Pinnacle Partner Management LLC

ITEM 5 – FEES AND COMPENSATION

The fees applicable to each Pinnacle Fund are set forth in detail in the applicable Pinnacle Fund’s Offering
Documents. A brief summary of such fees is provided below.

Management Fee and Carried Interest

The Adviser’s compensation for advisory and management services to the Pinnacle Funds generally
compromise an asset-based fee (a “Management Fee”), a carried interest (a “Carried Interest”) and an
origination fee (a “Origination Fee”). In the sole discretion of each Pinnacle Fund’s General Partner, the
Management Fee, Origination Fee and/or the Carried Interest may be waived, reduced or calculated differently
with respect to certain Investors.

The Adviser negotiates fees and other terms in certain cases. From time to time, the Adviser, through one or
more Pinnacle Affiliates, has entered into agreements with certain Investors in the Pinnacle Funds that provide
for terms of investment that are more favorable than the terms set forth in the applicable Offering Documents.
Such terms may include, among other things, the waiver, or reduction, of Management Fees, Origination Fees
and/or Carried Interest; the provision of additional information or reports; provisions regarding
indemnification and/or the jurisdiction and choice of law for disputes regarding the investment; provisions
regarding the investor’s and/or the Adviser’s confidentiality obligations; and “most-favored nation” provisions
covering one or more terms or rights. No such agreement necessarily entitles any other Investor to the same
terms of investment as offered in such agreement.

Certain Management Fees may be paid up-front and may be non-refundable, pursuant to the fee arrangements
indicated in relevant Offering Documents, as well as LLC Operating Agreement or LP Agreement entered
into between Pinnacle and each Pinnacle Fund, where applicable. Additional fees may be paid to Pinnacle (or
Pinnacle Affiliates) for administrative and other necessary services, including, without limitation, property

management, leasing, and project or construction management services performed on behalf of the Pinnacle
Fund, as mutually agreed. Pinnacle will not receive any transaction fees, such as disposition fees, financing
fees or other similar fees, in connection with Pinnacle Fund operations (but may receive (i) such fees from
third parties co-investing in Pinnacle Fund investments and (ii) acquisition fees (i.e., origination fees from
each project equal to a certain percentage of the total equity invested into such project)).

Expenses

The expenses attributable to each Pinnacle Fund are detailed in each Pinnacle Fund’s Offering Documents. In
general, each Pinnacle Fund will bear all expenses incident to the organization of such Pinnacle Fund, the
General Partner and any related entity, with some exceptions as set out in the Offering Documents. Depending
on the terms of the applicable Offering Document, certain Pinnacle Funds may have a threshold limit to
organizational and other such expenses. Third party expenses of operating the Pinnacle Fund and its project
entities (including finance, tax, audit, reporting, due diligence and related legal and accounting costs) will be
paid by the Pinnacle Fund. Pinnacle may, but is not obligated to (unless set out in the Offering Documents)
pay certain of such expenses directly, which may include using the Management Fees paid to it by the Pinnacle
Fund.

Certain Pinnacle Funds may incur different and/or materially higher fees and expenses, as disclosed in the
relevant Offering Documents. For more detailed information on the fees and compensation received by the
Adviser and its Affiliates, please refer to the respective Pinnacle Fund’s Offering Documents.

ITEM 7 – TYPES OF CLIENTS

The Adviser’s only clients are the Pinnacle Funds, which are structured as private investment companies that
are exempt from registration under the Investment Company Act, in most cases. Certain qualifications and
conditions are imposed on Investors in the Pinnacle Funds. Investment advice is provided directly to the
Pinnacle Funds and not individually to Investors in the Pinnacle Funds. The Pinnacle Funds are pooled
investment vehicles that are not registered under the Investment Company Act pursuant to the exemptions
provided in Section 3(c)(1), 3(c)(5)(C) or 3(c)(7) thereunder, as applicable. Additionally, the interests in the
Pinnacle Funds are not registered under the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder (the “Securities Act”) pursuant to an exemption from registration under Regulation
D of the Securities Act.

The various requirements for investing in a Pinnacle Fund, including the applicable regulatory requirements,
are set forth in the applicable Offering Documents.