Castanea Partners Inc

Item 5. Fees and Compensation

The Adviser or its affiliates generally receive Advisory Fees and Carried Interest (each as defined
below) or similar performance-based remuneration from a Fund. A Fund, and/or its portfolio
companies may also make other payments to the Adviser or its affiliates for services provided to
the portfolio companies which, in certain circumstances, reduce the Advisory Fees payable to the

Adviser. Additionally, consistent with the Organizational Documents of a Fund, the Fund typically
bears certain out-of-pocket expenses incurred by the Adviser in connection with the services
provided to the Fund and/or the portfolio companies. Further details about certain common fees
and expenses are set forth below.

Advisory Fees

As compensation for investment supervisory services rendered to the Funds, the Adviser receives
from each such Fund an advisory fee (each, an “Advisory Fee”). Advisory Fees paid by a Fund
may also be reduced by other fees or compensation received by the Adviser or its affiliates that
relate to such Fund’s activities and investments, as described in more detail below. Advisory
Fees paid by a Fund are indirectly borne by investors in such Fund.

Advisory Fees are payable quarterly in advance. The precise amount of, and the manner and
calculation of, the Advisory Fees for each Fund are established by the Adviser, as modified by
negotiations with investors in the applicable Fund, and are set forth in such Fund’s Organizational
Documents. The Advisory Fees are calculated based on a percentage of the Remaining Capital
Base (as defined in the Fund’s Organizational Documents). The Advisory Fees described above
are subject to waiver or reduction by the Adviser in its sole discretion. Fees differ from one Fund
to another.

Certain investors in the Funds that are employees, former employees and operating partners of the
Adviser or its personnel (“Adviser Investors”) will not typically pay Advisory Fees in connection
with their investment in a Fund. Notwithstanding that Adviser Investors will generally not pay
Advisory Fees, Adviser Investors will pay for their pro rata share of certain Fund expenses or the
pro rata portion of such Adviser Investors’ expenses will be allocated to the Adviser or the general
partner of the applicable Fund.

The Advisory Fees paid by a Fund will be reduced by a percentage of: (1) the amount of fees paid
by such Fund to persons acting as a placement agent in connection with the offer and sale of
interests in such Fund to certain potential investors and/or (2) certain Other Fees (as defined below)
received by the Adviser or its affiliates. The amount and manner of such reduction, if any, is set
forth in the Advisory Agreement and/or Organizational Documents of the applicable Fund. As
some Funds do not pay Advisory Fees, any such reduction will not benefit such Funds.

In addition, the Adviser may waive or reduce all or a portion of the Advisory Fee paid by a Fund
in full or partial satisfaction of any obligation of the Adviser and certain employees and affiliates
of the Adviser to invest in and alongside such Fund, which could result in acceleration of investor
capital contributions. Waived or reduced Advisory Fees are not subject to various offsets or the
reductions described above. Unless otherwise agreed with a Fund’s investors, Advisory Fees will
continue to be payable during any term extensions.

Other Fees

Fees Payable by the Portfolio Companies

The Adviser and its affiliates perform transaction-related, financial advisory and other services
for, and may receive fees from, actual or prospective portfolio companies of the Funds, including
fees in connection with structuring investments in such portfolio companies, as well as mergers,
acquisitions, add-on acquisitions, refinancings, public offerings, sales, divestments or other
dispositions and similar transactions with respect to portfolio companies (“Transaction Fees”). To
date, the Adviser has not charged Transaction Fees.

The Adviser and its affiliates may also receive “monitoring fees” pursuant to monitoring
agreements with portfolio companies of the Funds governing the advice, consultation and other
similar ongoing services provided by the Adviser to such portfolio companies. The terms of a
monitoring agreement may include (among other things) annual automatic renewals, the timing
and payment of Monitoring Fees (which may be fixed fees or calculated as a percentage of
EBITDA or similar performance metric). Notwithstanding the foregoing, in the event of an initial
public offering or other disposition, monitoring fees will continue to be paid so long as the
applicable Fund continues to hold an other than de minimis position in such portfolio company and
the Adviser or its affiliates continue to provide the monitoring services.

In addition, the Adviser and its affiliates may receive fees in connection with serving on the board
of directors of a portfolio company (“Director Fees”) and in connection with an unconsummated
transaction (“Break-Up Fees” and, together with Transaction Fees, Monitoring Fees and Director
Fees the “Other Fees”). The amount and timing of Break-Up Fees received by the Adviser or its
affiliates are generally specified in the agreement or other documentation governing the
transaction.

Generally under the terms of the applicable Organizational Documents, for purposes of calculating
any Advisory Fee offset, Other Fees are net of out-of-pocket costs and expenses incurred by the
Adviser in connection with consummated or unconsummated transactions or in connection with
generating any such fees. If charged, these Other Fees may be substantial and are permitted to be
paid in cash, in securities of the portfolio companies or investment vehicles (or rights thereto) or
otherwise. Although Other Fees are in addition to the Advisory Fees, the Adviser will in some
circumstances reduce the amount of Advisory Fees paid by the applicable Fund in connection with
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Item 7. Types of Clients

The Adviser currently provides investment supervisory services to the Funds. Investment advice
is provided directly to the Funds (subject to the direction and control of the General Partner of
each such Fund, if applicable) and not individually to investors in such Fund.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act and the 1940 Act. Investors in the Funds are generally “qualified purchasers” as
defined in the 1940 Act, and include, among others, high net worth individuals, pension and profit
sharing plans, trusts, estates, charitable organizations, university endowments, corporations,
limited partnerships and limited liability companies or other entities.

The Adviser does not have a minimum size for a Fund, but minimum investment commitments are
established for investors in the Funds. The General Partner of each Fund may in its sole discretion
permit investments below the minimum amounts set forth in the Organizational Documents of
such Fund.