Chesapeake Capital Corporation

Item 5 - Fees and Compensation

                  Chesapeake’s fees are set forth in each Fund’s governing documents and are explained in
detail in each Fund’s prospectus and statement of additional information. For SMAs, Chesapeake’s fees
are set forth in the relevant investment management agreement. Chesapeake does not have a fee schedule
and the fees that it charges to the Funds and its SMA clients are generally not negotiable.

                Each Fund pays Chesapeake a management fee (“Management Fee”) equal to a specified
percentage of the Fund’s net assets. The Management Fee is paid monthly in arrears based on the value of
the Fund’s net assets held in an investor’s account at the end of the month, generally at an annualized rate

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of 1% of a Fund’s overall net assets, depending on the Fund and the investor. Generally, each Fund’s
investment adviser either pays Chesapeake directly or directs the Fund’s administrator to pay Chesapeake
its sub-advisory portion of the Fund’s management fee as agreed in the respective sub-advisory agreement
for that Fund. Fees owed to Chesapeake are wired directly to Chesapeake’s bank account. Certain
employees of Chesapeake that invest in the Funds pay reduced fees.

                 In addition to ordinary and any extraordinary expenses, each Fund also pays brokerage
commissions on its transactions at rates negotiated for it with the broker by either its Adviser or another
representative of its Adviser, such as another sub-adviser or by Chesapeake. Each Fund pays all expenses
incurred in connection with its trading and investment activities, including, but not limited to, all execution,
give-up, brokerage, floor, exchange, clearing and regulatory fees, option premiums, other investment
banking and transaction costs and expenses, delivery and custody expenses, interest and borrowing charges
on margin accounts, borrowed money and property, and other indebtedness and related expenses and costs,
bank, broker and dealer service fees and background check, valuation or appraisal fees and expenses. Please
see Item 12 for more information about Chesapeake’s brokerage practices.

                Each Fund’s investment management agreement may be terminated by the Fund or by
Chesapeake without penalty upon written notice. An investment management agreement may not be
assigned by a party without the prior written consent of the other party or parties.

                 Management fees for SMAs, generally at an annualized rate of 0% to 1% of the account’s
net assets are paid in arrears on a monthly or quarterly basis, as may be agreed between Chesapeake and
the client.

Item 7 – Types of Clients

                We provide investment advice to the Funds based on each Fund’s particular investment
objectives and policies as described in the Fund’s prospectus. The mutual fund for which we provide
investment advisory services is operated by an SEC-registered investment adviser which is also a CFTC-
registered commodity pool operator. The ETFs for which we provide investment advisory services are
likewise operated by registered commodity pool operator-investment advisers, and are traded on the New
York Stock Exchange (NYSE Arca, Inc.) or the CBOE BZX Exchange. As noted above, any investor to
whom we charge a performance-based fee must be a “qualified client” as that term is defined in Rule 205-
3(d)(1) under the Advisers Act (meaning that, in most circumstances, the client must have at least $1.1
million under management with us, a “net worth” as calculated under that Rule of more than $2.2 million,
and an annual income of at least $200,000, or be one of our qualified employees).

                 Interests in certain Funds may not be available to investors in certain markets. For SMA
clients, we recommend a minimum account size of $5 million for our Diversified Program and of $10
million for accounts traded according to any of our Fixed Income Trend Program, Multi-Asset Trend
Program or our Pure Trend Program.