Discovery Group I LLC

Item 5: Fees and Compensation

Introduction

DGI acts as investment manager for the Fund. DGI has received an ownership stake in the
Fund's General Partnership (“Discovery Equity Partners, GP” or “DEP GP”) in return for
acting as investment manager.

Management Fees

DEP GP charges DEP, LP a management fee of 2% annually, payable monthly and in
advance. The management fee is based on the net asset value of DEP, LP as of the start of
business on the first business day of such calendar month. The fee is charged directly to
DEP, LP’s account and deducted accordingly. In addition, DEP GP charges a performance
fee, as described more completely in Item 6, Performance Fees.

The GP may, in its discretion, waive or reduce the management fee on an individual limited
partner basis.

Transaction and Other Costs

Clients of DGI, including the Fund, will pay costs and expenses incurred in connection with
the investment and reinvestment of the Fund's assets, including the following: (i) brokerage
commissions, dealer mark-ups, mark-downs and spreads, (ii) related clearing and settlement
charges, (iii) all administrative, legal, accounting, auditing, record-keeping, tax form
preparation costs and third party database expenses associated with the Fund's operations,
(iv) expenses associated with borrowing, (v) insurance costs and expenses to defray the
Fund's insurable liabilities, (vi) custody costs and expenses, (vii) indemnification obligations,
(viii) due diligence costs for investigating and monitoring portfolio companies, and (viii) any
extraordinary expenses.

DEP GP is responsible for all respective salaries, bonuses and employee benefit expenses of
their principals and employees who are involved in the management and conduct of the
business and affairs of the Fund (as well as related overhead, including office space and
equipment, utilities, telephone and fax costs, and other similar items).

Brokerage practices are discussed further in the section of this brochure entitled “Brokerage
Practices.”

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Item 7: Types of Clients

DGI provides investment management services to the Fund and the SMA account.
Investment in the Fund is available to investors (individuals or entities) that meet the Fund's
investment eligibility criteria. Each investor must be an “accredited investor” under
Regulation D of the Securities Act of 1933 and a “qualified client” under Rule 205-3 of the
Advisers Act.

The Fund’s GP typically imposes a minimum investment in the Fund of $1,000,000;
however, the GP may from time to time in its sole discretion admit investors who invest less
than $1,000,000.

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