Czech Asset Management LP

Fees and Compensation – Item 5

Registrant’s Fees and Compensation – Item 5.A

Czech Asset Management provides advisory services based on a fixed fee, typically based on a
percentage of the Fund’s invested capital or assets under management (the “Management Fee”).

The investments made by Czech Asset Management, or a General Partner, on behalf of its Funds
typically are subject to a sharing of profits known as a carried interest or an incentive allocation,
which is a percentage of the Funds’ investment income and net realized gains, subject to various
conditions (in either case, “Carried Interest”). This Carried Interest arrangement creates a potential
conflict of interest. The performance-based allocation may be an incentive for the Adviser to make
investments that are riskier or more speculative than would be the case absent such arrangement.

The Funds also may pay to Czech Asset Management an administrative fee for certain
bookkeeping, fund accounting, legal and other services performed for the Funds by Czech Asset
Management, equal to a percentage of the net asset value of the Funds.

The terms of the specific fees paid to Czech Asset Management by each Fund are described in
detail in each Fund’s Governing Documents.

Generally, the foregoing fees and allocations are not individually negotiated with investors in the
Funds. However, in certain cases, the Funds have waived or reduced Management Fees and/or
Carried Interest for certain investors, including employees or affiliates of Czech Asset
Management.

Deductions – Item 5.B

All fees paid by the Funds will be deducted automatically. Fees will be deducted quarterly in
arrears or as otherwise set forth in each Fund’s Governing Documents.

Expenses – Item 5.C

In addition to those fees described above, Fund expenses may include, without limitation, the
following expenses incurred by, or allocable to, any Fund: (i) the Fund’s share of organizational
and offering expenses (as described in the applicable Fund’s Governing Documents); (ii) all
expenses incurred by the Fund, its General Partner, Czech Asset Management or any of their
respective affiliates in connection with evaluating, purchasing, holding or disposing of investments
and prospective investments of the Fund (whether or not consummated) and other assets of the
Fund, including brokerage commissions, deal finders fees and custodial, trustee, record-keeping
and other administrative fees and expenses; (iii) research costs and expenses, including costs and
expenses with respect to market data and statistical services, conference attendance fees, due
diligence fees, research-related travel (including business-class travel), lodging and meal expenses,
entertainment expenses and fees and expenses of independent consultants; (iv) broken deal
expenses (including expenses that would have been allocable to co-investors had such deals been
consummated) and co-investment expenses; (v) all costs and expenses incurred in connection with
the ongoing operation and administration of the Fund, including fees and expenses relating to
accounting, audit and tax preparation and compliance and costs and expenses incurred in
connection with the maintenance of the Fund’s books and records, the preparation and delivery to
the limited partners of financial reports, tax reports, K-1s, notices and other information and the

holding of any meetings of the Fund or its limited partners; (vi) the Fund’s Management Fee; (vii)
fees and expenses of the Fund’s administrator; (viii) administrative fees payable to Czech Asset
Management for certain bookkeeping, fund accounting, operational and other services performed
by Czech Asset Management and its affiliates; (ix) fees payable to the Fund’s independent
valuation agent; (x) finder’s fees payable to certain “Industry Advisors,” as defined in the Fund’s
Governing Documents; (xi) fees and expenses incurred in connection with obtaining legal, tax
and/or accounting advice and the advice of other consultants and experts, including valuation and
pricing services or experts (including the Fund’s independent valuation agent); (xii) interest, fees
and other expenses attributable to any borrowings by the Fund; (xiii) expenses relating to obtaining
and maintaining insurance to benefit the Fund, its General Partner, Czech Asset Management
and/or their respective officers, principals, affiliates and partners; (xiv) litigation and
indemnification expenses; (xv) regulatory expenses of the Fund’s General Partner and Czech Asset
Management (including expenses relating to filings with the SEC and/or other regulators, such as
Form PF, Form D and blue sky filings (but excluding expenses related to preparation of this Form
ADV or amendments hereto and other compliance expenses associated with Czech Asset
Management’s status as a registered investment adviser), and expenses related to legal inquiries,
including regulatory “sweeps”); (xvi) any expenses relating to the bankruptcy, dissolution or
reorganization of any portfolio company, including chief restructuring officer fees, directors’ fees
and fees and expenses of valuation and other advisory firms; (xvii) any expenses incurred in
connection with the obtaining of consents or waivers or effecting amendments to the Fund’s
Governing Documents and fees and expenses relating to meetings of the Advisory Committee (as
defined in the Fund’s Governing Documents); (xviii) any costs incurred in connection with the
dissolution or liquidation of the Fund; (xix) any taxes imposed on the Fund, including any taxes
imposed on the Fund in the capacity of withholding agent with respect to a limited partner, and
any interest, penalties or expenses relating to any such taxes; (xx) extraordinary expenses; and
(xxi) other ongoing operational expenses, including those set forth in the Fund’s Governing
Documents. For more information regarding the specific categories of expenses incurred by a
Fund, please see the Fund’s Governing Documents.
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Types of Clients – Item 7

Czech Asset Management advises pooled investment vehicles (i.e., the Funds), which are Czech
Asset Management’s clients. Investors in the Funds generally will be required to satisfy certain
securities laws and other suitability requirements and to make a capital commitment or investment
of no less than a required minimum amount. At the discretion of Czech Asset Management, any
minimum initial investment requirements may be waived. In addition, the General Partners to
certain Funds have entered into letter agreements or other similar arrangements (collectively, “Side
Letters”) with certain investors without the approval of any other Fund investor that have the effect
of establishing rights under, or altering or supplementing the terms of, the governing documents
of the Fund as they apply to a particular Fund investor. As a result of such Side Letters, certain
investors 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, certain co-investment rights, information rights, excuse rights and transfer
rights. The other investors will have no recourse against the Funds, Czech Asset Management, 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. The various requirements for investing in a Fund are set forth in
the respective Fund’s Governing Documents. Although not contemplated currently, in the future
clients also may include institutional investors who may invest with Czech Asset Management via
separately managed investment accounts. Any such clients will be required to meet specific criteria
and will be approved on a case-by-case basis.

Methods of Analysis, Investment Strategies and Risk of Loss – Item 8

The methods of analysis, investment strategies and material risks applicable to Czech Asset
Management’s advisory services are set forth in detail in the offering documents provided to each
investor in the Funds. A summary is provided below.

Methods of Analysis and Investment Strategies – Item 8.A

Czech Asset Management seeks to generate superior risk-adjusted returns by originating,
structuring, investing, monitoring, and harvesting senior secured first lien revolving and term
loans, senior secured second lien term loans, secured mezzanine securities and other types of
hybrid debt instruments. Czech Asset Management invests primarily in listed or non-listed, non-
rated, non-investment grade, illiquid, privately placed loans, and securities issues by both
privately-owned and, to a lesser degree, publicly traded companies. Czech Asset Management
focuses its analysis on fundamental industry, business, financial, legal, accounting, documentation,
and structural risk factors rather than attempting to create value through opportunistic trading or
speculation in broadly syndicated leveraged loan, high yield and/or other credit markets.

There can be no assurance that the Funds will meet their investment objectives or otherwise be
able to successfully carry out their investment program, and therefore, an investment with Czech

Asset Management should be undertaken only by investors whose financial resources are sufficient
to enable them to bear the loss of all or part of their investment. See “Risk of Loss – Item 8.B” and
“Specific Risks of Loss – Item 8.C,” below.

For more information regarding Czech Asset Management’s investment strategies, please see the
respective Fund’s Governing Documents.

Risk of Loss – Item 8.B

An investment with Czech Asset Management involves substantial risks. There can be no
assurance that there will be any return of capital, and investment results may vary substantially on
a monthly, quarterly, or annual basis. Descriptions of the risks associated with an investment are
described in detail in the respective Fund’s Governing Documents. Such risks with respect to an
investment in a Fund include, but are not limited to, the following:

•   Investment Related Risks. The securities and investment business is speculative, prices are
    volatile, and market movements are difficult to predict.

High Risk Investments. The Funds invest in debt and equity securities, loans, private claims and
other financial instruments and obligations in middle-market companies that may result in
significant returns to the Funds, but that involve a substantial degree of risk, including risks arising
from the volatility of the global equity, currency, and fixed income markets, the risks of leverage,
the potential illiquidity of portfolio investments and the risk of loss from counterparty defaults.
Any losses in a Fund will be borne solely by the limited partners of that Fund, and not by the Fund’s
General Partner, Czech Asset Management, or any of their respective affiliates (except to the extent
such entity is a limited partner, and then only to the extent of its investment pro rata with the other
limited partners). No guarantee is made that any Fund’s investment program or overall portfolio,
or various investment strategies used or investments made, will have low correlation with each
other or that the Fund’s returns will exhibit low long-term correlation with an investor’s traditional
securities portfolio. All investments made by a Fund risk the loss of capital, and investment results
may vary substantially over time; specifically, investments in middle-market companies may not
show any returns for a considerable period of time.

•   Failure to Syndicate. A Fund may originate loans with the intention of selling a portion of the
    Fund’s interest in such loan to another Fund, co-investors and/or third parties. In the event that
    the originating Fund is unable to sell a portion of a loan as intended, the Fund would be forced
    to retain larger amounts of such loan than originally intended. In such event, the Fund’s
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