Forward Management LLC

ITEM 5 – FEES AND COMPENSATION

Managed Accounts

  Types of Fees
  Forward Management’s fees for Managed Accounts are a percentage of the fair market value of assets held in the
  Managed Account. Fees may be negotiated, and the percentage used depends upon the nature and extent of the
  investment supervisory and/or administrative services requested, the investment objectives of the client, and
  competitive factors. Subject to these factors, the basic annualized fee schedule for certain portfolios is as follows:

        Salient Tactical Growth Portfolio:
                  1.00%                      First $250,000
                  0.75%                      Next $250,000
                  0.65%                      Next $500,000
                  0.50%                      Excess over $1,000,000

        Salient Real Estate Income Portfolio:
                  1.00%                      First $5,000,000
                  0.75%                      Next $20,000,000

               0.70%                          Next $25,000,000
               0.65%                          Next $25,000,000
               0.65% flat on all assets       $75,000,001 – $100,000,000
               0.60% flat on all assets       $100,000,001 – $150,000,000
               0.50% flat on all assets       Excess $150,000,000

      Salient Global Real Estate Portfolio:
               1.00%                          First $5,000,000
               0.75%                          Next $20,000,000
               0.70%                          Next $25,000,000
               0.65%                          Next $25,000,000
               0.65% flat on all assets       $75,000,001 – $100,000,000
               0.60% flat on all assets       $100,000,001 – $150,000,000
               0.50% flat on all assets       Excess $150,000,000

Fees are negotiable on an account by account basis.

Forward Management generally does not accept accounts below $250,000 in the Salient Real Estate Income
Portfolio and Salient Global Real Estate Portfolio strategies. Individually negotiated account sizes smaller than
$250,000 may be accepted at the discretion of Forward Management.

Fees for individual and other non-institutional Managed Accounts are charged quarterly, in advance, at the
beginning of each calendar quarter, based on the market value of the client’s account on the last business day of
the previous calendar quarter. New accounts are charged a pro-rata fee for the quarter based on the market value
of the account on the last business day of the quarter and prorated on a daily basis.

Fees for institutional Managed Accounts are charged quarterly, in arrears, based on the value of the client’s
account on the last business day of the quarter. New accounts are charged a pro-rata fee for the quarter based
on the market value of the account on the inception date and prorated on a daily basis.

Lower fees for comparable services may be available from other sources. The expenses of the Managed Account,
including Forward Management’s management fee, may constitute a higher percentage of average net assets
than would be found in other investment vehicles not managed by Forward Management.

Payment Method
Payment of fees for individual and other non-institutional Managed Accounts and for institutional Managed
Accounts will be made through either a quarterly debit to the client’s account at the custodian bank or
broker/dealer or will be made upon invoice, which will be due within 30 days of the date of the invoice. At the
client’s request, Forward Management will send the client an informational statement of the fees due each
quarter.

Other Fees and Expenses
In addition to the management fee, a Managed Account client is responsible for any fees, expenses, or charges
incurred by or on behalf of the Managed Account related to (i) custodial services provided for the Managed
Account, (ii) transactions effected for the Managed Account, including brokerage and execution charges, markups
and commissions, and (iii) any other service provided for the Managed Account by any person other than Forward
Management. For additional information regarding brokerage and execution charges, please see Item 12 below.

  Refunds
  If a Managed Account client terminates its investment management agreement on a date other than the end of a
  calendar quarter, any unearned portion of the management fee (calculated from the date the agreement is
  terminated to the last day of the calendar quarter) already paid at the beginning of the quarter will be refunded
  to the client by Forward Management promptly after the effective date of the termination.

  Sales Compensation
  Not applicable.

Registered Investment Companies

Types of Fees
Each fund that is a series of the Forward Funds (each, a “Fund”) pays the following advisory fees to Forward
Management, pursuant to an investment management agreement by and between Forward Funds, on behalf of
each Fund, and Forward Management (the “Forward Funds Investment Management Agreement”). The advisory fee
is computed daily and paid monthly, at the following annual rates based on the average daily net assets of the
respective Fund:

Fund                                                    Advisory Fee**
                                                        (as a percentage of Fund daily net assets)
Salient Global Real Estate Fund                         0.75%
Salient Select Income Fund                              0.75%
Salient Tactical Growth Fund*                           1.15%

*The Fund pays an advisory fee to Forward Management, which in turn pays each sub-advisor a sub-advisory fee,
as applicable.

**Advisory fees payable pursuant to the Forward Funds Investment Management Agreement may be subject to
certain waivers as agreed between Forward Management and Forward Funds.

Payment Method
The fees and compensation paid to Forward Management will be paid in accordance with the investment
management agreement.
...

ITEM 7 – TYPES OF CLIENTS

For a discussion of Forward Management’s clients, please refer to Item 4 above.

Account Requirements and Minimums

Managed Accounts
Forward Management does not have absolute minimum requirements for the amount of assets for establishing or
maintaining a Managed Account. However, Forward Management does have preferred minimum Managed Account
sizes, as indicated below:

        Institutional Managed Accounts:     Preferred minimum account size is $5,000,000
        Individual Managed Accounts:        Preferred minimum account size is $100,000

Forward Management may accept accounts below these minimums. Forward Management reserves the right, at its
sole discretion, to negotiate the minimum dollar value at the time the relationship is entered into with a client or
investor.

Wrap Programs
Minimum investments and account values required to engage Forward Management as a discretionary manager in
a Wrap Program vary from sponsor to sponsor, as described by the Wrap Sponsor in its program brochure. Forward
Management generally does not have discretion to waive sponsor-imposed minimums but may have discretion to
waive or reduce minimums imposed by Forward Management in excess of those required by the Wrap Sponsor.

Asset Allocation Services
No requirements or minimums.

Model Portfolios
No requirements or minimums.