Lateral Investment Management LLC

ITEM 5 – FEES AND COMPENSATION

Lateral is compensated by the Funds through management fees as set forth in each Fund Agreement
and, in the case of the Sub-advised Fund, the investment management agreement. In addition, the
Affiliated General Partners receive performance-based compensation from the Funds, which is
discussed in further detail in Item 6 below. The specific compensation terms vary from Fund to Fund,
and the compensation terms for a Fund are set forth in the Fund Agreement for such Fund. For
example, certain of the Non-Discretionary Funds pay both management and performance-based fees,
while other non-discretionary funds only pay a performance-based fee.

Fund Management Fees

Generally, Management Fees are payable quarterly in advance. Lateral causes the Management Fee
to be deducted directly from the applicable Fund account. Management Fees are not open to
negotiation, but Lateral has discretion to waive all or any portion of a management fee in accordance
with side letters or similar agreements entered between Lateral, the Funds or certain investors. Where
one Fund has invested in another Fund, Lateral does not charge the additional Management Fee.
Investors who are affiliates or related persons of LIM are not subject to a Management Fee payable
to Lateral.

For the Niagara Plus Funds and Panther Plus Funds, an Investor’s total subscription amount includes
the amount of investable capital (90% of the total, and 91% of the total, respectively) and the amount
paid in commission costs to the broker-dealer recommending the Fund (10% of the total, and 9% of
the total, respectively). Management fees for the Niagara Plus Funds and Panther Plus Funds are
therefore calculated based on the total subscription amount (including the commission amount).

Sub-advised Fund and Non-Discretionary Private Fund Fees

Fee arrangements with the Sub-advised Fund and Non-Discretionary Private Funds are individually
negotiated with the principal adviser to the Sub-advised Fund or Non-Discretionary Private Fund
investors. These fee arrangements are based on assets under management and include performance-
based fees. The principal adviser to the Sub-advised fund compensates LIM for LIM’s sub-advisory
services to that Sub-advised fund on a quarterly basis. The Non-Discretionary Private Fund Manager
is also compensated on a quarterly basis.

Fund Expenses

LUSCOF, Niagara Fund, and Panther Growth Fund Expenses

The LUSCOF and Niagara Funds, respectively, are responsible for all expenses described in the
relevant Fund Agreements, including but not limited to, all costs and expenses (including without
limitation accountants’ and attorneys’ fees) incurred prior to such time relating to the organization
of the LUSCOF and Niagara Funds, and the offer and sale of interests in the LUSCOF and Niagara
Funds; all reasonable costs and expenses relating or readily attributable to or arising out of
investments, including without limitation, and as further described in its entirety in the respective
Fund Agreements:

    (a) out-of-pocket costs and expenses of the LUSCOF and Niagara Funds, the Affiliated General
    Partner and LIM in connection with (i) the making of an investment and (ii) the negotiation or
    preparation of any modification, supplement or waiver of any of the terms of such documents
    (whether or not consummated and in some cases including co-investment vehicle related
    expenses); and

    (b) out-of-pocket costs and expenses of the LUSCOF and Niagara Funds, the Affiliated General
    Partner and LIM incurred in connection with the evaluation, acquisition, holding, monitoring,
    refinancing, recapitalization, disposition or proposed disposition of investments.

For the Panther Growth Funds, the Fund will pay (or reimburse the Affiliated General Partner or the
Management Company for) up to two million U.S. dollars of the organizational and start-up expenses
of the Fund, the Affiliated General Partner and the Management Company, including reasonable legal,
travel, accounting, filing, capital raising, commissions, salaries necessary to maintain the organization,
marketing, design, copying and printing, placement agent, and other reasonable organizational
expenses. Additional expenses are described in the relevant Fund Agreements.

 Co-Investment Vehicle Expenses

A co-investment vehicle will bear expenses related to its formation and operation. However, in the
event that a transaction in which a co-investment was planned is not consummated, the full amount of
such unconsummated deal expenses relating to the proposed transaction typically will be borne by the
main Fund(s), and not by the potential co-investor(s). Once a potential co-investor has been identified
for a particular transaction, the relevant general partner will make a good faith effort to enter into an
agreement in which such potential co-investor agrees to bear its pro rata share of broken deal expenses;
however, there is no assurance that any such agreement will be made.

Niagara Plus Funds and Panther Plus Funds Expenses

Similar to the LUSCOF Funds and Niagara Funds, the Niagara Plus Funds and Panther Plus Funds,
respectively, are responsible for all expenses described in the relevant Fund Agreement(s) and
ancillary offering documents. The Niagara Plus Funds and Panther Plus Funds will reimburse the
general partner for all reasonable and direct expenses incurred in connection with (i) the organization
of the fund, the Affiliated General Partner, LIM, as the management company, and related entities and
(ii) the preparation of all materials in connection with the offering of the limited partner interests in
an amount up to 2.0% of the gross sales proceeds of limited partner interests (“Organization and
Offering Expenses”).

The Niagara Plus Funds and Panther Plus Funds will also bear all expenses incurred in the operation
of the fund and the relevant Limited Partner Advisory Committee, including legal (including all
...

ITEM 7 – TYPES OF CLIENTS

As previously described in Item 4, Lateral’s clients are private investment funds. The Funds are open
only to certain financially sophisticated institutional and high net-worth individuals and entities.

Lateral does not provide investment advisory services to any of the Investors, and thus the Investors
should not be deemed to be clients of Lateral. Nevertheless, Lateral requires each Investor to meet
certain eligibility requirements. Specifically, each Investor is required to represent that it is an
“accredited investor” (as defined in Regulation D under the Securities Act), a “qualified purchaser” (as
defined in Section 2(a)(51)(A) of the Investment Company Act, as amended), and/or as a “qualified
client” within the meaning of Rule 205-3 under the Investment Advisers Act of 1940, depending on
the respective Fund.

Investors whose investments in the Funds are subject to performance-based fees are required to be
“qualified clients” within the meaning of Rule 205-3 under the Investment Advisers Act of 1940, as
amended (the “Advisers Act”). Investors who are “qualified purchasers” for purposes of the
Investment Company Act are automatically deemed to be “qualified clients” for purposes of Rule
205-3.

With limited exceptions, each Fund requires a significant minimum capital commitment from an
Investor in such Fund as follows, which can be waived at the discretion of Lateral:

  Fund                                                  Minimum Capital Commitment
  LUSCOF Funds                                          $1,000,000
  Niagara Funds                                         $250,000
  Niagara Plus Funds                                    $100,000
  Panther Plus Funds                                    $50,000
  Panther Growth Funds                                  $1,000,000

 Funds not listed above do not have a minimum capital commitment. For the Panther Growth Funds, a
 distinct minimum capital amount is suggested for that certain Side Car fund vehicle, thus please refer to
 the relevant fund offering document(s) for more information.