SREP Capital Management LLC

Item 5. Fees and Compensation

In general, the Manager receives a management fee and carried interest in connection with advisory
services provided to the Silverfern Investment Partnerships. The Manager also receives additional
compensation in connection with management and other services performed for portfolio companies
of Silverfern Investment Partnerships and other persons, although in certain circumstances such
additional compensation will offset in whole or in part management fees otherwise payable to
Silverfern, as described in more detail below. Investors in a Silverfern Investment Partnership also
bear certain expenses. Investors should refer to the Governing Documents of the applicable Silverfern
Investment Partnership for a complete understanding of how Silverfern is compensated for its
advisory services.

Structuring Fee: The Manager charges a one-time structuring fee to all Investors in connection with their
participation in their first Silverfern Investment Partnership (the “Structuring Fee”). The Structuring
Fee is non-refundable, is not offset against the applicable Management Fee (as defined below), and is
capitalized into the Investor’s capital account for such first Silverfern Investment Partnership.

Management Fee: As consideration for services relating to the evaluation, procurement and management
of the investments, the Investors in each Silverfern Investment Partnership are issued capital calls,
quarterly in advance, for management fees due to the Manager (the “Management Fee”) in an
aggregate amount that can vary based on the Investor type or amount of capital committed in an
amount up to (i) three percent (3.00%) per annum of such Investor’s capital commitments to the
Silverfern Investment Partnership during the commitment period (typically, five years from the initial
closing of the Silverfern Investment Partnership as specified in the applicable Governing Document)
and (ii) after the expiration of the commitment period and with respect to each Investor, an aggregate
amount that can vary based on the Investor type or amount of capital committed in an amount up to
three percent (3.00%) per annum of such Investor’s capital contributions to the Silverfern Investment
Partnership, including (if applicable) any such capital contributions that have been returned to such
Investor. Management Fees for certain Silverfern Investment Partnerships are lower for Investors
who invest above certain invested capital thresholds.

The Management Fee for any period in which a Manager serves as investment manager for less than
a full quarterly period shall be prorated on the basis of the number of days in the period compared to
the number of days the Silverfern Investment Partnership and its assets were managed by the Manager
during the period. Upon termination of any Advisory Agreement by the Manager, any prepaid,
unearned Management Fees will be promptly refunded, and any earned, unpaid Management Fees will
be due and payable.

Each respective Manager’s Management Fees are in addition to any brokerage commissions,
transaction fees, and other related costs and expenses incurred by the Investor or Silverfern
Investment Partnership. Investors in each Silverfern Investment Partnership receive capital calls for
operating expenses incurred on their behalf by the Silverfern Investment Partnership on a quarterly
basis. Each Silverfern Investment Partnership will typically incur certain charges imposed by

custodians, brokers, third party investment and other third parties such as fees charged by the
Manager, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.

In certain Silverfern Investment Partnerships, any fees or other compensation paid to the Manager or
otherwise received by the Manager or certain SREP or SREP-associated personnel in connection with
such Silverfern Investment Partnership’s investment in a portfolio investment will not offset the
applicable Management Fee.

Administrative Fee. The Manager provides certain accounting, reporting and administrative services by
SREP-associated personnel to the Silverfern Investment Partnerships which are in addition to those
provided by an unaffiliated third-party administrator. The Manager’s perform these services internally
with the intention of reducing overall operating expenses. The amount of such reimbursement is
$37,500 (for certain euro denominated Luxembourg-domiciled Silverfern Investment Partnerships,
such reimbursement is €37,500) (or such lesser amount as determined by the applicable General
Partner in its sole discretion) of such costs and expenses per fiscal year for each Silverfern Investment
Partnership (“Administrative Fee”) and such amount will not offset the applicable Management Fee.

Carried Interest: In addition to the Structuring Fee, the Administrative Fee and the Management Fee
payable to the Manager, the General Partner of each Silverfern Investment Partnership is entitled to
receive a performance allocation (“Carried Interest”) calculated on a cumulative basis of up to
twenty-five percent (25.00%) of the realized profits earned from investments by the Silverfern
Investment Partnership. Carried Interest is determined after the return to the Investors of all capital
contributions plus a preferred return, as described in the Governing Documents for the relevant
Silverfern Investment Partnership. Carried Interest is not allocated to the applicable General Partner
until proceeds are realized from an investment. Carried Interest for certain Silverfern Investment
Partnerships may be lower for Investors who invest above certain invested capital thresholds.

Other Fees and Expenses. Reimbursements are payable to the Manager by each Silverfern Investment
Partnership for operating expenses (quarterly), investment expenses (one-time, generally relating to
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Item 7. Types of Clients

The advisory clients of the Manager include the Silverfern Investment Partnerships, single-purpose
limited partnerships and certain other pooled investment and single investor vehicles, interests in
which are privately placed with accredited investors and qualified purchasers. Investors in the
Silverfern Investment Partnerships must also meet certain other suitability qualifications prior to
making an investment in the Silverfern Investment Partnerships. The interests in the Silverfern
Investment Partnerships are intended to be exempt from registration under the Securities Act, and
the other applicable U.S. federal and state securities laws, “blue sky” laws and other non-U.S. securities
laws and regulations in each jurisdiction in which such interests are offered and/or sold. Investors
include, among others, high net worth individuals, the Manager’s employees and their families, SREP
affiliates, Executive Partners, Investment Partners, trusts, estates, corporations, limited partnerships
and limited liability companies.

These Silverfern Investment Partnerships are organized as either domestic or non-U.S. limited
partnerships that are intended to be exempt from registration as investment companies under the
Investment Company Act in reliance on certain exemptions thereunder. A description of each
Silverfern Investment Partnership and the terms of an investment therein is set forth in the Governing
Documents for the Silverfern Investment Partnership.

The minimum investment in each Silverfern Investment Partnership is $500,000 per Investor (but
may be higher for certain Silverfern Investment Partnerships as detailed in their applicable Governing
Documents), although the Manager has accepted such smaller investment amounts as it determines
in its sole discretion.