Company: RFMZ
Filing Date: 2025-03-07
Form Type: N-CSRS
Source: 0001398344-25-005064
Chunk: 35

Company: RiverNorth Flexible Municipal Income Fund II, Inc.
Filing Date: 2025-03-07
Form: N-CSRS
Chunk 35
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ory services. It was noted
that, when launching a CEF, such as the Fund, the Adviser covers the underwriting costs, which is a significant investment. The Board,
including the Independent Directors, determined that the Advisory Agreement with respect to the Fund was not overly profitable to the
Adviser and the financial condition of the Adviser was adequate.

The Board noted that the Adviser has no affiliations
with the Fund’s transfer agent, fund accountant, custodian, or distribution related service providers utilized by the Fund and therefore
does not derive any benefits from the relationships these parties may have with the Fund.

Conclusion

Having requested and received such information
from the Adviser as the Board believed to be reasonably necessary to evaluate the terms of the Advisory Agreement, and as assisted by
the advice of independent counsel, the Board, including the Independent Directors, concluded that renewal of the Advisory Agreement was
in the best interests of the Fund and its shareholders.

Consideration of the Sub-Advisory Agreement

At the Meeting, the Board, including the Independent
Directors, also considered the renewal of the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Adviser and
MacKay Shields LLC (the “Sub-Adviser”). In its consideration of the Sub-Advisory Agreement, the Board considered information
and materials furnished by the Adviser and the Sub-Adviser in advance of and at the Meeting and was afforded the opportunity to request
additional information and to ask questions of the Adviser and Sub-Adviser to obtain information that it believed to be reasonably necessary
to evaluate the terms of the Sub-Advisory Agreement. The Board received materials compiled by the Sub-Adviser and the Adviser, including
a copy of the Sub-Advisory Agreement, the Sub-Adviser’s response to a questionnaire regarding its profitability, management and
operations, a copy of the Sub-Adviser’s Form ADV, information regarding the Sub-Adviser’s compliance programs and information
regarding the performance of the Fund’s benchmark indices and peer funds. The Board considered the following factors, among others,
in reaching its determination to renew the Sub-Advisory Agreement: (i) the investment performance of the Fund and the investment performance
of the Sub-Adviser, (ii) the nature, extent and quality of the services provided by the Sub-Adviser to the Fund, (iii) the