Ridgewood Energy Corporation

Item 5: Fees and Compensation

For the Services, the Ridgewood Funds pay the fees set out in their respective limited liability company or limited
partnership agreements (the “Fund Agreement”). The Institutional Clients pay the overhead reimbursement fees as
set forth in certain management services agreements with the Company.
The Company may sign side letters or other written understandings with investors that have the effect of
establishing rights under, or altering or supplementing, the terms of a particular Ridgewood Fund Agreement.
While the fees the Ridgewood Funds pay are not negotiable or refundable, Ridgewood Energy has the right to
reduce or waive, temporarily or permanently, its fees and has done so in the past. The following briefly describes

  Gulf of America is used herein consistent with an executive order by the President of the United States and the designation by
the Bureau of Ocean Energy Management of the area in which the Projects are situated.

  The term successful as used in this context refers only to the determination that hydrocarbons have been found in sufficient
quantities (based on then available data) to warrant completing the well and bringing the project on production.

the types of fees payable to Ridgewood Energy by the Ridgewood Funds, in accordance with each Fund
Agreement.

         Organizational, Distribution (sales & marketing) and Offering Fee (collectively the “Offering Fees”) 3:
Offering fees are one-time fees set out as a percentage of the total capital contributions made to the Ridgewood
Fund with respect each share of ownership interests. The Offering Fees cover the expenses incurred to establish
and to offer and sell interests in the Ridgewood Fund (including any series of ownership interests) including legal
expenses, accounting expenses, consulting fees, printing, filing, postage and other expenses. In the case of the
Institutional Funds, the Fund Agreement generally provides for the payment of Offering Fees up to a maximum
amount and the payment of any excess to be borne by the Company as an offset against Management Fees.

        Management Fee: 4 The management fee payable by the limited partners of the QP Funds have generally
been capped at 2% of capital commitments. Management fees have ranged from 0.810% to 2% depending on the
amount of capital commitment made by the limited partner. The limited partners management fee rate is generally
based on the timing and amount of each limited partner’s capital commitment to the subject QP Fund and is
provided for in the applicable Fund Agreement. The QP Funds’ Fund Agreements generally provide for a reduction
in the management fee after the subject QP Fund reaches certain milestones in respect of its investment activities.
After achievement of such milestones, Management Fees are calculated on amounts defined in the agreements as
capital at work, which includes capital invested, committed or reserved with respect to the Fund’s Projects less
projects permanently written off, permanently written down or sold (as the case may be). In the case of a CV, the
CV pays the Company a selling, general & administrative (“SG&A”) fee structured as a flat rate for the term of the
CV, with step down during each contemplated term extension. If the CV continues beyond the term with approved
extensions, the fee becomes a variable fee. Management and SG&A fees are calculated on a quarterly basis and
collected by the Company on a quarterly basis in advance, on January 1, April 1, July 1, and October 1.

      Ridgewood Energy retains the right at all times to reduce or waive, temporarily or permanently, its
Management Fee and has elected to do so in connection with certain IBD Funds.

        Carried Interest and Distributive Share: The Fund Agreements for the Institutional Funds generally
provide that Ridgewood Energy is entitled to a carried interest payment after the Institutional Fund limited partners
have received distributions equal to their capital contributions and a preferred return. The Fund Agreements
generally contain general partner catch-up provisions and general partner claw-back provisions.

The Fund Agreement for the IBD Funds provides for (1) a “distributive share” payment to Ridgewood Energy of an
amount equal to fifteen to twenty-five percent (15% - 25%) of the available cash from operations distributed to
such Ridgewood Fund’s shareholders, and (2) carried interest payable to Ridgewood Energy from distributions
from a capital transaction (e.g. sale of assets) of 1% of such amount if such distribution is made before each
investor in such IBD Fund has received aggregate distributions equal to such investors aggregate capital
contribution in such Ridgewood Fund (“Payout”), and thereafter, Ridgewood Energy is entitled to an amount equal
to 15% of such distribution from a capital transaction (several more recent Fund Agreements provide that

  The IBD Funds paid up to 5% of the total capital contributions made with respect to each series of interests in such IBD Fund,
without considering any discounts or waivers. The investment fee compensated Ridgewood Energy for services associated
with locating, investigating, evaluating, and negotiating investment opportunities and negotiating related transactions. The
investment fee was paid on the IBD Funds’ effective date and on each date on which it received and collected full payment for
additional subscriptions. The IBD Fund Offering Fees ranged from 4%-6% and were generally on each IBD Fund effective
date and on each date on which it received and collected full payment for additional subscriptions. As of the date of this
Brochure, Ridgewood Energy does not anticipate sponsoring any new IBD Funds.

  Until December 31, 2006, the management fee paid by many of the IBD Funds was 2.5% of the total capital contributions to
such IBD Funds. Beginning January 2007, the management fee ranges from 1% to 2.5% of the total shareholder contributions
...

Item 7: Types of Clients

                     Ridgewood Energy does not provide advisory services to the general public.

Ridgewood Energy’s current Clients are the Ridgewood Funds and the Institutional Clients. As of the date of this
Brochure, each Ridgewood Fund is either a Delaware limited partnership or a limited liability company. In
addition, one of the Institutional Funds has a parallel co-invest vehicle that participates in certain of the Projects in
which the Institutional Fund has invested; the co-invest vehicles limited partners are all limited partners in the
Institutional Fund although not all limited partners in the Institutional Fund are limited partners in the co-invest
vehicle.

Each Ridgewood Fund is operated in accordance with its Fund Agreement that is provided to every investor in such
Ridgewood Fund at the time of its offering. The Fund Agreement is part of the organized structure of each
Ridgewood Fund. From time to time, Institutional Funds may enter into side letters or other written understandings
with certain limited partners that alter or amend the relevant Institutional Fund’s Fund Agreement. The altered
terms are often necessitated by the limited partner’s structure (e.g. public pension fund) and related to, among other
things, excuse rights or transparency, tax status, and confidentiality.

The Ridgewood Funds are structured to comply with the exemption to registration set forth in Rule 506 of
Regulation D promulgated under the Securities Act of 1933. Investors in the Ridgewood Funds must meet the
accreditation standards set forth in such Ridgewood Fund’s offering materials before making an investment.
Investors must be Accredited Investors (as defined in Regulation D) and Qualified Purchasers (as defined in
Section 2(a)(51) of the Investment Company Act). Investors must also be Qualified Clients (as defined in Rule
205-3 of the Investment Advisers Act of 1940). Qualified Purchasers are deemed to be Qualified Clients.

The Ridgewood Funds invest directly, or, in the case of certain Institutional Funds, indirectly through SPCs, in
Projects.

Investors in Ridgewood Funds acknowledge that they understand that the Ridgewood Funds are private placements
and are not transferrable, and it is possible for the investor to lose the entire amount of the investment.