Regal Healthcare Capital Management LLC

Item 5. Fees and Compensation

The Adviser is compensated with an asset-based fee calculated as 2% of committed capital of each Client
for the first five years of the fund duration and 2% of invested capital of each Client thereafter. The Adviser
bills Clients bi-annually in advance for the asset-based fee. Regal, in its sole discretion, may waive or
modify any fees for investors that are members, employees or affiliates of the Adviser, relatives of such
persons, and for certain large, strategic, or other investors.

Each Fund’s relevant general partner earns a performance-based fee (“Carried Interest”) based on the profits
of each Fund that is deducted from the investment proceeds of the limited partners. Generally, the relevant
general partner receives Carried Interest of 20% of the profits of a Fund, subject to an 8% hurdle rate. In
certain Funds, the general partner is eligible to receive a Carried Interest of 25% of the profits of a Fund
above a 3.0x money-on-money return, with no catch-up (i.e., 25% only on the profits above 3.0x). Each
Fund’s Governing Documents include further detail concerning the Carried Interest calculation. While not
generally negotiable, the general partner of each Fund may, in its sole discretion, waive or reduce the
amount of Carried Interest for a limited partner in a Fund, generally with respect to employees of the
Adviser and their family members. These performance fee arrangements have been structured subject to
Section 205(a)(1) of the Investment Advisers Act of 1940 in accordance with the available exemptions
thereunder, including the exemption set forth in Rule 205-3.

In addition to the asset-based fee and Carried Interest, in certain instances, the Adviser will at times charge
additional fees or expenses to the Clients or the portfolio companies of the Clients as payments for services
rendered by the Adviser. These fees include, but are not limited to, monitoring fees, transaction fees, and
other consulting or advisory fees, which fees may at times be offset against the asset-based fee, subject to
the applicable fund’s Governing Documents, and expenses include, but are not limited to, certain
employment related costs incurred by Adviser. In addition, the Adviser at times will charge the Clients and
portfolio companies of the Clients for reimbursement of such Clients or portfolio company expenses borne
by the Adviser, such as but not limited to organizational expenses, partnership expenses, or general
operational expenses.

Item 7. Types of Clients

As described in Item 4, the Adviser’s Clients are pooled investment vehicles.

The Funds limit their investors to persons who are “accredited investors” as defined in the Securities Act
of 1933, “qualified purchasers” as defined in the Investment Company Act of 1940, and/or “qualified
clients” as defined in the Investment Advisers Act of 1940. Each Fund’s Governing Documents set forth
the required qualifications with respect to its investors. The minimum contribution for limited partners in
each Fund was $500,000, but commitments less than $500,000 were also accepted at the discretion of each
Fund’s general partner.

Investors in the Adviser’s Clients include a broad range of investors, including, among others, individuals,
trusts and investment companies. In addition, employees and other persons associated with the Adviser
and/or its affiliates are investors in the Clients.

Opportunities to invest in a portfolio company may be made available to any person or entity, including
without limitation, strategic investors, lenders, deal sources, other private equity or venture capital firms,
limited partners of the Clients, other persons or entities affiliated, associated or otherwise known to the
Adviser or its personnel and unrelated third parties. This may arise whenever the Adviser has the
opportunity for an investment in an existing or prospective portfolio company and the Adviser determines
that all or a portion of the applicable opportunity is not required to be offered to, or is not appropriate for,
a Fund. Such determinations are based on the provisions of the applicable Funds’ Governing Documents
and other factors as the Adviser may consider in its sole discretion, including those that may be specified
from time to time in its policies on investment allocation. The Adviser is not obligated to arrange co-
investment opportunities, and no Limited Partner will be obligated to participate in such an opportunity.
The Adviser has sole discretion as to the amount (if any) of a co-investment opportunity that will be
allocated to any particular Limited Partner.