Altos Ventures Management Inc

Item 5 – Fees and Compensation

A.      Fee Schedule
The fees and compensation payable to Altos Ventures are negotiable and vary among its
Clients. However, the range of compensation is generally as follows:
        1.     Management Fee
With respect to its Clients, Altos Ventures typically receives a quarterly asset-based
management fee calculated as a percentage of the aggregate capital commitments from all
Investors, payable quarterly in advance. The management fee is generally between 0% and
2.25% annually.
        2.     Performance-based Fees
Each Fund’s General Partner or Manager, as applicable, generally receives carried interest
equal to a percentage of all realized net profits, as described more fully in each Fund’s
Governing Documents. The carried interest is generally subject to a clawback at the end of
life of a Fund if the General Partner or Manager, as applicable, has received excess cumulative
distributions.
The carried interest will only be charged to either accounts of Investors who are “qualified
clients” as defined in Rule 205-3 of the Investment Advisers Act of 1940, as amended
(“Advisers Act”) or accounts of Investors who invested in the applicable Client prior to the
registration of the Firm as an investment adviser.
        3.     Fee Comparison
Client expenses, including management and any performance-based fees, may constitute a
higher percentage of average net assets than could be found in other investment programs.
B.      Payment of Fees
Management fees, performance-based fees (carried interest), and third-party fees (discussed
below) are deducted from Client assets. Management fees, which are paid in advance, are
withdrawn at the beginning of the quarter. A Fund may pay carried interest in accordance
with the terms of its Governing Documents.
C.      Third-Party Fees and other Client Expenses
Expenses borne by each Client are described in detail in the applicable limited partnership
agreement or operating agreement, as applicable. The Clients generally pay all out-of-pocket
organizational and syndication costs, fees, and expenses incurred by or on behalf of the
General Partner or the Firm in connection with the formation and organization of a Client. In
addition, each Client typically will pay (or reimburse the applicable General Partner or the
Firm) charges for services by third parties and other expenses, including (but not limited to)
expenses related to: (i) the making, holding, purchase, sale or exchange of securities (whether
or not ultimately consummated), including, but not by way of limitation, private placement
fees, finder’s fees, interest on and fees and expenses arising out of borrowed money, real
property or personal property taxes on investments, including documentary, recording,

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stamp and transfer taxes, brokerage fees or commissions, or other similar charges (including
any merger fees payable to third parties); (ii) travel expenses, legal fees and expenses,
expenses incurred in connection with the investigation, prosecution or defense of any claims
by or against the fund(s), including claims by or against a governmental authority; (iii) audit
and accounting fees, fees for outside appraisers and independent securities valuations
services, costs and expenses incurred for research services and publications, including legal
fees for investment related research, consulting fees relating to investments or proposed
investments, taxes applicable to a Client on account of their operations; (iv) fees incurred in
connection with the maintenance of bank or custodian accounts; (v) all expenses incurred in
connection with the registration of the securities held by the funds under applicable
securities laws or regulation; (vi) expenses incurred by the General Partner or the Firm in
serving as the tax matters partner; (vii) any sales or other taxes or government charges which
may be assessed against the fund; (viii) the cost of liability and other premiums for insurance
protecting a Fund, the General Partner, the Management Company, and a Fund’s Advisory
Committee, and their respective partners, members, stockholders, managers, managing
directors, officers, directors, trustees, employees, agents or affiliates in connection with the
activities of a Client; (ix) all out-of-pocket expenses of preparing and distributing reports to
Investors, out-of-pocket expenses associated with Investor communications with the
Investors, including preparation and distribution of annual, quarterly or other reports to the
Investors, costs associated with Investor meetings or Advisory Committee matters, expenses
of the members of the Advisory Committee (including travel-related costs and expenses), all
legal, accounting, tax, consulting and professional services fees and expenses (including tax
preparation and public relations) relating to a Client and its activities; (x) fees and expenses
related to attending industry conferences; (xi) bookkeeping services fees and expenses
relating to outsourced finance, reporting, administration, accounting, and back-office
services, out-of-pocket fees and expenses related to regulatory compliance of the funds all
fees; (xii) costs and expenses relating to litigation and threatened litigation involving a Fund,
including a Client’s indemnification obligation pursuant to this limited partnership
agreement, and all expenses that are not normal operating expenses and all other expenses
properly chargeable to the activities of a Fund. In addition, for administrative ease in
managing certain cross-Client expense sharing, many Clients also pay to the Firm a relatively
small amount in the form of an “Expense Facility” to cover expenses that impact multiple
clients like insurance premiums, annual meeting costs and certain tax and compliance
...

Item 7 – Types of Clients

Altos Ventures provides investment advice and management to its Clients and may in the
future provide the same or similar services to other privately placed investment funds and/or
other clients.
Altos Ventures intends to restrict the number of Investors in a Fund and will offer Interests
only through non-public transactions in order to maintain their exclusion from “investment
company” status under the Investment Company Act of 1940, as amended (the “Investment
Company Act”).
Prospective Investors in a Fund must meet eligibility criteria and are subject to certain
withdrawal requirements and limitations. Prospective Investors are encouraged to
thoroughly review a Fund’s Governing Documents, which set forth all of the Funds terms in
detail. Though the Clients generally pursue the same strategy, offering terms may differ.

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                                                        Altos Ventures Management, Inc. Brochure

Terms for funds which are SPVs formed primarily to invest in a specific target company are
generally similar to the terms for the Funds but can be negotiated on a case by case basis and
may differ from those of the Funds.
Each Investor generally must be an “accredited Investor” (as defined in Regulation D under
the Securities Act of 1933) and “qualified client” (as defined in Rule 205-3 under the Advisers
Act) and must meet other criteria as specified in the Governing Documents. The minimum
initial investment varies by Fund but is generally in the range of $50,000 to $5,000,000
subject to waiver at the discretion of Altos Ventures.