Frontline Healthcare Partners LLC

Item 5 – Fees and Compensation
Management Fees
The Funds will generally pay the Firm management fees for its investment advisory services
(“Management Fees”). Annualized Management Fees rates are disclosed in each Fund’s
governing documents and are generally up to 2% of capital commitments during the
commitment period and 2% of unrealized Fund investments thereafter (as further described in
the Fund’s governing documents), charged directly to a Fund. In certain circumstances, fees
may vary. The General Partner of the applicable Fund negotiates the rate with each Fund at the
time such Fund is established. Frontline is entitled to collect Management Fees from the Funds
on a quarterly basis in advance pursuant to the applicable Fund’s governing documents. As
described below, the Management Fee will be offset in connection with the receipt by Frontline
or its affiliates of various fees paid by actual or prospective portfolio companies as governed by
the provisions of each limited partnership agreement. The General Partner of each Fund, in its
sole discretion, is permitted to waive the Management Fee of the applicable Fund with respect
to some or all of the Limited Partners in the Fund (including in connection with investments in
the applicable Fund made by the General Partner of the Fund or its affiliates).

As required by the Investment Advisers Act of 1940, as amended (the “Advisers Act”), if the
investment advisory agreement is terminated before the end of the applicable period,

Management Fees will be charged on a pro-rata basis through the date of termination, and any
fees paid in advance but not earned will be refunded.

In addition, the Firm may earn incentive fees as discussed in Item 6, below.

Fund Expenses
The Funds generally bear all costs, fees and expenses incurred in connection with organizing,
establishing and qualifying the Fund, the General Partner and Frontline and the marketing and
offering of limited partner interests in the Fund, including, without limitation, all of the costs and
expenses incurred in connection with the formation and qualification of the Fund, the General
Partner and Frontline, all legal and accounting fees and expenses, registration fees, filing fees,
printing costs, travel costs and ancillary expenses (including, without limitation, airfare
(including business class or first class airfare), ground transportation, lodging and
accommodations, meals and travel agency fees and reasonable and business-related
entertainment expenses) and all costs and expenses incurred in connection with the preparation
of offering documents, marketing materials, organizational documents, operating documents
and similar materials, the costs of qualifying, reproducing, amending, supplementing, mailing
and distributing offering materials, and all costs and expenses of any placement agent of the
Fund (including, without limitation, travel and ancillary expenses (as further described above)
and any payments in respect of any indemnification obligations to any such placement agent
that are borne by or reimbursed by the General Partner, Frontline or their respective affiliates
(collectively, “Organizational Expenses”); provided that the Management Fee will be reduced
dollar-for-dollar by the amount of any placement agent fees paid by the Fund such that the
Limited Partners will not bear the economic burden of any placement agent fees. Limited
Partners will receive a reduction in Management Fees equal to the amount of Organizational
Expenses (other than placement agent fees) in excess of $1,000,000. To the extent that the
Management Fee would be reduced below zero as a result of such offsets, the excess amount of
offsets will be carried forward into the immediately succeeding Management Fee period.

Frontline and its affiliates are permitted to receive topping, break-up, monitoring, directors’,
organizational, set-up, advisory, consulting investment banking, underwriting, syndication, and
other similar fees in connection with the consummating, monitoring, or disposition of
investments or from unconsummated transactions, including warrants, options, derivatives and
other rights, in each case valued as of the grant date (“Other Fees”).

Other Fees will first be applied to reimburse Frontline or its affiliates for their unreimbursed out-
of-pocket expenses (including, without limitation, applicable taxes) in connection with the
transaction giving rise to such Other Fees. Thereafter, a Limited Partner’s pro rata share (based
on its commitment relative to the aggregate commitments to a Fund) of the Fund’s Allocable
Share (as defined below) of 100% of the balance, if any, net of any unrecouped fees and

expenses for transactions not consummated and other Fund Expenses that the General Partner
or Frontline has elected to pay, will be applied to reduce the subsequent installments of the
Management Fee; provided that each calendar year $1,000,000 of Other Fees that would
otherwise be subject to offset are expected to be retained by Frontline. In the event any amounts
applied to reduce the subsequent installments of the Management Fee in any quarter exceed
the Management Fee payable during such quarter, such excess amount will be carried forward
and applied against any subsequent Management Fees that may become due and payable
hereunder. Any Other Fees remaining after the application of this offset mechanism will be
distributed to the Limited Partners.

A Fund’s “Allocable Share” of any Other Fees will be based on the aggregate amount invested or
to be invested by the Fund in such investment or prospective investment giving rise to such Other
Fees relative to the aggregate amount invested or to be invested in such investment or
prospective investment by the Fund, any parallel Fund, alternative investment vehicle or other
entity formed to make a direct or indirect investment in connection therewith, any co-investment
vehicle, any co-investor or any other transaction participant.
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Item 7 – Types of Clients
We provide investment advice to the Funds. Limited Partners include, but are not limited to,
foundations, endowments, funds of funds, family offices and high-net-worth individuals.
Interests in the Funds are offered and sold generally to Limited Partners that are (i) “accredited
investors” as defined under Regulation D under the Securities Act and/or “qualified purchasers”
within the meaning of the rules and regulations promulgated under the 1940 Act and (ii)
“qualified clients” under Rule 205-3 under the Advisers Act.

The Funds typically impose a specified minimum commitment as set forth in their offering
documents, organizational documents or other governing documents. Such minimums are
waivable by the General Partner in its sole discretion.

Item 8 – Method of Analysis, Investment Strategies and Risk of Loss
Investment Strategies and Methods of Analysis
Frontline provides investment advisory services to Funds, which include the strategies and
methods of analysis in the following summary. Additional details can be found in the applicable
private placement memorandum and limited partnership agreement for each Fund.

Material Risks
Acquiring an interest in a Fund involves a number of significant risks which should be carefully
considered, including, among other factors, the material risk factors described below, each of
which could have an adverse effect on the value of the investment in a Fund. As a result of these
factors, as well as other risks inherent in any investment, there can be no assurance that a Fund
will meet its investment objectives or otherwise be able to successfully carry out its investment
program. Based on, among others, the factors described below, the possibility of partial or total
loss of capital will exist and prospective Limited Partners should not subscribe unless they can
readily bear the consequences of such loss. Investment risks include, but are limited to, the
following:

Restrictions on Transfer and Withdrawal; Lack of Liquidity for Interests

The Funds have not been, nor will they be, registered or qualified for sale under the Securities
Act, the securities laws of any state of the United States or the securities laws of any other
jurisdiction; and, therefore, interests in a Fund cannot be resold unless the Fund subsequently
registered under the Securities Act and other applicable securities laws or an exemption from
registration is available. There is no public or private market for the Fund and none is expected
to develop. In addition, the interests in a Fund are not transferable and may not be sold,
transferred, pledged, mortgaged, charged, assigned, hypothecated or otherwise encumbered

except with the prior written consent of the General Partner (which may be withheld by the
General Partner in its sole discretion), and subject to the terms and conditions of the governing
documents. Limited Partners may not withdraw capital from the Fund and consequently, may
not be able to liquidate their investments prior to the end of the Fund’s term.

In certain circumstances when a Limited Partner in a Fund seeks to transfer its interest, Frontline
could identify a limited number of persons to potentially acquire such interest, including
Frontline, affiliates of Frontline, Limited Partners in the Funds, or individuals and entities that are
not Limited Partners in the Funds (but could in the future become Limited Partners in other funds
managed by Frontline). Such transfers, including where the identification of potential
transferees is dependent on Frontline, pose potential conflicts of interest, including due to the
asymmetrical information that exists between Frontline and the transferring Limited Partner,
including with respect to the valuation of the relevant interest and the potential that the
transferee could obtain the transferring Limited Partner's interest for less than fair value. To the
extent that Frontline has discretion over approving a transfer of interests in a Fund or is asked to
(and voluntarily determines to) identify potential purchasers in a transfer, Frontline will do so in
its discretion, which can present conflicts of interest.

In certain circumstances, Frontline, its affiliates or their partners could in the future transfer their
interests in a Fund to third parties. Following any such transfer, Frontline is entitled to receive
carried interest and a Management Fee on such interest, subject to applicable law and the terms
of the applicable limited partnership agreement. Similarly, in certain circumstances a Limited
Partner has, and could in the future, transfer its interest in a Fund to Frontline, its affiliates or
their partners. Such interests will generally no longer be subject to carried interest or a
Management Fee.

Prior Investment Performance Not Indicative of Future Results

While the Firm intends to make investments that have estimated returns commensurate with
the risks undertaken, there can be no assurance that desired investment results will be
achieved. The Fund has a limited operating history upon which an investor can base its
prediction of future success or failure. Although the Firm’s principals have had experience and
success in making investments in portfolio companies, the past performance of these
investments is not necessarily indicative of the future results of the Fund’s investments and
further, the Firm has limited prior investment experience upon which an investor can base its
prediction of future success or failure. On any given investment, total loss of the investment is
possible.

Dependence on Key Personnel

From time to time, a Fund or its affiliates or certain personnel of Frontline may acquire
confidential or material non-public information concerning an entity in which a Fund has
invested, or proposes to invest, or be restricted from initiating transactions in certain securities.
Frontline will not be free to act upon any such information. Due to these restrictions, a Fund may
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