Navimed Capital Advisors LLC

Item 5 Fees and Compensation

Advisory Fees

NaviMed Capital or an affiliate receives a management fee, and its affiliated General Partners are
allocated carried interest as compensation for providing investment advisory services to the Funds (as
described below). Differences exist from Fund to Fund, and certain Funds may not charge certain
fees, compensation or expenses that other Funds charge. In addition, the General Partner of each
Fund may, in its sole discretion, waive or reduce an investor’s management fee or carried interest.
Fund investors should refer to each Fund’s Offering Documents for specific information about the
applicable Fund’s fees and expenses.

       Management Fee

       Each Fund will generally pay an annual “Management Fee” pursuant to the applicable
       provisions of such Fund’s Offering Documents. The Management Fee for a Fund is paid in
       advance generally by way of a drawdown of capital from investors in the applicable Fund but
       may be paid from any other asset owned by the applicable Fund (including amounts received
       by the applicable Fund in respect of a portfolio investment and/or reserved by the applicable
       Fund). Generally, the Management Fee is not negotiable, provided that NaviMed Capital is
       permitted to waive, reduce or otherwise modify the Management Fee for any Limited Partner
       in a Fund with the result being that investors in the same Fund may pay different Management
       Fees.

       Management Offset Fees

       From time to time, NaviMed Capital or its affiliates (including the General Partners of one or
       more Funds) may receive monitoring fees, transaction fees, upfront fees, and/or breakup fees
       from transactions with certain portfolio companies in which one or more Funds are invested.
       In these cases, it is generally NaviMed Capital’s policy to allocate each such Fund’s pro-rata
       share of such fees to offset the Management Fee payable to NaviMed Capital by the Funds
       that participate in a transaction from which the fees were derived. Also, from time to time,
       employees or principals of NaviMed Capital serve as directors with respect to portfolio
       companies in which one or more Funds invest, and compensation is paid to NaviMed Capital,
       its affiliates, or its employees or principals for the provision of the director’s services. In these
       instances, it is generally NaviMed Capital’s policy to allocate each such Fund’s pro-rata share
       of such compensation received for serving as a director to offset the Management Fee payable

       to NaviMed by the Funds that participate in the transaction from which NaviMed Capital
       derived the right to the board seat.

       As detailed in each applicable Fund’s Offering Documents, any fees paid by a Fund portfolio
       company to certain outside experts or professionals (specifically including “Health Policy
       Partners” or “Senior Advisors” as such terms are defined by the applicable Fund’s Offering
       Documents, as well as terms or titles of similar import) will not be credited against
       Management Fees.

       Carried Interest Allocation (Performance-Based Fees)

       An affiliate of NaviMed Capital receives performance-based compensation from each Limited
       Partner (with limited exceptions) in each Fund in connection with the performance by such
       affiliate of its duties to the applicable Fund. Generally, such performance or carried interest
       allocation is equal to a percentage of distributions otherwise payable to such Limited Partner
       after a return to such Limited Partner of its aggregate capital contributions to the applicable
       Fund plus an agreed-upon annual return (or performance hurdle). These amounts are paid
       from cash otherwise distributable to such Limited Partner, such as receipt by the applicable
       Fund of proceeds from a portfolio investment. Generally, the performance allocation is not
       negotiable, provided that NaviMed Capital is permitted to waive, reduce or otherwise modify
       the performance allocation for any Limited Partner in a Fund with the result being that
       investors in the same Fund may pay different performance-based compensation.

Other Fees and Expenses

In addition to the Management Fee and the performance-based compensation discussed above, each
Fund, or in certain cases a Fund’s portfolio company, may be required to reimburse NaviMed Capital
and/or its affiliates for, and/or pay to one or more third parties, all out-of-pocket costs and expenses
attributable to the applicable Fund’s activities, other than ordinary administrative and overhead
expenses of NaviMed Capital incurred in managing the applicable Fund. These additional amounts,
including those identified below, are more fully described in the Offering Documents for each Fund.
As noted earlier, differences may exist with respect to the fees and expenses charged from Fund to
Fund, and certain Funds may not charge for certain fees and expenses. Examples of other fees and
expenses that may be charged to one or more Funds include those set forth below:

       Organizational and Offering Expenses

       A Fund will generally reimburse NaviMed Capital or an applicable affiliate for all or a stated
       portion of the Fund’s organizational expenses incurred in the formation of the Fund and the
       offering of the interests. In the event that only a stated portion of organizational expense are
       reimbursed by a Fund, organizational expenses in excess of such portion and any placement
       agent fees will generally be borne by the Fund but will be subject to a 100% offset against
       Management Fees.

Operating Expenses

NaviMed Capital will bear all costs associated with the salaries of its investment and
administrative personnel and its rent, utilities and office space. A Fund will generally pay all
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Item 7 Types of Clients

As described in Item 4, NaviMed Capital provides investment advisory services to privately offered
pooled investment funds including partnerships or other pooled investment vehicles formed under
domestic or non-U.S. laws and operated as investment pools that are excluded from the definition of
an investment company under the Investment Company Act of 1940, as amended (the “Company
Act”). At this time, it is not anticipated that NaviMed will provide advice to advisory clients that are
“retail investors” as defined by Rule 204-5(d)(2) under the Investment Advisers Act of 1940, as
amended (the “Advisors Act”). Fund investors generally include institutional investors and other
sophisticated investors. By virtue of their investment in a Fund, Fund investors are not clients of
NaviMed Capital. Each Fund’s Offering Documents impose a minimum contribution for investment,
which varies from Fund to Fund. The General Partner of such Fund may waive such minimum
commitment requirement in its sole discretion.

Each investor in a Fund is required to meet certain suitability qualifications in order to invest, such as
being an “accredited investor” within the meaning of Rule 501 under the Securities Act and/or a
“qualified purchaser” within the meaning of Section 2(a)(51) of the 1940 Act. In addition, there are
prohibitions on withdrawals from a Fund and restrictions on transfers of interests in a Fund. Because
of these prohibitions and restrictions, an investment in a Fund is a continuing commitment to invest
the amount of capital subscribed for by an investor, is an illiquid investment, and involves a high

degree of risk. A subscription for Limited Partner interests in a Fund should be considered only by
persons financially able to maintain their investment and who can accept a loss of all of their
investment.

In order to invest in a Fund that is subject to a performance fee, an investor must be a “qualified
client” as defined by Section 205 of the Advisers Act, and Rule 205-3 thereunder.