Arc24 Management LP

Item 5.A: Advisory Fees and Compensation

Asset-Based Compensation

In connection with providing investment advisory services to the Funds, the Funds will pay Arc24 in
advance a quarterly management fee (“Management Fee”) equal to approximately (i) 1.0% per annum of
the net asset value of each Capital Account (“Capital Account”) attributable to the Founders Class Interest
(“Founders Class Interest”) and (ii) 1.5% per annum of the net asset value of each Capital Account
attributable to the Standard Class Interest (“Standard Class Interest”) in each case, prior to any accrual
for or debiting of any Incentive Allocation (“Incentive Allocation”) that is being calculated.

Arc24 Credit GP, LLC is the general partner of the Master Fund and Onshore Fund, and Arc24
Management, LP is the general partner and adviser of the Opportunities Fund (together, the “General
Partners” and separately a “General Partner”). The General Partners in their discretion, may reduce or
modify the Management Fee with respect to any Shareholder (“Shareholder”), Limited Partners (“Limited
Partner” or “Limited Partners”), employee, or affiliate of the General Partner or Arc24 and certain other
related persons.

Management fees with respect to the Sub-Advised Accounts will be calculated in accordance with each
respective Sub-Advised Account’s investment advisory agreement.

The Opportunities Fund SMA is not subject to a management fee.

Incentive Allocation

An incentive allocation for the General Partner will be charged to the Funds at the end of each fiscal year
and upon an investor’s redemption of all or a portion of its interests and is generally equal to (i) 10% for
each Capital Account attributable to the Founders Class Interests and (ii) 15% of each Capital Account
attributable to a Standard Class Interests (“Incentive Allocation”). The specific terms and applicable
conditions of the Incentive Allocation payable to the General Partner are set forth in the applicable offering
documents. The General Partner, in its sole discretion, may reduce or modify the Incentive Allocation with
respect to any investor, employee, or affiliate of the General Partner or Arc24 and certain other related
persons.

The Firm may be entitled to a performance fee from each limited partner in the Opportunities Fund SMA
up to 10% of any excess allocation of net profits and net unrealized profits, to be paid in arrears.

Performance-based compensation with respect to the Sub-Advised Accounts will be calculated in
accordance with the terms set forth in the Governing Documents.

Item 5.B: Payment of Fees

Arc24 deducts the Management Fee at the frequency discussed above in response to Item 5.A.

Item 5.C: Other Fees and Expenses

The Funds

The Funds will bear, or reimburse the Adviser and/or the General Partners for advancing, their own
expenses, to the maximum extent permitted by applicable law, including, without limitation, the following:
(i) expenses related to the research, execution and monitoring of actual and prospective investments
(whether or not consummated) and the consummation of investments; (ii) organizational fees and expenses
and fees and expenses incurred in connection with the offering and sale of the Interests; (iii) operational
expenses; and (iv) extraordinary expenses (collectively, “Fund Expenses”).

Notwithstanding the foregoing, the obligation of the Funds to pay the Fund Expenses is subject to an annual
cap (the “Expense Cap”). Any amounts in excess of the Expense Cap may initially be paid by the Master
Fund, but such excess amounts will ultimately be borne by the Adviser and/or its affiliates. The
Extraordinary Expenses, as determined by the General Partners in its reasonable discretion, including,
without limitation, litigation-related and indemnification-related obligations and expenses (including
related professional and other fees), all fees, costs and expenses incurred in connection with any
restructuring of the Funds, fees and expenses incurred in connection with any tax audit by any U.S. federal,
state or local authority, including, without limitation, any related administrative settlement and judicial
review and extraordinary expenses that may arise from the Fund Expenses (“Extraordinary Expenses”),
as well as the Management Fee, will be excluded from the Expense Cap, and the Master Fund will at all
times bear the full amount of such Extraordinary Expenses.

All expenses of the Funds will generally be borne by the Funds, other than any expenses that the General
Partners determine in their discretion should be allocated to a particular feeder fund. Limited Partners
acknowledge that although the Fund Expenses will be shared by or be allocated to the Funds on a pro rata
basis, the economic benefit that each of the Funds receives with respect to such expenses may not be the
same.

Except as provided above, the Adviser and the General Partner will bear their own rent, operating, utilities
and similar overhead expenses, in addition to the compensation and benefits of their employees. The
Adviser and/or the General Partner may, in their discretion, waive their right to be reimbursed for any of
the foregoing expenses for any period of time. Any such waiver will not require the Adviser or the General
Partner to waive their right to be reimbursed for such expenses in the future.

The Opportunities Fund SMA

The Firm is responsible for payment of the expenses of operating the Opportunities Fund SMA other than
the expenses outline below (“SMA Expenses”). Any SMA Expense that is incurred solely with respect to
a single series shall be paid by that series and allocated to the limited partner who owns the series interest
in such series. An SMA Expense that relates to multiple series, but not the Opportunity Fund SMA itself,
shall be paid solely by such multiple series and allocated among the limited partners who owns the
applicable series interests.

The SMA Expenses include:
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Item 7: Types of Clients

Arc24 provides investment advisory services to privately offered pooled investment vehicles, which are
intended for investment by certain investors who meet the definition of an Accredited Investor, as defined

by the Investment Company Act of 1940. The Firm also provides investment advisory services to a
separately managed account organized as a series limited partnership.

The minimum initial and subsequent subscription amounts required by the Investors of the Funds are
detailed within the relevant offering documents or the Advisory Agreements and are subject to the
discretion of the General Partner.