PR Mortgage Investment Management LLC

Item 5 - Fees and Compensation

PRMIM’s fees and compensation are fully described in the Fund’s Offering Documents. All limited
partnership interests in a Fund will be sold exclusively to investors that are both (i) “accredited
investors” within the meaning of Rule 501(a) under the Securities Act of 1933, as amended (the
“Securities Act”), and (ii) “qualified purchasers” for purposes of Section 3(c)(7) of the Investment
Company Act of 1940, as amended (the “1940 Act”).

Management Fees
The minimum capital commitment for investment in the Fund is $1 million (exceptions may be
approved) and investors must be an “accredited investor” as that term is defined in Rule 501(a) of
Regulation D under the Securities Act of 1933. Management fees are 1.75% of invested capital with
respect to capital commitments of $10 million or more, and 2.0% for all other Investors during the
investment period (‘Management Fee”). Management Fees will be charged on each Investor’s pro-
rata share of net asset value after the investment period. After three years of initial limited partner’s
investment, the rate is reduced by 0.25%, to 1.5% and 1.75%, respectively. During any extension
beyond the 10-year Fund term (up to 2 years), the rate is reduced to 1.0%. PRMIM does not receive
commissions or referral fees from third parties, nor is it affiliated with any broker-dealer. PRMIM
manages the investments of the Fund within the framework of the Fund’s Private Placement
Memorandum and has no discretion outside of that in how it utilizes investors’ capital. The
Management Fee is payable quarterly in arrears and debited from an Investor’s account. The
Management Fee for a period of less than a full quarter will be pro-rated based on the actual number
of days in such period.

PRMIM may, in its discretion, waive, reduce, rebate, or calculate differently all or part of its
management fee in respect of any Investor, without the consent of or notice to any other
Investor. PRMIM has not waived or reduced management fees to date.

Asset-Level Service Fees

The Fund and its affiliates have and will be permitted to contract with Merchants Bank of Indiana
(“MBI”) a subsidiary of MBIN, and their affiliates for asset management, asset funding, loan
servicing, securitization, closing, advisory, due diligence and other ancillary services in respect
of the Fund’s assets. MBI and their affiliates will be compensated by the Fund and its affiliates
for such services, as reasonably determined by the General Partner, and may receive various
fees as a result of services performed by them for, or for the benefit of, the Fund including
origination fees, lending arrangement and syndication fees, loan funding fees, loan servicing fees
and other asset management fees, closing fees, advisory fees for due diligence and other
ancillary services provided by MBI or such personnel. Any such compensation will be in addition
to and will not reduce Management Fees.

Item 7 - Types of Clients

PRMIM provides investment advice to the Fund and not to Investors. Each Investor generally must
be a U.S. person that is (i) an “accredited investor”, as defined in Regulation D under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and (ii) either a “qualified
purchaser”, as defined in the U.S. Investment Company Act of 1940, as amended (the
“Company Act”), or a “knowledgeable employee”, as defined in Rule 3c-5 under the
Company Act and must meet other suitability requirements. The subscription agreement
contains representations and questionnaires relating to these and other qualifications.

The minimum investment for an Investor in the Fund is US $1,000,000. The minimum may be
waived by PRMIM in its sole discretion.