DBL Investors LLC

Fees and Compensation
Compensation paid by Fund I and Fund II to the Firm is as follows:

Fund I
Fund I pays an annual management fee of 2.5% of the aggregate capital commitments of the
Partners. 2.0% of the fee will be allocated to DBL and .5% will be paid to the Bay Area Council.
The annual management fee is charged quarterly in advance.

Commencing on 1/1/08, the annual management fee rate shall be calculated based on each
partner’s committed capital less each partner’s proportionate share of the cost basis of securities
sold, distributed and written off. The management fee is payable quarterly in advance.

Fund II
The cumulative annual management fee rate initially shall be 2.5% of the aggregate capital
commitments of the Partners. The annual management fee will be paid quarterly in advance.

Commencing on the first day of the quarter commencing after the earlier of (1) the fifth
anniversary of the initial closing of Fund II, (2) dissolution of Fund II or (3) the decision to
permanently suspend new portfolio company investments for Fund II, the annual Management

Fee rate shall be calculated on the basis of the Partnership’s cost basis in Portfolio Securities, less
the cost basis of portfolio securities that have been sold, written down to zero, or distributed to
Partners.

The Firm shall receive a special payment of an additional management fee at the time of each
admission of an additional limited partner or increase in the capital commitment of an existing
Partner. Such special payment shall be equal to (x) the management fee that would have been
payable by the Partnership to the Firm through the close of business on the date immediately
preceding such admission or increase if such admission or increase had occurred at the initial
closing reduced by (y) the actual management fee payable by the Partnership through such time.

Deal and Portfolio Company Related Fees
In addition to the management fee, DBL Investors may also receive a portion of any transaction,
break-up, monitoring and director fees received by the Firm/Funds. Specific information for each
Fund is contained in the Fund’s private offering memorandum.

Transaction fees and other “deal” fees to be charged to the Portfolio Companies are determined, in
part, by the principles of DBL and may constitute a significant percentage of the compensation
received by the General Partner. Therefore, a conflict may be created in that it may be in the
General Partner’s best interest to secure transaction and other fees as a part of each investment
made by the Fund.

Fund Expenses
The Funds will also bear any legal, accounting, filing, capital raising and other organizational
expenses, incurred in the formation of, and offering of interests in, the Funds. Detailed
information regarding the specific fees to be paid by each Fund is contained in the relevant Fund’s
private offering memorandum.

Side Letters
In addition, the General Partner of each Fund on its own behalf or on behalf of such Funds may
enter into a side letter or similar agreement with a Limited Partner which has the effect of
establishing additional rights under, or altering or supplementing the terms of the Limited
Partner’s investment. Notice will be provided to all Limited Partners in the applicable Fund
within 10 days of the Firm’s entrance into any side letter agreement with respect to such Fund. If
any side letter has the effect of establishing rights or otherwise benefiting a Limited Partner of
such Fund in a manner more favorable in any material respect to those Limited Partners under the
Limited Partnership Agreement, any Limited Partner who is not in default will be entitled to the
same benefits granted in the side letter provided: (i) that the rights granted can be fairly and
reasonably applied to the requesting Limited Partner, and (ii) the Limited Partner desiring the
additional/altered terms must inform the applicable General Partner of such within thirty days (30)
of receipt of the notice of entrance into the side letter.

Performance Based Fees and Side-by-Side Management
Each Partnership pays a carried interest of up to 20%. The carried interest may create an incentive
for the general partner of a Fund to make more speculative investments and make different

decisions regarding the timing and manner of the realization of such investments, than would be
made if such carried interest were not allocated to the general partner.

Types of Clients
DBL Investors presently provides discretionary investment supervisory services to two Funds
which are private limited partnerships exempt from the registration requirements of the
Investment Company Act.

Methods of Analysis, Investment Strategies and Risk of Loss
Investments in the Funds are intended to achieve favorable long-term financial returns and
measurable positive social and environmental returns in or near the Funds’ specified regions of
focus.

DBL Investors will generally seek investments which it believes will achieve a favorable IRR.
The Funds’ IRR targets are dependent upon general market conditions, as well as the
characteristics of the subject company. The Firm is not subject to any guidelines or limitations on
the returns sought by the Funds. The Firm therefore may seek more debt or equity opportunities
and higher or lower targeted returns.

Investments will be sourced primarily by the investment staff of DBL Investors. In addition
investment ideas for Fund I may be received from the Bay Area Council, a business-sponsored,
public-policy organization representing employers dedicated to promoting economic prosperity
and quality of life in the Bay Area; and from the Alliance for Community Development in the San
Francisco Bay Area, a not-for-profit corporation made up of leaders from several community
economic development organizations and business associations in the Bay Area.

The investment management team work closely with portfolio companies to help them achieve
both financial success and success in their community through improved environmental and social
impact. In a manner traditional to most venture funds, the investment management team helps
companies achieve growth by serving on boards as directors or as observers, finding new
investors and providing fundraising assistance, advising on fundraising structures, business
development contracts, operations, and strategic direction, providing introductions to potential
partners and customers, helping find and hire senior management, attracting additional board
members, and locating professional service providers. The team assists portfolio company
management by helping them focus on keeping the business well-capitalized, executing on the
growth plan of the business, and moving the business toward an exit. The Limited Partners
recognize that decisions concerning investments and potential investments involve the exercise of
judgment and the risk of loss.

Investment Risks
All investing involves a risk of loss.

Illiquid and Long-Term Investments
It is anticipated that there will be a significant period of time before a Fund will have completed
its investments in Portfolio Companies. Such investments may take several years from the date of
initial investment to reach a state of maturity when realization of the investment can be achieved.

Although portfolio investments by a Fund occasionally may generate some current income,
private investment transaction structures typically will not provide for liquidity of a Fund’s
investment prior to that time. The return of capital and the realization of gains, if any, from a
portfolio investment will generally occur only upon the partial or complete disposition or
refinancing of such portfolio investment. In light of the foregoing, it is likely that no significant
return from the disposition of a Fund’s investments will occur for a substantial period of time
from the Effective Date of a Fund. It is unlikely that there will be a public market for the
securities held by a Fund at the time of their acquisition. A Fund generally will not be able to sell
its securities publicly unless the issuer has consummated a public offering of its securities and
such offered securities are registered under applicable securities laws, unless an exemption from
such registration requirements is available. In addition, in some cases, a Fund may be prohibited
by contract from selling certain securities for a period of time and, as a result, may not be
permitted to sell a portfolio investment at a time it might otherwise desire to do so. Further,
disposition of such investments may require a lengthy time period or may result in distributions in
kind to investors.

Investments in Less Established Companies
A Fund may invest a portion of its assets in the securities of less established companies, or early
stage companies. Investments in such early stage companies may involve greater risks than those
generally associated with investments in more established companies. For instance, less
established companies tend to have smaller capitalizations and fewer resources and, therefore, are
often more vulnerable to financial failure. Such companies also may have shorter operating
histories on which to judge future performance and in many cases, if operating, will have negative
cash flow. In the case of start-up enterprises, such companies may not have significant or any
operating revenues.

In addition, less mature companies could be more susceptible to irregular accounting or other
fraudulent practices. Furthermore, to the extent there is any public market for the securities held
by a Fund, securities of less established companies may be subject to more abrupt and erratic
market price movements than those of larger, more established companies.