Lightspeed Management Company LLC

Item 5 – Fees and Compensation

Lightspeed and its affiliated General Partners receive fees and compensation in exchange for advisory
services provided to the Funds, including management fees (defined below), carried interest (defined
below) and (in certain limited circumstances) reimbursements from portfolio companies for certain
expenses advanced on their behalf. The Funds are also responsible for bearing certain expenses as
detailed below and in each Fund’s Governing Documents. The manner of determining, and the
applicable rate of, such fees and compensation differs among Funds, and the following is only a
general description. Limited partners should refer to the Governing Documents of the applicable
Fund for a complete understanding of how Lightspeed is compensated for its advisory services; the
information contained herein is a summary only and is qualified in its entirety by such documents.

Management Fees

Lightspeed generally charges each Fund a management fee (the “Management Fee”), which is
described in the respective Fund’s Governing Documents, and generally calculated as a percentage
per annum of the Fund’s aggregate capital commitments, called capital (including amounts borrowed
under certain credit facilities, each as of quarter-end), invested capital (typically after the investment
period of the relevant Fund) or, in certain limited circumstances, net asset value. As such,
Management Fees generally will not correspond with fluctuations in the net asset value of individual
investments, aggregate investments in a portfolio company or of a Fund except in certain limited
circumstances as described in the applicable Fund’s Governing Documents.

Management Fees paid by a Fund are generally assessed quarterly in advance from such Fund’s
inception through the date of its dissolution. All Management Fees are negotiated with limited
partners during the fundraising period of the applicable Fund and are not subject to negotiation
thereafter. Generally, limited partners that invest in a Fund after its initial closing are responsible for
paying the Management Fee (plus interest) as if they had been admitted at such date of the initial

closing of such Fund. In addition, Management Fees are payable during term extensions unless
otherwise disclosed to limited partners.

The Funds are closed-ended investment vehicles intended for a long-term investment. Accordingly,
Management Fees are expected to be paid, except as otherwise described in the relevant Governing
Documents, and limited partners generally are not permitted to withdraw or redeem interests in the
Funds.

The General Partners are permitted, in their sole discretion, to reduce or waive all or a portion of the
Management Fee at any time during the life of a Fund. Management Fees can differ from one Fund
to another as well as among limited partners in the same Fund. Such differences can arise from the
size of a limited partner’s commitment to a Fund, provisions of side letter agreements or other
negotiated terms. Management Fees are generally not charged to Lightspeed members, employees or
affiliates investing in a Fund (either as direct limited partners or through a General Partner); and other
designated limited partners (although in each case, these limited partners generally pay their pro rata
share of certain Fund expenses), in each case in the relevant General Partner’s sole discretion.
Similarly, limited partners in a co-investment Fund generally pay a reduced Management Fee or none
at all on the co-investment portion of their investment (although such co-investors generally pay
Management Fees on the main Fund portion of their investment, if applicable, and pay their pro rata
share of certain expenses and other administrative fees and costs as described more fully below, see
Co-Investment Fees and Expenses).

Management Fees will generally be reduced by, as applicable: (i) the amount of fees paid by a Fund
to entities or persons acting as a placement agent in connection with the offer and sale of interests in
such Fund; (ii) costs incurred by Lightspeed in connection with the organization of a Fund that exceed
a limit as specified in such Fund’s Governing Documents; (iii) certain additional fees and
compensation with respect to portfolio companies as described in each Fund’s Governing
Documents, which generally include consulting fees or director’s fees (not including any stock, options
or warrants to the extent consistent with stock, options or warrants granted to directors not affiliated
with a General Partner), and (iv) with respect to certain Funds, incentive capital contributions that are
made by the limited partners for the benefit of the General Partner, subject to the terms and conditions
of the applicable Governing Documents.

From time to time, Lightspeed will maintain the amounts associated with fees subject to offset against
Management Fees in accounts that bear interest before such amounts are offset. Any such interest
does not reduce the Management Fees or otherwise benefit the Funds or their investors.

Lightspeed often engages venture partners, operating partners or individuals in a similar role who
consult, or otherwise have a strategic relationship, with Lightspeed (each, a “Venture Partner” or
“Operating Partner”); any fee income, including any remuneration such as cash, stock, options or
warrants (“Fee Income”) received by Venture Partners or Operating Partners do not reduce the
Management Fee. Lightspeed also makes investments in other third-party funds that charge their own

management fees and expenses which do not generally offset Management Fees; however, such
investments in third-party funds are generally subject to limitations described in applicable Governing
Documents.

Carried Interest

In addition, a Fund generally includes a carried interest allocable to its General Partner (“Carried
Interest”). The Carried Interest is calculated as a percentage of the Fund’s profits, generally
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Item 7 – Types of Clients

Lightspeed provides investment advice to its Funds, which are exempt from registration under the
Investment Company Act. Lightspeed does not provide investment advice directly to individual
investors in the Funds. The Funds limit their respective limited partners to: (i) “accredited investors”
as defined in the Securities Act, and (ii) “qualified purchasers” or “knowledgeable employees,” each
as defined in the Investment Company Act, or (iii) if applicable, “qualified clients,” as defined in the
Advisers Act. Limited partners in the Funds must also meet certain other suitability qualifications
prior to making an investment in a Fund. The Funds are not registered or required to be registered
under the Investment Company Act and their securities are not registered or required to be registered
under the Securities Act.

The limited partners participating in the Funds include high net worth individuals, other investment
entities, university endowments, family offices, pension and profit-sharing plans, sovereign wealth
funds, trusts, estates or charitable organizations, fund of funds, corporations, limited partnerships,

limited liability companies or other business entities, or other service providers retained by Lightspeed,
and typically include, directly or indirectly, principals, members or other employees of Lightspeed and
its affiliates and members of their families.

Lightspeed does not currently have a minimum size for a Fund.