Granahan Investment Management LLC

5.      Fees and Compensation
We manage advisory accounts solely on an investment basis. We charge clients a fee based on a
percentage of assets managed. Fees are generally negotiated, using the following standard fee schedules
as a starting point.

For accounts in the “Small Cap Core Growth”, “Small Cap Explorer”, and “Small Cap Select” products this
percentage is on a sliding scale as follows:

        Assets in Account        Annual Percentage Fee:

        FIRST $15 MILLION                        1.00%
        NEXT $35 MILLION                         0.80%
        NEXT $50 MILLION                         0.60%
        ABOVE $100 MILLION                       0.73%

The standard fee schedule for accounts in the “Small Cap Focused Growth” product is as follows:
        FIRST $15 MILLION                       1.00%
        NEXT $35 MILLION                        0.90%
        ABOVE $50 MILLION                       0.85%

For accounts in the “Small Cap Discoveries” product, the standard fee rate is 1.25% of the Account Assets.

Granahan Funds plc (Irish UCITS): The fees earned on assets in the Irish domiciled Fund vary from 0.5%
to 1.5%, depending on the particular share class subscribed. The Focused Growth Fund also offers share
classes with a base fee plus a performance fee component which is accrued over time and paid once per
year based on the dollar gains in the account above the benchmark Russell 2000 Growth index. New share
classes or negotiated rebates can increase or decrease the fee rate paid by individual clients. The Fund
fee is calculated on a daily basis by the administrator of the Fund and is reflected in the daily Net Asset
Value. The fee is paid to GIM, the investment manager, on a quarterly basis, in arrears. To protect its
shareholders from excessive expenses at lower asset levels, we have agreed to reimburse the Fund for
operating expenses which exceed a specified Net Asset Value percentage (specific to each share class).

                                                                  Granahan Investment Management, LLC

This Fund is open to non-US investors only. Fund prospectuses and more information can be found at
www.granahanfunds.com.

Fees are generally billed to the client and payable quarterly in arrears based upon the average value of
the assets in the account on the last day of each month in the quarter, though some clients may use
average daily assets. Contracts generally can be terminated by the client on 30-60 days’ notice, and assets
under management withdrawn with 5 business days advanced notice.

Fees are generally negotiable and several of our clients pay lower fee rates than those shown above.
Lower fee rates can be a result of the level of assets managed, number of products managed, the type
and frequency of service level provided by us, the inception date of the client relationship, whether there
is a performance-based component, or other factors. A performance-based fee schedule is in place with
certain clients. Assets of approximately $19.9mm of the total assets under management shown above are
non-fee-paying.

Other Non-Advisory Fees:

In addition to the fees paid to GIM, clients may incur other fees. These fees may be assessed by custodians,
brokers, and other third parties. They include commissions, custodial fees, odd-lot differentials, taxes,
wire transfer and electronic fund fees, as well as other miscellaneous fees. Mutual funds and ETFs also
charge internal management fees, which are disclosed in each fund’s prospectus.

7.       Types of Clients
GIM has a $10 million minimum account size for its clients in the Small Cap Core Growth Strategy. All
other products have a $3 million minimum for separate accounts, though the firm manages accounts
below that minimum.

GIM products are designed to serve the following types of clients:

     -   Registered Investment Companies
     -   Corporations

                                                                 Granahan Investment Management, LLC

     -   Private and Public Pension Plans
     -   Trusts, Endowments, and Foundations
     -   Pooled Investment Funds (LLC’s)
     -   High Net Worth individuals (accredited investors)