LSAF Management LLC

ITEM 5          FEES AND COMPENSATION

        The Advisers negotiate fees and expenses on a vehicle-by-vehicle basis so while the
Advisers believe the discussion herein regarding fees and expenses is generally applicable to the
Funds (including any future Funds), investors should refer to a Fund’s Governing Documents for
specific details regarding management fees, performance-based fees or allocations, Fund
expenses and other fee-related issues. In general, the Advisers receive management fees and
carried interest in connection with providing investment advisory services to the Funds.
Management fees are generally paid quarterly in advance until the termination of the respective
Fund, although installments of the management fee payable for any period other than a full
quarterly period generally are adjusted on a pro rata basis according to the actual number of days
in such period. Investors in the Funds also bear certain Fund expenses as further described
below. Except as otherwise described in the applicable Governing Documents, expenses,
investment advisory and other fees are expected to be paid over the term of the applicable Fund
and investors generally are not permitted to withdraw or redeem interests in such Fund.

        Subject to any limitations in the applicable Governing Documents, the Advisers have the
authority to exempt certain Fund investors from paying all or a portion of a Fund’s management
fees and/or carried interest, including, without limitation, the Principals, the Advisers’
employees, and their friends and family, and members of the Strategic Advisory Board (as
defined below).

        The general discussion regarding Main Fund II’s management fee and carried interest
below does not apply to the Affiliates Parallel Funds, Affiliates Feeder Funds or the Anchor
Parallel Fund and is not expected to apply to any Co-Invest Funds.

Management Fee

        In general, Fund II pays an annual management fee equal to (i) during its commitment
period, 1.75% of each investor’s capital commitment, and (ii) following its commitment period,

1.75% of each investor’s share of the adjusted cost of each unrealized portfolio investment. For
this purpose, “adjusted cost” refers to the aggregate amount of capital contributed or paid for an
investment and, where applicable, any payments-in-kind interest received, net of any capital
previously returned or principal repaid. Investors that commit to Fund II after its initial closing
are responsible for paying the management fee from such initial closing date plus any applicable
interest, as set forth in the Governing Documents. The management fee is payable quarterly in
advance and is generally pro-rated for any partial periods (see Governing Documents for specific
provisions).

ITEM 7         TYPES OF CLIENTS

        The Advisers’ clients are the Funds, although the Advisers may advise other types of
clients in the future. Investment advice is provided directly to a Fund and not individually to the
Limited Partners of such Fund. Funds may include investment partnerships or other pooled
investment vehicles formed under U.S. or non-U.S. laws and operated as exempt investment
pools under the Investment Company Act of 1940, as amended (the “Investment Company
Act”). The investors participating in Funds may include individuals, banks or thrift institutions,
sovereign wealth funds, pension and profit-sharing plans, trusts, estates, charitable organizations
or other corporations or business entities and also may include, directly or indirectly, Principals
or other employees of the Advisers.

       Typically, Fund investors are required to invest at least $10 million, but such minimum
investment amounts may be reduced with the prior agreement of an Adviser.

       Fund interests are offered and sold generally to investors that are (i) “accredited
investors” as defined under Regulation D of the Securities Act of 1933 (the “Securities Act”), as
amended and (ii) “qualified purchasers” or other “knowledgeable employees” of the Advisers, in
each case as defined under the Investment Company Act.