OBRA Capital Management LLC

Item 5. Fees and Compensation
This item describes the principal types of fees and expenses, that Clients generally pay in
connection with Obra’s advisory services. The specific fees, expenses arrangements, and
compensation structures applicable to a Client depend on the nature of the advisory
services provided, the investment strategy, and the Governing Documents applicable to
the Client.

Not all fees or compensation arrangements described below apply to every Client and
certain fees are charged only in connection with specific strategies, vehicles, or services.

The manner in which Obra charges fees to Clients creates a material conflict of interest.
Since our compensation is based on the fees Clients pay Obra, we have a financial
incentive to encourage our Clients to increase the amount of assets they invest with us
and to make recommendations and decisions on their behalf that result in higher fees. This
presents a conflict between our financial interests and our Clients' best interests. As a
registered investment adviser, we owe our Clients a fiduciary duty of care and loyalty. This
means we are required to act in the best interest of our Clients at all times, to provide
advice that is suitable based on specific facts and circumstances, and to fully and fairly
disclose all material conflicts of interest. We believe that Clients and investors should
carefully review this Brochure in its entirety for a description of our fees and for additional
information regarding how our fee arrangements create conflicts of interest and how we
address them. The disclosures contained herein are a summary of Obra’s fees and
compensation structure. It is critical that Clients and investors also carefully review the
applicable Governing Documents for a complete description of the fees and expenses and
the related potential conflicts of interests applicable to specific investments.

General

In respect of the various services Obra (or one of its affiliates) provides to Clients as
described in Item 4 and elsewhere in this Brochure, Obra (or one of its affiliates) is usually
compensated through a number of different fees. Fees may be based on: a percentage of
assets under management, carried interest and performance allocations, portfolio
company-related fees, asset origination and structuring fees, asset servicing and
administrative services, other transaction related services, and research and consulting
services. Fees are generally negotiable and Obra (or one of its affiliates) may enter into
side letter agreements with some investors in the Funds varying the terms of their
investment, including lower fee arrangements. Current and prospective Clients (as well as
current and prospective investors in Funds) are encouraged to carefully review all fees
charged by Obra (or one of its affiliates).

It should be noted that Obra or any affiliates thereof, per the terms of Governing
Documents associated with a Client or Fund will be permitted to perform certain services
for a Fund or Client or for or with respect to it’s assets that otherwise might be provided by
third parties, including (without limitation) the originating and/or structuring of investments
to be acquired by the Fund or Client as well as originating, structuring, servicing and
tracking of investments, providing asset management, administration, and other services
to potential securitization vehicles and other entities in which the Fund or a Client may

directly or indirectly hold an investment, and in each such case, Obra or any affiliates
thereof will be entitled to receive fees for such services, in each such case at fees that
Obra seeks to set consistent with the prevailing market rates.

Management Fees

In general, management fees compensate Obra for the various services Obra’s business
professionals provide (such as building a diversified portfolio of investments) to Obra’s
Clients. Obra generally receives between 1% and 3% per annum of the net asset value of
each Client’s account or, in the case of certain accounts and closed- end Funds, between 1%
and 3% of committed capital during the investment period and between 1% and 3% of the
unreturned capital balance after the investment period, as set forth in the applicable
investment management agreement or other account Governing Documents.

Management fees for advisory services are directly deducted from the assets of a Client
(or each investor’s) account as such fees become payable, either monthly or quarterly, in
advance or in arrears depending on the Client, prorated for any period that is less than a full
fiscal quarter or month, as applicable, and adjusted for additional capital contributions or
commitments occurring during the period. Some Client accounts are structured as
commitment-based accounts and, as a result, withdrawals of capital are not permitted, and
refunds of any management fees paid in advance will not occur. Where management fees
are based on committed capital or the remaining invested capital of a Client, the
management fee payable by such Client will be due to Obra even if the fair value of the
relevant remaining investments is below cost.

Accordingly, given that management fees after the applicable Client’s commitment period
are generally calculated based on invested capital, and invested capital is equal to the cost
of an investment, this would increase the amount of management fees paid to Obra.

Separate accounts managed by OIC may be charged a flat fee, or a fee based on the
value of the assets in the accounts, and generally are not charged any performance-based
fees. OIC is responsible, in some cases, for calculating managed account fees using
OIC’s pricing of individual issues. OIC is responsible, in some cases, for calculating
managed account fees using OIC’s pricing of individual issues. OIC prices bonds and loans
in accordance with OCM’s valuation policy. A potential conflict of interest exists in those
...

Item 7. Types of Clients
As discussed in Item 4. Advisory Business above, Obra provides (i) investment advisory
and CLO management services to its Clients (and the investors therein), including the
Funds and CLOs; (ii) research and consulting services to institutional Clients (including
hedge funds, pension plans, mutual funds, sell-side firms, and other financial institutions);
and (iii) bank loan services to banks and other institutional investors. Investment advice is
provided directly to the Funds and CLOs, subject to the direction and control of OCM, and
not individually to the investors in each Fund or CLO. Obra also provides investment
advisory services to separate account Clients, which may include investment partnerships
and corporations, banks, insurance companies, and other investment advisers.

Details concerning applicable investor eligibility criteria relative to each investment
opportunity are set forth in the applicable Governing Documents. Generally, each investor
in a Fund, for example, is required to meet certain eligibility qualifications, such as being
an “accredited investor” as defined under Rule 501 of Regulation D of the Securities Act of
1933, as amended; (ii) a “qualified client” as defined in Rule 205-3 under the Advisers Act;
and/or (iii) a “qualified purchaser” as defined under the Investment Company Act of 1940,
as amended, where appropriate. Certain separate account Clients may be required to meet
certain criteria as well, such as the “qualified client” standard.

Minimum investment amounts, minimum account sizes, and/or minimum
subscription/commitment amounts vary by Client type and strategy and are described in
the applicable Governing Documents and/or investment management agreements. By way
of example, certain Funds, CLOs, or Separate Accounts or other pooled vehicles may have
minimum subscription/commitment amounts of approximately $500,000, each as agreed
with the Client or set forth in the applicable governing documents.