CIM Capital LLC

Item 5: Fees and Compensation

Management Fees

Management fees (“Management Fees”) are individually negotiated between investors in a
particular Fund. For example, certain Fund investors pay a reduced Management Fee at
CIM’s discretion based on, among other things: the amount of capital committed, the
number of investments made by the investor, its affiliates and/or its related investors in that
or other Funds, and the timing of the investor’s investment in the Fund. For example, first-
close investors can pay a materially lower Management Fee than second- or subsequent-
close investors. Generally, for eligible CIM Group employees investing in a Fund,
Management Fees are either not charged or rebated back to the investor.

Investors in both commingled Funds and co-investment vehicles pay Management Fees in
both the Fund and co-investment vehicle, but such investors typically pay lower
Management Fees in the co-investment vehicles than investors who invest solely in co-
investment vehicles. Such fees may be reduced to zero in certain instances.

Management Fees are paid on a periodic basis, generally, but not exclusively, quarterly,
either in advance or in arrears. Management Fees are charged inside (i.e., charging the
Management Fee inside of the commitment amount) or outside (i.e., investors are
responsible for their entire commitment plus Management Fees) of an investor’s committed
capital, as specified in the Clients’ Governing Documents. In instances where the
Management Fees are not credited against or do not otherwise reduce investors’ capital
commitments, the total fees and expenses that the investors bear in connection with the
Fund may be in excess of their capital commitments. Management Fees are typically not
refundable. To the extent that a Management Fee is payable for less than a full payment
period, the amount will be appropriately prorated. Management Fees are either billed to
Clients (or, in the case of Funds, ultimately borne by the investors) or deducted from
available funds, as negotiated with specific Clients and specified in the Governing
Documents.

For a certain co-investment the Management Fee is ultimately paid to the participating Fund
Client in the co-investment, not to CIM.

Multi-Fund Investors are expected to benefit from side letters or other similar agreements
that have the effect of establishing rights under, or altering or supplementing the terms of,
the Governing Documents of the Funds in which Multi-Fund Investors invest. Such rights or
terms are expected to include economic rights, including, without limitation, waivers,
amendments, modifications, or rebates with respect to the Management Fees and/or
performance-based fees to which the Multi-Fund Investor is subject.

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Management Fee Calculation

       (1)    Opportunistic and Infrastructure Strategies

Annual Management Fees for Clients in the Opportunistic and Infrastructure Strategies are
generally based on a percentage of (a) the Client’s aggregate capital commitments during
the commitment period and (ii) the Client’s unreturned capital actually invested or
committed to investments following the commitment period.

       (2)    Stabilized (Core) Strategy

Annual Management Fees for Clients in the Stabilized Strategy are generally based on a
percentage of the Client’s asset value, measured on either a gross or net basis depending
on the Client.

       (3)    Valued-Add Strategies

Annual Management Fees for Clients in the Value-Add S t r a t e g i e s are generally based
on a combination of two components: (1) a percentage of the Client’s net operating
income and (2) a percentage of any one or more of the following: (i) the Client’s aggregate
capital commitments, (ii) the Client’s unreturned capital actually invested or committed to
investments or (iii) the Client’s asset value, measured on either a gross or net basis
depending on the Client.

       (4)    Credit Strategies

Annual Management Fees for Clients in the Credit Strategies are generally based on either
(1) a percentage of the Client’s net asset value or (2) a combination of two components: (i) a
percentage of the Client’s aggregate capital commitments and (ii) a percentage of the Client’s
capital actually invested or committed to investments.

Non-Investment Advisory Services (Other Services) Fees

CIM Group provides non-investment advisory services (“Other Services”) to Clients that would
otherwise be provided by third parties to Clients for additional compensation (“Other Services
Fees”). The terms and conditions upon which Other Services are provided and the terms and
conditions of Other Services Fees are individually negotiated with each Client and are set
forth in the Governing Documents. For example, CIM Group provides property
management, development, leasing, and multifamily residential sales services to real estate
assets, loan servicing and work-out services to debt investments and operating and
administration services to infrastructure portfolio companies. Other Services Fees do not
reduce or offset Management Fees. Generally, for newer vintage Clients, Other Services
Fees: (1) are at rates that do not exceed certain specified and agreed upon limits, usually a
percentage of gross property revenues, gross contract price, base rent or gross sales,
depending on the type of Other Services provided; (2) require the consent of the advisory

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board or all limited partners, as set forth in the Governing Documents; or (3) are otherwise
no less favorable to the Client and/or its investment than the arm’s-length rates on which
the Client or such investment could obtain comparable services from an unaffiliated service
provider, taking into account the nature of the relevant asset type and the special services
required.

For those Other Service Fees that are performance-based, CIM believes that such
compensation incentivizes CIM Group to provide Other Services in a manner that increases
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Item 7: Types of Clients

As previously mentioned, CIM provides investment advisory services to Funds that are
exempt from registration under the Investment Company Act pursuant to Sections 3(a)(1),
3(c)(5), 3(c)(6), 3(c)(7) or 3(c)(1) thereof. CIM does not currently provide investment advisory
services directly to nonaccredited retail investors or to registered investment companies.
CIM Group invests in some, but not all, Fund Clients.

The minimum capital commitment to invest in a Fund generally ranges between $150,000
and $25 million, depending on the Fund; however, the Fund’s general partner or managing
member generally has the discretion to reduce the minimum capital commitment. For
eligible CIM Group employees investing in a Fund through the CIM EIP (defined below), the
minimum capital commitment requirement is $25,000. All Fund investors are subject to
applicable financial sophistication requirements, and CIM requires Fund investors to be
“qualified purchasers” (“Qualified Purchasers”), as defined in Section 2(a)(51) of the
Investment Company Act, or “accredited investors” (“Accredited Investor”) as defined in
Regulation D under the Securities Act of 1933.

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