MBF Healthcare Management II LLC

ITEM 5 – FEES AND COMPENSATION

ITEM 5A. As compensation for its services to MBFHPII, MBFHMII receives a management fee (the “Investor
Management Fee”) from MBFHPII, payable on a quarterly basis in advance, at an annualized rate of up to 2%
of MBFHPII’s aggregate capital commitments pursuant to the Agreement of Limited Partnership of the
MBFHPII. MBFHMII does not currently receive any management fees from MBFHP. The General Partner may
also receive certain performance based distributions from the Funds as described more fully in Item 6 below.

MBFHMII may receive certain fees from the Funds’ investments in connection with the purchase, monitoring
or disposition of investments or in connection with unconsummated transactions (e.g., transaction, directors,
consulting, management, investment banking, advisory, closing, topping, break-up and other similar fees).
Investors of the Funds receive no benefit from such fees.

MBFHMII processes expenses related to the management and activity of the Funds. Generally ordinary
overhead and administrative expenses are incurred by the General Partner, whereas Fund expenses are further
described in Item 5C below. Expenses are carefully reviewed by title to determine whether they are manager
expenses, Fund expenses, other expenses or if they will be reimbursed by a third party. Certain expenses may
require allocation between MBFHMII and other related entities. Such expenses are reviewed to ensure that
the allocation is appropriate and consistent with each client’s applicable governing documents. Further, such
expenses are allocated using an equitable and consistent methodology as approved by the CFO. The allocation
of expenses are recorded as a contra expense on the books of MBFHMII.

ITEM 5B. MBFHPII calls capital from its investors for the payment of Investor Management Fees to MBFHMII
on a quarterly basis in advance. The Investor Management Fee is not deducted from an investor’s account.

ITEM 5C. In addition to the Investor Management Fee and performance allocations, the Funds bear their own
expenses as described more fully in each Fund’s governing documents. Fund expenses typically include (but
are not limited to) (i) all costs and expenses attributable to acquiring, holding and disposing of a Fund’s
investments, (ii) legal, accounting, auditing, custodial, insurance, consulting, financing, filing and other fees
and expenses, (iii) expenses of a Fund’s Advisory Board, (iv) costs, expenses, liabilities and obligations of a Fund
associated with the acquisition, holding or disposition of investments (including, without limitation, travel
(including the cost of utilizing a private jet owned by Mr. Fernandez or his affiliates to the extent such aircraft
is utilized in connection with investment-related business), insurance, litigation and indemnification costs and
expenses, judgments and settlements), (v) all out-of-pocket fees and expenses incurred by the Funds, the
General Partner or any other management person relating to investment and disposition opportunities for the
Funds not consummated, (vi) all out-of-pocket fees and expenses incurred in connection with any conference
or meeting of the limited partners, (vii) the Investor Management Fee (as described above), (viii) any taxes,
fees and other governmental charges levied against the Funds, and (ix) any expenses paid to third parties in
connection with the organization and funding of the Funds.

ITEM 5D. As noted above, Investor Management Fees are paid on a quarterly basis in advance. In the event
that an investor withdraws from the MBFHPII on a date other than the last day of the quarter, a pro rata portion
of the fee is repaid by MBFHMII to the withdrawing investor.

ITEM 5E. MBFHMII or its related parties do not accept compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual funds.

ITEM 7 – TYPES OF CLIENTS

MBFHMII’s only clients are the Funds. The Funds’ investors consist primarily of high net worth individuals,
trusts and other U.S. entities that qualify as “accredited investors” pursuant to Regulation D under the
Securities Act of 1933, as amended. The minimum subscription amount for each investor of the Funds is
$1,000,000, subject to waiver at the General Partner’s discretion.