LibreMax Capital LLC

Item 5. Fees and Compensation

The following provides a general description of fees, compensation and expenses relating to the
Adviser’s advisory relationships with its clients, which are generally limited to the CLO funds.
The governing documents and offering documents of the CLO funds describe the fees,
compensation and expenses specific to each CLO fund in greater detail.

As compensation for the portfolio management obligations under the relevant investment
management agreements with the CLO funds, the Adviser generally receives, for its investment
advisory services, two types of fees: management fees and incentive fees.

Management Fees. CLO funds that retain the Adviser directly as an “Investment Manager” pay
fees based on the total principal amount of their portfolio investments in debt securities. In
general, the management fees are assessed and calculated with respect to the following:

   •   The CLO funds pay their investors and their service providers, including the Adviser,
       according to established priorities. The source of payments is investment returns from
       portfolio investments.
   •   The Adviser’s management fee is paid at two different priorities; one prior to payment of
       amounts payable to senior investors (the “Senior Investment Management Fee”) and one
       subsequent (the “Subordinated Investment Management Fee”). The Senior Investment
       Management Fee and the Subordinated Investment Management Fee rate will be based
       on a percentage of the “fee balance,” which is the aggregate principal balance of the loan
       obligations and other eligible investments, as provided under the relevant agreements of
       the CLO funds.
   •   Fees are generally paid by the CLO funds quarterly in arrears.
   •   Upon termination of the investment management agreement (the “Investment
       Management Agreement”) for any reason both the Senior and Subordinated Investment
       Management Fees will be prorated for any partial period between quarterly payment
       dates.

Incentive Fees. CLO funds that retain the Adviser as Investment Manager may also pay incentive
fees. Payment of this fee depends on whether the fund has met all senior payment obligations
and whether the fund has met certain minimum standards of investment return with respect to one
or more junior classes of securities. Generally, the incentive fee is equal to 20% of the amount
available for distribution by the fund once all prior payment obligations are satisfied, and is paid
quarterly in arrears.

Other Fee Considerations. The CLO funds may invest in securities and other assets that are
illiquid and lack a readily assessable market value.

The Adviser may also waive fees to noteholders under certain circumstances. The Adviser has
entered into certain arrangements with certain noteholders where such noteholders effectively

pay lower fees. This arrangement could provide further incentive for the Adviser to make more
speculative investments than would otherwise be the case.

In the event of a termination of an advisory contract, the Adviser may be compensated pro rata
for the period for which advisory services were rendered.

Neither the Adviser nor any of its supervised persons accepts compensation for the sale of
securities or other investment products.

Expenses. The CLO funds do incur and may be responsible for other expenses separate and apart
from the Adviser’s investment management or performance fees. The CLO funds reimburse the
Adviser for expenses incurred by the Adviser and its affiliates, including LibreMax Capital, in
the performance of the Adviser’s services, and these expenses typically may include:

   •   costs and expenses incurred in connection with the negotiation and preparation of CLO
       fund agreements;
   •   costs and expenses associated with the acquisition, origination, holding and disposition of
       investments;
   •   costs and expenses with respect to any workout, restructuring, recapitalization,
       amendment, waiver or consent of or with respect to certain investments and the protection
       or enforcement of rights thereunder;
   •   costs and expenses in connection with the acquisition of director and officer insurance;
   •   legal, custodial, accounting, audit, specialty and custom software, and related costs and
       expenses for the monitoring of the investments;
   •   expenses incurred in obtaining credit ratings on investments; and
   •   certain other fees and expenses that may be authorized under a CLO fund’s governing
       documents or investment management agreement.

While each client bears its own expenses, expenses borne by one client may differ from the
expenses borne by another client. In certain instances, a client may bear expenses that the Adviser,
or its affiliates, has itself agreed to bear on behalf of one or more other clients. Expense policies
and practices of the Adviser or of the Adviser’s clients often differ (and may materially differ)
from those of LibreMax Capital.

Expenses frequently will be incurred on behalf of one or more clients of the Adviser and its
affiliates, including the clients of LibreMax Capital. The Adviser and its affiliates seek to allocate
those common expenses among the clients in a manner that is fair and reasonable over time.
However, expense allocation decisions will involve potential conflicts of interest (e.g., an incentive
to favor accounts that pay higher incentive fees, or conflicts relating to different expense
arrangements with certain clients). The Adviser may use various methods to allocate particular
expenses among the clients depending on the circumstances (e.g., pro rata based on assets under
management, relative participation in the transaction related to the expense, general amount of
trading activity, etc.) and those allocation methodologies may themselves be subject to conflicts
...

Item 7. Types of Clients

The Adviser provides discretionary investment management services to private fund clients (i.e.,
the CLO funds). These private funds are not registered under federal securities laws and
generally are only offered to investors that are (1) “accredited investors” as defined under
Regulation D of the Securities Act of 1933, as amended (the “1933 Act”) and either “qualified
clients” as defined under the Investment Advisers Act of 1940 (the “Advisers Act”) or “qualified
purchasers” as defined under the Investment Company Act of 1940, as amended (the “Company
Act”) or (2) not “U.S. Persons” as defined under Regulation S of the 1933 Act. The CLO funds
have varying minimum investment amounts as described in the funds’ governing documents.