Scott's Cove Management LLC

Item 5.        Fees and Compensation

For our services to the Scott’s Cove Funds, we receive a management fee and an
incentive allocation or incentive fee, as outlined in relevant offering and subscription
documents. Scott’s Cove Funds offer various series of interests/shares, each with a
specific fee, incentive allocation/fee and lock-up and investor-level gate provisions.

If a new client account is established during a quarter or a client makes an addition to its
account during a quarter, the management fee will be prorated for the number of days
remaining in the quarter. The management fee is directly debited from each client
account quarterly, in arrears, in accordance with the applicable organizational or offering
documents. If a client’s management agreement is terminated or a withdrawal is made
from a client account during a quarter, the fee will be calculated based on the value of the
assets on the termination date or withdrawal date and prorated for the number of days
during the quarter in which the investment management arrangement was in effect or
such amount was in the account.

The incentive compensation is directly debited from each of the Scott’s Cove Funds’
investor accounts at the end of the calendar year in accordance with the respective
Scott’s Cove Fund’s organizational or offering documents.

For investors in the Scott’s Cove offshore funds who are our employees or members of
employees’ immediate families (including godparents and godchildren of such persons),
the management fee and incentive fee (if any) are charged (pursuant to the terms of the
share class in which they have invested) during a calendar year to shares owned by such
investor (“Fees”), and such Fees are not paid to us. Instead, the Fees are rebated to such
investor by granting to such investor additional shares in the fund in which such investor
is invested as of the first day of the following calendar year.

For investors in the Scott’s Cove domestic fund who are our employees or members of
employees’ immediate families (including godparents and godchildren of such persons),
no management fees or incentive allocations (if any) are charged to the ownership
interests of such investors.

In addition to fees paid to us, as appropriate, clients will also be responsible for the fees
and expenses charged by custodians and imposed by any broker dealer with which we
effect transactions for clients; commissions and related costs; interest expenses; taxes,
duties and other governmental charges; transfer and registration fees or similar
expenses; costs associated with foreign exchange transactions; fund legal, auditing and
accounting expenses; other portfolio expenses; and costs, expenses and fees (including
investment advisory and other fees charged by investment advisers with, or funds in,
which the client’s account invests) associated with products or services that may be
necessary or incidental to such investments or accounts. Please refer to Item 12 of this
brochure for additional information regarding brokerage.

Item 7.          Types of Clients

Our firm provides investment management services to several private investment funds,
as disclosed at Item 4 of this Brochure.

It is our general policy to require a minimum investment of $20 million to open a
separately-managed account, but several factors could increase or decrease this
minimum. Except as may be permitted by us or by an affiliate, the minimum required
initial investment in any one of the Scott’s Cove Funds is as disclosed in the relevant
offering memorandum.

Prospective investors should refer to the appropriate Scott’s Cove Fund offering
documents for additional important qualifications requirements for investment.