FS Structured Products Advisor LLC

ITEM 5 – Fees and Compensation

As compensation for the performance of its obligations as the collateral manager of
each of the Issuers, the Adviser will generally be entitled to receive from each Issuer,
subject to the terms and conditions of each Issuer’s governing documents, a senior
management fee, and a subordinated management fee, and may receive an incentive
or performance-based fee (collectively, the “Management Fees”). Generally, the senior
management fee has a higher priority in each Issuer’s priority of payment waterfalls,
and the subordinated management fee generally ranks below principal and interest
payments to senior note holders in the payment waterfalls.

The Adviser is entitled to earn a subordinated management fee if certain tests outlined
in each Issuer’s governing documents have been satisfied for all of the Issuer’s senior
note holders. The Adviser may also receive an additional management fee at the
closing of a CLO, subject to the CLO’s governing documents. The senior management
fees and subordinated management fees are typically paid by the Issuer(s) or its
trustee, quarterly in arrears, in accordance with its governing documents. Performance
fees are typically paid later in the Issuer’s lifecycle by the Issuer or its trustee, in arrears
if specific internal rates of return thresholds are achieved. All Management Fees are
billed and payable according to the priority of payments described in the applicable
offering circular and indenture of an Issuer. The Adviser may, in its sole discretion,
waive, reimburse, or delay all or part of such fees.

Generally, the Issuers (and, indirectly, the investors therein) bear all expenses as
defined in the offering circular and indenture of each Issuer, including: (i) legal, filing,
auditing, consulting, administration, accounting and other professional fees and
expenses; (ii) expenses associated with periodic reporting; (iii) expenses associated
with financial statements and tax returns; (iv) insurance, interest and other expenses
incurred in respect of borrowings, if any; (v) other expenses associated with the
acquisition, holding, monitoring, settlement and disposition of an Issuer’s investments
(including, without limitation, any brokerage, transaction, custody or hedging costs);
(vi) the costs and expenses of any custodians, lenders, investment banks and other
financing sources; (vii) any indemnity expenses; (viii) the costs and expenses of any
litigation involving an Issuer or its investments; and (ix) certain compliance related costs
and expenses.

For a more complete discussion of Issuer fees, compensation, and other expenses,
please refer to the governing documents for each Issuer and Item 12 – Brokerage
Practices.

As the Adviser establishes other relationships (e.g., additional clients), it may arrange to
receive different types of fees, including fixed fees or fees paid on some other
negotiated basis.

ITEM 7 – Types of Clients

The Adviser provides investment advice to issuers of collateralized loan obligations and
may, in the future, provide such advice to other structured finance vehicles.