Angel Oak Capital Partners II LLC

Item 5 – Fees and Compensation

The Clients will pay Angel Oak or AOCA a quarterly fixed management fee equal to between
0.25% and 0.5% (between 1.0% and 2.0% annually) of the total net asset value of the Clients that
corresponds to interests held by limited partners of the Clients. Fees are paid in advance. If the

                                                                  Angel Oak Capital Partners II, LLC
                                                                               Form ADV, Part 2A

Adviser is terminated or an investor withdraws assets, fees will be prorated based on the effective
date of the termination and the total number of days in the billing period. Any fees paid but
unearned will be promptly refunded to the Client or the relevant investor. The Investment
Management Agreement between Angel Oak, AOCA, and the Clients permits AOCA to deduct its
fees directly from the Client’s assets in compliance with regulatory requirements regarding
custody of client assets.

Certain Clients will also pay Angel Oak carried interest equal, subject to performance hurdles, to
between 10% and 20% of the total amounts distributed to limited partners. Other Clients do not
charge carried interest.

Investors and prospective investors in the Clients may negotiate fee terms. AOCA or Angel Oak
may waive or reduce the management fee or performance-based fees (as described below) in
respect of any investor in the Clients in their sole discretion. Such waivers or reductions would be
memorialized in a “side letter” between AOCA and the investor or a group of investors. AOCA
may from time to time enter into side letter agreements or other similar agreements (collectively,
“Side Letters”) with one or more investors in the Clients which may provide such investor(s) with
additional and/or different rights (including, without limitation, with respect to management fees,
performance fees, access to information, and minimum investment amounts) than such investors
have pursuant to the general terms of the Clients. AOCA will not be required to notify, or provide
copies to, all of the other investors of any such Side Letters or any of the rights and/or terms or
provisions thereof, nor will AOCA be required to offer such additional and/or different rights
and/or terms to all of the other investors. Certain investors may be provided, though such Side
Letters, with “most favored nation” status and will be notified of Side Letters with other investors
and may elect to receive terms which are the same or better than other investors.

At the Adviser’s sole discretion, AOCA may receive all or a portion of the management fee
received by Angel Oak from each Client. Any amount paid to AOCA will not result in any
additional charge to the Client.

In addition to the management fee and carried interest, Clients are responsible for brokerage
commissions, trading costs, custodial fees, and administration fees paid to third parties. See
additional information below under Brokerage Practices. Angel Oak does not receive any portion
of these costs.

Financial statements, including the calculation of any management fees and carried interest, are
prepared by each Client’s administrator and provided to the Client on a quarterly basis. Payment
of fees due to Angel Oak is made by the Client’s administrator.

Item 7 – Types of Clients

Angel Oak currently provides services only to limited partnerships exempt from registration under
federal securities regulations but may in the future serve as the general partner to other limited
partnerships or investment funds.

Angel Oak provides services to limited partnerships and other pooled investment vehicles. While
the Adviser may make exceptions, the minimum portfolio value Angel Oak will accept is generally
$10,000,000.