Taylor Derrick Capital LLC

Item 5 – Fees and Compensation

Fees are determined and assessed in a manner specific to each client. The fees paid by the
Investment Funds are typically not negotiable; however, the Adviser may agree to reduce or rebate
some portion of a certain fee to certain investors or investor classes at the discretion of the Adviser.
Certain fees payable by the Investment Funds may be deferred or waived from time to time at the
discretion of the Adviser. The fees paid by the Non-Affiliated Clients are generally negotiable
based upon the level and frequency of the advisory services requested by the Non-Affiliated
Clients.

A. Management Fees and Certain Other Fees

Debt Fund

The Debt Fund operates its real estate lending business primarily through the REIT Sub.
Accordingly, as used in this Brochure, the term “Debt Fund” refers in each instance to Mountain
West Debt Fund, LP and its subsidiary, the REIT Sub (unless the context requires otherwise). For
example, any references to the fees, assets, investments or operations of the Debt Fund include the
fees, assets, investments or operations of Mountain West Debt Fund, LP and the REIT Sub on a
consolidated basis (unless the context requires otherwise).

In consideration for its services to the Debt Fund, the Adviser is entitled to a management fee (the
“Debt Fund Management Fee”) in an amount equal to 2% per annum of the limited partner capital

of the Debt Fund.

The Adviser is entitled to a debt fee in the amount of 1% of all debt capital secured by the Adviser
on behalf of the Debt Fund (the “Debt Fee”), including the debt provided by the Debt Fund’s line
of credit. The Debt Fee is applied only to the debt capital secured and is not applied to any capital
covered by the Debt Fund Management Fee.

The Adviser is entitled to a syndication fee in the amount of 1% of all syndication amounts invested
into Debt Fund assets (the “Syndication Fee”). The Syndication Fee is applied only to the
syndicated amounts and is not applied to any capital covered by the Debt Fund Management Fee.

The Syndication Fee may reduce the return to limited partners of the Debt Fund generated through
the syndications (co-investments with, or participation interests by, certain limited partners or third
parties) and creates an incentive for the general partner to enter into syndication agreements which
may not be beneficial to the Debt Fund; however, the Adviser uses its best efforts to structure each
syndication arrangement in a manner to provide a spread to the Debt Fund above the rate offered
to the syndication parties. The Syndication Fee is also lower than the Debt Fund Management Fee
to provide disincentive for the Adviser to enter into syndication arrangements that would not
otherwise be beneficial to the Debt Fund.

The Debt Fund Management Fee, Debt Fee and Syndication Fee (collectively, the “Debt Fund
Fees”), are paid monthly in arrears on the 15th day of the following month based upon the limited
partner capital, debt capital and syndication amounts, respectively, of the Debt Fund on the last
day of the preceding month and such fees are deducted from invested capital or Debt Fund income.
Debt Fund income is received in the form of (i) interest income earned on secured debt instruments
originated by the Debt Fund, (ii) fees related to the loans extended by the Debt Fund, (iii) proceeds
resulting from the disposition of an asset, including dispositions of real property resulting from
foreclosure, or (iv) proceeds resulting from the sale of interests in an equity position received as
an enhancement in connection with loans extended by the Debt Fund. In the event that income is
not received by the Debt Fund in any given month and invested capital is not available, the Debt
Fund Fees for such month will accrue and be paid in a month where there is sufficient income or
invested capital to pay such fees. Since the Debt Fund only accepts capital contributions on the
first day of the month, Debt Fund limited partners are not required to pay a pro-rated management
fee in any given month.

Investments into the Debt Fund may be redeemed by the Debt Fund at the request of a limited
partner, subject to a two-year lock-up period and other restrictions set forth in the Debt Fund
limited partnership agreement. Redemptions allowed prior to the end of the lock-up period are
subject to a withdrawal penalty equal to up to three percent (3%) of the of the capital lots within
the redeemed amount that have not met the lock-up period, unless waived in the discretion of the
general partner of the Debt Fund.

MWEF 1

In consideration for its services, the Adviser is entitled to a management fee (the “MWEF 1
Management Fee”) in an amount equal to 1% per annum of the aggregate capital commitments
during MWEF 1’s commitment period (the “MWEF 1 Commitment Period”); and, thereafter in an
amount equal to 1% per annum of the aggregate capital contributions. The Adviser is entitled to

receive the MWEF 1 Management Fee quarterly in advance on the first day of each calendar
quarter. The practice of the Adviser, however, is to receive the MWEF 1 Management Fee
quarterly in arrears on the first day of each calendar quarter based upon the aggregate capital
commitments of MWEF 1 during the MWEF 1 Commitment Period and aggregate capital
contributions thereafter. The MWEF 1 Management Fee is deducted from invested capital or
MWEF 1 income. MWEF 1 income is received either in the form of disposition proceeds of
MWEF 1’s investments or operating income earned on MWEF 1’s investments. In the event that
income is not received by MWEF 1 in any given quarter and invested capital is not available, the
MWEF 1 Management Fee for such quarter will accrue and be paid in a quarter where there is
sufficient income or invested capital to pay such fee. Since the MWEF 1 Management Fee may
occur at some time during a calendar quarter, MWEF 1 limited partners may be required to pay a
pro-rated MWEF 1 Management Fee.
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Item 7 – Types of Clients

The Adviser currently provides discretionary investment advisory services exclusively to the
Investment Funds and limited, non-discretionary advisory services exclusively to the Non-
Affiliated Clients. As mentioned above, the Adviser may form additional entities and partnerships
in the future and may manage the investments of those entities and partnerships. The Adviser may
also provide limited, non-discretionary advisory services to private fund clients other than the two
existing Non-Affiliated Clients.

All investors in the Investment Funds are subject to applicable suitability requirements. Each
investor in the Investment Funds must be an “accredited investor” as defined in Rule 501(a) of
Regulation D under the Securities Act. Moreover, each investor in the Investment Funds, other
than the Debt Fund must be a “qualified client” as defined in Rule 205-3(d)(1) of the Investment
Advisers Act.

The Investment Funds listed below require minimum investment amounts as follows:

   •   Debt Fund – $250,000

The applicable general partner/manager of the respective Investment Fund has the authority to
accept investments in lessor amounts in its sole discretion.

Since MWEF 1, MWEF 3, TDEF 5, TDEF 6, TDEF 7, TDEF 8, TDEF 9 and TDEF Power Ranch
are closed to new investors, aspects of this disclosure item requesting information regarding
requirements for investment, such as a minimum investment amount, are not applicable.