Larson Capital Management LLC

Item 5 Fees and Compensation
Below is a discussion of how LCM is compensated in connection with providing advisory services to a
Fund. LCM enters into different fee arrangements on a fund-by-fund basis.

It is critical that investors and prospective investors refer to the respective Fund’s Offering
Documents for a complete understanding of how LCM and/or the applicable related parties are
compensated for advisory services. The information contained herein is a summary only with
respect to current Fund client(s) and is qualified in its entirety by the applicable Fund’s Offering
Documents.

Management Fees
Typically, LCM charges Funds an annual management fee equal to 2% of the value of the Fund’s net
asset value (or other calculation mechanism as described in the Fund's offering documents). The fee is
payable quarterly in advance and is prorated for any partial year. If the Fund does not allow for a
performance fee (e.g., Profits Interest or Carried Interest), LCM typically charges an annual
management fee equal to 3% of the Fund's capital contributions (or other calculation mechanism as
described in the Fund's offering documents).

Acquisition Fees
LCM receives acquisition fees which are typically 1.5% of the acquisition cost when the manager's
affiliate, Larson Commercial Real Estate, LLC, ("LCRE") has not assisted in connection with the
acquisition of the investment properties.

Loan Guarantor Fees
Typically, the Funds pay a 1% loan guarantee fee to the manager principal or affiliate that guarantees
the Fund's debt.

Performance Fees / Profits Interest / Carried Interest
LCM earns a performance-based fee (“Profits Interest” or "Carried Interest") based on the profits of
each Fund that is deducted from the investment proceeds of the members. A Profits Interest allocation
represents an adviser’s compensation based on a percentage of net profits of the Funds it manages.
When Governing Documents allow, LCM receives Profits Interest which are typically 20% of the profits
of a Fund, subject to a preferred return (or hurdle). Further, when the Governing Documents allow,
LCM may share its portion of the Profits Interest with the selling broker-dealer. Each Fund’s Governing
Documents include further detail concerning its Profits Interest.

General and Administrative Fees
Each Fund will be subject to certain organizational, offering and operating expenses such as legal,
auditing, tax preparation, consulting and accounting, advisory board meetings, taxes, fees or other
governmental charges, preparation and distribution of reports, insurance, bank service charges, other
expenses associated with the acquisition, holding and disposition of its investments and all third-party
expenses in connection with transactions not consummated and extraordinary expenses (such as
litigation). The Funds pay organizational expenses incurred in their formation.

Property Management Fees
Customary fees for property brokerage, property management, cleaning services and insurance
payable by the Funds to certain affiliates of the manager.

Construction Management / Property Improvement / Supervision / Administration Fees
Fees charged for the improvement of properties may vary. Typically, such fees will be calculated in the
following ways: (1) with respect to commercial real estate investments, in an amount up to a certain
percentage of the total costs incurred in connection with tenant improvement services and capital
improvement services; (2) with respect to multifamily real estate investments, in an amount up to a
certain percentage of the hard costs incurred in connection with any necessary repairs, alterations, and
improvements to the property; (3) in a charitable proposal, the fee is typically up to a certain
percentage of the appraised value of such property.

Compensation for the Sale of Securities or Insurance Products
Persons providing investment advice on our behalf are typically registered representatives with Larson
Financial Securities, LLC ("LFS"), which is wholly owned by LFH, and which is a securities broker-
dealer, and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities

Investor Protection Corporation (SIPC). In their capacity as registered representatives, these persons
receive compensation in connection with the purchase and sale of securities or other investment
products, including asset-based sales charges, service fees or 12b-1 fees, for the sale or holding, of
mutual funds. Compensation earned by these persons in their capacities as registered representatives
is separate and in addition to our advisory fees. This practice presents a conflict of interest because
persons providing investment advice to our Clients who are LFS-registered representatives have an
incentive to recommend investment products based on the compensation received rather than solely
based on your needs.

Persons providing investment advice on our behalf may also be licensed as independent insurance
agents. LCM typically engages its affiliate Larson Financial Group, LLC ("LFG") to act as an agent for
writing insurance policies protecting against losses on the investment properties. These persons will
earn commission-based compensation for selling insurance products. This practice presents a conflict
of interest because persons providing investment advice who are LFS-registered representatives have
an incentive to recommend insurance products based on the compensation received rather than solely
based on your needs.

Selling Fees
Investors who are introduced to the Fund by a securities broker-dealer including the manager’s
affiliate, LFS, will typically pay 5% of their capital contributions made to the Fund (the “Selling Fee”).
Typically, the net dollar amount of the amount contributed, after the deduction of Selling Fees, is the
member’s capital contribution to the Fund. The total gross amount paid by the member, including the
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Item 7 Types of Clients
We offer investment advisory services primarily to Funds and not to individual investors. A given
Fund's minimum investment will vary and is provided in the Fund's Governing Documents. We
typically reserve the right to admit investors with lesser investment than stated in the Governing
Documents.