Sculptor Capital LP

Item 5 – Fees and Compensation
The Firm and its affiliates receive management fees and incentive income. The management fees
are a percentage of assets under management and the incentive income is based on net capital
appreciation.

Multi-Strategy, Credit, and Real Estate Funds
Typically, Funds that are managed on a multi-strategy basis pay a management fee that generally
ranges from 1% to 2% annually. Typically, Funds that are managed pursuant to a credit strategy
pay a management fee that generally ranges from 0.25% to 1.75% annually. Typically, Funds that
are managed pursuant to a real estate strategy pay a management fee that generally ranges from
0.75% to 1.5% annually.

For such Funds, Sculptor offers lower fees for Fund investors that exceed a certain amount of
capital commitment. The management fee is typically based on the net asset value of the applicable
Fund and is generally accrued monthly and billed quarterly in advance. However, fees for certain
Funds are calculated differently, as the management fee rate applicable to a Fund investor is
generally based on the amount of capital committed by each investor (see the chart with respect to
commingled real estate Funds below). The offering documents of each Fund provide more detailed

information regarding management fees. In addition, for more detailed information on investment
strategies, please refer to “Investment Strategies and Related Risks” under Item 8 below.

Management fees for our commingled real estate Funds are generally determined based on the
following fee schedule:
                            Capital Commitment                Management Fee
                            Up to and including $49,999,999       1.50%
                            $50,000,000 to $99,999,999            1.25%
                            $100,000,000 to $199,999,999          1.00%
                            $200,000,000 or more                  0.75%

Certain Funds, including some of the real estate Funds, may offer lower fees for clients of
investment consultants if the consultant’s clients reach a certain amount of capital commitments
in the aggregate, or fee holidays for investors that invest within a certain period after the initial
launch of a Fund.

The Management Fee paid by certain Funds (including certain real estate Funds), is subject to a
100% offset for (i) organizational expenses that are born by the Fund above a cap, (ii) placement
fees, and/or (iii) fee income (i.e., directors’ fees, transaction fees, investment banking fees, break-
up fees, advisory fees, monitoring fees, or other similar fees received by Sculptor in connection
with the consummation, holding or disposition of a portfolio investment or termination of an
unconsummated investment).

Sculptor also receives incentive income, typically 20% of the net capital appreciation allocated to
each Fund, subject to certain limitations. Management fees and incentive income are calculated
based on the terms set forth in each Fund’s offering materials and other constituent documents.
Investors should review carefully the specific terms set forth in the relevant Fund’s offering
documents.

Management fees and incentive income are generally subject to modification, waiver or reduction
by Sculptor. Sculptor negotiates specific terms of investment for certain investors that differ from
the terms applicable to other investors. As a result, certain investors receive additional benefits
that other investors will not receive, such as economic arrangements. Fees may differ from one
Fund to another, as well as among investors in the same Fund or tranche.

Different tranches of interests in certain Funds have materially different terms, including but not
limited to terms regarding: (1) fees charged; (2) minimum subscriptions; (3) withdrawal rights; (4)
investment options; (5) rights to receive interest and other investment income; (6) denomination
of currency; and (7) performance hurdle terms. In accordance with the terms of the Funds, Sculptor
generally is permitted to open new tranches for Funds that have different terms at the request of
an incoming investor. When opening new tranches, the Firm sometimes grants requests from
existing investors to transfer their interest in the relevant Fund to the newly established tranche,
subject to certain terms and conditions; Sculptor also issues interests in the new tranche to persons
and entities with whom the firm is affiliated. From time to time, Sculptor permits affiliated

investors to withdraw from the Funds more frequently than other investors, and also typically
waives management fees and incentive allocations for affiliated investors.

Certain other types of Funds managed by Sculptor are assessed fees on a different basis. These
Funds, including real estate funds, are charged a management fee generally based on capital
commitments or contributed capital, and incentive income is paid out upon divestment of portfolio
holdings, subject to the distribution waterfall specified in the Fund’s organizational documents,
which could include a preferred return hurdle that must be achieved before incentive income is
allocated to the Firm.

Collateralized Loan Obligations, Collateralized Bond Obligations, other
Securitized Vehicles, or Collateralized Fund Obligations
Management fees for CLOs and/or collateralized bond obligation (“CBO”) vehicles sponsored or
managed by the Firm (each an “Affiliated CLO” and/or an “Affiliated CBO”) generally range from
0.25% to 0.50% annually of assets under management. Sculptor also receives incentive income,
typically 20% of the excess cash flows due to the holders of the subordinated notes, subject to a
stated hurdle rate. CLO and CBO investors and prospective investors should carefully review the
fees and expenses associated with any investment product in which they invest.

From time to time, Sculptor provides, or seeks to provide, advisory, asset management or other
...

Item 7 – Types of Clients
As noted in Item 4 above, Sculptor and its affiliates provide portfolio management services to
Funds (which may be organized as domestic or foreign partnerships, corporations, incorporated or
unincorporated entities, or other similar entities), CLOs, CBOs and/or other securitized vehicles,
and SMAs, for institutional clients such as financial institutions, public and private pension funds,
sovereign wealth funds, endowments, and foundations. Certain Funds require a minimum initial
investment of $5 million, which may be waived at the Firm’s sole discretion.

Termination provisions for advisory contracts are as follows: (1) generally, the Funds’ investment
advisory contracts may be terminated as of December 31 of any year upon 90 days’ prior written
notice, although certain Funds’ advisory contracts may be terminated under other conditions set
forth in each specific contract; (2) investment advisory contracts for real estate Funds generally
may be terminated upon 60 days’ prior written notice by either party, although certain advisory
contracts may be terminated under other conditions set forth in each specific contract; (3)
termination provisions for advisory contracts for SMAs are subject to negotiation but generally
can be terminated upon mutually agreeable terms; and (4) generally, the collateral management
agreement for an Affiliated CLO, Affiliated CBO or Affiliated Securitization may be terminated
for certain cause events described therein and upon the liquidation of the Affiliated CLO, Affiliated
CBO or Affiliated Securitization or the satisfaction and discharge of the Affiliated CLO, Affiliated
CBO or Affiliated Securitization in accordance with the terms of its governing documents.

The beneficial owners of SMAs may receive more information (including portfolio composition
information) and have more favorable liquidity rights than investors in the Firm’s other Clients.
Sculptor may also negotiate fees with beneficial owners of SMAs that may be more favorable than
the fees in place for comparable Fund tranches. The opportunity to open an SMA is not available
to all prospective investors and is generally subject to minimum asset levels at Sculptor’s sole
discretion. Sculptor’s decision whether to allow a prospective investor to open an SMA is made
based on a variety of factors and in Sculptor’s sole discretion.