Calvert Street Capital Partners Inc

ITEM 5.        FEES AND COMPENSATION

CSCP generally receives carried interest from the Funds and other fees from the Funds’ portfolio
companies. CSCP also receives management fees from certain Funds. The Funds and the Funds’
portfolio companies also bear certain out-of-pocket expenses incurred by CSCP in connection with
the services provided to these parties. The following sections discuss the fees and expenses that
are generally borne by the Funds and/or the Funds’ portfolio companies in more detail.

Management Fees

CSCP receives a management fee paid by some of the Funds it advises (the “Management Fee”).
During a Fund’s investment period, the Management Fee can typically range from 0% to 2.0% per
annum of either (i) the Fund’s committed capital or (ii) the Fund’s committed capital plus SBA
leverage equal to two times committed capital. After the end of a Fund’s investment period, the
Management Fee can typically range from 0% to 2.0% per annum of the cost of unrealized
investments until expiration of the Fund. Because CSCP and the Funds advised by CSCP are
related to one another, there is no independent person who negotiates CSCP’s advisory fees. The
specific fee arrangements for each Fund are described in the applicable Fund’s offering and
governing documents.

CALVERT STREET CAPITAL PARTNERS, INC.                    PART 2A OF FORM ADV: FIRM BROCHURE

Management Fees are typically paid quarterly, either in advance or in arrears. The exact payment
terms relating to CSCP’s Management Fee will be set forth in each Fund’s partnership or limited
liability company agreement and/or the management agreement related to that Fund. CSCP
typically deducts the Management Fees owed by each Fund from the assets of the applicable Fund
(which can include capital called or distributable proceeds). In the event of an early termination
of a Fund’s management agreement, CSCP will refund any overpayment of fees to the Fund on a
pro rata basis.

Performance Based Fees (Carried Interest)

Affiliates of CSCP (i.e., the general partner or managing member of each Fund) are generally
entitled to receive distributions from each Fund, in the range of 0% to 20% of the applicable profits
after capital contributions have been returned to investors in the Fund and the Fund’s investors
have received the contractual preferred return on their capital contributions in accordance with the
terms of the applicable partnership or limited liability company agreement. This share of profits
is often referred to as a carried interest. CSCP distributes the carried interest to the general partner
or managing member of the applicable Fund in accordance with the terms of the applicable
partnership or limited liability company agreement. The carried interest is considered
performance-based compensation which benefits CSCP through distributions to the general
partner or managing member of the applicable fund.

Monitoring, Consulting and Financing Fees and Out-of-Pocket Expenses

The Funds indirectly incur or generate other fees payable to CSCP as CSCP generally enters into
arrangements with portfolio companies pursuant to which such companies pay monitoring,
consulting and/or financing fees. When there is a Management Fee charged to a Fund, receipt of
monitoring, consulting and/or financing fees by CSCP typically results in a reduction in the
Management Fee otherwise payable to CSCP by such Fund (unless otherwise agreed with the
investors in such Fund), the terms of which are defined in the applicable partnership or limited
liability company agreement.

Monitoring fees are monthly or quarterly fees paid to CSCP for providing general supervisory and
business planning services to portfolio companies owned by the Funds. These services generally
include members of CSCP’s professional staff:

    •   Serving on the board of directors for the portfolio company;
    •   Assisting in the ongoing recruitment and evaluation of senior management;
    •   Providing guidance in the preparation and approval of annual budgets;
    •   Approving major capital expenditures;
    •   Monitoring progress in fulfillment of the business plan and communicating such to the
        company’s lenders and investors; and
    •   Providing audit oversight and assuring the integrity of financial reporting and internal
        controls.

Consulting fees are one-time fees paid to CSCP in connection with additional services provided
by CSCP to support an investment or disposition made by the Funds or the portfolio companies.
These services include, but are not limited to, members of CSCP’s professional staff:

CALVERT STREET CAPITAL PARTNERS, INC.                   PART 2A OF FORM ADV: FIRM BROCHURE

   •   Coordinating the due diligence process (including market, business, customer, financial /
       tax, IT / systems, environmental and legal matters) of acquisition candidates;
   •   Developing and implementing strategic plans;
   •   Developing and implementing management ownership and transition plans;
   •   Developing and/or enhancing management and financial reporting systems;
   •   Pre- and post-transaction integration planning and implementation;
   •   Preparing and negotiating the documentation in respect of working capital and other post-
       closing adjustments;
   •   Drafting and reviewing disclosure schedules;
   •   Coordinating the closing (including funds flow, sources and uses statement, and wire
       instructions); and
   •   Serving as the selling shareholder representative.

Financing fees are one-time fees paid to CSCP in connection with the Mezzanine Funds providing
financing to a new portfolio company. These financing fees are applied as an offset to (or reduction
in) the management fee charged to the Mezzanine Funds.

CSCP has a conflict of interest to the extent that it has an opportunity to earn a fee from a portfolio
company owned by a Fund. This conflict is more pronounced in cases in which CSCP is paid a
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ITEM 7.        TYPES OF CLIENTS

CSCP’s clients are private funds and their affiliated entities. See Item 4 (Advisory Business) which
sets forth a list of CSCP’s current fund clients. Affiliates of CSCP serve as the general partners or
managing members of each Fund advised by CSCP. The investors in the Funds advised by CSCP
typically (but not exclusively) include high net worth individuals and trusts and other family
investment entities created by those individuals, institutions, insurance companies, pension funds,
fund of funds and other corporate entities. CSCP does not currently manage separate accounts for
individuals or institutional investors.