Angeles Equity Partners LLC

“Fees and Compensation.”

The existence of receive performance-based compensation creates a potential conflict of interest
in that it create a potential incentive for AEP to allocate more time, resources, and/or investment
opportunities to Funds paying carried interest at a higher rate. The existence performance-based
compensation also creates incentives for AEP to operate the relevant Fund in a riskier, more
speculative or other manner that is less favorable to investments than it would otherwise in the
absence of such performance-based compensation. AEP’s practice is generally to make
investment decisions with respect to a particular portfolio company concurrently for all applicable
Funds in accordance with any applicable Fund Agreements. Furthermore, such conflicts are
mitigated by limitations on the ability of AEP to establish new Funds, contractual provisions
requiring certain Funds to purchase and sell investments contemporaneously, and contractual
provisions and procedures setting forth investment allocation requirements designed to ensure
allocation of investment opportunities among Funds on a fair and equitable basis, all as set forth
in further detail in the Fund Agreements.

ITEM 7 – TYPES OF CLIENTS

AEP provides investment advisory services solely to the Funds, as described in Item 4 above.

AEP does not provide investment advisory services to any of the Investors, and thus the Investors
should not be deemed to be clients of AEP. Nevertheless, AEP requires each Investor to meet
certain eligibility requirements. Specifically, each third-party Investor is required to represent that
it is an “accredited investor” (as defined in Regulation D under the Securities Act) and unless
waived by AEP in its sole discretion, a “qualified purchaser” (as defined in Section 2(a)(51)(A) of
the Investment Company Act).

Investors whose investments in the Funds are subject to carried interest are also required to be
“qualified clients” within the meaning of Rule 205-3 under the Investment Advisers Act of 1940,
as amended (the “Advisers Act”). Investors who are “qualified purchasers” for purposes of the
Investment Company Act are automatically deemed to be “qualified clients” for purposes of Rule
205-3.

Each Fund typically requires a significant minimum capital commitment from an Investor in such
Fund, which can be waived at the discretion of the Affiliated General Partner for such Fund.