SMP Asset Management LLC

ITEM 5. FEES AND COMPENSATION

SMP receives from the Fund an annual management fee equal to three percent of the capital
account balance of all partners in the Fund at the beginning of each fiscal year. Payment of the
management fee is made by the Fund in twelve equal payments at the beginning of each month.
The management fee is prorated in the event of the termination of the Fund, a contribution, or a
partial redemption. In addition, SMP may reduce or waive the management fee, in its sole
discretion, with respect to certain limited partners.

SMP, as general partner of the Fund, also receives a performance allocation. In particular, SMP
receives a 20% performance allocation of net gain, subject to a “hurdle” for each limited partner,
which for most partners is 15%. Additional information regarding calculation of the performance
allocation, and the “hurdle” is included in the Fund’s offering documents and limited partnership
agreement. The Company may waive all or a portion of the performance allocation with respect
to its employees and certain affiliates, and may apply different profit allocation arrangements to
certain limited partners on an individual basis.

ITEM 7. TYPES OF CLIENTS

The Company provides investment advisory services to the Fund. The Fund has a minimum
investment requirement of $500,000, which may be adjusted or waived in the Company’s sole
discretion.