CR Group LP

Item 5 – Fees and Compensation

CRG generally receives an annual management fee (the “Management Fee”), as described in
the Client’s respective Advisory Agreements, based upon (a) during the applicable Client’s
investment period, either (1) total investor commitments or (2) total invested capital or the
fair value of managed assets, and (b) thereafter, total invested capital or the fair value of
managed assets, as such terms are defined in the Client’s operating agreement (the “Operating
Agreement”). Under the terms of each Advisory Agreement, the Management Fee is generally
payable quarterly in advance, prorated for the actual number of days if less than three months;
in such a case, the Adviser will return the unearned portion to the Fund.

In addition, CRG may be entitled to receive carried interest or a performance fee (an “Incentive
Fee”), as described in the respective Client’s Operating Agreement and Advisory Agreement.
CRG may negotiate a specific fee arrangement with a particular investor pursuant to a side
letter or other account agreement.

CRG or its affiliates additionally may receive fees from the Funds for additional services
provided to the Funds or their underlying investments not covered by the client’s management
fee (“Related Services”). Any such amounts received for Related Services will generally reduce
management fees paid to the Adviser.

All Clients will incur expenses in connection with custodial or brokerage services discussed in
Item 12. In addition, Clients bear their own operating costs and expenses relating to their
organization and operations, which may include, but are not limited to expenses incurred in
identifying, assessing, acquiring, negotiating, structuring, and disposing of investment
opportunities, including any financing, legal, accounting, management and consulting fees
whether or not a Client actually invests in the specific investment opportunity or not;
administrative expenses associated with an annual audit, financial and tax returns and tax
reporting to a Client’s investors; registration and other investment costs; interest and fees
associated with any permitted borrowings; costs of any litigation, D&O insurance and other
types of insurance, indemnification or extraordinary expense or liability; meetings of Client
investors; fees and disbursements to attorneys, consultants, accountants, fund administrators,
service providers and any other professionals relating to Client matters.

Allocation of Expenses

CRG frequently will be required to decide how certain costs and expenses are to be allocated
to one or more Funds, and to other Clients of the Adviser. Certain expenses may be suitable for
only a particular Fund or Funds or another participating Client and borne only by such vehicles,
or, as is more often the case, expenses may be allocated pro rata among each participating
Client in accordance with expense allocation policies and procedures developed by the Adviser,
as may from time to time be amended or revised by the Adviser in its sole discretion. Generally,
expenses are expected to be allocated based on contributions to the applicable Portfolio
Investment. However, the Adviser may determine in its sole discretion that allocation in a
different manner would be fair and equitable in certain cases that may result in one or more
Funds bearing a higher share of expenses. For example, the Adviser may determine to use a
different allocation of expense where the applicable expense has been incurred based on some
factor other than asset or investment size (such as the number of investors in each parallel
fund) or where the expense would be incurred by one or more parallel funds regardless of the
existence of, or participation in the benefits of such expense by, another parallel fund or client.
Notwithstanding the foregoing, the portion of an expense allocated to a Fund for a particular
service may not reflect the relative benefit derived by the Fund from that service in any
particular instance. CRG may make allocation decisions that result in a general partner or the
Adviser bearing a smaller portion of expenses and/or receiving greater amounts of
management fees than would have been the case had expenses been allocated pro rata.

Item 7 – Types of Clients

The Adviser provides investment management services to several Funds. Investors in the
Funds may include certain qualified individuals, public pensions, corporate pension and profit-
sharing plans, charitable institutions, foundations, endowments, municipalities, private
investment funds, trust programs, insurance companies, sovereign funds, foreign funds and
other U.S. and international institutions. CRG has also provided investment management
services to separately managed accounts of investors with similar profiles as those who have
invested in the Funds.