Kalamata Asset Management LLC

Item 5 – Fees and Compensation

FEES FOR INVESTMENT ADVICE

KAM provides investment management services for a fee (“Advisory Fee”) based on the value of the
equity assets under management of up to 3.0%. The fee is higher than that normally charged by other
advisers that provide similar services; however, as assets under management grow, past seven pre-
established balance tiers, the fee decreases, eventually reaching 2.0% (once equity assets under
management exceed $175 million). Advisory Fees are charged at the closing of each month based on
the ending equity assets under management and paid based on performance as described hereafter.

KAM has sole discretion to negotiate fees it collects on investments that it manages. The fee to be
charged for each Fund Series is stipulated in the Series’ offering memorandum or subscription booklet.
Pursuant to the offering memorandum and subscription booklet, fees passed through to individual
investors are permitted to differ; the fee charged to each investor is set forth in a specific written
agreement with that investor. As a result, some investors could pay fees that are higher or lower than
the fees charged to other investors.

GENERAL INFORMATION ON ADVISORY SERVICES AND FEES

Fee Differentials

KAM may price its services based upon the value of the assets under management or other subjective
factors, and fees are typically set or negotiated by each Fund and/or investor. As a result, any Fund
advised by KAM could pay fees that are higher or lower than the fees charged to other Funds, based
upon the market value of their assets, the complexity of the engagement, and the level and scope of
the overall investment advisory services to be rendered.

All advisory agreements may be terminated upon 30 days’ written notification by one party to the
other party.

Other fees or expenses

Funds advised by KAM pay servicing, management fees and/or profit splits to the funder or certain
third parties and affiliates (including Kalamata Capital Group, LLC (“KCG”) and its affiliates) to
source Acquired Receivables (collectively “Origination and Servicing Platforms”) which originated
and/or serviced the financing and are for originations purchased from entities that are not affiliates
of KAM. For originations purchased from affiliates of KAM, including KCG, Black Olive Capital
LLC (“BOC”) and Kalamata Payments I, LLC (“KPI”) each, an (“Origination Affiliate”), the Funds
pay KAM a scoring, originating and servicing fee (“SOS Fee”) depending on the underlying Acquired
Receivable type; however, this SOS Fee is subordinated in priority of payment to a Fund’s preferred
return. The SOS Fees are outlined in the applicable subscription booklet. KAM is permitted to enter
into new fee arrangements for new types of Acquired Receivables originated by Origination Affiliates,
subject to applicable approvals. KAM is permitted to subcontract the scoring and servicing of such
assets to third parties (including affiliates of KAM) and distribute part or all of the SOS Fee to third
parties (including affiliates of KAM) as compensation for their services.

Any charges levied by the funders or Origination and Servicing Platforms after the termination of
KAM’s advisory agreement will remain the Fund’s responsibility and not the responsibility of KAM.
KAM has no obligation to refund these fees to its clients.

Additional compensation

Employees of KAM do not receive additional compensation from the purchase of Acquired
Receivables by the Funds that KAM advises.

KAM is an affiliate of KCG, BOC, and KPI, all or some of which receive financial compensation if
they provide services in connection with the purchase, scoring, originating or servicing of Acquired
Receivables to any third party, including the Funds. KAM’s affiliates do not charge any
markup/markdown on any investments placed with any Fund advised by KAM. These affiliates
generally pay commission, including volume bonuses, on sourced deals and those charges are passed
through to the Fund(s) at cost. A “volume bonus” is an amount paid to a third-party independent
sales organization (“ISO”) as an incentive to such ISO to find pre-determined levels of investments
for the Fund within a specified time period; it is in the nature of additional commission.

KAM and each Origination Affiliate serve as servicing funders of Acquired Receivables.

Any commissions paid to contractors or employees of KCG will be paid on terms consistent with
arms-length transactions which are of a size and nature comparable to the transactions for which such

contractors or employees of KCG are earning such commissions. 100% of any commission paid to
KCG will be remitted to such contractor or employee; neither KAM nor any of its affiliates will receive
any economic benefit as a result of such commission except via the performance fee or residual.

Both the advisor fee and SOS Fee for KAM (and affiliates) are subordinated to a Fund’s preferred
return threshold, significantly mitigating conflicts of interest. There is an annually approved fund
expense schedule that is used to pull out essential fund expenses carved out alongside the Fund’s
preferred return. While the actual month-to-month fund expenses will vary, the actual amount will be
trued up after the end of each calendar year.