Drum Capital Management LLC

Item 5. Fees and Compensation

This brochure is delivered only to qualified purchasers, therefore the fee schedule, which
includes a management fee based on a percentage of assets under management for each of the
Funds, is not included. The fee schedule may be found in the confidential offering document for
each Fund.

Drum deducts management fees from the Fund assets. Such fees must be paid quarterly in
advance and are pro-rated in the event of any partial quarter. If the advisory contract is
terminated before the end of the billing period, Drum will calculate the amount of the refund and
reimburse the Fund.

For DO I, no management fee is paid to Drum. Drum does charge the underlying portfolio
companies a monitoring fee paid quarterly in advance based upon the operating performance of
the portfolio companies for the previous twelve months prior to the quarter for which the fee is
being paid, as outlined in DO I’s operating agreement.

Similarly, for DO II, no management fee is paid to Drum. Drum does charge the underlying
portfolio company a monitoring fee paid quarterly in advance based upon the operating
performance of the portfolio company for the calendar quarter ended at least 30 days prior to the
quarterly payment date, as outlined in DO II’s operating agreements. Any monitoring fees paid
to Drum attributable to SSP IV’s and SSP IVC’s share of DO IIs investment in such portfolio
company are fully offset against SSP IV and SSP IVC’s management fee, respectively. To the
extent that any offset credit would reduce the DO II management fee for SSP IV or SSP IVC
below zero in an applicable period, the credit will be carried for future application against future
management fees, and if a credit remains after liquidation such credit will be allocated among the
limited partners and general partner of the applicable Fund in the manner specified by the
relevant partnership agreement.

Drum is permitted to exempt certain “affiliated partner” investors in the Funds from payment of
all or a portion of management fees and/or carried interest, including Drum current and former
personnel, and any other person designated by Drum, such as “friends and family” of Drum or its
personnel, or other investors meeting certain qualification requirements based on commitment
size or other strategic or relationship factors. The Funds also generally bear other fees and
expenses. These fees and expenses typically include, but are not limited to, all fees, costs,
expenses, liabilities and obligations attributable to structuring, organizing, acquiring, managing,
operating, holding, maintaining, valuing, winding up, liquidating, dissolving and disposing of the
Funds’ investments (including, if applicable, interest and fees on money borrowed by the Funds
or Drum or the General Partner on behalf of the Funds), organizational and start-up expenses,
including legal, accounting, printing, travel and other organizational expenses, operating
expenses, ordinary and extraordinary, administration costs and fees, custodial costs and fees,
costs of due diligence, costs of auditing the Funds, legal and tax preparation fees relating to the
operation of the Fund, legal fees relating to review and negotiation of terms governing Manager
Funds and Direct Investments and costs of managing or liquidating in-kind securities
distributions. The Manager Funds (as defined below) and applicable Direct Investments in which
a Fund invests impose management fees, performance fees or special allocations of income and
incur administrative and other expenses. Investors in the Fund will bear a pro rata share of such

fees and expenses, in addition to the management fee, the Carried Interest (defined below in Item
6) and expenses incurred by the Fund, which the Fund investors bear in their entirety.

In addition, as set forth in the respective Funds’ offering memoranda, certain Funds may bear
fees and expenses, or a portion thereof, of expenses including, but not limited to, consulting
(including compliance consulting), financing, accounting, administration (whether done by a
third party or the General Partner or an affiliate thereof), depositary, transfer, registration and
other similar fees and expenses; expenses associated with the Funds’ financial statements, tax
returns, Schedule K-1s or any other administrative, regulatory or other Fund-related reporting or
filing obligations or related software or similar systems; out-of-pocket expenses incurred in
connection with transactions not consummated; expenses of the advisory board annual meetings
of the investors and any other meeting with any investor(s); insurance (including directors and
officers insurance); other expenses associated with the acquisition, holding and disposition of its
investments, including extraordinary expenses (such as litigation, if any); and any taxes, fees or
other governmental charges levied against the Fund(s).

As described above, in certain circumstances, Drum is expected to permit certain investors to co-
invest in investments alongside one or more of the Funds, subject to the relevant governing
documents and/or side letters, as well as the considerations described in Item 8 below. Where a
co-invest vehicle is formed, such entity generally will bear expenses related to its formation and
operation, many of which are similar in nature to those borne by the Funds. In the event that a
transaction in which a co-investment was planned, including a transaction for which a co-
investment was believed necessary in order to consummate such transaction or would otherwise
have been beneficial, in the judgment of Drum, ultimately is not consummated, all “broken deal
expenses” relating to such proposed transaction will generally be borne by the Fund(s), and not
by any potential co-investors, that were to have participated in such transaction, except that in
certain (but not all) cases in which a co-investor has already invested in a co-invest vehicle or
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Item 7. Types of Clients

Drum generally provides investment advice to the Funds.

Investment advice is provided directly to the Funds and not individually to the Fund investors.
The Funds’ investors consist primarily of institutional investors and some high net worth
individuals. Generally, the minimum investment in a Fund is $5,000,000, although the General
Partner reserves the right to accept subscriptions for lesser amounts, in its sole discretion.