Rapid Scale LLC

Fees and Compensation - Item 5

Asset Class Basis
Rapid Scale does not discriminate by customer size and wants to provide equal opportunity to investors
regardless of whether their wealth is large or they have more moderate savings. Instead, Rapid Scale has
implemented a flat, simple fee schedule based on the underlying asset class of the products in the
customers’ portfolio, under the logic that products with more complexity tend to correlate with a major risk
and return profile, require a larger combination of talent and effort to perform and therefore are subject to
higher fees. Furthermore, the customer pays no fees on cash reserves built up within the client portfolio:
only money that generates value for the customer pays fees.

Management Fee
Typically our Funds have a lifetime of 10 years with 5 years of investment period followed by 5 years of
liquidation period. We charge a 2% annual management fee on Fund investments, calculated over total
committed capital during the investment period, and over remaining assets under management during the
liquidation period.

SPVs are less complex products and thus we charge a 0.5% annual management fee. To further simplify
accounting, tax and reporting requirements we typically charge the fee in advance calculated over a 10
year expected lifetime, resulting in a 5% one-time management fee.

Performance-Based Fees and Side-by-Side Management - Item 6

Performance-based fees are fees that are based on a share of capital gains or capital appreciation of a
client’s account.

The success fee is always agreed upon the creation of the investment vehicle and varies between 10 and
20%, depending on the complexity of the instrument and the amount of work implied to support the
portfolio companies. The success fee is paid on any profit (including, but not limited to, capital gains), net
of principal, management fee and any other fees or charges, realized by Rapid Scale on behalf of the
customer.

Rapid Scale also engages in side-by-side management. Side-by-side management refers to the practice of
managing accounts that are charged performance-based fees while at the same time managing accounts
that are not charged performance-based fees.

Types of Clients - Item 7

We offer investment advisory services to individuals, high net worth individuals, pension and profit sharing
plans, trusts, estates, charitable organizations, and corporations, or other business entities.

Rapid Scale only works with Accredited Investors and Qualified Purchasers. Generally, we require a
minimum of $1,000,000 to establish an advisory relationship. At our sole discretion, we may waive this
requirement. This requirement can be met by combining two or more accounts owned by you or related
family members.

Methods of Analysis, Investment Strategies and Risk of Loss - Item 8