Cross Lake Partners LP

Item 5: Fees and Compensation

Item 5.A. Description of Compensation Arrangements
Cross Lake will be compensated for its services based on a variety of factors, including the
investment strategy, the size of the overall portfolio and the nature and structure of Cross Lake’s
relationship with the Fund. Cross Lake’s compensation generally includes management fees and
may also include advisory fees, financing and/or syndication fees and incentive fees or carried
interest. In most circumstances Cross Lake will set the fees that it will charge when it forms a

Fund, prior to offering interests in the Fund to third party investors, based on its view of the
market for such fees and services. Cross Lake may in the future provide investment advice to
additional Advisory Clients and may negotiate different compensation arrangements with future
clients than those described above.

Management Fees will typically be calculated as a percentage of the capital invested by each
investor in the Fund and will typically be payable quarterly as described below.

Each Limited Partner will typically pay the Firm an annual management fee (the “Management
Fee”), payable quarterly in advance, equal to (a) 1.5% per annum of its Commitment during the
Investment Period and (b) thereafter, 1.5% per annum of (i) such Limited Partner’s aggregate
capital contributions less (ii) the aggregate amount of such Limited Partner’s capital
contributions with respect to the portion of each investment that has been disposed of and the
proceeds thereof have been distributed to the Partners or completely written-off.

Advisory fees, financing and/or syndication fees, acquisition fees and disposition fees, if
applicable, will typically be calculated as a percentage of the specific transaction value and
payable at the closing of such transaction. To the extent the activities of any employee of the
Firm or any business activities of the Firm regarding a syndication would require licensing or
registration, the Firm will undertake to obtain and maintain the appropriate licensing or
registrations to perform those functions or business activities.

Cross Lake or its affiliates may also receive incentive fees as a component of the overall
compensation that the Firm would receive for its services. These fees will typically be based on
agreements with the Funds and calculated as a specified portion of the return that exceeds a
realized return threshold identified in the Funds’ Governing Documents. Any incentive fees
charged will be structured to comply with Rule 205-3 under the Investment Advisers Act of
1940, as amended (“Advisers Act”).

Conflicts Related to Valuation and Fees

In most circumstances Cross Lake will set the fees that it will charge when it forms a Fund, prior
to offering interests in the Fund to third party investors, based on its view of the market for such
fees and services. As a result, Cross Lake’s fees may not reflect negotiation with a third party,
which represents a conflict of interest between Cross Lake and the Fund.

Item 5.B. Manner of Fee Payment
The manner in which Cross Lake is paid for its services will vary by Fund and type of service
provided and will be documented in the advisory agreement with each Fund and disclosed in the
Governing Documents for each Fund. Fees may be invoiced directly to investors, deducted from
investor capital contributions or paid from the Funds’ cash on hand. The Fund may also offset
and reduce amounts otherwise distributable to a Limited Partner in order to pay the Management
Fee to the Firm.

Fees will be payable periodically depending on the nature of the fee. For example, management
fees will generally be payable on a quarterly basis; transaction fees (such as advisory fees,

financing and/or syndication fees, acquisition fees and disposition fees) will generally be payable
within a certain period of time following the closing of a transaction; and incentive fees will be
payable upon the realization of a capital event such as the sale of assets, typically after an
investors’ specified return threshold for a deal has been reached.

Item 5.C. Other Fees Clients May be Charged
The Funds, except as noted below, will typically bear all expenses related to the formation of the
Fund, the acquisition and disposition of the Funds’ investments and the management, ownership,
leasing, development or redevelopment of the Funds’ investment portfolio, including fees
payable to service providers other than Cross Lake in addition to those paid to Cross Lake as
described in Item 5.B above. Each Funds’ Governing Documents will describe the fees and
expenses payable by the Fund.

The Firm will typically be entitled to withhold from amounts otherwise distributable by a Fund
reserves for the proper operation of the Fund, including for the current or anticipated expenses
and liabilities of the Fund (including fees or other amounts payable to Cross Lake), and amounts
in respect of any required tax withholding.

Fund expenses generally

Expenses borne by the Funds (and therefore, its investors) will typically include fees and out of
pocket expenses directly related to the due diligence investigation of its investments (including,
if the Fund has investment objectives that include the acquisition of additional investments, the
cost of investigating any subsequent investment opportunity, whether or not consummated), the
acquisition, disposition, ownership, financing, leasing, development or redevelopment of its
investments, including real estate transfer taxes, brokerage fees, title premiums, the cost of
engineering and environmental studies, income and other taxes, loan commitment fees and other
loan fees, interest charges, fees and expenses of auditors and counsel, insurance, litigation
expenses, expenses associated with the preparation and distribution of reports to investors and
other appropriate expenses, such as business-related travel and lodging (including business-class
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Item 7: Types of Clients

The Funds sponsored by the Firm will typically be structured as private funds created to hold
specific investments. Investors in the Funds will typically be institutional, high-net-worth
individual and family office investors that are accredited investors under the Securities Act of
1933 and “qualified purchasers”, as defined by the Investment Company Act of 1940 (the “1940
Act”).

Institutional investors in each Fund may include public and private pension funds, insurance
companies, asset management companies, banks and sovereign wealth funds. Knowledgeable
employees (within the meaning of the 1940 Act) of Cross Lake may also be permitted to invest
on terms to be determined by Cross Lake and set forth in the relevant Governing Documents.