Monarch Partners Asset Management LLC

Item 5 – Fees and Compensation

5. A.   Adviser Compensation

Monarch Partners charges an annual fee based upon a percentage of the market value of the assets,
including cash or its equivalent being managed by the firm. Monarch Partners’ annual fee schedules,
by strategy, are as follows:

        Small Cap Value Equity                First $25 million      1.00%
                                              Over $25 million       0.90%

        SMID Cap Value Select Equity          All Assets             1.00%

        Micro Cap Value Equity                All Assets             1.25%

Monarch Partners, in its sole discretion, may waive the minimum fee. Additionally, fees may be
negotiated with different clients or advisory arrangements.

Monarch Partners is compensated by the Adviser of the Funds for whom it recommends holdings in
accordance with the agreement with the Adviser. Monarch Partners’ fees for its recommendations
in the model portfolios may be less than for those that are directly managed.

5. B.   Direct Billing of Advisory Fees

Fee invoices are typically sent by mail to clients, who normally pay such fees by remittance of a check
or by wire. Fees are payable by client upon receipt of invoice quarterly.

5. C.   Other Non-Advisory Fees

Monarch Partners’ annual fee is exclusive of, and in addition to, brokerage commissions, transaction
fees, custodial fees and other related costs and expenses which shall be incurred by the client.
Monarch Partners does not receive any portion of these commissions, fees, and costs. Monarch
Partners, in its sole discretion, may agree to charge a smaller management fee based upon certain
criteria (i.e., anticipated future earning capacity, anticipated future additional assets, dollar amount
of assets to be managed, related accounts, account composition, pre-existing client relationship,
account retention, pro-bono activities, etc.).

5. D.   Advance Payment of Fees

Monarch Partners’ management fees shall be pro-rated and charged quarterly, in arrears, based upon
an agreed upon methodology which is outlined in the client’s Investment Management Agreement.
Accounts initiated or terminated during a calendar quarter will be charged a pro-rated fee. Upon
termination of any account, any earned, unpaid fees will be due and payable.

Item 7 – Types of Clients

Monarch Partners provides or anticipates providing portfolio management services to high net
worth individuals, corporate pension and profit-sharing plans, Taft-Hartley plans, charitable
institutions, foundations, endowments, municipalities, registered mutual funds, private investment
funds, trust programs, sovereign funds, collective investment trusts, foreign funds such as UCITs and
SICAVs, and other U.S. and international institutions. Our minimum account size is currently $3
million for a separate account.