Garrison Investment Group LP

Item 5. Fees and Compensation

Each Client is governed by an LPA and/or other Governing Document, including investment
advisory agreements, that sets forth in detail the fee structure relevant to that Client. The terms of
the LPAs are generally established during the fundraising period of the applicable Client.
Management fees, Carried Interest and expenses (each as described below) are generally
negotiated with prospective investors during the fundraising period. The following description of
fees and expenses borne by the Clients is not intended to be exhaustive. Prospective and existing
investors are advised to review the applicable Client offering documents, LPA and other
Governing Documents for further information regarding the fees and expenses associated with an
investment in the Clients.

Management Fees. Pursuant to a Client’s LPA or other Governing Documents, compensation paid
to us in consideration of our investment advisory services is generally comprised of a management
fee (the “Management Fee”) based on a percentage of the Client’s capital commitments during
the investment period (i.e., the period during which a Client may make new investments), and
thereafter based on a percentage of capital invested. Management fees payable in relation to a

particular Fund may also be based on a blended percentage of capital commitments and capital
invested or alternatively on the net asset value of the applicable Client. The typical asset-based
management fee payable by a Client with respect to a non-commitment Fund ranges from .75% to
2% of the net asset value of a particular Fund. The typical asset-based management fee payable
by a Client with respect to a Commitment Fund (defined below) ranges from 1.5% to 2% generally
of funded commitments but may also be calculated based on unfunded commitments.

Performance-Based Fees. In the case of Clients whose investors are not permitted to withdraw
capital or transfer their interests without General Partner or Managing Member consent (each a
“Commitment Fund”), GIG affiliates, in their role as General Partners or Managing Members, are
generally eligible to receive Carried Interest (as defined in Item 6 below), with respect to realized
investments, which is generally determined as a percentage of profits derived from the disposition
of all investments (after taking into account expenses of the Fund, including management fees,
following a preferred return to investors). If the payment of the Carried Interest results in a
distribution in excess of the amount of Carried Interest contemplated in the Governing Documents
to the applicable Fund’s General Partner or Managing Member, such General Partner or Managing
Member is generally subject to a “claw back” arrangement in which instance the excess amounts
are returned to the Fund. The Carried Interest allocable to a General Partner or Managing Member
in a Commitment Fund typically ranges from 15% to 25% of the profits, derived from the
disposition of all investments (after taking into account expenses of the applicable Client,
including management fees, and following a preferred return or IRR hurdle to limited partners or
members ranging from 5% to 9% per annum).

In the case of Clients whose investors are generally permitted, at their option, to withdraw their
capital at various intervals during the life of the Fund (each, an “Open-End Fund”), the General
Partner or Managing Member of an Open-End Fund is typically entitled to receive a Carried
Interest at the end of each year (and upon withdrawals from the Open-End Fund) of between 18.5%
and 20% of the Open-End Fund’s increase in the Fund’s net asset value that is attributable to the
capital account of each investor in such Open-End Fund during the preceding year (or portion
thereof, in the case of withdrawals); such Carried Interest, however, is generally subject to a
minimum IRR or preferred return hurdle. However, the General Partner or Managing Member
will not be allocated any Carried Interest with respect to an investor’s capital account until the
investor has recovered any net capital depreciation attributable to its capital account (as adjusted
for withdrawals of capital). Certain defined holdback or clawback provisions may prohibit
distributions (in whole or part) to the General Partner or Managing Member for a period of time.

General Disclosure

Clients are Subject to Different Fee Arrangements. The Governing Documents provide for
different Management Fees, Carried Interests, and/or hurdle rates for each Client as set forth in the
applicable LPAs and/or other Governing Documents. Further, we have the right to waive or
reduce, from time to time, all or part of the management fee and Carried Interest, respectively,
with respect to (i) certain Fund investors (including, but not limited to, our affiliates and employees
(and their families) who may invest in Clients through investment vehicles managed by us), as
well as (ii) certain co-investors and unrelated persons, in each instance, without waiving or
reducing the Management Fee or Carried Interest to be paid by other Clients or investors. The
Management Fees and Carried Interest may also be reduced toward the end of the life of a Fund

under certain circumstances. In addition, certain investors in certain special purpose Funds that
invest alongside other Funds in one, some or all investments may pay reduced Management Fees
and/or may not be subject to the payment of a Carried Interest in connection with their investments
in such special purpose Funds. Further, where a Client holds an interest in another Client, certain
fees of the investing Client may be offset to the extent fees are charged at the level of the other
Client.

Transaction Fees. In addition to the Management Fees and Carried Interest, we may also receive
transaction fees, break-up fees, commitment fees, investment banking fees, directors’ fees, asset
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Item 7. Types of Clients

We provide investment advisory services to Clients that generally pursue investment opportunities
in consumer finance-related assets, platforms and businesses, financial assets, the corporate middle
market, the shipping industry, and real estate and real estate-related assets. Investors in the Clients
generally consist of state pension funds, corporate pension funds, endowments, foundations,
pooled investment vehicles (e.g., funds of funds), sovereign wealth funds, and high net worth
families and individuals. Additionally, investors may constitute plan assets under ERISA.
Investment advice is provided directly to the Clients and not individually to the investors in the
Clients.

Details concerning applicable investor suitability criteria are set forth in the respective Client’s
Governing Documents. The minimum commitment to the Clients is generally $5 million although
we may accept commitments for lesser amounts depending on a variety of factors including but
not limited to the prospective investor’s size, investment strategy and level of required portfolio
servicing. Certain special purpose vehicles do not operate with committed capital. Each investor

in a Client is required to meet certain suitability qualifications, such as being an “accredited
investor” within the meaning set forth in Rule 501(a) of Regulation D promulgated under the
Securities Act of 1933, as amended and may also need to be a “qualified purchaser” within the
meaning of the 1940 Act.

GIG, the GIG Managers, and/or the relevant General Partner or Managing Member may enter into
separate agreements, commonly referred to as “side letters”, with certain investors in the Funds,
which may have the effect of establishing preferential rights under, altering, or supplementing the
terms of, the LPA (or other Governing Documents) of the applicable Fund with respect to such
investor, in a manner more favorable to such investor than those applicable to other investors in
such Fund. Such rights or terms pursuant to such side letters may include, for example (and
without limitation), fee arrangements or hurdle rates with respect to an investor, reporting
obligations, waiver of certain confidentiality obligations, consent to certain transfers or
withdrawals by an investor, or rights or terms necessary in light of particular legal, regulatory, or
tax requirements or concerns of an investor. The provisions set forth in any such side letter are
generally available for review (but not necessarily adoption) by all of the investors in the relevant
Fund that have entered into side letters, following the final closing date of such Fund.