Water Asset Management LLC

Item 5 – Fees and Compensation

Basic Fee Schedule

The specific way fees are charged by Water Asset Management, LLC is established in the
relative investment vehicle’s operating documentation to which investors subscribe.
Water Asset Management, LLC is generally paid management fees quarterly in advance
ranging from 0.20%- 0.5% (0.80%-2% per annum) of net asset value as of the end of the
preceding calendar quarter (calculated prior to any withdrawals on such date). The
quarterly management fees are deducted from the clients’ assets. Management fees shall
be prorated for each capital contribution and withdrawal made during the applicable
calendar quarter (except for de minimis contributions and withdrawals). Accounts initiated
or terminated during a calendar quarter will be charged a prorated fee. The Adviser also
receives sub-advisory fees quarterly ranging from 0.35%-0.75% per annum.
The Adviser’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party service providers and other fees such
as custodial fees; wire transfer and electronic fund fees and securities transactions. Such
charges, fees and commissions are exclusive of and in addition to Water Asset
Management’s fee, and Water Asset Management’s shall not receive any portion of these
commissions, fees, and costs.

Item 13 further describes the factors that the Adviser considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation (e.g., commissions).