Island Investment Management LLC

ITEM 5: FEES AND COMPENSATION

   A. COMPENSATION

      IIM is compensated pursuant to the terms of the IIM Client Investment Management Agreements
      (see IIM below). In addition, the general partner of an IIM Client is entitled to receive a carried
      interest/promote (see Item 6: Performance-based Fees and Side-by-Side Management below for
      additional information regarding performance-based compensation).

      Charge Me Directives and MV Directives do not receive any compensation (management fee (or
      its equivalent) or carried interest/promote) with respect to the management of Charge Me, the MV
      Vehicles, respectively.

      IIM

      As compensation for investment supervisory and advisory services rendered, IIM receives from
      each IIM Client an advisory fee (a “Management Fee”) calculated as described below.
      Management Fees paid by an IIM Client are indirectly borne by the investors in such Client.
      Capitalized terms used below and not defined herein have the meanings ascribed to such terms as
      defined in the applicable IIM Client Limited Partnership Agreement.

      IIM is entitled to receive an annual Management Fee from NYCRF I, payable quarterly in advance,
      equal to (i) during the Commitment Period, the sum of (a) 1% per annum of the Remaining Capital
      Commitment of each Partner plus (b) 1.5% per annum of the aggregate Capital Contributions of
      each Partner contributed in respect of Investments that have not been the subject of a Disposition,
      and (ii) after the Commitment Period, the sum of (a) 1% per annum of any remaining Capital
      Commitments intended to be called with respect to any transaction in progress plus (b) 1.5% per
      annum of the aggregate Capital Contributions of each Partner contributed in respect of Investments
      that have not been the subject of a Disposition.

      IIM is entitled to receive an annual Management Fee from RF IV, payable quarterly in advance,
      equal to (i) during the Commitment Period, the sum of (a) 1% per annum of the uncalled aggregate
      Capital Commitments and (b) 1.5% per annum of aggregate Capital Contributions of each Partner
      contributed in respect of Investments that have not been the subject of a Disposition, and (ii) after
      the Commitment Period, the sum of (a) 1% per annum of the uncalled aggregate Capital
      Commitments intended to be called with respect to any transaction in progress plus (b) 1.5% per
      annum of the aggregate Capital Contributions of each Partner contributed in respect of Investments
      that have not been the subject of a Disposition.

      Certain investors in an IIM Client (e.g., Supervised Persons and affiliates of IIM) may pay no (or
      a reduced) Management Fee or carried interest in connection with their investment in such IIM
      Client. Notwithstanding that these investors will pay no (or a reduced) Management Fee or carried
      interest, these investors will bear their pro rata share of IIM Client expenses.

      Each IIM Client Investment Management Agreement may be terminated by either IIM or the IIM
      Client upon 30 days’ prior written notice to the other party.

   B. PAYMENT OF FEES

      Each IIM Client will pay IIM its Management Fee as set forth in the applicable IIM Client
      Investment Management Agreement described above.

C. ADDITIONAL FEES AND EXPENSES

   Other costs and expenses payable by a Client generally include (i) out-of-pocket expenses incurred
   in connection with the organization and formation of the Client and its related entities (including
   such Client’s general partner/managing member and other related entities organized by the Client’s
   general partner/managing member or its affiliates) and the offering of the interests therein,
   including, without limitation, legal and accounting (including audit and/or asset verification) fees
   and expenses; printing costs; filing fees; and the transportation, meal, travel, and lodging expenses
   of any personnel of an Island Adviser or its affiliates incurred during the provision of services in
   connection with the organization of the Client (“Organizational Expenses”) and the offering of
   interests in such Client, and (ii) third-party costs and expenses of maintaining the operations of the
   Client and maintaining, acquiring, financing, hedging and disposing of its investments (to the extent
   not paid for or reimbursed by such investment), including costs incurred in connection with
   pursuing possible investments (including potential Warehoused Investments (as defined below))
   that are not subsequently acquired (e.g., “dead deal costs”), including, without limitation, taxes;
   fees and other governmental charges levied against the Client; insurance costs (including, without
   limitation, with respect to indemnifiable liabilities, allocable portions of premiums for errors and
   omissions and directors and officers liability insurance for employees, officers and managers of the
   Client, its general partner/managing member and investment manager); administrative fees
   (including maintaining the books and records of a Client); research fees (including data and
   information service subscriptions, related system and services from data providers and data
   management software); fees for outside services (including valuation and pricing services);
   expenses of custodians, outside advisors, counsel, accountants, auditors, administrators and other
   consultants and professionals; expenses associated with forming and operating Alternative
   Investment Vehicles (as defined in the applicable IIM Client Limited Partnership Agreement) and
   any related investment vehicle; technology-related expenses; data services, financial modeling
   software and financial modeling services; interest on and fees, costs and expenses arising out of all
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ITEM 7: TYPES OF CLIENTS

The Island Advisers provide investment advisory services to their Clients. The minimum capital
commitment for each investor in a Client is set forth in the applicable Client’s Governing Documents and

other documents provided to eligible prospective investors. Interests in a Client are offered only to persons
that are “accredited investors,” as defined in Regulation D under the Securities Act and, if so required by
the applicable Client’s Governing Documents, either “qualified purchasers” or “knowledgeable
employees,” each as defined in the Investment Company Act and the rules thereunder. The investors in a
Client may include pension funds, high net worth individuals, insurance companies, investment banks,
banks, trusts, endowments and other collective investment vehicles in which the foregoing invest.

Each investor in such Client executes a subscription agreement in connection with its investment. An
investor is generally not permitted to withdraw or redeem from a Client prior to its dissolution, except as
provided in the applicable Client’s Governing Documents.

An Island Adviser and/or a Client’s general partner/manager member (either on its own behalf and/or on
behalf of such Client), without any act, approval or vote of any other investor in such Client, has entered
into (and in the future may enter into) letter agreements or other similar agreements (each, a “Side Letter”)
with one or more Client investors that has the effect of establishing rights under, or altering or
supplementing the terms of, a Client’s Governing Documents. Any rights established, or any terms of a
Client’s Governing Document altered or supplemented, in a Side Letter with a Client investor govern,
notwithstanding any other provision of the applicable Client’s Governing Documents. As a result of Side
Letters, certain investors in a Client may receive additional benefits that other Client investors will not
receive, which may include different fee structures and other preferential economic rights (such as, rights
to reduced or waived management fees or performance-based compensation), information and reporting
rights, excuse or exclusion rights, waiver of certain confidentiality obligations, co-investment rights, certain
rights or terms necessary in light of particular legal, regulatory or policy requirements of a particular
investor, additional obligations and restrictions with respect to structuring particular investments in light of
the legal and regulatory considerations applicable to a particular investor, veto rights and liquidity or
transfer rights. Except as otherwise agreed to with an investor in a Client or as required by applicable law,
rule or regulation, neither the Island Adviser nor a Client’s general partner/managing member will be
required to notify any other investor in a Client of the existence of any Side Letter or any of the rights,
terms or provisions thereof, and neither the Island Adviser nor a Client’s general partner/managing member
will be required to offer such additional or different rights or terms to any other Client investor. No investor
in a Client will have recourse against such Client, its general partner/managing member, an Island Adviser
or any of their respective affiliates in the event that one or more investors in the Client receive additional
or different rights or terms pursuant to any Side Letter. For more information regarding Side Letters please
see Item 8.B.: Methods of Analysis, Investment Strategies and Risk of Loss – Material Risks below.