Bandera Partners LLC

Item 5 – Fees and Compensation

The information set forth below details the fees, expenses and compensation borne by the
Funds.

 Description             Amount                                        When Paid

 Brokerage and           As incurred by the Master Fund. The As billed
 transaction costs       Onshore Fund and the Offshore Fund will
 and investment-         bear their pro rata share of all such costs
 related expenses        and expenses incurred in connection with
                         the Master Fund’s investment activities.

 Management fee          The Master Fund pays Bandera a monthly Monthly in arrears
                         management fee equal to 1/12th of one
                         percent (approximately 1% annually) of
                         the net asset value of the Master Fund as of
                         the last business day of each calendar
                         month (before giving effect to any month-
                         end redemptions and distributions),
                         adjusted for certain amounts indicated

                       below. For purposes of calculating the
                       management fee, the net asset value of the
                       Master Fund is determined before
                       reduction for the management fee and
                       performance-based fees accrued or
                       payable as of the calculation date. In
                       certain circumstances, management fees
                       will be prorated. The Onshore Fund and
                       the Offshore Fund will bear their pro rata
                       share of the management fees. Seed
                       investor fees and other participations in net
                       management fee income are allocated to
                       the Funds’ seed investors on an ongoing
                       basis. All such amounts effectively reduce
                       the management fees payable to Bandera,
                       and the total of such amounts and the
                       management fees payable to Bandera do
                       not exceed 1% annually.

 Administration fees   Fees payable to the Master Fund Monthly in arrears
 and expenses          administrator by the Master Fund are
                       charged at the administrator’s customary
                       rates for the performance of the
                       administrative services and the provision
                       of corporate offices.       Fees of the
                       administrator vary with the size of the
                       Master Fund, subject to an annual
                       minimum fee. In addition, the Funds will
                       reimburse their respective administrators
                       for certain out of-pocket expenses. The
                       Onshore Fund and the Offshore Fund will
                       bear their pro rata share of such fees and
                       expenses.

 Legal, audit, and     As incurred by the Funds. The Onshore As billed
 ongoing offering      Fund and the Offshore Fund will bear their
 expenses, banking     pro rata share of all fees and expenses
 fees, and             incurred by the Master Fund, as well as
 operational and       such entity’s own fees and expenses.
 extraordinary fees
 and expenses.

Bandera, in its sole and absolute discretion, may waive, reduce or grant rebates of the
management fees chargeable with respect to certain investors.

Advisory fees are not paid in advance; therefore redeeming investors are not owed a refund.

Investors in the Funds are charged profit allocations, which are described in greater detail
in the relevant Fund’s offering memorandum and below.

Item 7 – Types of Clients

Bandera currently provides investment advice solely to pooled investment vehicles,
including the Master Fund.

Investors in the Onshore Fund and the Offshore Fund may include individuals, entities,
trusts, investment companies and individual retirement accounts. The minimum initial
investment for interests in the Onshore Fund and the Offshore Fund is generally
$1,000,000, and subsequent additional investments must be at least $100,000, although
Bandera may in its discretion reduce such amounts (generally to not less than $250,000
with respect to the minimum initial investment).