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effective rate greater than 90% of the maximum U.S. corporate income tax rate is not taxable to a
United States Shareholder under the CFC rules if the United States Shareholder so elects.

The rules applicable to CFCs are complex, and the foregoing summary of the U.S. federal
income taxation of U.S. Partners indirectly owning an interest in a CFC is general in nature. The
General Partner cannot provide any assurance that the Fund’s portfolio companies will not be
CFCs. The CFC rules, however, generally should not affect tax-exempt U.S. Partners.

U.S. Foreign Tax Credits - The Fund may make investments in entities that are formed and
operating under the laws of countries other than the United States. The countries in which these
entities are organized and operate may impose taxes on the income of, and distributions or
other payments made by, these entities. In addition, the Fund and/or the Partners may be
required to file tax or information returns in such non-U.S. jurisdictions. U.S. Partners may be
entitled, under certain circumstances, to a reduced rate of non-U.S. tax on their shares of such
income or distributions under tax treaties between the United States and the non-U.S.
jurisdictions imposing such tax, or may, in certain circumstances, be entitled under such treaties
to file tax returns in such jurisdictions and claim refunds of any amounts of non-U.S. tax over-
withheld.

Subject to applicable limitations on foreign tax credits, a U.S. Partner that is subject to U.S.
federal income taxation generally should be entitled to elect to treat foreign taxes withheld from
such Partner’s share of the Fund’s dividend and interest income as foreign income taxes eligible
for credit against such Partner’s U.S. federal income tax liability. Similarly, each U.S. Partner’s
share of any foreign taxes which may be imposed on capital gains or other income realized by
the Fund generally should be treated as creditable foreign income taxes. Capital gains realized
by the Fund, however, may be considered to be from sources within the U.S., which may
effectively limit the amount of foreign tax credit allowed to the U.S. Partner. Other complex tax
rules may also limit the availability or use of foreign tax credits, depending on each U.S.
Partner’s particular circumstances. Because of these limitations, U.S. Partners may be unable to
claim a credit for the full amount of their proportionate shares of any foreign taxes paid by the
Fund. U.S. Partners that do not elect to treat their shares of foreign taxes as creditable generally
may claim a deduction against U.S. taxable income for such taxes (subject to applicable
limitations on losses and deductions). Foreign tax credits or deductions generally will not
provide any benefit to tax-exempt U.S. Partners unless such Partners’ distributive shares of the
income or gains on which the related foreign income taxes are imposed constitute “unrelated
business taxable income” and certain other conditions are satisfied. However, since the
availability of a credit or deduction depends on the particular circumstances of each U.S.
Partner, Partners are advised to consult their own tax advisors.

Foreign Currency Issues - A U.S. Partner’s distributive share of profits or losses realized by the
Fund on the conversion of U.S. dollars into non-U.S. currency, or of non-U.S. currency into U.S.
dollars, generally will be treated as ordinary income or loss rather than capital gain or loss.
Further, if the Fund acquires, or becomes the obligor under, a debt instrument or enters into
certain other transactions, any of which is denominated in terms of a currency other than the
U.S. dollar, fluctuations in the value of that currency relative to the U.S. dollar generally will
result in foreign currency gain or loss realized by the Fund and will be included in the U.S.
Partners’ distributive shares of Fund profits or losses as U.S.-source ordinary income or loss
rather than capital gain or loss.

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CONTROL NUMBER 257 - CONFIDENTIAL

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