LBC Credit Management LP

Item 5. Fees and Compensation

LBC is generally compensated for advisory services through asset-based management fees and receives
performance-based compensation. The calculation of fees payable by Clients is complex, and Clients are
advised to carefully review the terms set forth in the governing documents. LBC may reduce or waive the
fees and expenses described below with respect to certain investors.

LBC and the Funds have permitted, and will in the future permit, certain business associates, employees,
partners and other “friends and family” of LBC to invest directly or indirectly in the Funds on terms which
will be more favorable than those offered to other investors, including with respect to the payment of
management fees and/or carried interest. Such related investors will either directly pay their pro rata share
of Fund expenses or the pro rata amount of such expenses will be allocated to the general partner of such
Fund.

Management Fee – Each Fund pays an annual management fee (“Management Fee”) in accordance with
its governing documents, typically paid by capital contributions from investors or from cash proceeds
otherwise distributable to investors. Management Fees will typically commence on the date that a Fund
has held its initial closing or a specific number of days prior to the Fund’s first investment. Thereafter,
Management Fees will generally be paid on the first day of each calendar quarter, in advance. Management
Fees will be calculated as a percentage up to 1.50% unless noted below and may be negotiated for certain
investors based on the size of the investor’s commitment to the respective Fund.

With respect to LBC Credit Partners V, L.P. (“Fund V”), LBC Credit Partners VI LP (“Fund VI”), and
certain funds-of-one, the Management Fee will be calculated based upon invested capital. “Invested
Capital” will mean the sum of (i) the initial cost of the investment (including any leverage used for the
purposes of, or related to making such investments) that have not be disposed of, reduced by any
amortization or partial repayments of principal prior to disposition of the investment; (ii) any fees and
expenses capitalized into the cost of, and any original issue discount or other market discount related to,
such investments; and (iii) the unfunded commitments remaining with respect to such investments, reduced
by any net write-downs due to a permanent impairment in value of the investments as adjusted for any
write-up, not to exceed the aggregate initial cost of the investment.

With respect to the CLOs, LBC is entitled to receive a management fee, which will consist of a senior
collateral management fee and a subordinated collateral management fee. Depending on the facts and
circumstances, and if specifically agreed upon, LBC may waive certain fees so investors of Funds investing
in LBC-managed CLOs do not pay management fees twice.

As permitted under the governing documents, LBC may elect to defer its receipt of a portion of the
Management Fees in favor of future distributions of such deferred amounts.

Carried Interest – Each Fund allocates a portion of its distributable proceeds (generally 15% to 20% but
which may be negotiated for certain investors based on the size of the investor’s commitment to the
respective Fund) to the Fund’s affiliated general partner (such performance-based profit allocation is
commonly referred to as “Carried Interest”). The Carried Interest is generally subject to the achievement
of a specified cumulative annual return, compounded annually (6%-8%) on the amount of the investor’s
unreturned capital contributions, as of the date of determination (“Preferred Return”) although such
thresholds may be less for unlevered vehicles. Carried Interest will be paid as noted in the Fund’s specific
governing Document, generally upon the distribution of proceeds generated by the dispositions of the
respective Fund’s portfolio investments pursuant to a priority distribution waterfall after the return of

Invested Capital in excess of the applicable Preferred Return. LBC Funds’ Carried Interest is charged in
compliance with Rule 205-3 under the Advisers Act.

Incentive Fees – Certain Funds pay LBC an annual payment of incentive fee calculated in accordance with
the relevant Funds’ governing documents. Such incentive fees may be paid out of income, dividends, return
of principal and other cash proceeds from investments, from borrowed funds drawn from a credit facility
or in the Funds’ General Partner’s discretion, from drawdowns of commitments from the limited partners
in accordance with the Funds’ governing documents.

Other Fees Received – In general, directors’ fees, supervisory fees, acquisition fees, loan fees, syndication
fees, agency fees paid by third parties (other than any limited partner or investors in LBC Funds), other
advisory, break-up, topping and other similar fees (if any and net of related expenses) earned pro rata by
the Funds are paid directly to the Funds or as an offset to the Fund’s Management Fee if specifically stated
in the Funds’ governing documents.

For the avoidance of doubt, LBC and its affiliates may allocate compensation received for syndicating a
new or existing transaction, including but not limited to, syndication fees, agency fees, arranger fees and
skim fees and other similar fees, pro rata based on the size of each Fund’s commitment to the portfolio
investment relative to the aggregate commitments of all participants in the transaction (i.e., the global
commitment). Unless specifically stated in the Funds’ governing documents, fees not allocated to the Funds
may be allocated to LBC or its affiliates without an offset or reduction to fees paid by the Funds.

LBC’s Clients may invest alongside each other, other funds / Clients of LBC’s affiliates, LBC or its
affiliates in their institutional capacity, or third-party co-investors (collectively, “Co-Investors”). Such Co-
...

Item 7. Types of Clients

LBC provides investment advice to the Funds, which are privately offered pooled investment vehicles
(generally limited partnerships, both commingled and funds-of-one) and middle market CLOs. Investors
(typically, limited partners) in the Funds include, but are not limited to state and local pension plans,
endowments, corporate and business entities, foundations, trusts, and high net worth individuals that are (i)
“accredited investors” and “qualified Clients” as those terms are defined under the Securities Act and
Advisers Act or (ii) “qualified purchasers” or “knowledgeable employees” of LBC as defined in the 1940
Act.

The Funds’ governing documents generally require a minimum initial investment or commitment by each

individual investor of $1 million and each institutional investor of $5 million. However, LBC has the
discretion to waive or reduce the minimum initial investment or commitment and has done so for certain
investors.

LBC’s relationships also include Co-Investors, who are generally not advisory Clients of LBC or its
affiliates in the same capacity as the Funds.