Broadfin Capital LLC

ITEM 5: FEES AND COMPENSATION

Compensation for Advisory Services.

The Investment Manager receives a quarterly management fee calculated at the annual rate of 2.0%
of the net assets of each investor of the Domestic Feeder Fund and the Offshore Feeder Fund (the
“Management Fee”). The Management Fee is paid quarterly in advance, based on the value of each
Investor’s account value as of the beginning of each quarter. The Management Fee is prorated for
any period that is less than a full quarter and is adjusted for contributions and withdrawals made
during the quarter.

In addition to management fees, Broadfin’s affiliate, Broadfin Advisors, LLC is entitled to receive
performance based compensation ranging from 17.5% to 20% of the net profits, including realized
and unrealized gains and losses, if any, of Investors of the Domestic Feeder Fund and the Offshore
Feeder Fund, subject to a loss carryforward.

The Management Fee and performance allocations are described in further detail in the offering
documents for the Domestic Feeder Fund and Offshore Feeder Fund.

Other Types of Expenses.

Expenses absorbed by the Investment Manager include but are not limited to: utilities, furniture and
fixtures, stationery, secretarial/internal administrative services, salaries, entertainment expenses,
employee insurance, and payroll taxes.

Fees, costs, and expenses, paid by the Funds include, but are not limited to: (1) the Management Fee;
(2) performance allocations; (3) Fund legal, compliance, audit, tax, accounting, portfolio
management/order management system costs, and administrator fees and expenses (including third
party accounting services); (4) fees of outside consultants, analysts or advisors Broadfin may engage
to provide advice related to portfolio investments; (5) brokerage commissions and securities
transaction costs; (6) custodial, transfer agent and distributions agent charges; (7) expenses relating
to insurance (including directors’ and officers’ insurance, errors and omission insurance, Fund
indemnification coverage and other similar policies); (8) taxes and other governmental charges, fees
and duties; (9) organizational expenses; (10) shareholder proxy voting services; (11) investment
expenses such as research fees and expenses (including research-related travel, food and lodging);
(12) interest on margin accounts and other indebtedness; (13) borrowing charges and dividend
expenses on securities sold short; (14) director’s fees and expenses; and (15) any other fees, costs,
expenses, and liabilities that are incurred by, or arise out of, the operation and activities of the Funds
or the purchase, sale or transmittal of Fund assets.

Each Feeder Fund will invest in the Master Fund on substantially the same terms and conditions and
therefore will generally be allocated a proportionate share of the Master Fund’s gains, losses and
expenses based on their interest in the Master Fund.

The Master Fund will incur brokerage fees. Please see Item 12 of this brochure for further discussion
of Broadfin’s brokerage practices.

Broadfin Capital, LLC – ADV Part 2A                                                                     5

ITEM 7: TYPES OF CLIENTS

The Firm’s only clients are the Feeder Funds and the Master Fund, which are private investment
vehicles. Investors in the Funds may include individuals, investment companies, pooled investment
vehicles, pension and profit sharing plans, trusts, estates, governmental plans, endowments,
foundations, charitable organizations, corporations, insurance companies, limited partnerships,
commingled investment trusts, and other entities.

Investors in the Funds must generally be “accredited investors” as that term is defined in Rule 501 of
Regulation D of the Securities Act of 1933 and “qualified purchasers” within the meaning of Section
2(a)(51) and Rule 2a51-1 under the Investment Company Act of 1940.

Investors are required to commit or contribute certain minimum capital amounts to become Investors
of the Domestic Feeder Fund and Offshore Feeder Fund. Currently, the minimum required investment
is $1,000,000. This minimum amount is subject to change at the sole direction of the general partner
for the Domestic Feeder Fund and Board of Directors for the Offshore Feeder Fund.

Broadfin Capital, LLC – ADV Part 2A                                                                 7