Fernwood Investment Management LLC

Item 5 – Fees and Compensation
Fernwood Investment Management, LLC fees are paid quarterly, in advance. Such fees shall
be assessed at an annual rate based on the below tiered fee schedule. On an exception basis,
discounts may be offered at the discretion of the managing member.

       Assets Under Management                              Annualized Rate

            First $1,000,000                                      1.25%
            Next $4,000,000                                       1.00%
            Next $5,000,000                                       0.75%
            $10,000,000 and over                                  0.50%

Employer sponsored retirement plan assets (e.g. 401k, 403b, etc.) and 529 Plan assets will have an
annual fee of 0.50%.

Each client also bears their own investment, transaction and custodial expenses, such as
brokerage commissions, custodial fees, bank service fees, margin interest, platform fees and
short position dividends.

Fernwood generally instructs the custodian to deduct fees from client accounts. A few
clients may instead receive fee statements and pay statements directly. All fee payments are
reflected on client account statements, which clients should review carefully for accuracy.

Investment advisory contracts are initiated by both parties and terminable by either party at
any time upon written notice subject to a proportionate charge or a refund of management
fee in the event of a commencement or termination prior to the end of a calendar quarter.

Clients also bear fees payable to mutual fund and ETF advisers and other expenses, as
disclosed in each fund’s respective prospectus. With regard to Pennmont Fund, fees are paid
directly to Fernwood and indirectly to their underlying portfolio managers or sub-advisers
(“Sub-Advisers”) and the fund bears its own expenses as disclosed in the Private Fund’s
respective private offering documents. With Regard to Fernwood GXT/Praine, Fernwood
will receive carried interest after all investors have received 100% of their capital.

Item 12 further describes the factors that Fernwood Investment Management, LLC considers
in selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

                           Firm Brochure | Form ADV Part 2A – April 2024

Item 7 – Types of Clients
Fernwood Investment Management, LLC provides portfolio management services to
primarily high net worth individuals, individuals, pooled investment vehicles, charitable
organizations, corporations, or other businesses.

Fernwood may provide advice from time to time concerning the investment in certain
limited partnerships, including hedge funds, and other entities relating to venture capital
investments and leverage buyout transactions. Fernwood or an affiliate of Fernwood may
have an interest in these entities from time to time.

Some Fernwood clients are currently invested in limited partnership venture transactions.
In these limited partnerships, a related person acted or is acting in the capacity of a general
partner. The limited partnerships noted have invested and/or are still invested in
Agriculture, Healthcare, Real Estate, Retail, and Technology. The general partners are
entitled to receive a management fee and have, by way of carried interest, an economic
interest in the profits of the partnerships, disproportionate to their investments in the
partnerships.

                           Firm Brochure | Form ADV Part 2A – April 2024