Falfurrias Management Partners LP

Item 5:   Fees and Compensation

All investors and prospective investors should review the Governing Documents of the
applicable Falfurrias Fund in conjunction with this brochure for complete information on the
fees and compensation payable in connection with such Falfurrias Fund.

Generally, Falfurrias charges a management fee (the “Management Fee”) in accordance with
the respective limited partnership agreement of each Falfurrias Fund, as amended (the
“Partnership Agreement”). The Management Fee of each Falfurrias Fund is payable to
Falfurrias in quarterly installments payable in advance. Each Falfurrias Fund is subject to a

Management Fee equal to 2% of the aggregate capital commitments of the limited partners of
such Fund during the period commencing on the initial closing of such Fund and ending on
the first to occur of (i) the end of the investment period of such Fund pursuant its Partnership
Agreement and (ii) the date on which the Management Fees are accrued or first paid to the
General Partner from another private investment fund (other than an alternative investment
fund or co-investment vehicle whose primary investment objectives are substantially similar
to the investment objectives of such Fund); and thereafter, such Fund will be subject to a
Management Fee equal to 2% of the aggregate cost basis attributable to investments that have
not been realized or completely written down.

Additionally, Falfurrias shall reduce the respective Management Fee payable by each
Falfurrias Fund in any calendar year by an amount equal to the applicable fee offset for the
calendar year as set forth in such Falfurrias Fund’s Partnership Agreement. In the event that
the amount of such fee offset to be applied against the Management Fee in any calendar year
exceeds the Management Fee payable during that calendar year, such excess shall be carried
forward to reduce the Management Fee payable in the future calendar year (serially and not
proportionately), and any fee offset that has not been applied to reduce subsequent
Management Fees at the termination of the such Falfurrias Fund shall be repaid to its limited
partners, ratably in accordance with their respective capital commitments to such Falfurrias
Fund.

Management Fees are paid by capital contributions from investors to the applicable Falfurrias
Fund pursuant to capital call notices delivered by such Falfurrias Fund’s General Partner out
of the total amount of capital commitments or are paid out of cash that is otherwise
distributable to the investors in such Falfurrias Fund, including cash held by such Falfurrias
Fund after a portfolio investment of such Falfurrias Fund is disposed of and before the
proceeds are distributed to investors.

Other Fees and Expenses.

In addition to the fees payable to Falfurrias, each Falfurrias Fund (and therefore, indirectly,
the limited partners of the Falfurrias Fund) may incur certain charges imposed by third parties
as set forth in such Falfurrias Fund’s Governing Documents. Investors and prospective
investors of each Falfurrias Fund should review the applicable Governing Documents in
conjunction with this brochure for complete information on the charges, expenses payable and
related reimbursement from investment proceeds distributions, with respect to such Falfurrias
Fund. Such expenses may be allocated among Falfurrias Funds as appropriate, governed by
established policies and procedures for expense allocation.

Item 7:   Types of Clients

Falfurrias currently provides investment advisory services to each Falfurrias Fund and may
provide investment advisory services to other investment partnerships or other investment
entities formed under domestic or foreign laws and operated as exempt investment pools under
the Investment Company Act of 1940, as amended. Investment advice is provided directly to
each Falfurrias Fund, subject to the direction and control of the such Falfurrias Fund’s General
Partner, and not individually to the limited partners of any Falfurrias Fund. The investors
participating in a Falfurrias Fund may include high net worth individuals, trusts, estates,
limited partnerships, pension and profit-sharing plans, and charitable organizations or other

corporations or business entities and may include, directly or indirectly, principals or other
employees of Falfurrias Management and its affiliates.

Fund II, Fund III, Fund IV, Fund V, FCP VI, and FGP I are closed to new investors
subscribing for new interests. Interests in Fund II, Fund III, Fund IV, Fund V, Fund VI, and
FGP I were privately offered and sold solely to accredited investors within the meaning of the
rules promulgated under the Securities Act.