Company: ECC-PD
Filing Date: 2025-04-11
Form Type: N-2ASR
Source: 0001104659-25-034204
Chunk: 102

Company: Eagle Point Credit Co Inc.
Filing Date: 2025-04-11
Form: N-2ASR
Chunk 102
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 of the investment giving rise to any deferred interest accrual. Any reversal of such amounts would reduce net income for the quarter by the net amount of the reversal (after taking into account the reversal of incentive fees payable) and would result in a reduction of the incentive fees for such quarter. No incentive fee is payable to the Adviser on capital gains, whether realized or unrealized. In addition, the amount of the incentive fee is not affected by any realized or unrealized losses that we may suffer. 61 The payment of monthly dividends on our Preferred Stock (including on any shares of Preferred Stock that may be held by officers or other affiliates of the Adviser) is not subject to Pre-Incentive Fee Net Investment Income meeting or exceeding any hurdle rate. The following is a graphical representation of the calculation of the incentive fee as well as examples of its application. Quarterly Incentive Fee Based on Net Investment Income Pre-Incentive Fee Net Investment Income (expressed as a percentage of the value of net assets) Examples of Quarterly Incentive Fee Calculation (amounts expressed as a percentage of the value of net assets, and are not annualized)* Alternative 1: Assumptions Investment income (including interest, distributions, fees, etc.) = 1.25% Hurdle rate (1)= 2.00% Base management fee (2)= 0.4375% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.25% Pre-Incentive Fee Net Investment Income (investment income – (base management fee + other expenses)) = 0.5625% Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate, therefore there is no incentive fee. Alternative 2: Assumptions Investment income (including interest, distributions, fees, etc.) = 2.70% Hurdle rate (1)= 2.00% Base management fee (2)= 0.4375% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.25% Pre-Incentive Fee Net Investment Income (investment income – (base management fee + other expenses)) = 2.0125% Pre-Incentive Fee Net Investment Income exceeds the hurdle rate, therefore there is an incentive fee. Incentive fee = (100% × “Catch-Up”) + (the greater of 0% AND (20% × (Pre-Incentive Fee Net Investment Income – 2.50