Authentic Ventures Investment Manager LLC

Item 5: Fees and Compensation
Management Fees of Limited Partnerships and Limited Liability Companies: Limited Partners
and the Limited Liability Companies managed by Authentic Ventures and its affiliates generally
pay their respective General Partners and Managers an annual management fee (the
“Management Fee”). The Management Fees are payable to General Partners or Managers in
quarterly installments. The annual Management Fee with respect to each Limited Partner or
Member shall equal the product of such Limited Partner or Member’s Capital Contributions
invested in the Portfolio Investments and up to 2.5% shall be deducted from each Limited
Partner’s Capital Commitment. Management fees may be reduced over time. General Partners
may at any time defer or waive payment of all or any part of any installment of the Management
Fees. In addition to the Management Fees otherwise payable to the General Partners, the
General Partners may receive a special payment of Management Fees at the time of each
admission of an Additional Limited Partner or increase in the Capital Commitment of an existing
Partner. Management Fees accrued but unpaid as of the disposition of a Portfolio Investment will
be paid from the disposition proceeds. No Management Fee will be payable to the General
Partner during any extension of the Partnership’s term.

Expenses: From the Management Fees, the General Partners or their designees usually bear all
normal operating expenses incurred in connection with the management of the Partnerships, the
General Partners, except for Partnerships Expenses. Such normal operating expenses to be borne
by the General Partners (or their designees) shall include salaries and benefits provided to
employees of the General Partners or its Affiliates, rent, communications, travel and similar
expenses of the General Partners.

Typically, Limited Partners will bear the costs associated with formation, operation, dissolution,
winding-up, and termination of the Partnerships, out-of-pocket expenses associated with the
organization of the General Partners and the Partnerships and the offering and sale of the
interests in the Partnerships, all expenses incurred in

connection with the business, affairs and operations of the Partnerships, including the sourcing,
due diligence, structuring, negotiating, making, monitoring or disposition of any actual or
prospective Portfolio Investment, including all commission, brokerage, placement, underwriting,
registration, legal, accounting, tax advisory, professional or consulting fees and expenses (unless
otherwise reimbursed), merger fees and expenses payable to third parties, transfer, capital and
other taxes, duties and costs incurred in acquiring, holding, selling or otherwise disposing of
Partnership assets.

Allocation and Distribution of Net Income and Net Loss: For the various Limited Liability
Companies and Limited Partnerships managed by Authentic Ventures and its affiliates:

For each Fiscal Year (or portion thereof), after giving effect to the any special allocations, Net
Income and Net Loss of the Company shall be allocated among the Members or Limited Partners
in such a manner such that, the sum of (a) the Capital Account of each Member or Limited
Partner, (b) such Member’s or Limited Partner’s share of Company Minimum Gain each
Member’s or Limited Partners partner nonrecourse debt minimum gain shall be equal to the
respective net amounts, positive or negative, which would be distributed to them or for which
they would be liable to the Company or Limited Partnership.

For the Limited Partnerships: The General Partners usually have sole discretion regarding the
amounts and timing of distributions to Members, including to decide to forego payment of
distributions in order to provide for the retention and establishment of reserves of, or payment
to third parties of, such funds as it deems necessary with respect to the reasonable business
needs of the Partnership (which needs may include the payment or the making of provision for
the payment when due of the Company's obligations, including, but not limited to, present and
anticipated debts and obligations, capital needs and expenses, the payment of any fees and
expenses, and reasonable reserves for contingencies).

Portfolio Company Expenses: For Portfolio Companies held within the funds, the Companies
shall be responsible for payment of all Company Expenses.

DISCLAIMER
Terms and conditions regarding fees, expenses, and compensation outlined in this document
shall not be considered all-encompassing and shall be superseded by the terms of the specific
private fund in which an investor invests. For specific fund information please contact Authentic
Ventures at (510) 542-9596.

Item 7: Types of Clients
Authentic Ventures provides investment advisory services to private funds structured as Limited
Liability Companies and Limited Partnerships.