Caprock Partners Management Inc

Item 5. Fees and Compensation

CapRock’s fees and compensation arrangements vary depending on the particular Fund. The specific
terms of such arrangements are set forth in each Fund’s Operative Documents.

Typically, the Funds pay CapRock an annual investment management fee (the “Management Fee”)
quarterly in arears. Until the earlier of (i) the expiration of the investment period and (ii) the date on

which CapRock begins to accrue an investment Management Fee from a subsequent Fund, the
Management Fee calculated with respect to each investor is typically between 1.50% and 2.0% of such
investor’s total commitment. Thereafter, the annual Management Fee calculated with respect to each
Fund investor will be between 1.50% and 2.0% of such investor’s invested capital in investments that have
not been disposed of or permanently written off.

CapRock or its affiliates may receive transaction-related fees in connection with Fund investments,
including transaction, advisory, consulting, or break-up fees (“Transaction Fees”).To the extent provided
in the applicable Fund Operative Documents, the Management Fee may be reduced by all or a portion of
such Transaction Fees, net of certain expenses. Any such offsets are generally applied on a proportional
basis and may be subject to allocation among the Fund and any co-investment or related vehicles. As a
result, the benefit of any offset may be limited to the Fund’s allocable share, and certain investors may
not receive the benefit of such offsets.

CapRock and its affiliates may receive additional compensation for services provided to the Funds or their
investments, including property management, construction or renovation management, and other similar
services. Such fees are separate from the Management Fee and are generally borne by the Funds or their
investments in accordance with the Fund Operative Documents.

CapRock may, in its sole discretion, reduce, waive or defer, for any period of time, the Management Fee
payable in respect of any investor, which reduction, waiver or deferral will insure solely to the benefit of
such investor.

The Funds will reimburse CapRock for all actual costs and expenses incurred in connection with the
organization of the Funds (including, without limitation, legal expenses, accounting fees, travel,
consultants, and marketing expenses) up to $1,000,000. Any placement or financial advisory fees incurred
relating to the organization of the Funds, as well as any organizational expenses in excess of $1,000,000,
will be payable by CapRock, but may be offset against the Management Fees otherwise payable if paid by
the Funds.

The Funds will pay (or reimburse CapRock), for all organizational expenses (including placement fees,
subject to the offset of the Management Fee described above), as well as costs and expenses relating to
its activities (to the extent not borne by an investment) (collectively, “Partnership Expenses”), including
but not limited to the Management Fee, legal, auditing, consulting, Fund administration and accounting
expenses (including expenses associated with the preparation of a Fund’s financial statements, tax
returns, periodic reports to the investors and third-party costs to administer a Fund’s commitments and
distributions), expenses incurred in connection with any market data, relevant news or third-party
research services, commitment fees payable in connection with credit facilities provided to the Funds,
insurance premiums, taxes, fees, and due diligence and other expenses associated with the acquisition,
holding, financing and disposition of investments, all third-party expenses and non-refundable earnest
money deposits in connection with transactions not consummated, the costs and expenses of any
litigation involving the Funds, a project company or investment and the amount of any uninsured
judgments or settlements paid in connection therewith, other extraordinary expenses, all amounts due
from the Funds under any non-recourse carve-out guaranties and other expenses as described in the
Limited Partnership Operating Agreement. Partnership Expenses include payments to the CapRock
affiliates and their personnel for services provided by them or their personnel to or on behalf of the Funds

or any investment to the extent such expenses do not exceed the amount actually or customarily charged
by third parties for services similar to those actually provided.

Withdrawal of commitments, apart from distributions described in the Operative Documents or in
circumstances under which legal restrictions require such withdrawal, is not permitted prior to the
termination of the respective Fund. An investor will not be required to contribute capital toward any
investment if participating in such investment, based on the opinion of counsel satisfactory to the general
partner, would be illegal or is otherwise prohibited by statute or regulation applicable to such investor,
and in certain other limited circumstances.

From time to time, CapRock will exclude an investor from an investment if the Firm determines that such
investor’s participation in such investment would be illegal or would impose a material tax, regulatory or
other burden on the Funds, and in certain other limited circumstances, as deemed appropriate by the
Firm.

The specific terms of a Fund’s advisory and asset management fees and expenses, fee schedule (if
applicable), and any fee sharing arrangements with affiliates (if any), and/or any other fee billing and
expense practices are typically detailed in each Fund’s Operative Documents and other similar
agreements with Fund investors. Please refer to the Funds’ Operative Documents for further information
regarding the fees and expenses of CapRock and its Funds.

Neither CapRock nor any of its supervised persons accept external compensation for the sale of securities
or other investment products.

Item 7. Types of Clients

CapRock provides discretionary investment advice to the Funds. The Funds’ investors are limited to
individuals and entities that meet certain suitability criteria including “accredited investors,” as defined in
Regulation D under the Securities Act of 1933, as amended, and “qualified clients,” and “qualified
purchasers,” as defined in Section 2(a)(51) of the Investment Company Act of 1940. The Funds are
marketed exclusively to investors which include, without limitation, high-net worth individuals, private
limited liability corporations, and sovereign funds.

An investment in one or more Funds, and/or series of a Fund, should be based on a prospective client or
investor’s careful analysis of its overall portfolio and its own objectives and needs in the areas of
diversification, liquidity, return on investment and risk management.

Investors, including prospective Fund investors and/or clients, in the Funds should review the respective
Fund’s offering memorandum and Governing Documents for additional information regarding investor
suitability and the subscription process for the Fund.