Newport Investment Management LLC

Item 5 - Fees and Compensation
Investment advisory services provided by Newport and the fee schedules for such services are fully
disclosed in the Investment Advisory Agreements. Newport receives basis point compensation from a
fixed, acquisition, disposition, financing fee and a percentage of gross acquisition price or equity
commitment. Fees are negotiable and vary between 0-175 basis points based on market survey.
Additionally, they are set at the time the fund operating agreement is signed. Below is a chart that
illustrates the percentage of basis points the firm typically receives from each fee.

     Percentage of Equity Committed or Invested        100-250 bps
     Fixed Fee                                         Variable
     Acquisition Fee                                   0-100 bps
     Disposition Fee                                   0-100 bps
     Financing Fee                                     0-100 bps

Fees are billed as an allocated expense to the real estate investment or to the respective fund.
Investment Advisory Fees are typically paid quarterly.

The firm’s affiliate NAM earns property level fees (i.e., property management, leasing commissions, and
construction management) provided they do not exceed “market” rates. Fees are calculated on fixed
percentages and are disclosed at the time the Fund’s operating agreement is signed. NAM also
completes a market rate survey annually and will request Limited Partner Advisory Committee approval
to provide property level services as required by a Fund’s operating agreement. Property level fees are
paid monthly or quarterly as earned.

If an advisory contract is terminated before the end of the billing period, the client is due a refund based
on the pro-rata number of days Newport was the investment manager. Neither Newport, nor any
supervised persons, accepts compensation for the sale of securities or other investment products.
Additionally, the firm does not charge a custodial fee.

Item 7 - Types of Clients
Newport provides investment advisory services on a discretionary and non-discretionary basis to Real
Estate Funds (both closed-end comingled funds as well as joint venture accounts). Fund investors
include pension plans, fund-of-funds, endowments, foundations, family offices and high net worth
individuals.

The firm requires its Funds to enter into a written investment advisory agreement. Fund investors
purchase interest in a Fund by signing the Fund’s operating agreement and completing subscription
documents. Generally, Newport’s initial minimum account size is $5,000,000, subject to Newport’s
discretion.