Broadoak Asset Management LLC

Item 5        Fees and Compensation
ADVISORY FEES AND BILLING
BroadOak’s fees for advisory services are separately negotiated and may vary between
clients. BroadOak typically charges management fees based on a percentage of the net capital
committed, which fees vary based on the amount of assets involved but are generally not
expected to exceed 2.5%. Such fees are typically payable quarterly in advance based on the
total committed capital which generally are reduced over the life of the Fund.

In addition, BroadOak is entitled to receive from its qualified clients’ performance-based
compensation. Such performance-based compensation may take the form of an allocation, a
fee, or a carried interest equal to a total percentage (generally 20% or more) of the relevant
fund or account’s net capital appreciation, calculated after deduction of the base
management fee and adjusted to reflect additions to, and deductions from, the client’s assets
during the relevant period. No performance fee is earned until the client has received all of
its contributed capital in prior distributions. BroadOak is typically required to refund (or
“claw back”) any performance-based compensation received with respect to measurement
periods prior to any period in which an underperformance occurs.

Clients also incur bank fees, audit fees and legal fees, which are in addition to BroadOak’s
investment management/advisory fees and any performance-based compensation.
Clients are notified of their fixed, quarterly fees in advance of closing. Then the quarterly fees
are deducted from the account assets. In general, the clients are subject to the quarterly fees
throughout the term of the Fund and may not receive any rebate of fees.
Once the Funds are established and the investment parameters are set, investors/clients of
the Funds do not have the ability to impose restrictions on investing in certain securities or
type of investments.

Certain investors in BroadOak’s funds, generally BroadOak’s principals and employees and
their retirement plans or estate planning vehicles, may not pay management fees and/or
performance-based compensation on their fund investments. However, such investors will
still be assessed their pro-rata share of fund expenses, which will be paid by such investors
directly.

Clients of BroadOak Asset Management should familiarize themselves with BroadOak
Partners, LLC, which is a registered broker dealer and subsidiary of BroadOak Capital
Partners and may impact compensation for BroadOak employees. Further information can
be found in Sections 10 and 12 of Form ADV Part 2A.

TYPES OF CLIENTS

BroadOak manages the Funds’ assets directly, subject to the direction and control of the
manager, and does not provide investment advice to the individual members of any Fund.
Accordingly, the Funds are considered BroadOak’s “clients” for purposes of the Investment
Advisers Act. Interests in the Funds are offered pursuant to applicable exemptions from
registration under the Securities Act of 1933 and the Investment Company Act of 1940.
Members of the Funds may include pension and profit-sharing plans, pooled-investment
vehicles, charitable organizations, state and municipal government entities, university
endowments, corporations, limited partnerships, limited liability companies, other
business entities and high net worth individuals. Each Fund generally requires a certain
minimum investment of $100,000 which BroadOak may waive in its sole discretion.
Most of our funds require investors to be considered “accredited investors” as defined by
regulation. Accredited investors are defined as natural persons with income exceeding a

certain amount, net worth of a certain amount or, in some cases, based on investor
certifications and licenses.