Palo Duro Investment Partners LP

Item 5 – Fees and Compensation

The fees and expenses applicable to each Vehicle are set forth in detail in such Vehicle’s offering
documents, governing documents, and/or investment management agreements (as applicable). A
fee schedule is omitted from this Item 5 because this Brochure is only being delivered to “qualified
purchasers” as defined in the Investment Company Act of 1940, as amended.

Management Fee

Each investor in the Private Funds will pay to Palo Duro an asset-based management fee in arrears
as set forth in the applicable Confidential Private Placement Memorandum (the “PPM”) for each
Private Fund. Please see the applicable PPM for a more complete description of each Private
Fund’s management fees.

Any asset-based compensation applicable to a Managed Account investor is negotiated with that
investor directly. Any such investor should refer to the applicable governing documents of their
respective separately managed account for further calculation details. It should be noted that Palo
Duro or an affiliate intends to waive any/all management fees with respect to any of Palo Duro’s
related persons.

Performance-Based Compensation

In addition to the Management Fee described above, the General Partner or its designee will be
generally entitled to receive performance-based compensation annually equal to a percentage of
any new net appreciation attributable to each investor’s investment in such Private Fund. Please
see the applicable PPM for a more complete description of each Private Fund’s performance-based
compensation.

Any performance-based compensation applicable to a Managed Account investor is negotiated
with that investor directly. Any such investor should refer to the applicable governing documents
and agreements of their respective Managed Account for further calculation details.

Investors should refer to each Vehicle’s governing documents and agreements for more
detailed information regarding how Palo Duro is compensated for its advisory services. The
information contained herein is a summary only and is qualified in its entirety by such
documents.

Operating Expenses

The Private Funds generally bear all costs and expenses associated with their organization, the
offering of investment interests and their ongoing operations, except as otherwise described in
their applicable governing agreements. Please see the applicable PPM for a more complete
description of each Private Fund’s operating expenses.

Any operating expenses attributable to a Managed Account is negotiated with the Managed
Account investor directly. Any such investor should refer to the applicable governing documents
and agreements of their respective Managed Account for further details.

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Item 7 – Types of Clients

As described in “Item 4 — Advisory Business” above, Palo Duro provides investment advisory
services to the Vehicles on a discretionary basis.

As it relates to the Private Funds, investment advice is provided directly to those Private Funds
and not individually to their investors. As it relates to Managed Accounts, investment advice is
currently provided to foundations and pension plans.

Palo Duro currently provides, or may provide in the future, portfolio management services to high-
net-worth individuals, corporate pension and profit-sharing plans, charitable institutions,
foundations, private investment funds, trust programs, and other U.S. and international institutions.
We generally do not have absolute minimum requirements regarding the amount of assets needed
to open or maintain an account.