Crescent Real Estate LLC

ITEM 5. FEES AND COMPENSATION
As provided under the governing documents of each applicable Fund, Crescent or its
affiliates receive from the Funds an asset management fee and/or a profits interest, in
addition to other fees as necessary and agreed to (including but not limited to servicing
fees, administrative fees, and real estate acquisition fees). Although Crescent has entered
into agreements with the Funds providing for these fees, Crescent and the general partner
of the applicable Fund negotiate alternative fees on a case-by-case basis with other funds
or separate account clients that they manage. The facts and circumstances of each Fund
will be considered in determining the fees received by Crescent as compensation for
advisory services, including the Client's investment strategy, assets under management,
account composition, reporting requirements, and any other factors that Crescent deems
relevant. All such fees will be set forth in a written agreement with each Client.

MANAGEMENT FEES

As compensation for advisory services to these Clients, Crescent generally charges a
management fee of up to 2.0% annually of contributed equity or committed capital, a flat
fee, or a fee based on gross revenue, to cover overhead, in each case calculated and payable
quarterly or monthly, either in advance or arrears. Fees are deducted from Client assets or
billed directly to the Client, as provided by each Client's asset management agreement.
Any such management fees are negotiated during the development of each Fund's
management agreement. In some cases, Crescent or its affiliates may be compensated by
receiving an additional equity interest in a Fund in lieu of management fees or cost
reimbursement.

PERFORMANCE FEES

Crescent sometimes also receives a performance incentive fee through a profits interest,
which (i) ranges from 10% to 60% of profits earned, (ii) is generally payable after the
achievement of a hurdle rate and/or return of capital, and (iii) may or may not be contingent
on the manager of the applicable Fund eclipsing a high-water mark. In some cases, certain
Clients pay a different fee than others based on the terms of their agreement with Crescent.

OTHER COMPENSATION

As disclosed in Fund governing documents and agreements, Crescent or its related persons
receive additional compensation or other pecuniary benefits due to the nature of our
business. Examples of such additional compensation include property leasing
commissions, asset management fees, development fees, property management fees, real
estate acquisition/disposition fees, construction supervision fees, and directors' fees, IT
service reimbursement, in-house legal fees, or other expense reimbursements by our
portfolio companies of which our managers are directors. On occasion, Crescent or an
affiliate serves as the developer or property manager for other real estate projects for which
the Firm does not act as an investment adviser and in which neither the Firm nor the Funds

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has an ownership interest. The Firm or an affiliate receives or will receive a fee for such
services. Such activities are further discussed in Item 10 below.

OTHER EXPENSES

In addition to management compensation, consistent with Fund governing documents, each
Fund bears the expenses of its organization and the offering of its interests (including legal
and accounting fees, printing costs, travel, and out-of-pocket expenses) and operations.
Additionally, each Fund bears all costs and expenses directly related to its investment
programs including expenses incurred in the identification, evaluation, acquisition,
ownership, sale, hedging or financing of any investment or potential investment, including
expenses incurred in evaluating potential investments that are ultimately not pursued
(“dead deal costs”). The Funds may pay expenses directly or indirectly and reimburse
Crescent for eligible Fund expenses, including commercial, business class, first class or
private travel expenses.

A specific description of fees and expenses charged to a Client is contained in the
agreements and offering documents for such Client.

Crescent Real Estate LLC                                                                    7

ITEM 7. TYPES OF CLIENTS
Our current Clients include unregistered investment funds, structured product vehicles, and
proprietary entities. Investors in the Funds are qualified purchasers and/or qualified clients.
Investment advice is provided directly to the Funds, subject to the discretion and control
of the general partner or the board of directors of the applicable Fund. Crescent does not
individually advise any of the investors in the Funds. Interests in the Funds are offered
pursuant to applicable exemptions from registration under the 1940 Act and the Securities
Act.

The majority of our Funds do not have a minimum initial investment and investments are
made at the discretion of the general partner of each applicable Fund. In certain Funds, the
stated minimal initial investment is $2 million; however, the general partner reserves the
right to allow exceptions to the minimum investment amount. Crescent does not have a
minimum size for a Fund.

Crescent Real Estate LLC                                                                     9