ARBA Credit Management LP

Item 5- Fees and Compensation
Clients generally compensate Arba and/or its affiliates through a management fee (the “Management Fee”) and
an incentive-based allocation (the “Carried Interest”). Please refer to the offering documents of each specific
Fund (the “Offering Documents”) for a complete discussion of fees paid by investors related to each such
vehicles.

Management Fee
Arba charges the Funds a Management Fee generally equal to (i) Two 2.0% per annum of the aggregate Capital
Commitments of all limited partners during the Investment Period, and (ii) thereafter, one and one-half percent
(1.5%) per annum of the Invested Capital with respect to all Investments that are not fully realized. The
Management Fee is calculated and payable in advance on a quarterly basis and paid out of the Client’s assets on
the first day of each calendar quarter. Management Fees are generally not negotiable as to underlying investors,
other than in certain circumstances. Arba may elect to waive a portion or all of the Management Fee.

If the General Partner or the Investment Manager receive any acquisition, sales, brokerage, disposition, breakup,
origination, underwriting, investment banking or other transaction fees in connection with the investments
made by the Fund (“Transaction Fees”), the Management Fee may be reduced by an amount equal to such
Transaction Fees received by the General Partner or the Investment Manager.
Carried Interest
In addition to the Management Fee, Arba or its affiliates may also be paid performance-based compensation as
more fully described in “Item 6 – Performance Based Fees and Side-by-Side Management”.
Payment of Fees
The Management Fee is required to be paid to Arba even if the Funds experience net losses in a particular year
or over the life of the Funds. Fund investors typically pay a Management Fee that is calculated in advance on a
quarterly basis on the first day of each calendar quarter based on the aggregate capital commitments as of the
first day of each quarter multiplied by the Management Fee percentage. The precise amount of, and manner
and calculation of, the Management Fee for each Fund is set forth in such Fund’s Advisory Agreement and/or
the Organizational Documents received by each investor prior to investment in such Fund.
Each investor’s capital contributions will be payable when called by the General Partner to meet anticipated
Fund expenses and liabilities and to make investments. Each investor’s capital contribution shall generally be
due within 10 business days’ written notice. The General Partner’s capital commitments to a given Fund, if any,
will be made in cash, at the same time and in the same proportion as other Partners’ contributions are made.
Co-Investment Considerations: Co-Investment opportunities may be offered to Limited Partners or other
investors. Investors in these opportunities may be subject to terms and conditions as Arba deems appropriate.
Expenses
Investors in the Funds typically bear their pro rata share of fees, costs and expenses incurred in the organization,
operation and administration of the Fund. Fund expenses are described in more detail in each Fund’s private
placement memorandum and/or limited partnership agreement.
Generally, Fund investors may bear expenses that include, but are not limited to: (a) the organization of any
alternative investment vehicle, including documentation related thereto; (b) the Management Fee; (c) all legal,
tax and accounting, administration, custodial, and third-party consulting fees for services rendered to or for the
benefit of the Fund and the General Partner(s); (d) all expenses, costs, and liabilities incurred in connection with
the identifying, sourcing, structuring, negotiating, purchasing, owning, developing, improving, managing,
monitoring, readying for sale, servicing, sale, proposed sale, other disposition, appraisal or valuation of
Investments (including short-term investments and prospective investments) considered for the Fund (including
research (including the cost of subscription services used in conducting research) and due diligence in connection
therewith), including, but not limited to, travel and entertainment expenses incurred in connection with the
foregoing, conference registration expenses incurred in connection with the foregoing, legal fees and expenses,
filing fees and expenses, accounting fees and expenses, audit fees and expenses, third party consulting fees and
expenses (including industry experts), fees and expenses related to any asset management software, retainer fees
and other third party sourcing fees, software and database subscription fees (including loan monitoring and other

portfolio tracking software), and other fees and expenses (to the extent not subject to reimbursement); (e) costs
and liabilities incurred in connection with litigation or other extraordinary events, directors and officers liability
and other insurance and indemnity expenses; (f) all state registration or representation fees, taxes, other fees and
other governmental charges payable by the Fund and the General Partner(s), expenses incidental to the transfer,
servicing and accounting for the Fund’s cash and securities, including all charges of depositories and custodians,
and all expenses incurred by the Partnership Representative, or a similar role of the General Partner under
applicable state or local tax law; (g) communications expenses; (h) all expenses and costs associated with Limited
Partner meetings; (i) all expenses and costs of the Board of Advisors; (j) brokerage commissions, custodial
expenses, appraisal fees, acquisition fees, broker subscription fees, loan servicing fees, expenses related to short
sales, clearing and settlement charges, initial and variation margin, interest expense, and other investment costs
actually incurred in connection with actual investments; (k) technology, hardware, consulting and software
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Item 7- Types of Clients
Arba typically advises pooled investment vehicles in the form of private funds that maintain exemption from
registration under Sections 3(c)(1) or 3(c)(7) of the U.S. Investment Company Act of 1940. Investors in the
Funds are typically U.S. investors that are “qualified purchasers” as defined under the Investment Company
Act of 1940 as amended, and “accredited investors” within the meaning of Regulation D of the Securities Act
of 1933.