Coalescence Partners Investment Management LP

5, “Fees and Compensation” from the Fund. Such performance-based compensation may create an
incentive for the Adviser to make investments that are riskier or more speculative than would be the case
in the absence of such performance-based compensation arrangements. In addition, certain Fund
Investors may have higher asset-based fees or more favorable performance-based compensation
arrangements than other Fund Investors or have asset-based fees or performance-based compensation
arrangements providing for payment to the Adviser at different times or over different time intervals. When
the Adviser and its investment personnel manage more than one Client account, a potential exists for one
Client account to be favored over another Client account. The Adviser and its investment personnel will
have a greater incentive to favor Client accounts that pay the Adviser (and indirectly its investment
personnel) higher fees, performance-based compensation, or compensation that is paid at different times
or over different time intervals.

As of the date of this filing the Adviser provides investment advisory service to the Fund, as discussed in
Item 4 above. However, in the future, the Adviser may manage multiple Client accounts in the future.
Accordingly, the Adviser has adopted and implemented policies and procedures intended to address
conflicts of interest relating to the management of multiple accounts, including accounts with different
fee arrangements, and the allocation of investment opportunities. The Adviser reviews investment
decisions for the purpose of ensuring that all accounts with the same or substantially similar investment
objectives, strategies and restrictions are treated equitably. The performance of accounts with the same or
substantially similar investment objectives, strategies and restrictions is also reviewed to determine whether
there are any unexplained significant discrepancies. In addition, the Adviser’s procedures relating to the
allocation of investment opportunities require that eligible Client accounts with the same or substantially
similar investment objectives, strategies and restrictions participate in investment opportunities pro rata
based on the relative value of the assets of each participating account to all participating
accounts; provided, however that the Adviser may allocate investment opportunities to such accounts
on a non-pro rata basis due to a consideration of factors including but not limited to timing of cash
inflows/outflows, ability to participate in new issues, etc. To the extent orders are aggregated, the Client
orders are price-averaged and allocated in accordance with the aggregated order; provided, that the
aggregated order may be allocated on a different basis for reasons including but not limited to partially
filled orders and to avoid odd lots or excessively small allocations. Finally, the Adviser’s procedures also
require the objective allocation for limited opportunities (such as initial public offerings and private
placements) to ensure fair allocation among accounts. These areas are monitored by the Adviser’s Chief
Compliance Officer.

Item 7.      Types of Clients

The Adviser provides investment advisory services to the Fund, as discussed in Item 4, “Advisory
Business.” The Adviser, however, is not precluded from advising types of clients other than the Fund. Any
initial and additional subscription minimums with respect to investment in a Fund are disclosed in the Fund’s
offering memorandum.