Mangrove Equity Partners LP

Item 5: Fees and Compensation

Mangrove receives an annual management fee from the Funds, payable quarterly or semi-annually
in advance, of 2.0% (Our management fee on Fund III is 2.5%) of aggregate commitments. The
management fee may be reduced by excess organizational expenses, placement agent expenses
and other fee income. The Funds’ offering documents include further details concerning reductions
to the management fee.

Mangrove may waive, rebate or reduce the management fees with respect to investments by limited
partners who are principals, employees or affiliates. Management fees may be waived for investors
in the co-investment vehicles.

The Funds will also be subject to other organizational and operational expenses such as legal,
auditing, consulting, financing, accounting; fund raising, travel and recruitment expenses incurred
in connection with the organization, funding and start-up; expenses associated with financial
statements, tax returns and K-1’s; expenses of the advisory board and annual meetings of the
limited partners; insurance; due diligence and other expenses associated with the acquisition,
holding and disposition of their investments, including extraordinary expenses (such as litigation,
if any); all expenses in connection with transactions not consummated, and any taxes, fees or other
governmental charges; and any expenses associated with compliance with regulations regarding
registered investment advisers.

Mangrove may also, from time to time, receive monitoring, consulting, closing, director’s and
transaction fees from portfolio companies or proposed portfolio companies and breakup fees and
litigation proceeds from transactions not consummated in connection with proposed investments.

Additionally, please see Item 6 below regarding performance-based compensation (“Carried
Interest”) that the Funds may pay.

Although the Firm does not generally utilize the services of broker-dealers to effect portfolio
transactions for the Funds, in the event that it chooses to use a broker-dealer for limited purposes,
the Funds will incur brokerage and other transaction costs. For additional information regarding
the Firm’s brokerage practices, please see Item 12.

Item 7: Types of Clients

Mangrove provides advice directly to the Funds and not to individual investors. The Funds are not
registered under the Investment Company Act of 1940, as amended (the “Investment Company
Act”). The Funds are not offered through any form of general solicitation or general advertising.
Access to information about the Funds is limited to investors who meet specified minimum
investment criteria relating to their financial holdings, investment experience, etc. The Funds’
investors are typically institutions, family offices and high net worth individuals.

Details concerning minimum initial and additional subscription amounts are found in the Funds’
offering documents.