Brooktree Capital Management Inc

ITEM 5: FEES AND COMPENSATION
Investment Management Fees

You will be billed quarterly in advance based upon a percentage of the market value of your
assets under our management. The first billing cycle begins on the account inception date and is
based on the account value on the inception date. We may prorate the fee for new accounts based
on the number of days remaining in the calendar quarter. The quarterly billing value is equal to
the closing market value of the account on the last business day of the quarter. Our generally
applicable fee schedule for investment management services is:

                0.85% per year billed quarterly in advance.

We may negotiate our fees taking into consideration such things as the size of your account, the
number of managed portfolios, your relationship with other clients, the length of our relationship
with you, the complexity of your personal circumstances, the composition of your portfolio, the
complexity of investment strategies, the frequency of desired meetings or special reporting, and
other factors that affect our cost of providing services for you. If you, your family, or related
persons also have accounts under our management, those accounts may be aggregated for fee
calculation purposes. For these reasons, our fees may vary among clients who may be in similar
circumstances and they may be higher or lower than the published schedule. Exception to the
fee schedule can be made in an individual basis. Other investment advisers may charge higher or
lower fees for comparable services.

Fees will generally not be prorated with respect to additions to, or withdrawals from, the account
during any quarter; fee adjustments may be made on a case-by-case basis when appropriate and
in consultation with you. We appreciate advanced notice of anticipated additions or withdrawals
so that we can better plan for the management of your account.

Your payment of our fees is due within ten (10) days following your receipt of our invoice.
Clients generally authorize us to bill their account custodian for our fees, and then have the fees
deducted from their account and transferred to us when due. This fee deduction authorization is

Brooktree Capital Management, Inc.                2                          Firm Brochure

contained in our investment management agreement and/or a separate authorization form. This
fee deduction authorization may be terminated at any time by giving us written notice. If fees
are not paid in this manner, your payment is due within 10 days following receipt of our invoice.

For purposes of calculating our fees and generating our reports to you, we utilize a third-party
performance and reporting service along with the information provided by Charles Schwab &
Co., Inc., who is charged with safeguarding, administering and valuing client assets and
accounts.

Termination

You may terminate our services at any time by giving us written notice seven days in advance,
which will allow us to wrap up our service in an orderly manner. We will have no further
responsibilities upon termination, and we will promptly refund the prorated or unearned portion
of any prepaid advisory fees. We calculate a refund by prorating the amount of fees you paid in
advance for the billing period based on the number of days that have elapsed in the billing period
prior to the termination’s effective date and consistent with our advisory contract language.

Third-Party Fees and Charges

Besides our investment management fees, you will pay all brokerage charges related to securities
transactions for your account and, if applicable, any custodian’s fees.

If you invest in mutual funds, exchange-traded funds, and other funds or investments that are
managed or administered by third-parties, you will be paying additional fees and charges to
others that are in addition to our fees. For example, if you purchase mutual fund shares or a
variable insurance product, then you will incur additional fees and charges at the fund level.
Each mutual fund’s or variable insurance product’s prospectus describes these fees and expenses.
The additional fund-level fees may include, but are not limited to, a management fee, brokerage
and custodian fees, other fund expenses, mortality and expense risk charge or possible
distribution fees (12b-1 fees). If the product imposes a sales charge, you may pay an initial or
deferred sales charge. We are not affiliated with any other service provider or securities issuer,
and we do not receive compensation from any source other than the fees we charge, described
above. Before investing in a fund, you should consider the total cost of fund-level fees, our
advisory fees, and any transaction-related commissions or charges. You may choose to invest in
mutual funds, variable insurance products, or other securities directly, without our services.

ITEM 7: TYPES OF CLIENTS
We generally provide investment management services to individuals, trusts, pensions and profit
sharing plans, estates, charitable organizations, corporations and other business entities.