Fillmore Capital Partners LLC

Item 5.        Fees and Compensation

FCP’s compensation is negotiable and varies, but it typically charges an annual fee of between
0.50% and 2.00% of either committed capital or invested capital, which amount is payable in
monthly or quarterly installments at the beginning or end (depending on the provisions of each
fund’s partnership agreement) of each period on the date the fee accrues and becomes payable.

FCP is typically allocated from each investor in an investment fund a performance allocation equal
to 15% to 25% of distributions of net profits in excess of certain defined investment returns
otherwise allocable to such investor. Performance allocations are assessed in arrears on a quarterly
or an annual basis, and typically are only applied to distributions or net profits that exceed a
preferred return or hurdle rate earned by the investor, and, in most cases after a return of the
investor’s contributed capital. Performance allocations may create an incentive for FCP to make
more risky and speculative investments than it would otherwise make.

FCP deducts management fees and performance allocations directly from discretionary client
accounts.

FCP believes that its charges are competitive with those charged by other investment advisers for
comparable services. Comparable services may be available, however, from other sources for
lower fees.

Relationships with FCP’s clients are terminable on dissolution of a fund or on withdrawal of FCP
or its affiliate as general partner or manager. An investor may not typically withdraw from a fund
prior to its dissolution.

Each fund is responsible for its own investment costs and expenses related to the activities or
operations of the investment, as specified in each fund management agreement. These costs and
expenses may include, but are not limited to travel, origination, acquisition, disposition, financing

and bank fees, administrative fees, property management fees, development fees, construction
fees, postal and mail fees, and insurance fees. FCP bears its own operating, general, administrative
and overhead costs and expenses, other than the expenses described above.

Item 7.        Types of Clients

FCP provides investment advice to investment funds. Investors in the funds are required to invest
a minimum of $1,000,000, but FCP may waive this minimum. FCP generally requires a minimum
of $50 million to open an individually managed fund but may waive this minimum. FCP’s clients
may include high-net-worth individuals, institutions, trusts, endowments, and pension plans.