Socotra Management Inc

ITEM 5 - Fees and Compensation

   A. Below is a discussion of how the Manager is compensated in connection with providing advisory
      services to the Socotra Private Funds. The Manager may enter into different fee arrangements on a
      Fund-by-Fund basis.

       Management Fees. The fees and expenses associated with each Fund’s account will be negotiated
       with each Fund and are described in detail in each Fund’s Offering Documents. Generally, the
       Manager is entitled to a management fee, which is paid by Fund investors and may vary depending
       on the interest held by the applicable investor, at an annual rate ranging from 2-3% of assets under
       management of such Socotra Private Fund.

       Loan Servicing Fee. The Manager may earn a loan servicing fee (i.e., loan payments collected and
       other services relating to the loan) which are paid by the Socotra Private Funds and/or borrowers
       for such loan servicing activities. Loan servicing fees are specific to the Offering Documents for
       each Fund.

       Other Loan Fees. The Manager may receive other loan-related fees, which include late fees,
       forbearance, extension, and modification fees. These types of fees for each Fund are specific to the
       Offering Documents for each Fund and are paid by the borrowers at prevailing industry rates. While
       there are generally no management fee offsets, in some limited circumstances, some Funds may
       include a provision in their Offering Documents that allow for such offsets.

   B. Management Fees are deducted directly from the investors of Socotra Private Funds capital account
      and payable monthly, provided that any such management fee shall be subject to any waived
      management fee election made by the Manager.

   C. Socotra Private Funds shall pay such costs and expenses as the Manager shall reasonably determine
      to be necessary, appropriate, advisable or convenient to carry on its business and realize its
      objective, including but not limited to: (i) management fees; (ii) all general investment expenses
      (i.e., expenses which the Manager reasonably determines to be directly related to the investment of
      each Fund’s assets); (iii) all administrative, legal, accounting, auditing, record-keeping, tax form
      preparation, compliance and consulting costs and expenses; (iv) fees, costs and expenses of third-
      party service providers that provide such services; (v) travel and entertainment expenses incurred
      in connection with the Socotra Funds’ affairs; and (vi) any extraordinary expenses, among other
      expenses.

       Socotra Private Funds will incur brokerage and other transaction costs. Item 12 of this brochure
       discusses how the Manager selects brokers and determines the reasonableness of their
       compensation. The direct expenses borne by Socotra Private Funds are described in more full detail
       in each the respective Offering Documents for each Fund.

   D. Not applicable.

   E. Not applicable.

ITEM 7 - Types of Clients

Socotra provides investment management services to the Socotra Private Funds. Each Socotra Private Fund
is an affiliated privately offered pooled investment vehicle that (i) make, fund, purchase, otherwise acquire,
manage or sell loans and trust deeds to borrowers secured by interests in real or personal property located
across the United States; and (ii) from time-to-time purchase, otherwise acquire, manage or sell interests in
real property located across the United States. The Socotra Private Funds may also manage, remodel, repair,
lease and/or sell real properties acquired through their Funds’ lending activities, including but not limited
to properties acquired through foreclosure and real estate owned (“REOs”). In addition, certain Socotra
Private Funds have established a real estate investment trust in the form of a subsidiary.

Investments in a Socotra Private Fund are only offered and sold to investors that meet the criteria specific
to each respective Socotra Private Fund’s as well as regulatory qualification requirements. The minimum
investment amounts and specific investor qualification requirements are outlined in each of the Socotra
Private Fund’s respective Offering Documents.