Princeton Value Partners LLC

ITEM 5 – FEES AND COMPENSATION
PRIVATE FUNDS AND SEPARATELY MANAGED ACCOUNTS
Our clients pay us management fees and/or performance-based compensation as set forth in each
client’s applicable written agreement with us (and, with respect to private funds, in their
respective offering documents). We generally deduct our management fees from each account
monthly in advance. Once paid, the management fee is non-refundable. Generally, we receive
performance-based fees or allocations on an annual basis in arrears. Investors withdrawing from
a private fund or SMAs that terminate their advisory contract may owe accrued and unpaid
management and performance-based fees at the time of withdrawal. Management fees and
performance-based fees or allocations are generally not refundable, including upon the
termination of the advisory contract. We reserve the right to re-negotiate fees with existing
investors as well as offer different terms to different investors now or in the future.

In addition to those fees and charges described above, the expenses that are charged to each
client are determined according to the specific terms of the client’s applicable written agreement
with us (and, with respect to the private funds as described in its offering documents). The
expenses that are charged to the various accounts that we may manage are negotiated on a case-
by-case basis.

Generally, the private funds are currently obligated to pay, or reimburse us for advancing, the
funds’ expenses. These include, without limitation, expenses directly or indirectly related to its
operations and trading transactions and positions for its account, including, but not limited to: the
management fee and investment management expenses, interest expense, brokerage
commissions, custodial fees, research and due diligence fees and expenses (including any
research and/or due diligence related travel) and materials (including online news and quotation
services, computer hardware and software used for research, Bloomberg service, etc.), order
management systems, withholding and transfer taxes imposed on it, blue sky fees, initial and
periodic legal, audit, administration and accounting fees and expenses, investor reporting costs,
insurance expenses, consulting fees and expenses, professional fees and expenses, and other
similar fees and expenses.

Management fees and/or performance-based compensation may be reduced or waived in
certain circumstances, including with respect to investments by PVP personnel and related
parties.

Separately managed accounts may have management fees, performance-based
compensation and/or expense arrangements that differ in one or more respects from those
applicable to the private funds. To the extent we incur any expenses for the benefit of one or
more private funds and/or separately managed accounts, we generally will allocate such
expenses in a reasonable manner.

SUB-ADVISORY SERVICES
The fees for sub-advisory services are agreed upon by PVP and the unaffiliated financial services
firm. The agreement will provide details of the manner, amount and timing of compensation
received by PVP. Generally, the compensation will be based on a management fee (typically a

certain % of assets under management) and may include a performance-based fee (typically a
certain % of absolute performance or a certain % of excess of the absolute performance with
respect to a benchmark such as Russell 1000 Value or S&P 500). Such fees can be higher or
lower than those fees paid by PVP clients (Fund and SMA clients) who are under a different fee
agreement. The provision of termination of advisory relationship is stated in the agreement
between PVP and the unaffiliated registered investment adviser.

MODEL PROVIDER SERVICES
The fees for model portfolio provider services are agreed upon by PVP and the unaffiliated
financial services firm. The agreement will provide details of the manner, amount and timing of
compensation received by PVP. Generally, the compensation will be based on a management fee
(typically a certain % of assets under management). Such fees can be higher or lower than those
fees paid by PVP clients (Fund and SMA clients) who are under a different fee agreement. The
provision of termination of advisory relationship is stated in the agreement between PVP and the
unaffiliated registered investment adviser.

All clients/investors incur third-party brokerage commissions and other transaction costs as
explained in further detail in the Brokerage Practices, section below. Details concerning all
applicable fees and expenses are set forth in each respective client’s investment management
agreement or relevant private placement memorandum.

Alternative Fee Arrangements
The Firm may, in its discretion, consider and negotiate fee arrangements that are different from
those described above.

No Compensation from the Sale of Securities
Neither the Firm nor any of its personnel accepts compensation for the sale of securities or other
investment products.

ITEM 7 – TYPES OF CLIENTS
As discussed in the Advisory Business section above, the Firm provides discretionary investment
management services to a private fund, individuals, and other private clients. The Firm also
provides model investment portfolios to other financial firms that may implement these
portfolios for their client accounts. The Firm may also offer investment management services to
sophisticated investors on a discretionary basis through separately managed accounts. Generally,
all of our funds’ investors qualify as “accredited investors” (as defined in Rule 501 under the
Securities Act of 1933, as amended) and “qualified clients” (as defined in Rule 205-3 of the
Advisers Act).

The minimum initial investment in the private investment funds is $250,000 generally, subject to
our discretion accept lesser amounts on a case-by-case basis. Our private funds offer LPs
monthly liquidity with at least 30 days’ notice, subject to certain conditions laid out in the
offering memorandum.

We also provide investment advice to separately managed accounts (SMAs) to institutions and
certain individuals and rollover Individual Retirement Accounts (IRAs). Broadly speaking,
beneficial owners of our SMAs are generally qualified institutional clients or high net worth
individuals with investable assets above one million dollars, and/or regular annual income above
$300,000. Certain financial professionals who are considered knowledgeable about the risks of
investing may also be considered accredited investors.

The account minimum is $1,000,000 generally, subject to our discretion accept lesser amounts
on a case-by-case basis. Investment parameters for SMAs and IRAs may differ significantly
among themselves and from the private funds – and thus their performance may be significantly
different too.

We encourage our clients to regard their investments with us as long-term (multi-year) core
allocation to US equities. We do not encourage market-timing or frequent additions/redemptions
from accounts.