Profits Plus Capital Management LLC

Item 5 Fees and Compensation

As general partner of the Fund, PPCM receives (i) a management fee, payable monthly in
arrears, equal to up to one-twelfth of 1.5% of the net asset value of each limited partner's capital
account as of the last day of the month; and (ii) an incentive allocation, payable quarterly, in an
amount up to 20% of the net new appreciation of each limited partner's book capital account
during each calendar quarter. For purposes of computing the incentive allocation, a net loss is not
carried back to any preceding allocations, but no further incentive allocations will be charged to
the limited partner until additional net new appreciation is achieved. Net new appreciation, for
purposes of calculating the incentive allocation shall mean the increase, if any, in a limited
partner's book capital account over the limited partner's highest prior book capital account from
which a profit share was allocated to PPCM, adjusted for contributions and withdrawals.
Extraordinary expenses and taxes are excluded in the calculation of the allocation. Though
incentive allocations are computed and allocable as of the end of each calendar quarter, such
incentive allocations accrue monthly. PPCM may, at its discretion, reduce or waive the incentive
allocation and management fees as to any one or more limited partners. The management fee and
incentive allocation are deducted from the Fund’s assets and are not billed. All incentive
allocations will be made in a manner that complies with Rule 205-3 of the Investment Advisers
Act of 1940, as amended.

The incentive allocation described above could create an incentive for PPCM to make
investments that are riskier or more speculative than would otherwise be the case and, in some
circumstances, PPCM may receive increased fees on allocations as a result of unrealized
appreciation, as well as realized gains in managed accounts.

PPCM may manage separate accounts under limited circumstances. In such case, PPCM may
receive a fixed percentage asset based fee billed quarterly in advance, an hourly fee at a rate of
$100 per hour, or a combination of the two. As of the date of this Brochure, PPCM’s current
fixed percentage asset based fee schedule is as follows:

Under $100,000                 .80%
$100,000 - $249,999            .77%
$250,000 - $499,999            .74%
$500,000 - $999,999            .71%
$1,000,000 - $4,999,999        .65%
$5,000,000 - $9,999,999        .57%

Assets beyond $10,000,000 .52%

PPCM fees may be negotiable in certain limited circumstances and arrangements with any
particular client may vary from the fees described above. In some cases the fees charged might
be greater than fees charged by other investment advisers for similar services; in other cases fees
may be lower. Since fees are billed quarterly in advance, PPCM will refund to a client, upon any
termination of the advisory services agreement between PPCM and the client, a pro-rata share of
the fees paid computed on a daily basis for the quarter.

PPCM may charge a fee for consultative and non-custodial services. This fee is not fixed and
may
be more or less at any given time due to market conditions, value of assets, or time involved for
research and other related services. With respect to transactions in precious metals for the Fund,
any fee charged by PPCM for such transactions is part of the overall price for precious metals
and is distinguished by the cost above/below the spot price plus refinement, transportation and
shipping, and other charges for physical precious metals.

Clients, including the Fund, may incur additional fees including, but not limited to, brokerage
commissions, custodian fees, subadvisor fees, administrative fees and other transaction costs. In
addition, PPCM invests in exchange traded funds on behalf of client portfolios, including the
Fund. These funds charge fees to their shareholders, which are described in their respective
prospectus and usually include a management fee, administrative and operations fees, and certain
distribution fees. Please refer to Item 13 of this Brochure for more information about Brokerage
Practices.

Item 7 Types of Clients

PPCM may provide advisory services to the following types of clients: individuals, pension and
profit sharing plans, trusts, corporations, investment funds and other business entities (such as
professionals in the financial industry). PPCM is the general partner of the Fund and may
organize and/or provide services as investment manager to other investment partnerships or
similar investment funds in the future.

The minimum initial purchase amount for investment in the Fund is $100,000, although this
amount may be reduced in PPCM’s discretion. Discretionary advisory clients, if any, are
generally required to maintain a minimum account size of $25,000, although this minimum may
also be reduced in PPCM’s discretion.