Redmile Group LLC

Item 5 - Fees and Compensation

Management Fees. As compensation for investment supervisory services rendered to the Funds,
the Firm receives from each such Fund a management fee (each, a “Management Fee”). The
Management Fee is typically calculated based on the net assets of a limited partner’s capital
accounts or a shareholder’s common shares, as applicable, before accrual of any applicable
incentive allocation or fee or based on the aggregate capital commitments of limited partners. The
precise amount of, and the manner and calculation of, the Management Fees for each Fund are
established by the Firm and are set forth in such Fund’s Organizational Documents. The
Management Fees and other fees and distributions described herein are generally subject to
modification, waiver or reduction by the Firm in its sole discretion, both voluntarily and on a
negotiated basis with selected investors via side letter and other arrangements, which, to the extent
permitted by applicable law, may not be disclosed to other investors in the same Fund.
Specifically, the applicable General Partner and the Firm, each in their sole discretion, have in the
past agreed, and may in the future agree, to waive or reduce the Management Fee charged to
investors that are (i) those who provide strategic and/or technical advice to a General Partner, the
Firm or their affiliates; (ii) General Partner members, Firm employees or affiliates of such General
Partner or the Firm, and (iii) investors in one or more Funds who have a certain collective minimum
capital commitment/investment. The fee structures described herein may be modified from time
to time. Fees may differ from one Fund to another, as well as among investors in the same Fund.

Management Fees vary Fund by Fund and may be payable monthly, quarterly, or semi-annually
in advance. Upon termination of an Advisory Agreement, Management Fees that have been
prepaid will be returned on a prorated basis.

Furthermore, certain General Partners have entered into and may, in the future, enter into a side
letter or similar agreement with an investor of any of the Funds, without the approval of any other
investor, which has the effect of establishing rights under, or altering or supplementing the terms
of a Fund’s Organizational Documents.

Firm Expenses. To the extent provided in the Organizational Documents, and except as described
herein as a Fund or portfolio company expense, the General Partner and/or the Firm will bear
certain expenses and costs associated with the performance of its services, including the
compensation and expenses of certain of its employees and general overhead expenses including,

                                                   Part 2A of ADV: Redmile Group, LLC Brochure

rent, utilities and expenses for administrative, clerical and related support services, except to the
extent that legal, accounting or other specialized consulting, advisory or professional services are
required that the General Partners, the Firm or an affiliate thereof would not normally be expected
to render with their own professional staff (the costs of which services will be borne by the
applicable Fund as detailed below).

Fund Expenses. Subject to the Organizational Documents of the Funds, the Funds will generally
bear organizational expenses, including expenses of their initial organization and the offering
and/or sale of common shares or interests including, but not limited to, out-of-pocket costs incurred
by or on behalf of the applicable General Partner or their respective affiliates in connection with
the marketing, formation, and organization of the Funds and the General Partners, as applicable,
including legal, accounting, travel, meeting, printing and other fees and expenses incident thereto
as well as, with respect to certain Funds, private placement fees, finder’s fees or other similar fees
paid to an independent third party in connection with the sale of interests. With respect to certain
other Funds, the aforementioned expenses may be subject to a cap. Generally, the Funds will bear
fees and expenses associated with the ongoing offering and/or sale of common shares or interests,
including updating, supplementing and distributing of such amended Organizational Documents
and other relevant materials.

Each Fund will also bear all other expenses, fees, charges, taxes and liabilities relating to it to the
extent not borne by its portfolio companies or portfolio investments including, but not limited to,
the Management Fee or any other fees payable to the General Partners or the Firm, the registrar
and transfer agent and the administrator; directors fees; all costs and expenses incurred in
connection with the purchase, holding, monitoring, sale, proposed sale or transmittal of any Fund
investment or of Fund assets (whether or not any such purchase or sale is consummated); research
expenses; interest on and fees and expenses arising out of all margin accounts, indebtedness and
other permitted borrowing made by such Fund; real property or personal property taxes on
investments, including documentary, recording, stamp and transfer taxes; investment expenses
such as brokerage fees or commissions, trading and support services including payments to
assisting brokers, investment related travel expenses; direct fees and expenses such as legal fees
and other due diligence expenses incurred related to the analysis, purchase, sale or exchange of
securities or other investments (whether or not ultimately consummated) (including Co-
Investments (as defined below), Designated Investments and Special Investments); expenses
incurred in connection with the investigation, prosecution or defense of any claims by or against a
Fund, including claims by or against a governmental authority; proxy voting service fees;
consulting fees relating to investments or proposed investments; consulting fees paid to consultants
...

Item 7 - Types of Clients

The Firm serves as investment manager to the Funds. Investment advice is provided directly to
the Funds (subject to the direction and control of the General Partner of each such Fund, if
applicable) and not individually to investors in such Fund.