Concord Management Services LLC

Fees and Compensation
Management Fees
Concord receives an investment management fee from Fund I, Fund II and Fund III payable
quarterly in advance. Such fees are pro-rated for any period that is less than a full quarter period.
Fund I, Fund II and Fund III are charged an annual management fee at the rates and for the periods
set forth in the Governing Documents of the Fund I, Fund II and Fund III, which typically provide
for a fee of 2.0% of capital commitments during Fund I’s, Fund II’s and Fund III’s investment

periods. Concord also receives an investment management fee of 2.0% of capital commitments
from TC SPV payable annually in advance.

Carried Interest Allocations
Carried interest is a share of the net profits derived from investments that is allocated to a Fund’s
general partner or special member as an incentive for Concord to maximize the performance of the
Fund. Fund I, Fund II and Fund III are subject to a carried interest of 20% of net profits from
investments, as more fully described in the applicable Governing Documents. Cedar SPV and
Cedar SPV II are subject to a carried interest of 17.5% of net profits from investments, as more
fully described in the applicable Governing Documents. TC SPV is subject to a carried interest of
20% of net profits from investments, as more fully described in the applicable Governing
Documents.

Arrangements with Certain Investors
Concord may, in its sole discretion, permit investors who are employees or otherwise related to
Concord personnel to invest in a Fund without being subject to the management fee or the carried
interest. In addition, certain investors may be entitled to invest on a reduced or otherwise more
favorable management fee and/or carried interest basis pursuant to certain Side Letters (as defined
in “Types of Clients” below) entered into by Concord with such investors.

Other Fees
Concord and/or its affiliates may receive Other Fees (as defined below). A percentage of a Fund’s
allocable portion of Other Fees received by Concord and/or its affiliates, net of certain expenses,
in each case as set forth in the Governing Documents of the relevant Fund, will be applied to
reduce the future management fees payable by a Fund, where applicable. The term “Other Fees”
means (i) any fees or amounts paid to Concord or any of its affiliates or a Fund by any party in
connection with the acquisition, termination, cancellation or abandonment of any Fund investment
or proposed Fund investment that is ultimately not consummated, including any transaction,
closing, advisory, “break-up” or “topping” fees or (ii) any fees paid by a portfolio company or any
affiliate of a portfolio company in connection with any Fund investment or proposed Fund
investment that is ultimately not consummated, including any monitoring fees, advisory fees,
director’s fees or consultant fees; provided that, in each case, Other Fees will not include (A)
amounts paid as reimbursement for out-of-pocket expenses incurred in connection with providing
services in respect of which such Other Fees were paid, or any amounts paid to consultants
(including Concord Advisors (as defined below)) and other third parties for consulting and
advisory fees in connection with any Fund investment or potential Fund investment that is
ultimately not consummated; and (B) any fee (including any management, administrative or other
similar fee) paid to Concord or any of its affiliates by third parties or a Fund’s investors in respect
of a co-investment vehicle or an aggregator or other similar vehicle established to co-invest
alongside the Fund in connection with any Fund investment.

Executives serving as consultants to Concord (“Concord Advisors”) may receive Other Fees
directly from portfolio companies or share in Other Fees payable to Concord and/or its affiliates,
but such amounts are not applied to reduce the management fees payable by the Funds or otherwise

shared with the Funds or their investors. Similarly, from time to time, Concord may agree to pay
a portion of Other Fees, such as a transaction fee, to another third party, such as a consultant,
adviser, finder, broker, investment bank and/or co-investor involved in respect of a specific
transaction. In such an event, the portion of the Other Fees paid to such third parties is not applied
to reduce the management fees payable by the Funds or otherwise shared with the Funds or their
investors.

With respect to the implementation of certain arrangements described above, such as an advisory
or monitoring agreement with a portfolio company, there may not be an independent third party
involved in negotiating such arrangements on behalf of the portfolio company. Therefore, a
conflict of interest exists in the determination of any such fees and other terms, such as the
reimbursement of expenses incurred by Concord and its affiliates, in such arrangements with the
portfolio company.

As noted above, Concord and its affiliates also engage and retain Concord Advisors, consultants,
operating partners and other similar third party professionals, none of whom are employees of
Concord and who receive payments from, and/or equity (or equity-like) grants, issuances, or
allocations with respect to, portfolio companies, the Funds, and/or other entities. In such
circumstances, the amounts of such fees or other compensation received by such persons may be
retained by such persons and will not be deemed paid to or received by Concord and its affiliates,
and such amounts will not be applied to reduce the management fees payable by the Funds or
otherwise shared with the Funds or their investors.

The fee structures described herein may be modified from time to time. Detailed information
regarding Other Fees and the amount of, and manner in which, Other Fees are applied to reduce
management fees payable by a Fund is provided in such Fund’s Governing Documents.

Expenses
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Types of Clients
Concord provides investment advisory services to the Funds. The minimum commitment for an
investor in a Fund is outlined in each Fund’s Governing Documents; however, Concord maintains
discretion to accept less than the minimum commitment threshold. In addition, the Funds may
enter into letter agreements or other similar arrangements (collectively, “Side Letters”) with one
or more investors that have the effect of establishing rights under, or altering or supplementing the
terms of the Governing Documents of the Funds as they apply to a particular Fund investor. As a

result of such Side Letters, certain investors may receive additional benefits that other investors
will not receive, including without limitation better economic terms such as a reduced or otherwise
more favorable management fee and/or carried interest, co-investment rights, information rights
and transfer rights. The other investors will have no recourse against the Funds or any of its
affiliates in the event that certain investors receive additional or different rights or terms as a result
of such Side Letters.

Investors will be required to make certain representations when investing in a Fund, including but
not limited to: (i) they are acquiring an interest for their own account, (ii) they received or had
access to all information they deem relevant to evaluate the merits and risks of the prospective
investment, and (iii) they have the ability to bear the economic risk of an investment in the Fund.
Each investor will be furnished with a copy of the Agreement of Limited Partnership and the other
Agreements.

Methods of Analysis, Investment Strategies, and Risk of Loss
Concord has a growth-oriented and operationally intensive investment strategy focused on
investing in companies that lower costs and improve quality of care for health systems and other
health care providers. The Funds’ investment objective is to make private equity and equity-related
investments by purchasing, directly or indirectly, securities of one or more start-up, early-stage or
development and expansion stage companies engaged, or to be engaged, in the innovative
advancement of health care or meeting the transformational needs of not-for-profit health systems
in the United States.

The investment activities of the Funds are directed by an investment committee comprised of
Concord’s partners - (the “Investment Committee”). The Investment Committee is supported by
the investment professionals of Concord and, as described further below, Concord Advisors.
Additionally, Concord has a disciplined investment approach, which includes targeted origination
of platform investments, consistent underwriting, and a well-defined decision-making process
designed to mitigate risk and properly align incentives with portfolio companies. After sourcing a
potential investment, Concord follows a clearly defined, multi-step investment process. This
process is designed to prioritize actionable opportunities, identify threshold issues early, and solicit
Investment Committee feedback during multiple stages of due diligence. Once diligence has been
completed and terms have been negotiated, the deal team presents the opportunity to the
Investment Committee for final approval. The subsequent portfolio company monitoring
processes, which are designed to ensure the timely and successful execution of each portfolio
company’s business plan, involve periodic reviews of valuation parameters, investment
performance, and disposition opportunities.

Concord has assembled an accomplished team of Concord Advisors including seasoned healthcare
executives and operators with complementary skill sets, extensive industry relationships and
insights related to the needs of healthcare providers and related companies. The Funds will have
access to and will receive advice from Concord Advisors. Concord Advisors are not currently
partners or employees of Concord or its affiliates, but rather consultants engaged by Concord, the
Funds, or their portfolio companies to provide advisory and key value-added services to, or with

respect to potential and existing investments. For potential investments for the Funds, they may
assist in identifying investment opportunities, providing industry-specific insights, conducting due
diligence, facilitating financing, and providing resources through introductions to industry
contacts. After a Fund investment is made, they may work closely with management of the
portfolio company to provide industry expertise and experience to implement the value-creation
plan constructed for the business and/or assist with exit transactions. In some cases, Concord
Advisors may take on more extensive roles with portfolio companies such as serving in a senior
executive capacity or serving on the portfolio company’s board of directors. To the extent they
serve as directors, advisors or consultants of, or otherwise provide services to, a portfolio company
or serve as consultants of, or otherwise provide services to, a Fund, expenses associated with
engaging these individuals will generally be borne by such portfolio company or the Fund. These
expenses may include the allocable portion of any cash compensation (including, retainer
payments, consulting fees, directors’ fees and/or, in some circumstances, bonuses), overhead
allocation payments and expense reimbursement payments due to a Concord Advisor, as well as
the costs of compensatory equity in portfolio companies awarded to a Concord Advisor. Any fees
or other compensation received by such individuals will not be considered to be Other Fees that
are applied to reduce the future management fees payable by a Fund.

All investing involves a risk of loss and the investment strategy offered by Concord could lose
money over short or long periods. An investment in the Funds may be deemed a speculative
investment and is not intended as a complete investment program. It is designed for sophisticated
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