Item 5 - Fees and Compensation
Sherbrooke Park charges fees that are based upon a certain percentage of assets under management and
performance. Set forth below are summaries of the fees and expenses payable by the Clients. It should be
noted that detailed disclosure about the fees and other expenses applicable the Clients is provided in the
respective Investment Management Agreements. Those documents should be carefully reviewed prior to
making an investment in any Client.
Sherbrooke Park receives a management fee (“Management Fee”) from some of our Clients that are
calculated at an annual percentage rate dependent upon the Maximum Gross Market Value of assets
managed by the Firm. The Management Fee is calculated and payable monthly. In addition, some Clients will
pay the Firm a monthly management draw payable in arrears which shall be reduced should the Firm advice
multiple Clients.
All of our Clients are charged a Performance Fee, the percentage of which is negotiated with each separately
managed account Client and typically paid in arrears directly from each Client’s administrator on an annual
basis. The payments and terms are subject to our Client’s Investment Management Agreements and may be
individually amended from time to time.
Some of our Clients will bear their own expenses and their pro rata share of the expenses of the Firm.
Sherbrooke Park: Part 2A Page 5
Expenses include, but are not limited to, trading expenses, brokerage commissions and other transaction
charges, fees and expenses incurred in the borrowing and lending of securities, interest, margin expense and
other financing charges charged to the Account attributable to the acquisition of securities or other assets
by the Account and the acquisition by a Sherbrooke Park Client of financing to fund the Account (equal to
the market value of the long positions in the Account multiplied by the rate that such Client is charged on its
debit balances by its prime broker or custodian), custodial fees, bank service fees, transfer taxes, withholding
taxes, and other fees and expenses directly related to the purchase, sale or other disposition of Account
assets, and other out-of-pocket charges or expenses paid by any Client on behalf of or for the benefit of the
Firm.
Some Client agreements provide that the Firm bear all of its expenses arising out of the performance of its
duties, including all of its general overhead, research (excluding soft dollar services that come within Section
28(e) of the Securities Exchange Act of 1934 (the “Exchange Act”)), technology, travel, salary and office
expenses (which include the rent of the offices which the Firm will occupy, compensation and benefits of the
professional and administrative staff of the Firm, maintenance of its books and records, and its fixed
expenses, telephones and general purpose office equipment).
Sherbrooke Park does not accept compensation for the sale of securities or other investment products.