Osmium Partners LLC

ITEM 5 – FEES AND COMPENSATION

Item 5.A   Describe how you are compensated for your advisory services. Provide your
           fee schedule. Disclose whether the fees are negotiable.

           The fees and compensation payable to Osmium are generally non-negotiable and
           vary among the Funds depending on, among other things, date of investment in
           the Fund, class of interest an Investor elects, and a “high water mark” provision,
           as defined below. However, the range of compensation is generally as follows:

           Management Fee

           Osmium typically receives a monthly asset-based management fee calculated as
           a percentage of each Investor’s capital account, payable monthly in advance.
           Depending on the Fund and the class of Interest held, the management fee ranges
           from 1.0% and 2.0% annually. Osmium may waive or modify the management
           fee for certain Investors, including but not limited to Investors that are principals,
           employees or affiliates of Osmium or its affiliates.

           Performance Allocation

           Osmium generally receives a performance allocation equal to a percentage of the
           net income allocated to each Investor, but only to the extent net income allocated
           to that Investor exceeds any cumulative losses that were allocated to that Investor
           for earlier periods and that have not been recovered (a “high water mark”). This
           performance allocation is generally 20%, but may be lower depending on the
           Fund and the class of Interest held. Also, depending on the Fund, this performance
           allocation is typically made at the end of each calendar quarter, at the end of each
           calendar year, upon any withdrawal by an Investor, or upon dissolution of the
           Funds.

           Performance-based fees will only be charged to Investors that are “qualified
           clients” as defined in Rule 205-3 Advisers Act.

           The description of fees above is general in nature. Investors and prospective
           Investors are strongly encouraged to refer to the governing documents of the
           Funds for a detailed description of the fees applicable to an investment in the
           Funds.

Item 5.B   Describe whether you deduct fees from clients’ assets or bill clients for fees
           incurred. If clients may select either method, disclose this fact. Explain how
           often you bill clients or deduct your fees.

           Management fees, performance allocations, and third-party fees (discussed
           below) are deducted from Investor capital accounts. Management fees, which are
           paid in advance, are withdrawn at the beginning of the month. Depending on the
           Fund, performance allocations are allocated as of the last business day of the
           calendar year, or last business day of the calendar quarter and as of any date on
           which an Investor makes a withdrawal or receives a distribution from such
           Investor’s capital account(s).

           As stated above, it is critical that Investors refer to the relevant confidential
           private placement memorandum and/or other governing documents for a

           complete understanding of how fees are paid to Osmium. The information
           contained herein is a summary only and is qualified in its entirety by such
           documents.

Item 5.C   Describe any other types of fees or expenses clients may pay in connection
           with your advisory services, such as custodian fees or mutual fund expenses.
           Disclose that clients will incur brokerage and other transaction costs, and
           direct clients to the section(s) of your brochure that discuss brokerage.

           The Funds generally pay such costs and expenses as Osmium reasonably
           determines to be necessary, appropriate, advisable or convenient to carry on its
           business and realize its objective, including but not limited to: (i) Fund
           management fees, and each Fund’s organizational and ongoing operating
           expenses; (ii) all general investment expenses (i.e., expenses which Osmium
           reasonably determines to be directly related to the investment of the Funds’
           assets); (iii) all administrative, legal, accounting, auditing, record-keeping, tax
           form preparation, compliance and consulting costs and expenses; (iv) fees, costs
           and expenses of third-party service providers that provide such services; and, (v)
           any extraordinary expenses, among other expenses.

           Osmium’s fees are exclusive of brokerage commissions, transaction fees, and
           other related costs and expenses which shall be incurred by the Funds. Such
           charges, fees and commissions are exclusive of and in addition to Osmium’s
           management fee, and Osmium shall not receive any portion of these
           commissions, fees, and costs.

           Please see Item 12 of this Brochure regarding brokerage.

Item 5.D   If your clients either may or must pay your fees in advance, disclose this fact.
           Explain how a client may obtain a refund of a pre-paid fee if the advisory
           contract is terminated before the end of the billing period. Explain how you
           will determine the amount of the refund.

           As noted above, each Fund’s management fee, which is paid in advance, is
           withdrawn at the beginning of the month.

           Osmium generally does not permit Investors to withdraw from a Fund on dates
           other than those specified in the respective Fund’s governing documents; in the
           event that Osmium makes an exception to this policy it will pro rate prepaid
           management fees for the withdrawing Investor’s interest held for less than a
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ITEM 7 – TYPES OF CLIENTS

Describe the types of clients to whom you generally provide investment advice, such as individuals,
trusts, investment companies, or pension plans. If you have any requirements for opening or
maintaining an account, such as a minimum account size, disclose the requirements.

Osmium provides investment advice and management to the Funds.

Osmium may in the future provide the same or similar services to other privately placed investment funds
and/or separately managed accounts.

Osmium intends to restrict the number of Investors in its Funds and will offer Interests only through non-
public transactions in order to maintain the Funds’ exclusion from “investment company” status under the
Investment Company Act of 1940, as amended (the “Investment Company Act”).

Prospective Investors in the Funds must meet eligibility criteria, and are subject to certain withdrawal
requirements and limitations. Prospective Investors are encouraged to thoroughly review a Fund’s
governing documents, which set forth all of the terms in detail. Though the Funds generally pursue the
same strategy, offering terms may differ.

The Funds. Depending on the Fund, each Investor generally must be an “accredited investors”, or a
“qualified purchaser” and must meet other criteria as specified in the relevant Fund’s governing documents.
The minimum initial investment for OC is $250,000, for OC II is $1,000,000, for Spartan is $250,000, for
Diamond is $500,000, and for OSO is $500,000. The aforementioned minimum investments are subject to
waiver at the discretion of Osmium.

Fund Investors must be eligible to enter into a performance fee arrangement under state and/or federal law,
as applicable.