Gladstone Management Corporation

ITEM 5: FEES AND COMPENSATION

Gladstone Management is compensated for its advisory services according to the terms
agreed upon in the Investment Advisory Agreements that are negotiated separately with
each Fund Client. All fees pursuant to these Investment Advisory Agreements are billed in
arrears on a quarterly basis. Fees that the Firm currently charges pursuant to such
agreements may include some or all of the following:

Base Management Fee: The base management fee for Fund Clients is computed and
payable quarterly and is assessed at an annual rate as follows:
   • 1.75% for Gladstone Capital Corporation (NASDAQ: GLAD), the BDC Fund
       Client which invests primarily in debt securities in lower middle market businesses
   • 2.0% for Gladstone Investment Corporation (NASDAQ: GAIN), the BDC Fund
       Client which invests primarily in debt and equity securities in lower middle market
       businesses
   • 0.425% for Gladstone Commercial Corporation (NASDAQ: GOOD), the REIT
       Fund Client which targets commercial/industrial and retail properties
   • 0.60% for Gladstone Land Corporation (NASDAQ: LAND), the REIT Fund Client
       which specializes in the acquisition of farmland.
   • 1.25% for Gladstone Alternative Income Fund, the Interval Fund Client which
       invests primarily in debt and equity securities in lower middle market businesses

For BDC Fund Clients, the base management fee is computed on the basis of the value of
the BDC’s average gross assets, excluding the BDC’s investment in Gladstone Alternative
Income Fund, at the end of the two most recently completed fiscal quarters, which are total
assets, including investments made with proceeds of borrowings, less any uninvested cash
or cash equivalents resulting from borrowings and adjusted appropriately for any share
issuances or repurchases during the period. For the Interval Fund Client, the base
management fee is computed on the basis of the value of average daily net assets (computed
as the total value of all assets, less an amount equal to all accrued debts, liabilities and
obligations). For Gladstone Commercial Corporation, the base management fee is
computed on the basis of the value of average gross tangible real estate for each quarter
(computed as gross value of the property portfolio, meaning the aggregate of each
property’s original acquisition price plus the cost of any subsequent capital improvement
thereon). For Gladstone Land Corporation, the base management fee is computed on the
basis of the value of the prior calendar quarter’s gross tangible real estate (computed as the
gross cost of tangible real estate, including land and land improvements, irrigation and
drainage systems, permanent plantings, farm-related facilities, and other tangible site
improvements), prior to any accumulated depreciation.

Incentive Fee: For BDC Fund Clients, the incentive fee is generally based on net
investment income in excess of an expressed hurdle rate, or a percentage of net realized
capital gains (computed as realized capital gains net of realized capital losses) less
unrealized capital depreciation. For the Interval Fund Client, the incentive fee is based on
pre-incentive fee net investment income, or interest income, dividend income, and any
other income less operating expenses, for the immediately preceding quarter. For REIT
Fund Clients, the incentive fee is based on the REIT’s Pre-Incentive Fee funds from
operations (“FFO”) available to common stockholders in excess of an expressed hurdle
rate of the prior calendar quarter’s total adjusted common equity.

Additional Fees and Compensation. The 1940 Act requires that the Firm’s BDC Fund
Clients make available significant managerial assistance (as defined under the 1940 Act)
to their portfolio companies. The Firm makes such assistance available to such portfolio
companies and provides such significant managerial assistance free of charge in the event
that such portfolio companies choose to receive it.

In the event that the Firm provides certain other services to portfolio companies of its BDC
Fund Clients pursuant to written agreements, a certain portion of the fees paid by such
portfolio companies to the Firm may be retained by the Firm and a certain portion of such
fees may be credited to the relevant BDC Fund Client and used to offset the management
fee due to the Firm from such BDC Fund Client. Gladstone Management does not provide
investment advisory services to BDC Fund Client portfolio companies.

Pursuant to servicing arrangements with the senior lenders that provide lines of credit to
certain Fund Clients, the Firm may service loans placed in the pool of loans. Fees that the
Firm receives for servicing these loans are credited to the Fund Client and offset the
investment advisory fees due to the Firm from the Fund Client.

In connection with the advisory services the Firm provides to REIT Fund Clients, the Firm
may also earn fees from the REIT Fund Clients’ borrowers, tenants or other sources. This
fee income, or a portion thereof, may, at the sole discretion of the Fund Clients’ Board of
Directors, be credited against the Firm’s base management fee as a rebate to the base
management fee.

Fund Clients will bear all other costs and expenses of their operations and transactions,
including (without limitation), to the extent applicable, those relating to: organization and
offering; calculating the Fund Client’s net asset value (including the cost and expenses of
any independent valuation firm); expenses incurred by the Firm payable to third parties,
including agents, consultants or other advisers (such as independent valuation firms,
accountants and legal counsel), in connection with monitoring the Fund Client’s financial
and legal affairs and investments, and performing due diligence on prospective
investments; interest payable on debt, if any, incurred to finance the Fund Client’s
...

ITEM 7: TYPES OF CLIENTS

Fund Clients:
As described in Item 4 above, Gladstone Management provides investment advice to
publicly-traded management investment companies that have elected to be regulated as
BDCs and an unlisted closed end management investment company that operates as an
interval fund under the 1940 Act, and to publicly-traded companies that have elected to be
treated as REITs for federal tax purposes. Gladstone Management may also advise other
types of pooled investment vehicles, although the Firm is currently not actively engaged in
such activities.