Serone Capital Management LLP

ITEM 5.      FEES AND COMPENSATION

Investment Advisory Fee Schedule

Typically, Serone deducts management fees (“Management Fees”) from the Fund’s assets,
typically in arrear, on a monthly or quarterly basis. Management Fees vary depending on the class
of interests or shares, but the range is typically between 0.5% - 2% of the net asset value
attributable to the capital account of each Investor. The Adviser may also receive performance-
based compensation, subject to each Fund’s offering documents (“Performance Allocation”).

For one of the Funds managed by the Adviser, the latter receives fixed Management Fees with no
Performance Allocation.

Generally, such fees are not negotiable; however, in certain cases, the Adviser may waive or reduce
Management Fees or Performance Allocation for certain Investors, including for employees and
affiliates.

The terms for payment of fees and expenses regarding any SMA are negotiated on an account-by-

account basis and set forth in the applicable investment management agreement or other similar
agreement.

CLO Management Fee Schedule
The Adviser, as Co-Collateral Manager, is entitled to receive from the CLO Vehicles, in arrear, a
senior and subordinated co-collateral management fees calculated at a fixed per cent of an annual
percent of the fee basis for the relevant payment date, as set out in the relevant offering circular or
transaction documents. Serone may also be entitled to an incentive co-collateral management fee
from the CLO Vehicles pursuant to the collateral management and administration agreement in an
amount, as determined by the Collateral Administrator. Further information on how fees are
calculated is provided in the relevant offering document.
Subject to the relevant transaction documents, the Adviser will generally not receive any collateral
or incentive management fees during the warehouse phase, in consideration of being appointed as
the collateral manager of the Client upon the closing of the CLO Transaction. The Adviser will
generally bear its own costs and expenses during the warehouse phase, which might or might not
be reimbursed out of the proceeds of the securities issued at the closing of the CLO Transaction.
The relevant Governing Documents may set forth different treatments for incurred costs and
expenses, depending on whether the CLO Transaction occurs.

Side Letters

As a general matter, the Adviser owes certain fiduciary duties to each Client, which requires that
the Adviser act in good faith and in what the Adviser considers to be the best interests of each
Client. In doing so, the Adviser also will endeavor to act in a manner that ensures the fair treatment
of the respective Fund’s Investors. The Adviser may, without the approval of any Investor, from
time to time, enter into agreements with certain Investors that provide for terms that are different
from those described in the pertinent private placement memorandum (“side letters”). Such side
letters or other similar agreements may not impose any additional obligations or liabilities on any
other Investor not party to such agreement.

The types of Investors who receive preferential treatment or have the right to receive preferential
treatment may include: cornerstone Investors or Investors of strategic importance to the Funds;
Investors complying with specific legal, tax and/or regulatory requirements; affiliates of the
Adviser; and seed Investors.

Rights or terms that a side letter may alter may include, but are not limited to: (i) rights or terms
necessary in light of particular legal, regulatory or public policy characteristics of an Investor;
preferential fee terms; (iii) preferential terms relating to liquidity and/or transfer; (iv) enhanced
transparency and reporting; and (v) “most favored nation” rights. Such side letters or similar
agreements will not, however, combine preferential information rights with preferential
redemption rights to the detriment of other Investors.

Additional Fees and Expenses

For the Funds, in addition to Management Fees and, if applicable, Performance Allocation
described above, each feeder fund bears its own operational expenses and its pro rata share of the
master fund’s operating expenses, including, without limitation: expenses of the continuous

offering of interests (including the cost of producing, updating and distributing offering
memoranda and other offering materials); fund accounting software; fees and expenses of
professionals or service providers retained by the Adviser in its discretion to advise in connection
with the respective Fund's investment activities, including additional performance-based or fixed-
asset-based fees payable to sub-advisors and/or co-investors, legal, audit, regulatory and tax
preparation and filing expenses and other expenses (including expenses related to particular
portfolio positions or strategies); third-party fund administration and Investor servicing fees and
expenses; investment research expenses, consulting and legal fees related to investment research,
investment-related travel expenses; fees for market data and research analytics services, trade order
management systems, risk management software, computer, newswire, quotation services and data
processing charges; periodical subscription fees, printing costs, postage and other operating
expenses; interest expenses, insurance expenses, director's fees (if applicable), depositary and
custody fees (including any sub-custodian or delegates), bank charges; transaction-related costs
including brokerage commissions, mark ups and mark downs, and clearing expenses, margin
interest expenses; spreads, short dividends, currency hedging costs, as well as the costs of
preparing and filing regulatory filings of the applicable feeder fund, the master fund, the Adviser,
or any of their respective affiliates in connection with their respective activities relating to the
...

ITEM 7.      TYPES OF CLIENTS

As described in Item 4 above, Serone offers investment advisory services to Funds, SMAs and CLO
Vehicles, with the latter being structured as special-purpose vehicles. The Adviser anticipates
offering services to certain CFO issuer vehicles in the future.

Investors in the Funds include institutional investors meeting the terms of the exceptions and
exemptions under which each Fund operates. Serone generally requires, with some exceptions that
may be granted at the sole discretion of Serone, that the Investors invest no less than 1,000,000 in
EUR, GBP or USD.

With respect to any SMA, the client of such account must be deemed a “Qualified Client” as defined
in Rule 205-3 under the Advisers Act, as well as meet certain sophistication requirements. Minimum
initial investment requirements for any SMA will vary depending on the agreement with the Client
and are set at Serone’s discretion.

Where the Adviser acts as Co-Collateral Manager, the notes issued by the CLO Vehicle are offered
to qualified institutional buyers and qualified purchasers by the arrangers or placement agent of the
relevant CLO Transaction.