Forecast Institute LLC

Item 5          Fees and Compensation
   A. Advisory Fees
       FI earns its fees and compensation by providing advice and investment management
       services to the Fund and SMA. The compensation is in the form of management fees (the
       “Management Fee”) and/or performance-based fees (the “Performance Allocation”), and
       assessed as follows:
       1. Management Fees
           FI may receive a quarterly management fee, paid in advance, that is calculated as a
           percentage of assets under management (the “Management Fee”) from the Fund. The
           amount of the Management Fee may equal up to 2% per annum depending on the
           Limited Partner’s choice of share class.
           The Management Fee will be appropriately prorated to reflect any capital withdrawals
           and contributions which occur during a quarter.
           Currently FI does not receive Management Fees from the Fund or SMA.
       2. Performance-Based Fees
           FI may receive a performance-based fee (the “Performance Allocation”). The
           Performance Allocation is paid quarterly and may equal up to 25% of each Limited
           Partner’s share of the Funds’ net profits during such quarter. The amount of the
           Performance Allocation is dependent upon the Limited Partner’s choice of share
           class. The Performance Allocation shall be subject to a loss carry-forward provision,
           also known as a “High Water Mark,” so that no Performance Allocation will be
           deducted from any Limited Partner’s capital account until prior losses allocated to
           such Limited Partner have been recouped. Performance Allocations may be made at
           any time, in the sole discretion of FI, for a Limited Partner who makes a partial or
           complete withdrawal.
           The Performance Allocation will only be charged to “Qualified Clients” as that term is
           defined in Rule 205-3 under the Investment Advisor Act of 1940, or similar statutes.
   B. Billing
       Fees are deducted directly from Limited Partner capital accounts as described in Item 5A.

Firm Brochure                                                                Forecast Institute, LLC

   C. Other Fees & Expenses
       There are additional costs associated with portfolio management. Clients will incur
       certain charges imposed by other third parties in connection with investments made
       through the account, including, but not limited to, annual maintenance, brokerage,
       clearance, custody, data, administrative, registration, auditing and legal fees.
   D. Refund Policy
       The Management Fee is assessed in advance and billed at beginning of each quarter. In the
       event of termination of a Limited Partner’s interest in the Fund, unpaid Management Fees
       will be allocated and performance allocation fees will be assessed in accordance with the
       Fund’s LPA.
       However, each Limited Partner will be permitted to terminate its Interest in the Fund
       within 48 hours of subscribing to the Fund and to receive a full refund of its capital
       contribution to the Fund less any transaction fees in connection therewith.
   E. Other Compensation
       FI does not receive any compensation other than the fees described in Item 5A.f

Item 7          Types of Clients
   A. Types of Clients
       FI provides investment advisory services to a commodity-based pooled investment vehicle,
       i.e. the Fund, and to private Separately Managed Accounts (SMA’s).
   B. Conditions for Account Management
       FI generally requires a minimum investment of $1,000,000 into the Fund. This
       requirement may be reduced at FI’s sole discretion.

Firm Brochure                                                                      Forecast Institute, LLC