PPM Loan Management Company 2 LLC

Item–5 - FEES AND COMPENSATION

Collateral Management Fees

PPMLM2 generally receives from its CLO Clients senior and subordinated collateral management fees (respectively the “Senior
Management Fee” and the “Subordinated Management Fee” and collectively, the “Collateral Management Fees”). Senior Management
Fees are paid in accordance with each CLO Client’s priority of payments (as contained in the applicable CLO Offering Materials) after
the payment of certain CLO Client expenses but prior to payments on the CLO Securities. Additionally, the Subordinated Management
Fees are paid in accordance with each CLO Client’s priority of payments after the payment of certain expenses and payments on the
rated CLO Securities, but prior to any payments on the most subordinated tranche of notes (referred to herein as “CLO Equity”). The
Collateral Management Fees are calculated based on the aggregate principal balance of the Assets owned by the CLO Client.

Additionally, should the holders of the CLO Equity receive sufficient distributions to realize a specified return on their investment (the
“Target Return”), PPMLM2 earns an incentive management fee (such fee the “Incentive Management Fee” and together with the
Collateral Management Fees, the “CLO Fees”). The Incentive Management Fee provides PPMLM2 with a percentage of the returns
realized by the CLO Equity investors.

The CLO Fees, and how such fees are calculated and paid, may be subject to investor negotiation prior to closing a CLO Client
transaction, and are set forth in the respective CLO Offering Materials. Subject to fee sharing or other arrangements that PPMLM2 may
enter into with one or more investors in the CLO Securities, PPM receives 100% of the CLO Fees, net of expenses, through the Services
Agreement and its interest in the Management and Originator Series of PPMLM2.

  Form ADV Part 1 includes disclosure of Regulatory Assets Under Management (“Regulatory AUM”) which differs from the traditional calculation. We believe that all of
PPMLM2’s assets under management consist of Regulatory AUM.

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Payment Method

Generally, the Collateral Management Fees are payable quarterly directly by each CLO Client pursuant to the priority of payments, except
to the extent that PPMLM2 elects to waive or defer any Collateral Management Fees. The applicable CLO Client trustee calculates the
CLO Fees payable to PPMLM2 and arranges for payment out of the CLO Client’s Assets pursuant to the CLO Client’s priority of payments.
These fee payments are generally made on the CLO Client’s quarterly payment dates, along with payment of other expenses and
distributions to the CLO Client investors.

Other Fees and Expenses

In addition to the CLO Fees paid to PPMLM2, each CLO Client is responsible for the fees and expenses associated with its particular
transaction and Assets, as described in the applicable CLO Offering Materials. Unless otherwise agreed, PPMLM2 is not obligated to pay
any expenses of a CLO Client. These fees and expenses include, but are not limited to administrative expenses (including expenses
related to service providers such as legal counsel for the CLO Client), organizational and wind-down or liquidation expenses, fees
associated with the CLO Client’s administrator, fees and expenses associated with any re-pricing, re-financing, or supplemental indenture,
expenses incurred by PPMLM2 related to a CLO Client’s Assets or a particular CLO Client transaction (including fees and expenses for
its accountants, agents and counsel), and other reasonable expenses incurred by PPMLM2 on behalf of a CLO Client.

Prepaid Fees

Fees due to PPMLM2 are paid in arrears.

Compensation for the Sale of Securities

Neither PPMLM2 nor PPM is compensated for the sale of securities or other investment products, including the placement of the CLO
Securities.

Each CLO Client selects a placement agent (which is not PPMLM2 or PPM, nor a supervised person of PPMLM2 or PPM) to act as the
placement agent and, in some cases, the initial purchaser with respect to the CLO Securities. In this capacity, the placement agent
generally places the CLO Securities with the ultimate CLO investors in individually negotiated transactions at varying prices to be
determined in each case at the time of sale and deliver or arrange for the delivery of such securities. The placement agent receives from
the applicable CLO Client certain fees and reimbursement of certain expenses (including legal expenses) for its services as placement
agent.

Item 7 - TYPES OF CLIENTS
PPMLM2 provides investment advisory services exclusively to its CLO Clients that in turn offer CLO Securities to certain investors as
described above. These investors may include (i) non-US persons in offshore transactions in reliance on Regulation S under the
Securities Act or (ii) “qualified institutional buyers” within the meaning of Rule 144A under the Securities Act that are “qualified
purchasers” within the meaning of Section 2(a)(51) of the Investment Company Act, provided that certain CLO Securities may be
issued to persons or entities that are both “accredited investors” as defined in Section 501(a) of Regulation D under the Securities Act
and either qualified purchasers or “knowledgeable employees” within the meaning of Rules 3c-5 of the Investment Company Act. A
broad range of institutional investors meeting the criteria set forth above invest in CLOs managed by PPMLM2, including PPM clients,
some of which are PPMLM2 affiliates. The minimum investment requirements applicable to CLO investors may vary as among the
various CLO Clients. Investors should consult the respective CLO Offering Materials for the applicable minimum investment
requirements or other investment restrictions.

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