Propel Venture Partners Management Co LLC

Item 5 – Fees and Compensation

Management Fee

The Funds will generally pay an initial management fee equal to 2.5% of committed capital
on an annual basis, payable quarterly in advance. The management fee will be reduced over
the life of the Fund as outlined in the relevant offering materials. Investors should be aware
that each of the Funds may have a varying fee structure and investors in legacy Propel Funds
may be paying fees that are higher or lower than those being offered at present. The
management fee has been negotiated with the principal investor and any changes to the
management fee will require the approval of the investors.

Consulting Services

The Firm provides investment consulting services to a client for a flat quarterly fee, payable
in advance in the first 5 days of each fiscal quarter.

Expenses

The Funds, and indirectly each investor in the Funds, shall bear all costs and expenses
incurred in the investigation, 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 borrowed money, real property or personal property taxes on
investments, including documentary, recording, stamp and transfer taxes, brokerage fees or
commissions, legal fees, expenses incurred in connection with the investigation, prosecution
or defense of any claims by or against the Funds, including claims by or against a
governmental authority, audit and accounting fees, consulting fees relating to investments or
proposed investments, taxes applicable to the Funds on account of its operations, fees
incurred in connection with the maintenance of bank or custodian accounts, and all expenses

incurred in connection with the registration of the Funds’ securities under applicable
securities laws or regulations.

Item 7 – Types of Clients

Propel provides investment advice and management to several privately offered, pooled
investment vehicles (each a “Client” or “Fund” and collectively “Clients” or “Funds”):
          • Propel Venture Partners Brazil US, L.P.
          • Propel Venture Partners Global US, L.P.
          • Propel Venture Partners US Fund I, L.P.
          • Propel Explorer Fund I, L.P.
          • Propel Explorer Fund II, LP
          • PVP Guideline, LLC
          • Propel XYZ I, L.P.

Prospective investors are encouraged to thoroughly review a Fund’s offering materials,
which set forth all the terms in detail. Though each of the Clients generally pursue the same
investment strategy, offering terms may differ across the Funds.

The Propel Funds rely on an exemption granted under Section 3(c)(7) of the 1940 Investment
Company Act which requires each of the investors in the Funds to be an “accredited investor”
as that term is defined in Regulation D, and a Qualified Purchaser as that term is defined in
the Investment Company Act.

Each Fund typically requires a minimum level of investment, but the minimum amount may
vary by Fund. Prospective investors should ensure that they consult the relevant offering
materials for the Fund to understand any minimum commitments. The General Partner
reserves the right to accept lesser amounts than any identified minimum commitment in its
sole discretion.

Investors who commit to an investment in the Funds are not permitted to withdraw or
redeem their investment prior to the liquidation of the Funds. Each of the Funds has an initial
life of ten (10) years, which is extendable upon agreement by the General Partner and the

investors. Investors may transfer their interests to other persons with the consent of the
General Partner. The Firm may make introductions between current investors wishing to
withdraw and interested parties, but the transaction is negotiated privately between the
parties and neither the Firm nor the General Partner will participate in the legal process.
Investors wishing to sell their interests privately are responsible for any fees associated with
the transfer.

As noted above, the Firm also provides investment consulting services to an institutional
client that is also an investor in the Funds.