Wilshire Quinn Capital Inc

Item 5 – Fees and Compensation

The following is a description of the fees and compensation earned by Wilshire Quinn Capital, in addition
to fees payable to the Fund:

Asset Management Fee

Wilshire Quinn Capital shall earn an asset management fee (“Asset Management Fee”) equal to Two
Percent (2%) of the Assets Under Management, calculated and payable monthly.

“Assets Under Management” means the total Fund capital, including cash, notes (at book value), real
estate owned (at fair market value), advances made to protect loan security, and any other Fund assets
valued at fair market value. The Asset Management Fee will be paid on the last day of each calendar
month with respect to the Assets Under Management as of the last day of such month.

Loan Origination Fees

Loan origination fees are collected from borrowers and payable to the Fund. Such fees average between
two to eight percent (2-8%) but could be as high as fifteen percent (15%) depending on market
conditions. Loan origination fees collected by Wilshire Quinn Capital on Wilshire Quinn Income Fund’s
behalf shall be retained with the Fund.

Loan Extension and Modification Fees

Loan extension and modification fees are collected from borrowers and retained by the Fund. Such fees
are typically between one and three percent (1-3%) of the original loan amount but could be higher
depending on market rates and conditions.

Loan Processing, Loan Documentation and Other Similar Fees

Loan processing and loan documentation and other similar fees are collected from the borrower and
retained by the Fund. Such fees shall be collected at the prevailing industry rates. This shall include any
retainer fees, documentation fees, and travel fees associated with the origination and processing of a
loan.

Net Profits Participation

Wilshire Quinn Capital shall receive Twenty Percent (20%) of the Net Profits. All distributions of Net
Profits will be made on a monthly basis, in arrears.

Loan Servicing Fee

Any servicing fees payable the Servicer for servicing the loans shall be calculated as an expense to the
Fund. In addition, Wilshire Quinn Capital shall be entitled to receive a servicing fee if it elects to service

Wilshire Quinn Capital, Inc.                         Page 5                        Form ADV Part 2A: Firm Brochure

the loans itself of up to One-Half of One Percent (0.5%) of the principal amount of each Fund loan,
payable on a monthly basis.

Other Loan Fees Payable to the Fund

The Fund will retain all other loan fees as follows:

(1) One Hundred Percent (100%) of all late fees incurred by borrowers on defaulted loans.

(2) One Hundred Percent (100%) of all default interest incurred by borrowers on defaulted loans.

(3) One Hundred Percent (100%) of all prepayment penalties incurred by borrowers.

(4) One Hundred Percent (100%) of all forbearance fees incurred by borrowers.

(5) One Hundred Percent (100%) of all termination fees incurred by borrowers.

(6) One Hundred Percent (100%) of all other fees paid by borrowers on account of Loans.

Purchase of Existing Loans

When the Fund purchases an existing loan or a pool of existing loans from a third party, Wilshire Quinn
Capital (or Affiliate) may be paid a fee comparable to a loan origination fee. This fee will not exceed the
discount received by the Fund for the purchase of said loan and the loan terms and conditions will be
comparable or better than those for originating loans.

Profit from Real Property Foreclosed on by the Fund

Wilshire Quinn Capital shall also earn a share of the profit from the sale of any real estate owned
(REO) property the Fund obtains by foreclosing on the Fund’s loans. Wilshire Quinn Capital shall
receive Twenty Percent (20%) of the profits remaining from the sale of REO property or properties the
Fund obtains by foreclosing on any and all of the Fund’s loans. Wilshire Quinn Capital reserves the right
to waive or reduce the percentage retained.

Real Estate Commissions

Wilshire Quinn Capital or its Affiliates may earn real estate commissions to list and sell real estate that the
Fund has acquired through foreclosure. Wilshire Quinn Capital or its Affiliates may earn up to the
prevailing commission rates for the type of property for such a sale.

Reimbursement of Expenses

Wilshire Quinn Capital, at its sole and absolute discretion, is entitled to be reimbursed for all operating
and administrative expenses, including Fund Expenses, incurred on behalf of the Fund. The Manager
may, at its sole and absolute discretion, elect to waive, or defer such reimbursement for any given period
of time.

Recovery of Deferred Compensation

Wilshire Quinn Capital may defer its compensation and shall be entitled to recover same at a later time if
it so chooses. Notwithstanding the foregoing, Wilshire Quinn Capital has no obligation to waive, defer or
assign to the Fund any portion of such compensation at any time.

Wilshire Quinn Capital, Inc.                           Page 6                     Form ADV Part 2A: Firm Brochure

Item 7 – Types of Clients

Currently, Wilshire Quinn Capital’s only client is the Wilshire Quinn Income Fund, which generally
requires a minimum commitment from each investor as set forth in the Private Placement Memorandum.
Investors in the Wilshire Quinn Income Fund must be sophisticated in financial matters and be
“accredited investors” as defined under applicable securities laws.
Investors in the Wilshire Quin Income Fund can include:
               •    family offices and high net worth individuals;

Wilshire Quinn Capital, Inc.                           Page 7                     Form ADV Part 2A: Firm Brochure

               •    governmental plans, state pension and permanent funds, sovereign wealth funds;
               •    private retirement plans, corporate pensions, multi-employer pensions;
               •    financial institutions and other institutional clients; and

               •    foundations, endowments and other charitable organizations.