SPP Credit Advisors II LLC

Item 5. Fees and Compensation
Fees

The Adviser charges fees based upon the value of the assets in the applicable accounts, the general
performance of the accounts and particular characteristics of certain assets in the applicable accounts [(e.g.,
fees related to original issue discount with respect to certain notes)].

Fees will be negotiated with ACAP and reflected in the sub-Advisory agreement between the Adviser and
ACAP. Whether fees are deducted from account assets, invoiced directly to the Other Clients, or invoiced
to the Adviser will be as agreed between the Adviser and ACAP.

The Adviser does not have a set fee schedule, as all fees are negotiated.

There are no additional fees paid in direct connection with the Adviser’s services.

Fees based upon characteristics of certain assets recommended by the Adviser, such as a fee based upon
original issue discount on notes acquired by the Other Clients, create a conflict of interest for the Adviser
as the Adviser will have an incentive to recommend investments with characteristics that will lead to
higher fees for the Adviser but may be less profitable for Other Clients. This issue is addressed by the
Adviser’s Code of Ethics (the “Code”) that obligates the Adviser and its related persons to put the
interests of the Adviser’s clients (the “Clients”) before their own interests when providing services to the
Clients and to act honestly and fairly in all respects in their dealings with the Clients.

Expenses

Other Clients pay the Adviser management fees only.

Item 7. Types of Clients
The Adviser’s Clients include clients that are insurance companies (“Other Clients”). The Adviser does
not contemplate offering its services to retail investors.