Artis Ventures Management LP

Item 5.        Fees and Compensation

Artis charges the Venture Funds:

       (a)     a management fee with respect to each investor of up to 2.0% per annum of the
net asset value of that investor’s investment (including uncalled capital), which amount is
payable in monthly or quarterly installments at the beginning of each calendar month or quarter
based on the net asset value on the date the fee accrues and becomes payable; and

        (b)    a performance-based preferential distribution of up to 20% of all distributions of
the proceeds of liquidated portfolio investments (after limited partners have been distributed at
least an amount equal to the cost basis of the liquidated investments in accordance with their
contributed capital), although Artis does not receive a preferential distribution with respect to
certain Venture Funds.

The precise amount of, and the manner and calculation of, the management fees and preferential
distributions, if any, for each Venture Fund are established by Artis, and may be modified by
negotiations with investors in the applicable Venture Fund, and are set forth in such Venture
Fund’s investment management agreement, organizational documents and/or other
documentation received by each investor prior to investment. Lower fees for comparable
services may be available from other sources.

Preferential distributions, if any, are based on a Venture Fund’s performance and may create
an incentive for Artis to make more risky and speculative investments than it would otherwise
make.

Artis typically deducts management fees, preferential distributions and other fees directly from
each Venture Fund in consultation with the relevant Venture Fund’s administrator.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in a Venture Fund
to use the “alternative reporting option” to report Artis’ compensation as “eligible indirect
compensation” on the Schedule C of the plan’s Form 5500 Annual Return/Report of Employee
Benefit Plan.

Artis’ relationship with each Venture Fund is generally terminable on expiration of the Venture
Fund’s term, dissolution of the Venture Fund or on Artis’ withdrawal as general partner or
investment adviser. Investors generally may not withdraw from a Venture Fund until the
Venture Fund liquidates its underlying investments, but in some cases, an investor may be
permitted to withdraw in certain limited circumstances.

Expenses, the pro-rata portion of any management fee and the performance-based preferential
distribution through the date of termination are generally charged to the applicable Venture
Fund. Generally, any prepaid but unearned management fees are refunded to the Venture Fund
on termination of the Venture Fund’s investment advisory relationship with Artis. An investor
who might be permitted to withdraw from a Venture Fund does not receive a refund of any
management fee previously paid.

Each Venture Fund is responsible for its own costs and expenses, including portfolio company
acquisition and disposition costs and expenses, ongoing legal, accounting and bookkeeping fees
and expenses, and the fees and expenses charged by any Venture Fund administrator for its
accounting, bookkeeping, certain research and other services. Artis generally bears its own
operating, general, administrative and overhead costs and expenses, other than the expenses
described above. All or part of these costs and expenses may be paid, however, by securities
brokerage firms, if any, that execute the Venture Funds’ securities trades, as discussed in Item
12 below.

Item 6.        Performance-Based Preferential Distributions and Side-By-Side
               Management

Artis currently manages Venture Funds that pay performance-based preferential distributions
and Venture Funds that do not pay any preferential distributions as described in Item 5.
Performance-based preferential distributions will only be made in accordance with applicable
regulations. The differences in the amount of performance-based preferential distributions that
various Venture Funds pay may create an incentive for Artis to disproportionately allocate time,
services or functions to Venture Funds paying a higher rate, or disproportionately allocate
investment opportunities to such Venture Funds. Please see Item 11 below for a discussion of
these potential conflicts and the ways in which Artis seeks to address them.

Item 7.        Types of Clients

Artis provides investment advice and management to the Venture Funds. Investment advice is
provided directly to the Venture Funds (subject to the direction and control of the general
partner) and not individually to investors in such Venture Funds.

Interests in the Venture Funds are offered pursuant to applicable exemptions from registration
under the Securities Act and the 1940 Act. Investors in the Venture Funds may include, among
others, high net worth individuals, banks, thrift institutions, pension and profit-sharing plans,
trusts, estates, charitable organizations, university endowments, corporations, limited
partnerships and limited liability companies or other entities. Investors in the Venture Funds
are required to commit to a minimum capital commitment, but Artis may waive this
requirement.