CRE Venture Capital Inc

Item 5 - Fees and Compensation
In consideration of CRE’s investment advisory and other services, CRE typically receives a
management fee from each of the Funds, which is generally equal to a percentage of the total capital
commitments to such Fund. The fee percentage and/or the base upon which the fee is calculated
may vary with the size of the Fund and may also vary over the life of a Fund, in some instances, as
negotiated and determined at the time the Fund is established and as set forth in its Governing
Documents.

Management Fees generally are not negotiable. However, the Adviser (or an affiliate) has discretion
to reduce or waive management fees and/or carried interest distributions on a case-by-case basis.
Generally, the Adviser may use its discretion to waive the management fee and carried interest
distributions for the Adviser’s affiliates.

Management Fees are typically funded with capital contributions drawn for such purpose, but may
also be funded based on appreciated value of capital contributions or withheld from proceeds from
investments. To the extent one of the Adviser’s Funds invests in another Fund managed by the
Adviser, the Adviser waives the management fee at one level to avoid duplication.

CRE and its affiliates generally pay all of their own operating and overhead costs and expenses,
including salaries, benefits, and rent. In addition to any management fees payable to CRE, a Fund
will incur certain charges imposed by third parties and other expenses related to its operations and
investments. Such expenses may include, but are not limited to, transaction costs, legal, accounting,
tax, auditing and other costs related to the investments and operations of a Fund. The types of

other costs and expenses incurred may vary from Fund to Fund and are set forth in more complete
detail in the Governing Documents for each Fund.

Expenses for vehicles that invest in multiple portfolio companies are typically funded with capital
contributions drawn for such purpose, but may also be funded with or withheld from proceeds
from investments. Expenses for single purpose vehicles or overflow funds are typically estimated
and paid upfront in part upon subscription. As each Fund invests in the securities of private
companies on a long-term basis, all fees and expenses are paid during the term of a Fund and
investors are generally not permitted to withdraw or redeem.

Item 6 - Performance Fees
CRE or one or more of its affiliates are entitled to receive carried interest distributions with respect
to each of the Funds. The carried interest or incentive distribution is effectively equivalent to a
percentage of a Fund’s net profits, subject to certain terms and conditions set forth in the
Governing Documents of a Fund. Any share of a Fund’s net profits paid to CRE or its affiliates
are separate and distinct from any annual management fees and other fees paid or borne by the
Funds. CRE or such affiliate, in its own discretion, may waive or reduce carried interest
distributions on a case-by-case basis for specific investors including affiliates.

While the Adviser advises several pooled investment vehicles, there is no current conflict that exists
regarding the suitability of any particular investment between any of the vehicles CRE advises.

As a fiduciary, the Adviser recognizes that it must treat all its clients fairly and must refrain from
favoring one client’s interests (or the Adviser’s own interests) ahead of another client(s). Carried
interest distributions could motivate the Adviser to make investment decisions that are riskier or
more speculative than would be the case if these arrangements were not in effect. For example, a
carried interest distribution generally entitles the Adviser’s affiliates to a percentage of the net
profits of a Fund; however, such affiliates are not required to bear the same proportion of the net
losses, if any, suffered by the Fund as a whole. The Adviser generally attempts to mitigate conflicts
of interest associated with carried interest distributions through: (i) the requirement that invested
capital be returned to investors before the Adviser or its affiliates are entitled to receive any carried
interest distributions; (ii) the decision to allocate transactions and opportunities among the Funds
it manages in a manner it believes to be as equitable as possible, considering each Fund’s objectives,
risk profile, programs, limitations and capital available for investment, but even accounts with
similar objectives may have different investment portfolios; and (iii) to the extent one of the
Adviser’s Funds invests in another Fund managed by the Adviser, the Adviser waives carried
interest at one level to avoid duplication.

Item 7 - Types of Clients
Clients of the Adviser will generally be Funds that meet the exclusion from the definition of an
investment company under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act of
1940.