Horsley Bridge Partners LLC

FEES AND COMPENSATION

HBP receives a management fee from most Funds, which, with the exception of two Funds, is
based on the capital committed to the Funds by the Limited Partners. For Funds that charge a
management fee, the annual management fee ranges from .3% to 1.00% depending on the
amount of capital committed. For Horsley Bridge Growth VIII, L.P., and Horsley Bridge Strategic
Fund II, L.P., the management fee percentage is charged on the amount of capital committed to
Partnerships, subject to a maximum based on Limited Partner committed capital. Some Funds do
not charge a management fee. For certain Funds, HBP or its affiliates may also receive
performance-based compensation, assessed as a 5-10% carried interest on all net profits (see
Item 6 for further discussion).

Management fees, if charged, are paid by the Funds to HBP in cash during the period from the
commencement date of the Fund to the end of the Fund’s term, and may be reduced during
extension years, including to zero. No fees are charged once a Fund enters liquidation.
Management fees are paid quarterly in advance and are deducted from the Funds’ accounts by
HBP. Management fees and performance fees are governed by a Fund’s LPA, and all Limited
Partners in a Fund are assessed fees according to the terms of the Fund’s LPA. Once established
in the LPA, fees are not negotiable. As provided in the applicable LPA, HBP may exempt the HBP
Managing Directors investing as Limited Partners from payment of management fees to HBP.

In general, the Funds bear certain expenses in connection with their operations not otherwise
paid by HBP. These expenses may include, and are not limited to, organization and offering
expenses of the Funds and related general partner entities (which may be subject to a cap as
described in each Fund’s LPA) and including expenses relating to the negotiation of governing
documents for the Funds and Side Letters, custodian fees, accounting fees, administrator fees,
audit fees, valuation service fees, certain legal fees, taxes, tax preparation and filing fees, fund
specific regulatory compliance costs in jurisdictions outside the U.S., banking fees, interest and
borrowing expenses, including facilities fees, brokerage commissions on the sale of stock,
insurance premiums and litigation costs, formation and administration expenses of any blocker
entities, any other costs incurred in receiving, holding and selling securities, and costs associated
with licensing and maintaining any web portal or other valuation information gathering or
reporting tools. Further information regarding the fees and expenses borne by the Funds can be
found in each Fund’s LPA.

In addition, the Funds are subject to the fees and expenses of the Partnership investments. The
fees and expenses vary for each Partnership, but typically include management fees,
performance fees, and operating and administrative expenses associated with fund
administration, investment diligence, legal, accounting, audit and annual tax preparation and
filings. Some of a Fund’s direct co-investments may be made via special purpose vehicles
(“SPVs”), formed and managed by the underlying manager who sourced the opportunity, and if

Horsley Bridge Partners LLC

so, the Funds are subject to the fees and expenses of the SPVs, which typically include
performance fees, and operating and administrative expenses.

Horsley Bridge Partners LLC

TYPES OF CLIENTS

As described in Item 4, HBP is the Managing General Partner of Funds (or “Clients”) which make
investments in venture capital and private equity Partnerships, secondary investments and may
make direct co-investments. These Funds are Delaware limited partnerships and are offered to
institutional investors and high net worth individuals (“Limited Partners” or “Investors”) on a
private placement basis. Limited Partners are primarily institutional investors and include, but
are not limited to, corporate pension plans, sovereign wealth entities, public pension plans,
endowments, foundations and trusts. Limited Partners invest in the Funds on the terms set forth
in each Fund’s LPA, as may be modified or supplemented by Side Letters. Limited Partners are
offered the opportunity to elect the benefit of any Side Letter right, subject to each Fund’s most
favored nations clause.

HBP also acts as investment manager to a non-discretionary account holding private equity
Partnerships. HBP manages this account on behalf of a pension plan which is also a Limited
Partner in the Funds.

HBP requires Limited Partners of its Clients to be accredited investors as defined in Regulation D
under the Securities Act of 1933, as amended, and qualified purchasers and if applicable,
qualified clients, each as defined under the Investment Company Act of 1940, as amended. HBP
does not impose a specific contractual minimum dollar commitment on Limited Partners, but
such Limited Partners generally commit at least $10,000,000.

Horsley Bridge Partners LLC