Yakira Capital Management Inc

Item 5 – Fees and Compensation

Management Fees; Performance‐Based Compensation

We generally receive a management fee up to 1.% per annum calculated as a fixed percentage of
the beginning value of the assets under management. The management fee is generally paid
quarterly in advance. Any unearned fees are refunded to investors withdrawing from the Funds. In
addition, as further described below in Item 6, we or our affiliates are entitled to additional
compensation in the form of an incentive allocation or fee of 20% based on the performance
achieved for a client over a specified measurement period, generally, a fiscal year (collectively, the
management fee and incentive allocation or fee are referred to herein as “fees”). Fees are deducted
from the Yakira Fund’s assets and allocated to the capital account of each investor in the Fund.

Fees applicable to the Funds are described in the Funds’ Governing Documents. We are generally
permitted under the terms of the Funds’ Governing Documents to reduce or waive, in our sole
discretion, fees for investors in the Yakira Fund. For example, we may reduce the fees applicable
to investments in the Yakira Fund by certain large or strategic investors or for related parties.

We may launch or manage other funds with higher or lower fees and/or different compensation
structures. Different client facts and circumstances, including the client’s investment strategy,
liquidity profile and prevailing market terms, are typically considered in determining applicable fees.

Costs and Expenses

In addition to the fees discussed above, investors in the Funds bear indirectly the fees and expenses
charged to the Funds. Those fees vary, but typically include but are not limited to the following: the
Funds’ expenses relating to their investment activities, including brokerage commissions, prime
brokerage fees, “bid‐ask” spreads, mark‐ups, interest expenses, stock loan expenses, research and
other transactional charges. In addition, the Funds will directly bear certain expenses relating to
cash management and certain fees relating to the Funds’ administration, such as legal, accounting,
audit, tax preparation, consulting and custodial fees and expenses. The Funds may invest in
exchange-traded funds or other similar closed-end funds, through which the Funds are charged
additional underlying costs and expenses by those funds.

The Funds’ Governing Documents detail the costs and expenses that are the responsibility of the
Funds, as well as certain overhead costs and expenses that generally are the responsibility of the
Adviser and/or the Yakira Fund’s General Partner.

Clients may pay higher fees to the Adviser and/or the Yakira Fund’s General Partner than fees it
might pay to other investment advisers for similar services.

Item 7 – Types of Clients

The Adviser provides discretionary investment advice to private investment funds,
including private investment partnerships.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act of 1933 (“Securities Act”), as amended. Investors in the Funds are subject to
qualification standards. Investors in the Funds may include, among others, pension plans,
foundations, funds of funds, family offices, trusts, other institutional investors and high net worth
individuals. Each full fee-paying investor in the Funds shall be accredited and qualified. In general,
a qualified investor shall have a net worth of at least $2.2 million (excluding its residence) or have
assets under management of $1.1 million. To be accredited, an investor must have net worth over
$1 million (excluding primary residence) or income over $200,000 (individual) or income over
$300,000 (joint) in the two most recent years. The minimum initial investment in the Funds is
generally $1,000,000 which is subject to change or waiver at the discretion of the Adviser.

In addition to the Funds, we may in the future provide advisory services to other private investment
funds or other separately managed accounts.