Lanier Asset Management LLC

Item 5: Fees and Compensation

LAM offers its services on a fee basis, which include fixed fees, as well as fees based upon assets
under management.

Financial Planning and Consulting Fees

LAM has the right to charge a fixed fee for financial planning and consulting services. These
fees are negotiable but generally range from $1,000 to $2,500 on a fixed fee basis, depending
upon the level and scope of the services and the professional rendering, the financial planning,
and/or the consulting services. If the client engages LAM for additional investment advisory
services, LAM may offset all or a portion of its fees for those services based upon the amount
paid for the financial planning and/or consulting services.

Investment Management Fee

LAM provides investment management services for an annual fee based upon a percentage of
the market value of the assets being managed by LAM. LAM’s annual fee is exclusive of, and in
addition to brokerage commissions, transaction fees, and other related costs and expenses
which are incurred by the client. LAM does not, however, receive any portion of these
commissions, fees, and costs. LAM’s annual fee is charged monthly or quarterly, in advance or
arrears, as disclosed in the client agreement, based upon the market value of the assets being
managed by LAM on the last day of the previous month/quarter. The annual fee varies
between 0.30% and 1.50%, depending upon the market value of the assets under management
and the type of investment management services to be rendered.

LAM, in its sole discretion, may negotiate to charge a lesser management fee based upon certain
criteria (e.g., anticipated future earning capacity, anticipated future additional assets, dollar
amount of assets to be managed, related accounts, account composition, pre-existing client,
account retention, pro bono activities, etc.).

The Funds

LAM sponsors and acts as the managing member of the Funds, which provide equity to the
corresponding Property Holding Companies. In exchange for such services, the Property
Holding Companies pay LAM an annual management fee equal to 2% of the Funds’ initial
investment into the Property Holding Companies (the “Fund Management Fee”).

LAM receives no other fees or compensation through its management of the Funds.

Fees Charged by Financial Institutions

As further discussed in response to Item 12 (below), LAM recommends that clients utilize the
brokerage and clearing services of Pershing, LLC through Pershing Investment Manager
Services (“Pershing”) for investment management accounts.

LAM may only implement its investment management recommendations after the client has
arranged for and furnished LAM with all information and authorization regarding accounts
with appropriate financial institutions. Financial institutions include, but are not limited to,
Pershing, any other broker-dealer recommended by LAM, broker-dealer directed by the client,
trust companies, banks etc. (collectively referred to herein as the “Financial Institutions”).

Clients may incur certain charges imposed by the Financial Institutions and other third parties
such as fees charged by Managers, custodial fees, charges imposed directly by a mutual fund or
ETF in the account, which are disclosed in the fund’s prospectus (e.g., fund management fees
and other fund expenses), deferred sales charges, odd-lot differentials, transfer taxes, wire
transfer and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Additionally, for assets outside of any wrap fee programs, clients may incur
brokerage commissions and transaction fees. Such charges, fees and commissions are exclusive
of and in addition to LAM’s fee.

LAM’s Agreement and the separate agreement with any Financial Institutions authorize LAM
or Managers to debit the client’s account for the amount of LAM’s fee and to directly remit that
management fee to LAM or the Managers. Any Financial Institutions recommended by LAM
have agreed to send a statement to the client, at least quarterly, indicating all amounts
disbursed from the account including the amount of management fees paid directly to LAM.

Fees for Management During Partial Months of Service

For the initial period of investment management services, the fees are calculated on a pro rata
basis.

The Agreement between LAM and the client will continue in effect until terminated by either
party pursuant to the terms of the Agreement.

Clients may make additions to and withdrawals from their account at any time, subject to
LAM’s right to terminate an account. Additions may be in cash or securities provided that LAM
reserves the right to liquidate any transferred securities or decline to accept particular securities
into a client’s account. Clients may withdraw account assets on notice to LAM, subject to the
usual and customary securities settlement procedures. However, LAM designs its portfolios as
long-term investments, and the withdrawal of assets may impair the achievement of a client’s
investment objectives. LAM may consult with its clients about the options and ramifications of
transferring securities. However, clients are advised that when transferred securities are
liquidated, they are subject to transaction fees, fees assessed at the mutual fund level (e.g.,
contingent deferred sales charge) and/or tax ramifications.

If assets are deposited into or withdrawn from an account after the inception of a month or
quarter, including withdrawals made as a result of a termination of the Agreement, the fee
payable with respect to such assets will not be adjusted or prorated for that month or quarter
(based on the number of days remaining in the period).

Item 7: Types of Clients

LAM offers its services primarily to individuals, pension and profit-sharing plans, trusts,
estates, charitable organizations, corporations, and business entities. LAM also provides
investment management services for Members of the Funds. LAM generally requires a $100,000
minimum investment for Members of the Funds.

Item 8: Investment Strategies and Risk of Loss

Investment Strategies

LAM’s investment strategy is based primarily on wealth preservation and secondarily on growth
– seeking participation in market upside while focusing on reducing risk and volatility in our
managed portfolios (decreasing standard deviation and market correlation of returns). We
execute our philosophy through the disciplined use of our customized asset class allocation
models which strive to produce positive investment returns across a wide range of market
conditions. Our models seek to significantly reduce risk by limiting direct exposure to both the

equity and debt markets, utilizing alternative asset classes such as hedge funds, real estate, and
commodities as complements to any direct exposure.

The Funds

The Funds will invest solely in the Properties via a direct investment in the Property Holding
Companies. The Funds will make no other investments.

Risks of Loss

Mutual Funds and Exchange Traded Funds (ETFs)

An investment in a mutual fund or ETF involves risk, including the loss of principal. Mutual fund
and ETF shareholders are necessarily subject to the risks stemming from the individual issuers of
the fund’s underlying portfolio securities. Such shareholders are also liable for taxes on any fund-
level capital gains, as mutual funds and ETFs are required by law to distribute capital gains in
the event, they sell securities for a profit that cannot be offset by a corresponding loss.

Shares of mutual funds are generally distributed and redeemed on an ongoing basis by the fund
itself or a broker acting on its behalf. The trading price at which a share is transacted is equal to a
fund’s stated daily per share net asset value (“NAV”), plus any shareholders fees (e.g., sales loads,
purchase fees, redemption fees). The per share NAV of a mutual fund is calculated at the end of
each business day, although the actual NAV fluctuates with intraday changes to the market value
of the fund’s holdings.

Shares of ETFs are listed on securities exchanges and transacted at negotiated prices in the
secondary market. Generally, ETF shares trade at or near their most recent NAV, which is
generally calculated at least once daily if not more frequently. However, certain inefficiencies
may cause the shares to trade at a premium or discount to their pro rata NAV.

Options

Options allow investors to buy or sell a security at a contracted “strike” price (not necessarily the
current market price) at or within a specific period of time. Clients may pay or collect a premium
for buying or selling an option. Investors transact in options to either hedge (limit) losses in an
attempt to reduce risk or to speculate on the performance of the underlying securities. Options
transactions contain a number of inherent risks, including the partial or total loss of principal in
the event that the value of the underlying security or index does not increase/decrease to the
level of the respective strike price. Holders of options contracts are also subject to default by the
option writer, which may be unwilling or unable to fulfill their contractual obligations.

Market Risks

The profitability of a significant portion of LAM’s recommendations may depend upon correctly
assessing the future course of price movements of stocks and bonds. There can be no assurance
that LAM will be able to predict those price movements accurately.

Use of Independent Third-Party Managers

LAM may recommend the use of Independent Third-Party Managers for certain clients. LAM
will continue to do ongoing due diligence of such managers, but such recommendations rely, to
a great extent, on the Managers ability to successfully implement their investment strategy. In
addition, LAM does not have the ability to supervise the Managers on a day-to-day basis other
than as previously described in response to Item 4, above.

Use of Private Collective Investment Vehicles

LAM may recommend the investment by certain clients in privately placed collective investment
vehicles (some of which may be typically called “hedge funds”). The managers of these vehicles
will have broad discretion in selecting the investments. There are few limitations on the types of
securities or other financial instruments which may be traded and no requirement to diversify.
The hedge funds may trade on margin or otherwise leverage positions, which could increase the
risk to the vehicle. In addition, because the vehicles are not registered as investment companies,
there is an absence of regulation. There are numerous other risks in investing in these securities.
The client will receive a private placement memorandum and/or other documents explaining
such risks.

Real Estate Investments

The Fund will invest in real estate. The ownership of real estate includes many risks including:
declines in the value of real estate, general and local economic conditions, unavailability of
mortgage funds, overbuilding, extended vacancies of properties, increased competition, increases
in property taxes and operating expenses, changes in zoning laws, losses due to costs of cleaning
up environmental problems, liability to third parties for damages resulting from environmental
problems, casualty or condemnation losses, changes in neighborhood values and the appeal of
properties to buyers, tenants, changes in interest rates, etc. An economic downturn could have a
material adverse effect on the real estate markets, which in turn could result in the Fund not
achieving its investment objectives.

Real property investments are subject to varying degrees of risk. The yields available from
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