Serone Capital Management LLC

ITEM 5.        FEES AND COMPENSATION

Management Fees. Under the Advisory Agreement, Serone receives from the Private Fund an
annual fee equal to twenty-five per cent (25%) of the management fee payable to Serone LLP,
which is to be netted off against the latter. The advisory fee is accrued daily and payable annually
in arrear, on or about the same time when the management fee becomes due and payable.

The Adviser will be entitled to receive from the CLO Vehicles a senior collateral management fee
and a subordinated collateral management fee, calculated at a fixed per cent of an annual percent
of the fee basis for the relevant payment date, paid in arrears, and as set out in the relevant offering
document. The Adviser may waive such fees in its sole discretion.

Incentive Fees. Serone may also be entitled to an incentive collateral management fee from the
CLO Vehicles pursuant to the relevant collateral management agreement, in an amount calculated
as a percentage of returns in excess of an initial hurdle, and as determined by the collateral
administrator. Further information on how fees are calculated is provided in the relevant governing
documents, including the indentures, the collateral management agreement, the offering
documents or other related documents (collectively, the “Governing Documents”).

Other Fees and Expenses. The relevant Governing Documents set forth the categories of
expenses to be borne by each Client as well as those to be borne by the other parties, including the
Adviser. Generally, the Client will bear all organizational expenses, investment-related expenses,
operational expenses, and (if any) fees to service providers such as those owed to the paying agent
or the collateral administrator.

CLO Vehicle Operating Expenses. In addition to the expenses described above, each CLO
Vehicle, subject to the relevant Governing Documents, will typically pay or otherwise bear all of
the direct and indirect fees, costs, expenses and other liabilities or obligations resulting from or
arising in connection with its operations (collectively, the “CLO Operating Expenses”). The CLO
Operating Expenses of a particular CLO Vehicle are set forth in its Governing Documents and can
include, without limitation, fees, costs, expenses and other liabilities related to, arising from or
incurred in connection with the following:

           legal advisers, consultants, rating agencies, accountants, placement agents (whether
            acting as initial note purchasers or otherwise), brokers and other professionals that
            Serone, its affiliate(s) or the CLO Vehicle retains or employs in connection with the
            CLO Vehicle and/or the issuance of CLO Vehicle securities;
           asset pricing and asset rating services, independent review party services, appraisal
            services, hedging services, custodial, trustee, transfer agent and recordkeeping services,
            collateral management services, collateral administration services, compliance
            services;
           software, and accounting, programming and data entry services directly related to the
            CLO Vehicle and/or the management of CLO Vehicle assets;
           all taxes, regulatory and governmental charges (not based on income) and insurance

    premiums, insurance retention amounts or expenses;
   the acquisition or disposition of investments on behalf of the CLO Vehicle (whether or
    not actually consummated), including where such acquisitions or dispositions are
    effectuated through an affiliate;
   the management of the CLO Vehicle assets, including attorneys’ fees and
    disbursements and hedging fees and expenses;
   preparing reports as required under the Governing Documents or as requested;
   reasonable travel expenses (including, without limitation, airfare, meals, lodging and
    other transportation) undertaken in connection with the performance of duties pursuant
    to the relevant Governing Documents;
   risk management assessments and analysis of such CLO Vehicle assets;
   expenses and costs in connection with any investor conferences;
   any broker or brokers in consideration of brokerage services in connection with the sale
    or purchase of any CLO Vehicle assets or of any subsidiary thereof, or received in
    connection with any such CLO Vehicle assets;
   bookkeeping, accounting, or recordkeeping and reporting services obtained or
    maintained with respect to the CLO Vehicle;
   software programs licensed from a third-party that are used in connection with
    servicing the CLO Vehicle assets;
   obtaining the market value of the CLO Vehicle assets (including without limitation fees
    payable to any pricing service);
   audit costs incurred in connection with any consolidation review;
   any costs and expenses in connection with compliance with any applicable risk retention
    regime;
   maintaining such CLO Vehicle and any of its subsidiary entities, including fees, costs
    and expenses incurred in the organization and restructuring of such subsidiary entities;
   insurance allocated to such CLO Vehicle (including Serone’s group insurance policy,
    general partner’s, directors’ and officers’ liability or other similar insurance policies,
    errors and omissions insurance, financial institution bond insurance and any other
    insurance for coverage of liabilities to any person that are incurred in connection with
    activities of such CLO Vehicle, litigation expenses, (including expenses incurred in
    connection with the investigation, prosecution, defense, judgment or settlement of
    litigation) and other extraordinary expenses (including fees, costs and expenses that are
    classified as extraordinary expenses under U.S. generally accepted accounting
    principles);
   such CLO Vehicle’s indemnification obligations (including any fees, costs and
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ITEM 7.       TYPES OF CLIENTS

As described in Item 4 above, Serone will provide investment advisory services to the Private Fund
and the CLO Vehicles, and anticipates offering such services to certain CFO issuer vehicles in the
future.

The securities issued by the CLO Vehicle in the form of rated and unrated notes will be offered to
qualified institutional buyers and qualified purchasers by the arranger(s) of the relevant CLO
Transaction.