Urban Investment Advisors Inc

Item 5.        Fees and Compensation

Investment and Advisory Clients

UIA’s compensation for its investment, advisory and sub-advisory services (e.g., sourcing,
underwriting, asset management and reporting) is negotiable and varies based on the size of the
account, but typically UIA charges separate accounts an annual asset-based fee equal to 1% of
the total capital contributed by a Client to an investment. If UIA advises a Client on a real estate
fund investment, UIA typically charges the Client an annual fee equal to the greater of 0.5% of
the Client’s net invested capital in that fund and $2,500. In addition, UIA typically charges
Clients a performance-based fee of any profits the Client receives from an investment after the
Client has received a stated internal rate of return (including a return of its contributed capital
for that investment).

In addition to the asset-based fee for investments sourced by UIA, UIA may also charge an
annual retainer or one-time fixed fee to cover services relating to investments not sourced by
UIA and other real estate advisory services. The amount of the fee depends upon the type of
services provided by UIA.

Clients are billed fees on a monthly or quarterly basis.

Except as otherwise may be negotiated in particular cases, a Client may terminate its business
relationship with UIA upon thirty (30) days’ prior written notice. With respect to those
investments that UIA did not source but that UIA manages on behalf of its Clients, UIA charges
Clients through the effective date of termination for all reimbursable expenses, investment
advisory fees and management fees. With respect to those investments that UIA sourced and
recommended to its Clients, UIA may charge Clients asset-based fees for the duration of the
investment and a performance-based fee even though the performance-based fee may become
due and payable after the termination of Clients’ business relationship with UIA.

Fees Generally

Clients that invest in investment funds, limited partnerships, limited liability companies and
private REITs recommended by UIA must also pay asset management and promotional fees to
the sponsors, general partners or managers of those entities.

UIA believes that the fees charged by UIA are competitive with fees charged by other real estate
investment and advisory firms for comparable services. However, comparable services may be
available from other sources for lower fees.

Generally, with respect to services provided by UIA to its Clients, the Clients generally are
required to reimburse UIA only for all out of pocket due diligence costs, legal fees and, in certain
instances, travel expenses.

Except as otherwise noted above, UIA bears all of its own operating, general, administrative and
operating expenses.

Item 7.        Types of Clients

UIA provides investment, advisory and sub-advisory services to partnerships, limited liability
companies, trusts, non-profit organizations, pension plans, and high-net-worth individuals.
Although UIA does not have an express minimum investment requirement, UIA generally
requires a minimum investment of $500,000 for a specific investment and $20 million for a
separate account.