Black Dragon Capital Investment Management LLC

Item 5: Fees and Compensation

The fees and expenses applicable to each of the Funds are set forth in detail in the
corresponding Offering Documents. A brief summary of such fees is provided below.

Management Fee

Black Dragon and/or its affiliates (e.g., BD Capital GP, LLC and Black Dragon Capital Fund I GP,
LLC (each a “General Partner”, and collectively, the “General Partners”) will be paid an
investment management fee (“Management Fee”) currently anticipated to be 2.0% per
annum of the committed or invested capital of a Client, dependant on where the Client is in
its life cycle. The Investment Manager, in its sole discretion, may waive or modify the
Management Fee for any Investor. The Management Fee will be payable in advance on a
quarterly basis with the first payment being made as of the Initial Closing Date of the Fund and
each quarterly payment thereafter occurring on the first business day of each calendar
quarter.

Other Types of Fees or Expenses

The Funds:

Black Dragon and its affiliates may from time to time receive monitoring fees, consulting fees,
closing fees, investment banking fees, director’s fees, transaction fees, management contract
termination fees, acceleration fees, financing fees, corporate services fees, commitment fees,
professional services fees, advisory fees and certain other fees from portfolio companies or
proposed portfolio companies and break-up fees. A Fund’s obligation to pay the Management
Fee will not be reduced or offset by any such fees in respect of a portfolio company as set forth
in such Fund’s Offering Documents. A Fund’s share of any of the fees described above shall be
allocated among the Limited Partners in proportion to their relative sharing percentages in the
portfolio company with respect to which such fees are attributable, and the amount so
allocated to each Limited Partner credited against the Management Fees payable with respect
to such Limited Partner.

Black Dragon will be required to pay all Management Expenses associated with conducting its
activities. “Management Expenses” shall mean the costs and expenses incurred by the
Investment Manager in providing for its normal operating overhead, including, but not limited
to, compensation of its employees and the cost of providing relevant support and general
services (e.g., office rental, secretarial, clerical and bookkeeping expenses) but not including
any Fund Expenses. A Fund will be responsible for all Organizational Expenses up to an
aggregate cap in the Fund’s Offering Documents and all Partnership Expenses, expenses
associated with the Advisory Board and other advisory councils or investment committees
(collectively, the “Fund Expenses”). The General Partners, each an affiliate of Black Dragon,
will bear the cost (through an offset against the Management Fee or otherwise) of all
Organizational Expenses in excess of the aforementioned cap, if any.

“Organizational Expenses” shall mean expenses in an amount equal to third- party and out-
of-pocket expenses, including, without limitation, attorneys’ fees, auditors’ fees, consulting
and structuring fees, incurred by a Fund, a General Partner or Investment Manager or any
affiliates thereof in connection with the organization of the Fund (including the formation of
the General Partner and the Investment Manager) and the first closing and subsequent
closings of the Fund.

“Partnership Expenses” shall mean with respect to a Fund, to the extent not reimbursed by a
prospective or actual portfolio company, if any, all expenses of operation of the Fund, including,
without limitation, (i) Management Fees, (ii) any taxes, fees, duties or other governmental
charges or costs imposed on the Fund and any fees and expenses for the preparation and filing
of any governmental or regulatory reports relating to the Fund or any investment or proposed
investment, (iii) commitment fees and other fees and expenses (including expenses of the lender
which are required to be paid and legal, accounting, administrative, audit and other expenses
incurred in connection therewith) and principal and interest payable in connection with any
indebtedness, credit facility or other credit arrangement of the Fund, any portfolio company, or
any Alternative Investment Vehicle (to the extent not reimbursed by a portfolio company or
Alternative Investment Vehicle), (iv) accounting fees, third-party fees, fees of consultants,
advisors, administrators and custodians, attorneys’ fees and any expenses related thereto, (v) due
diligence fees and expenses, financing fees and expenses and all other costs and expenses related
to the identification, evaluation, acquisition, holding, monitoring, valuation and disposition of
securities (whether or not the transaction is consummated) (including out-of-pocket travel
expenses, broken deal fees and expenses, legal accounting expenses, consulting expenses
(including Dragon Performance or any other affiliates of the General Partner and/or Investment
Manager) and any banking, brokerage, registration, qualification, finders’ and similar fees or
commissions),(vi) all out-of-pocket fees and expenses incurred by the Fund, the General Partner,
or Investment Manager in connection with any conference or meeting of the Limited Partners
and any meeting of the Advisory Board (as defined below) (including services, food, lodging,
transportation and entertainment provided at or in connection with any such meetings), (vi)
premiums and fees, costs and expenses associated with D&O/GPL liability or other insurance
coverage, (viii) any expenses associated with compliance with applicable laws, rules and
regulations regarding registered investment advisers incurred by the Investment Manager and its
affiliates (as defined in the Limited Partnership Agreement) (which such amounts will be allocated
among the Fund, other pooled investment funds sponsored by affiliates of the Investment
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Item 7: Types of Clients

Our clients will be the Funds and the Co-Investment, as described in Item 4 above. The Funds
and the Co-Investment are generally open to, among others, institutions, pension plans,

endowments, and other sophisticated investors who are accredited investors, as discussed
above, subject to the corresponding General Partner’s authority to waive any such
requirements in its discretion.