NuWave Investment Management LLC

Item 5 - Fees and Compensation

Our fees and compensation are described in the advisory contracts we enter into with our clients.
Our fees and compensation may vary, but will typically consist of a percentage of assets under
management and/or a percentage of net profits, which percentages may vary depending upon
which of our investment portfolios the accounts participate in.

    For Separate Accounts

    Depending upon the portfolio selected by a client, we typically charge an annual management
    fee of up to 2% of assets under management (payable monthly in arrears) and a quarterly
    incentive fee of between 20% and 30% of net profits, subject to a high-water mark. Once
    paid, such fees are non-refundable.

    For Private Investment Funds

    Our compensation depends upon the private investment fund and/or the class of shares or
    interests subscribed for by an investor. We typically charge an annual management fee of up
    to 2% of assets under management (payable monthly in arrears) and a quarterly performance
    fee/allocation of between 20% and 30% of net profits, subject to a high-water mark. Once
    paid or allocated, such fees and allocations are non-refundable.

NuWave Investment Management, LLC Form ADV: Part 2A                                          Page 4

    Additional details of the fees and expenses of the private investment fund(s) are described in
    the relevant fund’s private placement offering memorandum.

The account administrator generally deducts management fees from our private investment funds’
accounts monthly in arrears. The management fees for the separately managed accounts we
manage are generally deducted monthly in arrears by the custodian of the accounts. Depending
on the arrangement with the client and the custodian of the account, either we calculate the
management fees due and provide the custodian with our calculation or the custodian calculates
the management fees due, which we then confirm. We generally receive performance-based fees
or allocations from client accounts on a quarterly basis in arrears and upon
redemptions/withdrawals by investors.

Private investment funds managed by NuWave generally bear our expenses (which may include,
without limitation, any direct trading costs incurred on behalf of the private investment fund, as
well as certain legal, administrative and accounting fees and expenses, and other expenses
described in the private investment fund’s operating agreement and/or applicable investment
management agreement, but not including our office rent, utilities, furniture, computer hardware
and employee compensation), all other expenses related, directly and indirectly, to their
respective operations and affairs and their business of investing and trading and other activities,
which may include, without limitation: all brokerage commissions and custody charges, interest
and commitment fees on loan and debit balances, research fees and materials, back office
expense, costs of any outside appraisers, accountants, attorneys or other experts or consultants
engaged by us in connection with specific transactions, bank charges, specialized software
pertaining to the private investment funds’ trading or operations, insurance costs (including
director and officer insurance), legal fees and costs (including settlement costs) arising in
connection with any litigation or regulatory investigation instituted against us in connection with
the affairs of the private investment funds, withholding or transfer taxes, government charges and
professional fees and expenses incurred in connection with the preparation of the private
investment funds’ offering materials and operating agreement or memorandum and articles of
association, as applicable, as well as their respective organizational documents, filing fees, costs
of accounting, including the audit of the private investment funds’ annual financial statements
and the preparation of their tax returns, the fees and expenses of the private investment funds’
legal counsel in connection with advice directly relating to their legal affairs, costs of preparing
and mailing reports to investors, and other ordinary and out-of-pocket expenses of the private
investment funds. Where any of the foregoing costs are incurred by or on behalf of more than
one private investment fund, each private investment fund will bear only its proportionate share
of such costs. (See Item 12 “Brokerage Practices” below.)

The expenses that are charged to separately managed accounts are determined on a case-by-case
basis.

We may also allocate a portion of certain clients’ capital to money market funds or exchange-
traded funds. In addition to the fees and expenses discussed above, investors will indirectly incur
similar fees and expenses if we invest clients’ capital in such money market funds or exchange
traded funds, as these funds in turn pay similar fees to their investment managers and other
service providers.

NuWave Investment Management, LLC Form ADV: Part 2A                                           Page 5

Item 7 - Types of Clients

We primarily provide investment advice to clients (either through a fund-vehicle or a separately
managed account) who are private investment funds, high net worth individuals, pension and
profit sharing plans, trusts, estates, or charitable organizations, and other entities. Investors in
such private investment funds are generally high net worth individuals and institutional investors
that qualify as “accredited investors” (as defined in Rule 501 under the Securities Act of 1933, as
amended) and “qualified clients” (as defined under the Investment Advisers Act of 1940, as
amended (the “Advisers Act”)). The minimum investment in the private investment funds is
generally $250,000, though certain classes of interests/shares have higher minimum investment
requirements. There is no minimum dollar requirement for establishing a separately managed
account and we consider each prospective client on a case-by-case basis; however, we suggest
that prospective clients refrain from opening a separately managed account unless they can
commit a minimum of eighteen months to the investment and a minimum client account size of
$1 million to $3 million, depending upon the portfolio selected by the client.