Cove Capital Management Inc

ITEM 5 – FEES AND COMPENSATION

Our management fee is negotiated annually with the Fund’’ general partner and paid monthly.

Cove is also entitled to receive an annual performance fee (subject to a hurdle rate and high- water mark)
calculated based on net trading profits (after the deduction of losses carried forward from the previous
year, if any) as of the end of each calendar year. The performance fee is calculated by the Fund’s
administrator and approved by the Fund’s general partner – Cove neither calculates the performance fee,
nor authorizes its payment.

Other fees and expenses borne by the Managed Account include a pro rata share of the Fund’s
administration fees and expenses as well as any transaction or investment fees or expenses related to the
Managed Account’s activities.

ITEM 7 – TYPES OF CLIENTS

Cove provides investment advice to the Fund through the Managed Account.

The Fund is not registered under the U.S. Securities Act of 1933, as amended and is excepted from the
definition of an “investment company” under Section 3(c)(7) of the Investment Company Act of 1940, as
amended. Accordingly, interests in the Fund are offered exclusively to investors satisfying the applicable
eligibility and suitability requirements either in private placement transactions within the United States
or in offshore transactions. Investors in the Fund are also Qualified Eligible Persons as defined in the
Commodity Exchange Act.