services. This fee,
charged in arrears, is expressed either as a percentage of gross or net assets under
management. Gross and net assets may be calculated utilizing cost, par value, fair market
value (or other mutually negotiated measures) of corporate loans, notes, high yield bonds,
and/or other debt securities. In some cases performance fees may also be charged in addition
to the base management fee. These fees are in accordance with Rule 205-3 under the
Investment Registrants Act and are typically based on achieving returns exceeding a
specified yield or hurdle rate (e.g. an achieved IRR or short term interest rate, usually based
on LIBOR or some equivalent). FCCM’s clients currently pay a fee of 60 basis points of gross
assets under management. Specific fee arrangements, including the amount, timing and
basis of calculation, are determined through negotiations with clients. These negotiations are
influenced by various factors, including the investment advisory services to be rendered, the

size of the account, the participation of the client in other advisory programs at FCCM and
its affiliates and other assets of the client managed by FCCM. Fees associated with the
structuring of certain types of investment accounts are charged based upon many factors and
are separately negotiated; FCCM does not have a fee schedule for such non- advisory related
services.

Item 7 – Types of Clients

In addition to banks, registered investment companies and corporations, FCCM’s clients may
include limited partnerships, public employee retirement associations and offshore special
purpose vehicles (“SPVs”) specifically designed for investment in CLO/CDO transactions and
other pooled investment accounts. FCCM advises accounts that will either purchase a
portfolio of assets directly or acquire the risk of a reference portfolio of assets indirectly
through total return swap agreements or similar financing arrangements as described above.
Typically, FCCM clients are classified as sophisticated investors and have substantial
experience investing in the senior secured corporate loan or other financial and debt markets.

FCCM may also count as clients, certain affiliated firms or entities that control or are under
common control with FCCM. The Registrant’s ultimate parent is Macquarie Group Limited
(“MGL”), a multi-national financial services company. Therefore, the Registrant is affiliated
with a number of entities that provide, and/or engage in commercial banking, insurance,
brokerage, investment banking, financial advisory, broker-dealer activities (including sales
and trading), hedge funds, real estate and private equity investing, in addition to the
provision of investment management services to institutional and individual investors.