The arrangement is just simple backup over a simple chord progression. The idea is that you really dig into the licks. These are a lot of standard backup licks. These licks are worth memorizing, and you'll end up using them all the time.
Most of the licks here are made for slower, or mid-tempo Bluegrass. The double thumb licks work great in these situations, and sound really good with a little bit of swing. Make sure to turn that feature on when playing through this exercise.