2 As compensation for investment advisory services rendered to the Funds, Centerfield charges each Fund an annual management fee. The amounts of the management fees are determined in accordance with the terms of the Fund’s Governing Documents and applicable side letters. In general, except with respect to one of the SBIC Funds, the management fees charged during the investment period range from 1.65% to 2.0% of the total capital committed to the Fund by investors. After the investment period, the management fees are generally based on a similar percentage of the invested capital of the Fund. Management fees are billed to each Fund, or its General Partner, and paid by the Fund, or its General Partner, from the Fund’s assets. To obtain cash for the payment of management fees, the General Partner of the Fund may draw down investors’ capital commitments. Centerfield has the ability to waive management fees in exchange for deemed capital contributions by the General Partners to the Funds. In addition, the management fee payable by a Fund may be reduced or waived in connection with the receipt by Centerfield, or its related persons, of all or a portion of various fees paid by portfolio companies. Management fees are calculated and payable quarterly in advance. Because Centerfield may share in the profits and losses generated by the investments of the Funds, or because a Fund may, in its discretion, not charge, or reduce, all or a portion of the management fee and performance allocation related to investments held by the Funds, a conflict of interest may exist. In situations where actual or potential conflicts of interest between the Adviser and our affiliates and one or more Funds are identified, procedures

contained in the Governing Documents of the affected Funds generally provide for submission of the proposed transaction to an advisory committee for review and resolution. The specific procedures for each Fund we advise are set forth in the Governing Documents of the Fund. The Funds generally invest on a long-term basis. Accordingly, investment advisory and other fees are expected to be paid, except as otherwise described in each Fund’s Governing Documents, over the terms of the Funds, and investors generally are not permitted to withdraw or redeem interests in the Funds. For certain Funds, expense reimbursements may be payable to Centerfield or its affiliates. Any such Fund expense reimbursements are disclosed to investors in the Governing Documents and are in addition to the management fees discussed above. Each Fund also bears certain expenses relating to its activities and operations, as detailed in the Governing Documents. To the extent provided in the Governing Documents, Centerfield may pay out of its management fees certain operating expenses, including expenses on account of rent, utilities, office supplies, office equipment, compensation of its employees and other routine administrative expenses relating to the services and facilities provided by Centerfield to the Funds. Each Fund generally bears all other related expenses, to the extent not borne by its portfolio companies, including legal, accounting, investment banking, brokerage, finders’, custody, transfer, registration, interest, taxes and extraordinary expenses, and other similar fees and expenses. Some of these expenses borne by the Funds may relate to costs associated with unexecuted transactions.