MPM Asset Management LLC

Item 5.    Fees and Compensation

The Adviser or its affiliates generally receive Advisory Fees, Performance Allocations, and
Carried Interest (each as defined below) or similar performance-based remuneration from a Fund.
Performance Allocations, Carried Interest and similar performance-based remuneration is
collectively referred to in this brochure as “Incentive Compensation”. A Fund, and/or its portfolio
companies may also reimburse the Adviser and its affiliates or its employees, advisors, or
consultants for certain expenses and/or make other payments to the Adviser or its affiliates or its
employees, advisors, or consultants for services provided to the portfolio companies which, in
certain circumstances, reduces the Advisory Fees payable to the Adviser. Additionally, consistent
with the Organizational Documents of a Fund, the Fund typically bears certain out-of-pocket
expenses incurred by the Adviser in connection with the services provided to the Fund and/or the
portfolio companies. Further details about certain common fees and expenses are set forth below.

Advisory Fees

As compensation for investment supervisory services rendered to the Funds, the Adviser receives
from each such Fund an advisory fee (each, an “Advisory Fee”) typically calculated based on
committed capital or the value of assets, as determined by the Adviser, with respect to such Fund.
Advisory Fees may be reduced during the life of a Fund. The precise amount of, and the manner
and calculation of, the Advisory Fees for each Fund are established by the Adviser and are set
forth in such Fund’s Organizational Documents. The Advisory Fees and other fees and
distributions described herein are generally subject to modification, waiver or reduction by the
Adviser in its sole discretion, both voluntarily and on a negotiated basis with selected investors via
side letter and other arrangements, which may not be disclosed to other investors in the same Fund.
The fee structures described herein may be modified from time to time. Fees may differ from one
Fund to another, as well as among investors in the same Fund. Unless otherwise agreed with a
Fund’s investors, Advisory Fees will continue to be payable during any term extensions.

The Advisory Fees paid by certain Funds will generally be reduced by (1) the fees incurred by the
Adviser in connection with the organization of such Fund that exceed a limit specified in such
Fund’s Organizational Documents and/or (2) certain Other Fees (as defined and described in more
detail below) received by the Adviser or its affiliates. The amount and manner of such reduction,
if any, is set forth in the Organizational Documents of the applicable Fund.

Advisory Fees vary Fund by Fund and are either payable quarterly or monthly in advance. There
are also legacy Advisory Fee and Incentive Compensation structures for certain Funds that are
generally no longer available to new investors.

Certain investors in the Funds that are employees, business associates and other “friends and
family” of the Adviser, its affiliates or their personnel or former personnel, including any related
entity established by any of the foregoing, such as trusts, charitable programs, endowments or
related programs, family investment vehicles and other estate planning vehicles (collectively,
“Adviser Investors”) will not typically pay Advisory Fees in connection with their investment in
a Fund. Furthermore, Adviser Investors do not generally bear any expenses incurred in making an
investment and, as a result, such expenses are generally borne by the Funds. Adviser Investors will
only bear those expenses specifically allocated solely to an Adviser Investor vehicle (for instance,

administrative fees, tax preparation fees, state filing fees and similar fees). In addition, the Adviser
has in the past and may from time to time in the future establish certain investment vehicles through
which certain Adviser Investors, other “friends of the firm,” or other persons may invest alongside
one or more Funds in one or more investment opportunities. Such co-investment vehicles generally
will not pay Advisory Fees or Incentive Compensation.

In addition, as set forth in the Organizational Documents of the applicable Fund, the Adviser and
its affiliates, may utilize a “deemed contribution” or “cashless commitment” to satisfy any
obligation of the Adviser and certain employees and affiliates of the Adviser to invest in and
alongside such Fund and will only be paid in cash if such Fund does not return capital contributed
by the limited partners. This “deemed contribution” or “cashless commitment” could result in
acceleration of investor capital contributions.

The Adviser or an affiliated General Partner deducts Advisory Fees and Incentive Compensation
directly from Fund assets and does not bill investors in the Funds.

Upon termination of an Advisory Agreement, prepaid Advisory Fees are processed in accordance
with the terms of the applicable agreement.

Performance Allocations

The affiliated General Partner of certain Funds that engage in the trading of public securities
receives performance-based compensation generally equal to either 15% or 20% annually of the
excess net profit over net losses related to public securities, subject to a high-water mark (the
“Performance Allocation”). The Performance Allocation is generally made to the respective
General Partner at the end of each year or sooner upon withdrawals by investors. Please see Item
6 below regarding Performance Allocation.

Carried Interest Payments

With respect to certain Funds, a portion of the profits of each such Fund is distributed to its General
Partner, if any, as “carried interest” (the “Carried Interest”), generally equal to 20%. Please see
Item 6 below regarding Carried Interest.

Other Fees and Expense Reimbursement

Other Fees

In addition to the Advisory Fees and Incentive Compensation, the Adviser and its affiliates receive
...

Item 7.    Types of Clients

The Adviser currently provides investment supervisory services to the Funds. Investment advice
is provided directly to the Funds (subject to the direction and control of the General Partner or
board of directors of each such Fund, if applicable) and not individually to investors in such Fund.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the
Securities Act and the 1940 Act. Investors in the Funds are generally “qualified purchasers” as
defined in the 1940 Act, and may include, among others, public pension plans, corporate pension
plans, endowments, private pension plans, foundations, insurance companies, fund-of-funds,
family offices, Operations Support Providers, Entrepreneur Partners, other institutional investors,
and high-net worth individuals.

The Adviser does not have a minimum size for a Fund, but minimum investment commitments
may be established for investors in the Funds. The General Partner or board of directors of each
Fund may, in its sole discretion, permit investments below the minimum amounts set forth in the
Organizational Documents of such Fund.