Pacific Lake Partners LLC

ITEM 5 – FEES AND COMPENSATION

Pacific Lake (or its affiliates) is compensated through the payment of management fees (“Management Fees”) and
performance-based compensation by the Funds and by certain other fees charged to portfolio companies.

Management Fees vary by Fund and generally, during the term of the Funds (including extension periods) or,
as applicable, during the period prescribed in each Fund’s Governing Documents (the “Investment Period”)
during which time the Fund is permitted to make investments in new portfolio companies, the Funds pay
Pacific Lake a Management Fee, payable quarterly in advance, typically ranging from 1.00% to 2.50% (per
annum) of committed capital based on the terms of the Funds’ Governing Documents. Certain Funds as well
as co-investment vehicles do not or cease to charge Management Fees and certain Investors, including those
related to the Adviser, receive partial or full waivers of Management Fees. Pacific Lake, or the General Partners,
deduct Management Fees applicable to the appropriate Fund (and Investors) directly from the Fund’s assets.
Investors may not withdraw from their respective Fund prior to dissolution and may not transfer any of their
interest rights or obligations under the Fund without the prior written consent of Pacific Lake or the applicable
General Partner, as applicable. As such, there is no need for a refund mechanism.

With respect to certain Funds, on a date specified in each of the Funds’ Governing Documents (the
“Stepdown Date”), the Management Fee customarily decreases and is thereafter calculated based
invested capital, which is defined as the lesser of (a) the cost of all portfolio investments held by the
partnership or (b) the fair market value of all portfolio investments held by the partnership.

Other fees, costs and expenses (such as transaction fees) allocated to a portfolio company at the time of
investment (collectively, “Capitalized Costs”) are generally included in the amount of aggregate capital
contributions with respect to such portfolio company. Accordingly, where the Management Fee base post-
Stepdown Date is based on aggregate capital contributions, less any Dispositions or Impaired Investments,
such base will include the value of such Capitalized Costs, including those payable or reimbursable to the
Firm and its affiliates. This would increase the amount of Management Fees paid to the Firm. Such increase
is in addition to the Management Fees paid to the Firm and/or its affiliates.

The Funds’ Governing Documents generally do not provide for the reimbursement or refund of
Management Fees in the event of Dispositions or Impaired Investments occurring mid–calculation period.
The General Partners also receive Carried Interest (as defined in Item 6).

The Management Fees paid to Pacific Lake are not negotiable after they have been documented in each Fund’s
Governing Documents. However, pursuant to each Fund’s Governing Documents, the Management Fees
and/or performance allocations (and related distributions) are sometimes waived and/or reduced at the
discretion of the relevant General Partner. Certain limited partners of the Funds have been granted such fee
and allocation waivers or reductions such as “Board Extenders” (historically known as “Special Limited
Partners”) and other persons at the discretion of the General Partner.

In addition to Management Fees, the Firm or the General Partners generally will receive Carried Interest (as
defined in Item 6 – Performance Based Fees) from the Main Funds and LTH Funds. The Firm or General
Partners do not receive Management Fees (but rather receive only a performance allocation) from each of the
Co-Investment Vehicles, as described in Item 6 – Performance Based Fees. Any performance-based
compensation will be paid in accordance with Section 205(3) of the Advisers Act and the rules promulgated
thereunder, which specify certain qualification thresholds for investors being assessed such a fee.

As a result of investments made by Pacific Lake, Pacific Lake is often granted board representation in addition
to customary shareholder rights in portfolio companies. As such, Pacific Lake employees and/or certain
independent consultants engaged by Pacific Lake as “executive partners,” “operating partners,”
“entrepreneurs-in-residence,” “executives-in-residence,” “board extenders”, “venture partners”, or persons
serving in a similar capacity (each an “Operating Partner”) sometimes have management roles, assist
management, or serve on the boards of portfolio companies Pacific Lake has invested in. In each Fund’s
limited partnership agreement, there is language that dictates how board of director and other paid fees could

impact the Management Fee charged to the Fund. For certain Funds, the Management Fee charged by Pacific
Lake to the Funds may be subject to offset by certain fees (in cash or in kind), including the share of all board
of director’s fees, consulting fees, commitment fees, monitoring fees, break-up fees, success fees or other
remunerations paid by such companies to Pacific Lake or an affiliate. Such a reduction would be net of any
unreimbursed expenses incurred in fulfillment of the services rendered to the Fund’s portfolio company.

Certain Operating Partners perform significant duties for both Pacific Lake and certain portfolio companies.
The Adviser pays 50% of what their salary would be if they had worked full-time for the Adviser. These
Operating Partners also have and may in the future separately earn compensation from Pacific Lake Fund
portfolio companies which choose to engage them, if any. There is no obligation on the part of the portfolio
companies to engage the Operating Partners and Pacific Lake is not a party to or otherwise involved in crafting
or pricing the engagement. Rather, their compensation paid by the Adviser is derived from the expectation
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ITEM 7 – TYPES OF CLIENTS

Pacific Lake provides investment advisory services to the Funds, as described in Item 4, above. During the
periods of time when the Funds are, or were in the case of older-vintage Funds, open to new Investors, the
Funds are or were open only to Investors meeting certain suitability requirements, as described below.

Generally, Pacific Lake requires that each investor in a Fund be (i) an “accredited investor” as defined in
Regulation D under the Securities Act, and/or (ii) a “qualified purchaser” or “knowledgeable employee”,
within the meaning of the Investment Company Act, as amended. Minimum investment commitments in the
past have been, and in the future may be, established for Investors in Pacific Lake Funds. The General Partners
of each Fund, in its sole discretion, may permit investments that are less than the required minimum
investment commitment set forth in the applicable private placement memoranda of a Fund.

The General Partner of a Fund creates alternative investment structures in certain cases for purposes of
accommodating legal, tax, regulatory, or similar reasons of some or all investors in a Fund. In the event the
General Partner creates such a structure, subject to the terms of the Governing Documents, the expenses
related to its organization and formation and other expenses will be borne by a Fund, and indirectly the
investors (even if certain investors do not participate in such structure).