180 Degree Capital Corp

Item 5 Fees and Compensation

Management fees (“Management Fees”) paid by Managed Accounts vary based on the terms specific to
each Managed Account and are subject to negotiation. Management Fees typically range from 1% to 2%
per year. Management Fees typically are deducted from the assets of the Managed Accounts quarterly
in advance or, for SPVs, accrued and deducted at the time of distribution. In the event the advisory
agreement terminates during the period covered by fees paid in advance, the Adviser will pro rate such
fees and reimburse the unearned portion of the fee.

Performance-based fees (“Performance Fees”) paid by certain Managed Accounts are referred to as a
“Carried Interest Percentage.” The Carried Interest Percentage for Managed Accounts and the timing of
calculation of the Performance Fees vary based on the terms specific to each Managed Account and are
subject to negotiation. The Performance Fees applicable to Managed Accounts range from 10% to 30%
of gains of net asset value of such Managed Accounts, and are most commonly paid at the end of each
calendar year, or in the case of SPVs, at the time of distributions to investors. Performance Fees, as
applicable, are deducted from assets of the Managed Accounts.

In addition to Management Fees and Performance Fees, Managed Accounts incur brokerage and other
transaction costs, except for diligence costs that are generally borne by the Adviser. Brokerage Practices
are described in more detail below in response to Item 12.

Certain Managed Account investors, typically SPVs, pay other types of fees and expenses as specified in
the investment management agreement or other governing documents which include, but are not limited
to (i) organizational and related costs; (ii) legal, accounting, audit, custodial, consulting and other
professional fees; (iii) banking, brokerage, and similar fees and commissions; (iv) transfer, capital and
other taxes, duties and costs incurred in acquiring, holding, selling or otherwise disposing of assets; and
(v) costs of financial statements and other reports.

The Adviser has and may in the future receive director fees in instances where an employee of the Adviser
serves as a director of a portfolio company in which it invests on behalf of Managed Accounts. These fees
are generally paid to the Adviser and do not offset any Management Fees or Performance Fees paid by
our Managed Accounts, as applicable.

Item 7           Types of Clients

The Adviser, itself, operates as a closed-end fund and also offers investment advisory services to
institutional investors, such as pooled investment vehicles, charitable organizations, corporations, and
pension and profit-sharing plans via Managed Accounts.