3000 Management Inc

Item 5: Fees and Compensation

The Client Funds managed by the Adviser have varying management fee schedules which are
defined by the Client Funds’ limited partnership agreements or other Governing Documents (the
“Management Fee”). Management Fees are 1.25% (or less) of investor subscriptions, investor
contributions, or the net asset value of the assets under management. In some instances, the
fee is only applied to the portion of an investor’s subscription that has been committed to
investments.

After the initial investment period, during which the Client Funds’ investment commitments are
made, Management Fee typically decrease over time until the end of the Client Funds life, which
typically ranges from 5 to 12 years. Management Fees are generally called from investors on a
quarterly basis in advance, but in some instances the fees are deducted directly from the Client
Funds’ assets. Fees may be included as part of an investor’s total subscription commitment to
the Client Fund (“inside the fund”), or may be paid in addition to the subscription commitment
(“outside the fund”).

The Client Funds incur operating, brokerage, and transaction related costs (see Item 12,
Brokerage Practices) which may be advanced by the manager, general partner, or Adviser and
subsequently reimbursed by the Client Funds from fund assets or from amounts called from
investors. Examples of operating expenses that Client Funds may incur include costs associated
with making, holding, restructuring, refinancing, winding up, liquidating or otherwise disposing
of investments or seeking to do any of the foregoing (including any associated legal, financing,
commitment, transaction or other fees and expenses payable to attorneys, accountants,
investment bankers, lenders, consultants and similar professionals in connection therewith
(whether or not the transactions are ultimately consummated); tax, legal, accounting, auditing,
directors and officers liability insurance, errors and omissions liability insurance, research,
administrator (including third party administrator), appraisal, valuation (including third party
valuation, appraisals or pricing services), third party consultants, and bank fees; interest and
other costs associated with borrowed money; and organizational expenses. The general partner
will bear the cost (through an offset against the Management Fee or otherwise) of all
organizational expenses in excess of the amounts permitted under the Organizational
Documents, and of any placement fees payable to any placement agent in connection with the
formation of the Client Fund.

The Client Funds may also pay a performance based fee which is described in further detail in

Item 7: Types of Clients

As described in Item 4, Advisory Business, the Clients are pooled investment vehicles which are
the Client Funds. These Client Funds may consist of investment partnerships or other investment

entities formed under domestic or foreign laws and operated as exempt investment pools under
the Investment Company Act of 1940, as amended.

While they are not direct Clients, the investors in those Client Funds include banks, foundations,
universities, corporations, foreign governmental entities, pension plans and other institutional
investors and may also include directly, or indirectly principals or other employees of Paul Capital
Advisors or its affiliates.

Each Client Fund generally has a minimum investment requirement for investors of $10 million
and the limited partnership interests are offered and sold solely to qualified purchasers or
qualified knowledgeable employees of Paul Capital Advisors. The minimum investment amount
may be waived by each Client Fund’s general partner in its sole discretion, but typically will not
be less than $10 million, or other amounts as may be specified by law.