Partners Enterprise Capital LLC

Item 5 – Fees and Compensation

A.      How PEC is Compensated

PEC is entitled to performance-based fees based on the operating results of the Operating
Companies. Performance-based fees earned by PEC are paid to PEC Incentive LLC, a Delaware
limited liability company (“PEC Incentive”) that is owned by the PEC Management Team and
current and former employees of PEC. There are no other types of fees or compensation,
except as set forth in Item 5.C. below, that may be paid to PEC in connection with the
investment advisory services that PEC provides to the Clients. The performance-based fees
payable to PEC have been negotiated between the Clients and PEC and generally allow PEC
to share in the Clients’ returns based on the increase in value of the Operating Companies’
assets and the net operating income of the Operating Companies.

PECVI is entitled to performance-based fees based on the operating performance of the real
estate investments made by PVI. Performance-based fees earned by PECVI are paid directly
to PECVI. There are no other types of fees or compensation, except as set forth in Item 5.C.

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below, that may be paid to PECVI in connection with the investment advisory services that
PEC provides to PVI. The performance-based fees payable to PECVI have been negotiated
between PVI and PECVI and generally allow PECVI to share in PVI’s returns based on the
increase in value of the assets owned by PVI and the net operating income from such assets.
In the event the Firm obtains a new client, the applicable fees and compensation would be
negotiated with such new client.

B.      Method of Payment of Fees and Expenses
The Firm does not deduct fees from Client assets or bill the Clients for fees incurred.

All performance-based fees earned by PEC are awarded by PECH to PEC Incentive at regular
intervals in the form of the issuance of ownership units in PECH. Such units may be redeemed
by PEC Incentive at specified times that have been established by PEC and PECH.

All performance-based fees earned by PECVI are awarded by PVI to PECVI at regular intervals
in the form of the issuance of ownership units in PVI. Such units may be redeemed by PECVI
at specified times that have been established by PECVI and PVI.

C.      Other Fees and Expenses
In addition to the performance-based fees described in Item 5A above, all of the Firm’s
operating expenses, including salaries of the Firm’s personnel and administrative, legal,
accounting, auditing, banking, compliance and consulting fees and expenses incurred in
connection with the operation and management of the Firm are reimbursed by the Clients,
based on budgets established with the Clients.
The Firm has established an expense allocation policy that provides for expenses incurred
solely for a single Client to be allocated to such Client and for shared expenses of the Clients,
which includes the Firm’s overhead and employee expenses, to be allocated on a fair and
equitable basis between the Clients. Such allocation is generally performed on the basis of
employee time allocations for each Client. Such allocations and any associated
reimbursements or payments between the Clients, or between PEC and PECVI, are generally
performed on a monthly or other regular basis in accordance with the expense allocation
policy.
Expenses are reimbursed to the Firm from time to time from the Clients’ operating cash flow,
financing proceeds, disposition proceeds, additional capital contributions, and/or other cash
available to the Clients before any distributions are made to the Clients’ members.
The Firm does not receive any compensation in the form of brokerage commissions or
transaction fees. Please see Item 12 of this Brochure regarding “Brokerage Practices”.

D.      Timing of Payment of Fees and Expenses
The Firm’s fees are paid by the Clients after they have been earned and the Firm’s expenses
are paid by the Clients after they have been incurred. The Firm’s fees and expenses are not
paid in advance.

E.      Disclosures Regarding Compensation
Although the Firm is entitled to performance-based fees based on the operating results of the
Clients, neither the Firm nor any of its “supervised persons” (as defined in the Glossary of
Terms to Form ADV) receives any compensation from the sale of securities or other
investment transactions. The Firm evaluates investments for the Clients in a manner that it
considers to be in the best interest of the Clients without taking into account any

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performance-based fee structure with the Clients. The Firm believes that the nature of its
performance-based fee structures with the Clients creates a strong alignment of interest with
the Clients because the outcomes for both the Clients and the Firm are based on the financial
performance of the Clients.