Healthedge Investment Partners LLC

Fees and Compensation
Description
The Funds pay HealthEdge a management fee at an annual rate that can range between 2-
2.25% per annum of the aggregate commitments. We may, in our sole discretion, at any time
waive, reduce, defer, or assign any portion of the management fee.

Fee Billing
The management fee shall be payable in advance at the beginning of each fiscal quarter. Fees
are payable through each limited partner’s capital account.

Some Funds may, as stipulated in the Fund PPM, offset other expenses paid by the Fund’s
portfolio companies to HealthEdge and the general partner; provided, however, that the
management fee for any quarterly period will not be reduced below zero.

Other Fees
The limited partners of the Funds may pay additional expenses such as, but not limited to, all
liabilities and obligations related to leverage, legal counsel, accountants, management and
technical consultants, general expenses relating to operations, annual audit fees, bank charges,
travel, due diligence and other possible out of pocket expenses of the general partner and
HealthEdge. This does not include all possible expenses which are explained in detail within
each Fund’s PPM.

Fees Paid in Advance
Given the fact that management fees are not paid until commencement of a closing, there are
no refunds made to the investors.

Performance-Based Fees & Side-by-Side
Management
Sharing of Capital Gains or Capital Appreciation
The general partner for each Fund is subject to carried interest which is based on the total
distributions of the Funds. Typically, the general partner receives the carried interest after
specified hurdles have been met. HealthEdge believes the carried interest paid to the general
partner can better align the interests of the investors and HealthEdge. The carried interest

waterfall is disclosed in the PPM of the Funds. See the section entitled Other Financial Industry
Activities and Affiliations for more information on the general partner and the relation to
HealthEdge.

Types of Clients
Description
HealthEdge only provides investment advice to Funds. The investors of each Fund must meet
specific financial requirements. Investment within each Fund generally is open to sophisticated
institutional and non-institutional investors, including pension, endowments and other funds
subject to ERISA.

Account Minimums
Each investor will be required to invest not less than $500,000. Lesser amounts may be
accepted at the sole discretion of the General Partner.

Methods of Analysis, Investment
Strategies and Risk of Loss