Flagship Investment Management LLC

Item 5. Fees and Compensation
The fees and expenses applicable to an investment are set forth and agreed to in the Clients’ governing
documents, which may include a private offering memorandum, limited partnership agreement,
subscription and operating agreement, and investment management agreement or other agreements
(collectively, the “Offering Documents”). Investors and prospective investors must carefully review the
Offering Documents of the Client in which they are invested or may invest, to review the specific fees and
expenses applicable to their investment.

The Adviser charges its Clients an asset-based investment management fee (the “Management Fee”) based
on the value of either committed or invested capital of each Limited Partner, and for certain Clients, the
outstanding principal of the Client’s credit facility. The Management Fee is calculated monthly in arrears
at an annual rate of up to 1.5%. In addition, the Adviser or its affiliates are generally eligible to receive up
to thirty percent (30%) of distributions once Limited Partners have received a return of their capital
contributions plus an eight percent (8%) priority return. In addition, each Client will bear all costs and
other expenses incurred in the organization of the Client and the offering of interests in the Client, including
without limitation fees payable to licensed broker dealers, placement agents, marketing, legal, and
accounting costs.

Organizational and Fund Expenses

In addition, each Client bears all expenses related to its organization, capitalization, launch, management,
and operations, including without limitations travel expenses, fees and other out-of-pocket expenses related
to the investigation, research, and analysis of Real Estate Investment opportunities (whether or not
consummated), out-of-pocket expenses related to the ownership, management and disposition of all Real

Estate Investments, marketing and business development expenses, taxes (but not tax items allocated to
Investors in accordance with the Offering Documents), fees of auditors, accountants, advisors, and legal
counsel, lender fees, out-of-pocket expenses of Investment Committee, litigation expenses, filing fees,
accounting and reporting expenses, financing commitment, interest expenses, origination and similar fees
and expenses, administration (including costs associated with the Client’s third-party administrator, if any),
appraisal, advisory, valuation, consulting and other professional services, insurance, the preparation,
distribution or filing of financial statements or other reports, tax returns, tax estimates, compliance or
regulatory filings or reports, any annual, periodic or special meeting of the Limited Partners, commissions,
research and marketing, software and business development, and any other or extraordinary expenses
(collectively, “Fund Expenses”). The Client shall pay all Fund Expenses or reimburse the Adviser, any of
its affiliates or any person advancing payment of such expenses. A Client may engage third parties for
necessary services relating to the Real Estate Investments, including without limitation any management,
construction, leasing, and other property management services, subject to the approval of the Adviser. A
Client will not pay any legal or accounting fees or related expenses incurred by a Limited Partner with
regard to his/her or its investment in the Client.

The exact terms of these fees and expenses are set forth in the relevant Offering Documents. The fees for
advisory services may be negotiable. The Adviser or a Client’s general partner, in their discretion, may
waive or modify the Management Fee for Investors that are members, employees or affiliates of the Adviser,
relatives of such persons, and for certain large, strategic or other Investors.

Item 7. Types of Clients
As discussed in Item 4, the Adviser currently provides discretionary investment management services to
private fund Clients, interests in which are in turn offered exclusively to accredited investors, qualified
purchasers and other institutional investors.

Any initial and additional subscription minimums for investors will be disclosed in the Offering Documents.

This Brochure is designed solely to provide information about the Adviser and should not be
considered to be an offer of interests in any current or future Client. Any such offer may be made
only by delivery to the prospective investor of the applicable Offering Documents. Investors
considering an investment in any Client should consult with their own investment, tax and/or legal
consultants prior to investing.