|   |   ML      CHESAPEAKE FUTURESACCESS LLC(A      Delaware Limited Liability Company)                                                                                                                                      |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                        |   |
|   | Financial      Statements for the year ended December 31, 2008 and for      the period April 2, 2007 (commencement of operations) toDecember      31, 2007 and Report of Independent Registered Public      Accounting Firm |   |

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|                                                                                                    | Page          |
|---------------------------------------------------------------------------------------------------------|---------------|
|                                                                                                    |          |
| REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                            | 1             |
|                                                                                                    |          |
| FINANCIAL      STATEMENTS:                                                                              |          |
|                                                                                                    |          |
| Statements      of Financial Condition as of December 31, 2008 and 2007                                 | 2             |
|                                                                                                    |          |
| Statements      of Operations for the year ended December 31, 2008 and                                  |          |
| for      the period April 2, 2007 (commencement of operations) to December 31,      2007                | 3             |
|                                                                                                    |          |
| Statements      of Changes in Members’ Capital for the year ended December 31,      2008          |          |
| and      for the period April 2, 2007  (commencement of operations) to      December 31, 2007 | 4             |
|                                                                                                    |          |
| Financial      Data Highlights for the year ended December 31, 2008 and for      the                    |          |
| period      April 2, 2007 (commencement of operations) to December 31,      2007                        |   6 |
|                                                                                                    |          |
| Notes      to Financial Statements                                                                      |        8 |

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|                                                                                                                                        |   | 2008   |        |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| ASSETS:                                                                                                                                     |   |   |        |   |   |   |
| Equity      in commodity futures trading accounts:                                                                                          |   |   |        |   |   |   |
|     Cash      (including restricted cash of $11,325,562 for 2008 and $15,889,006 for      2007)                         |   | $      | 158,796,424 |   |   | $      | 113,195,547 |   |
|     Net      unrealized profit on open contracts                                                                        |   |   | 6,643,829   |   |   |   | 5,301,489 |   |
| Cash                                                                                                                                        |   |   | 9,983       |   |   |   | 82,836 |   |
| Deferred      initial offering costs                                                                                                        |   |   | -           |   |   |   | 12,500 |   |
| Accrued      interest                                                                                                                       |   |   | 13,301      |   |   |   | 391,180 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|                 TOTAL      ASSETS                           |   | $      | 165,463,537 |   |   | $      | 118,983,552 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| LIABILITIES AND MEMBERS’      CAPITAL:                                                                                                |   |   |        |   |   |   |   |   |
| LIABILITIES:                                                                                                                                |   |   |        |   |   |   |   |   |
|     Brokerage      commissions payable                                                                                  |   | $      | 20,986      |   |   | $      | 41,616 |   |
|     Management      fee payable                                                                                         |   |   | 197,805     |   |   |   | 114,949 |   |
|     Sponsor      fee payable                                                                                            |   |   | -           |   |   |   | 300 |   |
|     Redemptions      payable                                                                                            |   |   | 3,407,148   |   |   |   | 7,298,096 |   |
|     Perfomance      fee payable                                                                                         |   |   | 2,640,254   |   |   |   | - |   |
|     Initial      offering costs payable                                                                                 |   |   | 50,000      |   |   |   | 50,000 |   |
|     Other                                                                                                               |   |   | 110,003     |   |   |   | 21,218 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|             Total      liabilities                                              |   |   | 6,426,196   |   |   |   | 7,526,179 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| MEMBERS’      CAPITAL:                                                                                                                |   |   |        |   |   |   |   |   |
|   Members'      Interest (134,254,090 and 108,911,153 Units outstanding, unlimited Units      authorized)                         |   |   | 159,037,341 |   |   |   | 111,457,373 |   |
|             Total      members’ capital                                   |   |   | 159,037,341 |   |   |   | 111,457,373 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
|                 TOTAL      LIABILITIES AND MEMBERS' CAPITAL |   | $      | 165,463,537 |   |   | $      | 118,983,552 |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| NET      ASSET VALUE PER UNIT (SEE NOTE 6)                                                                                                  |   |   |        |   |   |   |   |   |
|                                                                                                                                        |   |   |        |   |   |   |   |   |
| See      notes to financial statements.                                                                                                     |   |   |        |   |   |   |   |   |

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|                                                                                                     |   | 2008   |       |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| TRADING      PROFIT (LOSS):                                                                              |   |   |       |   |   |   |
|                                                                                                     |   |   |       |   |   |   |
|         Realized                                                 |   | $      | 21,755,870 |   |   | $      | (12,390,605 | ) |
|         Change      in unrealized                                |   |   | 1,504,367  |   |   |   | 5,301,489 |   |
|         Brokerage      commissions                               |   |   | (253,615   | )      |   |   | (302,967 | ) |
|                                                                                                     |   |   |       |   |   |   |   |   |
|             Total      trading profit (loss) |   |   | 23,006,622 |   |   |   | (7,392,083 | ) |
|                                                                                                     |   |   |       |   |   |   |   |   |
| INVESTMENT      INCOME:                                                                                  |   |   |       |   |   |   |   |   |
|        Interest                                                       |   |   | 2,209,146  |   |   |   | 3,305,581 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| EXPENSES:                                                                                                |   |   |       |   |   |   |   |   |
|        Management      fee                                            |   |   | 1,897,518  |   |   |   | 823,331 |   |
|        Sponsor      fee                                               |   |   | 16,413     |   |   |   | 1,209 |   |
|        Performance      fee                                           |   |   | 2,882,040  |   |   |   | - |   |
|        Other                                                          |   |   | 594,682    |   |   |   | 152,665 |   |
|             Total      expenses              |   |   | 5,390,653  |   |   |   | 977,205 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INVESTMENT INCOME (LOSS)                                                                        |   |   | (3,181,507 | )      |   |   | 2,328,376 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INCOME (LOSS)                                                                                   |   | $      | 19,825,115 |   |   | $      | (5,063,707 | ) |
|                                                                                                     |   |   |       |   |   |   |   |   |
| NET      INCOME (LOSS) PER UNIT:                                                                         |   |   |       |   |   |   |   |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
| Weighted      average number of Units outstanding                                                        |   |   |       |   |   |
|      Class      A*                                                              |   |   | 82,672     |   |   |   | 25,051 |   |
|      Class      C**                                                             |   |   | 625,692    |   |   |   | 92,095 |   |
|      Class      I**                                                             |   |   | 25,432     |   |   |   | 10,000 |   |
|      Class      DS***                                                           |   |   | 41,136,698 |   |   |   | 13,916,934 |   |
|      Class      DT****                                                          |   |   | 80,900,526 |   |   |   | 106,945,203 |   |
|                                                                                                     |   |   |       |   |   |   |   |   |
|      Net      income (loss) per weighted average Unit                           |   |   |       |   |   |   |   |   |
|      Class      A*                                                              |   | $      | (0.2561    | )      |   | $      | 0.1269 |   |
|      Class      C**                                                             |   | $      | (0.3565    | )      |   | $      | 0.0362 |   |
|      Class      I**                                                             |   | $      | (0.1958    | )      |   | $      | (0.0718 | ) |
|      Class      DS***                                                           |   | $      | 0.0871     |   |   | $      | 0.0652 |   |
|      Class      DT****                                                          |   | $      | 0.2038     |   |   | $      | (0.0559 | ) |

| *Class      A commenced on September 1, 2007.                                                                                        |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **Class      C and I commenced on July 1, 2007.                                                                                      |   |   |   |
| ***Class      DS commenced with initial offering and was previously known as Class      D-SM.                                        |
| ****Class      DT commenced on June 1, 2007 and was previously known as Class      D-TF. See      notes to financialstatements. |

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|                                            |   | Initial      Offering |       |   | Subscriptions |   |        | Redemptions |   |   | Members'      Capital December 31, 2007 |   |   | Subscriptions |        |   | Redemptions |   |       | Members'      Capital December 31, 2008 |   |
|-------------------------------------------------|--------|-----------------------|------------|--------|---------------|--------|-------------|-------------|--------|--------|-----------------------------------------|--------|--------|---------------|-------------|--------|-------------|--------|------------|-----------------------------------------|--------|
|      Class      A*     |   |                  | -          |   |          |   | 51,209      |        |   |   | (21,713                                 | )      |   |          | 29,496      |   |        |   | 208,355    |                                    |   |   | (237,851 | ) |   |   | - |   |
|      Class      C**    |   |                  | -          |   |          |   | 111,004     |        |   |   | -                                       |   |   |          | 111,004     |   |        |   | 2,114,691  |                                    |   |   | (2,225,695 | ) |   |   | - |   |
|      Class      I**    |   |                  | -          |   |          |   | 10,000      |        |   |   | -                                       |   |   |          | 10,000      |   |        |   | 40,532     |                                    |   |   | (50,532 | ) |   |   | - |   |
|      Class      DS***  |   |                  | 12,000,000 |   |          |   | 7,628,479   |        |   |   | (1,410,156                              | )      |   |          | 18,218,323  |   |        |   | 52,902,224 |                                    |   |   | (10,855,895 | ) |   |   | 60,264,652 |   |
|      Class      DT**** |   |                  | -          |   |          |   | 117,614,729 |        |   |   | (27,072,399                             | )      |   |          | 90,542,330  |   |        |   | 10,953,954 |                                    |   |   | (27,506,846 | ) |   |   | 73,989,438 |   |
|                                            |   |                  |       |   |          |   |        |        |   |   |                                    |   |   |          |        |   |        |   |       |                                    |   |   |   |   |   |   |   |   |
| Total      Members' Units                       |   |                  | 12,000,000 |   |          |   | 125,415,421 |        |   |   | (28,504,268                             | )      |   |          | 108,911,153 |   |        |   | 66,219,756 |                                    |   |   | (40,876,819 | ) |   |   | 134,254,090 |   |
|                                            |   |                  |       |   |          |   |        |        |   |   |                                    |   |   |          |        |   |        |   |       |                                    |   |   |   |   |   |   |   |   |

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|                                            |   | Initial      Offering |       |   | Subscriptions |   |        | Redemptions |   |   | Net      Income (Loss) |   |   | Members'      Capital December 31, 2007 |       |   | Subscriptions |   |        | Redemptions |   |   | Net      Income (Loss) |   |   | Members'      Capital December 31, 2008 |        |
|-------------------------------------------------|--------|-----------------------|------------|--------|---------------|--------|-------------|-------------|--------|--------|------------------------|--------|--------|-----------------------------------------|------------|--------|---------------|--------|-------------|-------------|--------|--------|-----------------------------|--------|--------|-----------------------------------------|-------------|
|      Class      A*     |   | $                     | -          |   |          | $      | 59,125      |        |   | $      | (26,420                | )      |   | $                                       | 3,180      |   |          | $      | 35,885      |        |   | $      | 283,510                     |   |   | $                                       | (298,224    | ) |   | $ | (21,171 | ) |   | $ | - |   |
|      Class      C**    |   |                  | -          |   |          |   | 98,971      |        |   |   | -                      |   |   |                                    | 3,330      |   |          |   | 102,301     |        |   |   | 2,160,942                   |   |   |                                    | (2,040,155  | ) |   |   | (223,088 | ) |   |   | - |   |
|      Class      I**    |   |                  | -          |   |          |   | 10,000      |        |   |   | -                      |   |   |                                    | (718       | )      |          |   | 9,282       |        |   |   | 43,381                      |   |   |                                    | (47,685     | ) |   |   | (4,978 | ) |   |   | - |   |
|      Class      DS***  |   |                  | 12,000,000 |   |          |   | 7,342,816   |        |   |   | (1,420,941             | )      |   |                                    | 907,353    |   |          |   | 18,829,228  |        |   |   | 60,094,056                  |   |   |                                    | (11,729,795 | ) |   |   | 3,584,166 |   |   |   | 70,777,655 |   |
|      Class      DT**** |   |                  | -          |   |          |   | 125,380,824 |        |   |   | (26,923,295            | )      |   |                                    | (5,976,852 | )      |          |   | 92,480,677  |        |   |   | 11,786,571                  |   |   |                                    | (32,497,748 | ) |   |   | 16,490,186 |   |   |   | 88,259,686 |   |
|                                            |   |                  |       |   |          |   |        |        |   |   |                   |   |   |                                    |       |   |          |   |        |        |   |   |                        |   |   |                                    |        |   |   |   |   |   |   |   |   |   |
| Total      Members' Interest                    |   | $                     | 12,000,000 |   |          | $      | 132,891,736 |        |   | $      | (28,370,656            | )      |   | $                                       | (5,063,707 | )      |          | $      | 111,457,373 |        |   | $      | 74,368,460                  |   |   | $                                       | (46,613,607 | ) |   | $ | 19,825,115 |   |   | $ | 159,037,341 |   |

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| Per Unit      Operating Performance:                  |   | Class      A |    |   | Class      C |   |    | Class      I |   |   | Class      DS |   |   | Class      DT |    |
|-------------------------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|--------------|--------|--------|---------------|--------|--------|---------------|---------|
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |
| Net      asset value, beginning of period             |   | $            | 1.2166  |   |         | $      | 0.9216  |         |   | $      | 0.9282        |   |   | $             | 1.0335  |   |   | $ | 1.0214 |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Realized      and change in unrealized trading profit |   |         | 0.0685  |   |         |   | 0.0542  |         |   |   | 0.0531        |   |   |          | 0.1891  |   |   |   | 0.1870 |   |
| Brokerage      commissions                            |   |         | (0.0023 | )      |         |   | (0.0017 | )            |   |   | (0.0018       | )      |   |          | (0.0021 | ) |   |   | (0.0021 | ) |
| Interest      income                                  |   |         | 0.0218  |   |         |   | 0.0165  |         |   |   | 0.0167        |   |   |          | 0.0189  |   |   |   | 0.0189 |   |
| Expenses                                              |   |         | (0.0761 | )      |         |   | (0.0746 | )            |   |   | (0.0527       | )      |   |          | (0.0650 | ) |   |   | (0.0323 | ) |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          | -       |   |   |   |   |   |
| Net      asset value, before liquidation              |   |         | 1.2285  |   |         |   | 0.9160  |         |   |   | 0.9435        |   |   |          | 1.1744  |   |   |   | 1.1929 |   |
| Less      liquidating distribution                    |   |         | (1.2285 | )      |         |   | (0.9160 | )            |   |   | 0.9435        |   |   |          | -       |   |   |   | - |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Net      asset value, end of period                   |   | $            | -       |   |         | $      | -       |         |   | $      | -             |   |   | $             | 1.1744  |   |   | $ | 1.1929 |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Total Return: (a)      (b)                            |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Total      return before Performance fees             |   |         | 2.95    | %      |         |   | 2.16    | %            |   |   | 3.43          | %      |   |          | 16.61   | % |   |   | 17.72 | % |
| Performance      fees                                 |   |         | -3.14   | %      |         |   | -3.86   | %            |   |   | -2.81         | %      |   |          | -3.93   | % |   |   | -2.24 | % |
| Total      return after Performance fees              |   |         | 0.98    | %      |         |   | -0.61   | %            |   |   | 1.65          | %      |   |          | 13.62   | % |   |   | 16.79 | % |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Ratios to Average Members' Capital: (a)               |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Expenses      (excluding Performance fees)            |   |         | 3.75    | %      |         |   | 4.76    | %            |   |   | 3.36          | %      |   |          | 2.44    | % |   |   | 1.42 | % |
| Performance      fees                                 |   |         | 2.54    | %      |         |   | 3.31    | %            |   |   | 2.26          | %      |   |          | 3.28    | % |   |   | 1.51 | % |
| Expenses      (including Performance fees)            |   |         | 6.29    | %      |         |   | 8.07    | %            |   |   | 5.62          | %      |   |          | 5.72    | % |   |   | 2.93 | % |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |
| Net      investment income (loss)                     |   |         | -4.82   | %      |         |   | -6.76   | %            |   |   | -4.10         | %      |   |          | -4.05   | % |   |   | -1.26 | % |
|                                                  |   |         |    |   |         |   |    |         |   |   |          |   |   |          |    |   |   |   |   |   |

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| Per Unit      Operating Performance:                 |   | Class      A* |    |   | Class      C** |   |    | Class      I** |   |   | Class      DS*** |   |   | Class      DT **** |    |
|------------------------------------------------------|--------|---------------|---------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|--------|--------------------|---------|
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |
| Net      asset value, beginning of period            |   | $             | 1.0000  |   |           | $      | 1.0000  |           |   | $      | 1.0000           |   |   | $                  | 1.0000  |   |   | $ | 1.0850 |   |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Realized      and change in urealized trading profit |   |          | 0.2161  |   |           |   | (0.0757 | )              |   |   | (0.0764          | )      |   |               | 0.0195  |   |   |   | (0.0807 | ) |
| Brokerage      commissions (c)                       |   |          | (0.0013 | )      |           |   | (0.0014 | )              |   |   | (0.0013          | )      |   |               | (0.0032 | ) |   |   | (0.0024 | ) |
| Interest      income (c)                             |   |          | 0.0164  |   |           |   | 0.0193  |           |   |   | 0.0202           |   |   |               | 0.0347  |   |   |   | 0.0264 |   |
| Expenses      (c)                                    |   |          | (0.0146 | )      |           |   | (0.0206 | )              |   |   | (0.0143          | )      |   |               | (0.0175 | ) |   |   | (0.0069 | ) |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Net      asset value, end of period                  |   | $             | 1.2166  |   |           | $      | 0.9216  |           |   | $      | 0.9282           |   |   | $                  | 1.0335  |   |   | $ | 1.0214 |   |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Total Return: (b)                                    |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Total      return                                    |   |          | 21.65   | %      |           |   | -7.85   | %              |   |   | -7.19            | %      |   |               | 3.35    | % |   |   | -5.86 | % |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Ratios to Average Members' Capital (a) :             |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Expenses                                             |   |          | 5.34    | %      |           |   | 5.16    | %              |   |   | 3.21             | %      |   |               | 2.38    | % |   |   | 1.22 | % |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |
| Net      investment income (loss)                    |   |          | 0.68    | %      |           |   | -0.31   | %              |   |   | 1.30             | %      |   |               | 2.32    | % |   |   | 3.48 | % |
|                                                 |   |          |    |   |           |   |    |           |   |   |             |   |   |               |    |   |   |   |   |   |

| (a)      The ratios have been annualized.                                                 |   |
|-------------------------------------------------------------------------------------------|--------|
| (b)      Non annualized.                                                                  |   |
| (c)      Per Unit data is calculated using weighted average Units during the      period. |   |
| *      Class A commenced on September 1, 2007.                                            |
| **      Class C and Class I commenced on July 1, 2007.                                    |
| ***      Class DS was previously known as Class D-SM.                                     |
| ****      Class DT commenced on June 1, 2007.                                             |

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|  1. | SUMMARY      OF SIGNIFICANT ACCOUNTINGPOLICIES |
|----------|------------------------------------------------|

|     | Organization |
|--------------------|--------------|

|    | ML Chesapeake FuturesAccess LLC (the “Fund”), a      Merrill Lynch FuturesAccess Program (the “Program”) fund, was organized      under the Delaware Limited Liability Company Act on March 8, 2007 and      commenced trading activities on April 2, 2007. The Fund engages in the      speculative trading of futures, options on futures and forward contracts      on a wide range of commodities. Chesapeake Capital Corporation      (“Chesapeake”) is the trading advisor of the Fund.  Merrill      Lynch Alternative Investments LLC (“MLAI”) is the Sponsor of the Fund.      MLAI is an indirect wholly-owned subsidiary of Merrill Lynch & Co.,      Inc. (“Merrill Lynch”). Merrill Lynch, Pierce, Fenner & Smith      Incorporated (“MLPF&S”), a wholly-owned subsidiary of Merrill Lynch,      is the Fund’s commoditybroker. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | The      Program is a group of commodity pools sponsored by MLAI (each pool is a      “Program Fund” or collectively, “Program Funds”) each of which places      substantially all of it assets in a managed futures or forward trading      account managed by a single or multiple commodity trading advisors. Each      Program Fund is generally similar in terms of fees, Classes of Units and      redemption rights.  Each of the Program Funds implements a      different tradingstrategy. |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | The      Fund offers five Classes of Units:  Class A, Class C, Class DS,      Class DT and Class I.  Each Class of Units except Class DT      offered at $1.0850, was offered at $1.00 per Unit during the initial      offering period and subsequently is offered at Net Asset Value per Unit      for all other purposes (see Note 6).  The five Classes of Units      are subject to different Sponsor fees. Effective January 1, 2009, Merrill Lynch & Co., Inc.      became a wholly-owned subsidiary of Bank of America Corporation pursuant      to a merger agreement. Interests      in the Fund are not insured or otherwise protected by the Federal Deposit      Insurance Corporation or any other government      authority.  Interests are not deposits or other obligations of,      and are not guaranteed by, Bank of America Corporation or any of its      affiliates or by any bank.  Interests are subject to investment      risks, including the possible loss of the full amount      invested. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Estimates |
|--------|-----------|

|   | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America (“U.S.      GAAP”) requires management to make estimates and assumptions that affect      the reported amounts of assets and liabilities and disclosure of      contingent assets and liabilities at the date of the financial statements      and the reported amounts of revenues and expenses during the reporting      period.  Actual results could differ from those      estimates. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Revenue      Recognition |
|--------|--------------------------|

|   | Commodity      futures, options on futures and forward contract transactions are recorded      on the trade date and open contracts are reflected in Net unrealized      profit (loss) on open contracts in the Statements of Financial Condition      as the difference between the original contract value and the market value      (for those commodity interests for which market quotations are readily      available) or at fair value.  The change in unrealized profit      (loss) on open contracts from one period to the next is reflected in      Change in unrealized under Trading profit (loss) in the Statements of      Operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Foreign Currency      Transactions |
|--------|------------------------------------|

|   | The      Fund’s functional currency is the U.S. dollar; however, it transacts      business in U.S. dollars and in currencies other than the U.S.      dollar.  Assets and liabilities denominated in currencies other      than the U.S. dollar are translated into U.S. dollars at the rates in      effect at the date of the Statements of Financial      Condition.  Income and expense items denominated in currencies      other than the U.S. dollar are translated into U.S. dollars at the rates      in effect during the period.  Profits and losses resulting from      the translation to U.S. dollars are reported in Realized in the Statements      of Operations. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash at      Broker |
|--------|---------------------|

|   | A      portion of the assets maintained at MLPF&S is restricted cash required      to meet maintenance margin requirements. Included in cash deposits with      the broker at December 31, 2008 and 2007 were restricted cash for margin      requirements of $11,325,562 and $15,889,006,      respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Operating Expenses,      Offering Costs and SellingCommissions |
|--------|----------------------------------------------------------------|

|   | The      Fund pays for all routine operating costs (including ongoing offering      costs, administration, custody, transfer, exchange and redemption      processing, legal, regulatory filing, tax, audit, escrow, accounting and      printing fees and expenses) incurred by the Fund.  The Fund also      pays any extraordinary expenses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | For      financial reporting purposes in conformity with U.S. GAAP, the Fund      amortized the total initial offering costs of $50,000 over a twelve-month      period.  For all other purposes, including determining the Net      Asset Value per Unit for subscription and redemption purposes, the Fund      amortizes offering costs over a 60 month period (see Note    6). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Class      A Units are subject to a sales commission paid to MLPF&S ranging from      1.0% to 2.5%.  Class I Units are subject to sales commissions up      to 0.5%.  The rate assessed to a given subscription is based      upon the subscription amount.  Sales commissions are directly      deducted from subscription amounts.  Class C, Class DS and Class      DT Units are not subject to any sales  commissions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income      Taxes |
|--------|-------------------|

|   | No      provision for income taxes has been made in the accompanying financial      statements as each Member is individually responsible for reporting income      or loss based on such Member’s share of the Fund’s income and expenses as      reported for income tax purposes. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Distributions |
|--------|---------------|

|   | The      Members are entitled to receive, equally per Unit, any distributions which      may be made by the Fund.  No such distributions have been      declared for the year ended December 31, 2008 and for the period April 2,      2007 (commencement of operations) to December 31,  2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | . |
|--------|---|

|   | Subscriptions |
|--------|---------------|

|   | Units      are offered as of the close of business at the end of each      month.  Units are purchased as of the first business day of any      month at Net Asset Value for all other purposes (see Note 6), but the      subscription request must be submitted at least three calendar days before      the end of the preceding month.  Subscriptions submitted less      than three days before the end of a month will be applied to Units      subscriptions as of the beginning of the second month after receipt,      unless revoked by MLAI. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Redemptions and      Exchanges |
|--------|--------------------------------|

|   | A      Member may redeem or exchange some or all of such Member’s Units at Net      Asset Value for all other purposes (see Note 6) as of the close of      business, on the last business day of any month, upon ten calendar days’      notice (“notice period”). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | An      investor in the Fund can exchange these Units for Units of the same Class      in other Program Funds as of the beginning of each calendar month upon at      least ten days prior notice.  The minimum exchange amount is      $10,000.Redemption      requests are accepted within the notice period.  The Fund does      not accept any redemption requests after the notice period.  All      redemption requests received after the notice period will be processed for      the following month. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Dissolution of the      Fund |
|--------|------------------------------|

|   | The      Fund may terminate if certain circumstances occur as set forth in the      offering memorandum, which include but are not limited to the      following:(a) Bankruptcy,      dissolution, withdrawal or other termination of the trading advisor of      this Fund.(b)    Any      event which would make unlawful the continued existence of this      Fund(c)         Determination      by MLAI to liquidate or withdraw from the  Fund. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Indemnifications |
|--------|------------------|

|   | In the normal course of business, the Fund enters into      contracts and agreements that contain a variety of representations and      warranties and which provide general indemnifications.  The      Fund’s maximum exposure under these arrangements is unknown, as this would      involve future claims that may be made against the Fund that have not yet      occurred.  The Fund expects the risk of any future obligation      under these indemnifications to be remote. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  1. | CONDENSED      SCHEDULE OF INVESTMENTS |
|----------|----------------------------------------|

|   | The Fund’s investments, defined as Net unrealized      profit on open contracts in the Statements of Financial Condition as of      December 31, 2008 and 2007 are asfollows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Long      Positions      |   |   |                     |   |      | Short      Positions             |   |   |                    |   |   | Net      Unrealized     |   |   |                            |   |      |                           |
|--------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|-----------|----------------------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|--------|---------------------------------|--------|-----------|--------------------------------|
| Commodity      Industry Sector |   | Number      of Contracts |   |   | Unrealized Profit (Loss) |   |      | Percent      of Members' Capital |   |   | Number      ofContracts |   |   | UnrealizedProfit (Loss) |   |   | Percent      ofMembers' Capital |   |      | Profit (Loss)on Open Positions |   |   | Percent      ofMembers' Capital |   |   | Maturity Dates |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |
| Agriculture                    |   |                     | 172    |   |                     | $      | 405,059   |                             |   |   | 0.25                    | %      |   |                    | (981   | )      |                            | $      | 335,272   |                           |   |   | 0.22 | % |   | $ | 740,331 |   |   |   | 0.47 | % |   | February      09 - March 09 |
| Currencies                     |   |                     | 378    |   |                     |   | 1,216,706 |                             |   |   | 0.77                    | %      |   |                    | (455   | )      |                            |   | (920,050  | )                              |   |   | -0.58 | % |   |   | 296,656 |   |   |   | 0.19 | % |   | March      09 |
| Interest      rates            |   |                     | 1,594  |   |                     |   | 4,676,373 |                             |   |   | 2.94                    | %      |   |                    | (24    | )      |                            |   | (311,813  | )                              |   |   | -0.20 | % |   |   | 4,364,560 |   |   |   | 2.74 | % |   | March      09 - December 09 |
| Metals                         |   |                     | 1      |   |                     |   | (9,981    | )                                |   |   | -0.01                   | %      |   |                    | (127   | )      |                            |   | 1,252,263 |                           |   |   | 0.79 | % |   |   | 1,242,282 |   |   |   | 0.78 | % |   | February      09 |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          |   |                     |   |   |                     | $      | 6,288,157 |                             |   |   | 3.95                    | %      |   |                    |   |   |                            | $      | 355,672   |                           |   |   | 0.23 | % |   | $ | 6,643,829 |   |   |   | 4.18 | % |   |   |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |                     |   |   |                     |   |      |                             |   |   |                    |   |   |                    |   |   |                            |   |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| 2007                          |   |                    |   |   |                         |   |      |                            |   |   |                    |   |   |                         |   |   |                            |   |     |                                |   |   |                            |   |   |           |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|-----------|---------------------------------|--------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------------|--------|----------|-------------------------------------|--------|--------|---------------------------------|--------|--------|----------------|
|                          |   |                         |   |   | Long      Positions          |   |      |                                 |   |   |                         |   |   | Short      Positions         |   |   |                            |   |     | Net Unrealized                      |   |   |                            |   |   |           |
| Commodity      IndustrySector |   | Number      ofContracts |   |   | UnrealizedProfit      (Loss) |   |      | Percent      ofMembers' Capital |   |   | Number      ofContracts |   |   | UnrealizedProfit      (Loss) |   |   | Percent      ofMembers' Capital |   |     | Profit      (Loss)on Open Positions |   |   | Percent      ofMembers' Capital |   |   | Maturity Dates |
|                          |   |                    |   |   |                         |   |      |                            |   |   |                    |   |   |                         |   |   |                            |   |     |                                |   |   |                            |   |   |           |
|                          |   |                    |   |   |                         |   |      |                            |   |   |                    |   |   |                         |   |   |                            |   |     |                                |   |   |                            |   |   |           |
| Agriculture                   |   |                    | 2,124  |   |                         | $      | 3,226,314 |                            |   |   | 2.89                    | %      |   |                         | (947   | )      |                            | $      | (300,866 | )                                   |   |   | -0.27                           | %      |   | $              | 2,925,448 |   |   |   | 2.62 | % |   | March      08 - December 08 |
| Currencies                    |   |                    | 1,041  |   |                         |   | 726,557   |                            |   |   | 0.65                    | %      |   |                         | (251   | )      |                            |   | 37,058   |                                |   |   | 0.03                            | %      |   |           | 763,615 |   |   |   | 0.69 | % |   | March      08 |
| Energy                        |   |                    | 286    |   |                         |   | 699,496   |                            |   |   | 0.63                    | %      |   |                         | -      |   |                            |   | -        |                                |   |   | 0.00                            | %      |   |           | 699,496 |   |   |   | 0.63 | % |   | Febuary      08 - December 08 |
| Interest      rates           |   |                    | 958    |   |                         |   | 45,411    |                            |   |   | 0.04                    | %      |   |                         | (1,336 | )      |                            |   | 404,475  |                                |   |   | 0.36                            | %      |   |           | 449,886 |   |   |   | 0.40 | % |   | March      08 - March 10 |
| Metals                        |   |                    | 146    |   |                         |   | (373,641  | )                               |   |   | -0.34                   | %      |   |                         | (106   | )      |                            |   | 193,955  |                                |   |   | 0.17                            | %      |   |           | (179,686 | ) |   |   | -0.16 | % |   | January      08 - April 08 |
| Stock      indices            |   |                    | 3,377  |   |                         |   | 508,454   |                            |   |   | 0.46                    | %      |   |                         | (255   | )      |                            |   | 134,276  |                                |   |   | 0.12                            | %      |   |           | 642,730 |   |   |   | 0.58 | % |   | March      08 |
|                          |   |                    |   |   |                         |   |      |                            |   |   |                    |   |   |                         |   |   |                            |   |     |                                |   |   |                            |   |   |           |   |   |   |   |   |   |   |   |
| Total                         |   |                    |   |   |                         | $      | 4,832,591 |                            |   |   | 4.34                    | %      |   |                         |   |   |                            | $      | 468,898  |                                |   |   | 0.42                            | %      |   | $              | 5,301,489 |   |   |   | 4.76 | % |   |   |
|                          |   |                    |   |   |                         |   |      |                            |   |   |                    |   |   |                         |   |   |                            |   |     |                                |   |   |                            |   |   |           |   |   |   |   |   |   |   |   |

----

|  3. | FAIR      VALUE OF INVESTMENTS |
|----------|--------------------------------|

|     | In      September 2006, the Financial Accounting Standards Board (“FASB”) issued      Statements of Financial Accounting Standards No. 157, Fair Value      Measurement (“FAS 157”). FAS 157 defines fair value, establishes a      framework for measuring fair value and expands disclosures about fair      value measurements. The Fund adopted FAS 157 as of January 1, 2008. The      adoption of FAS 157 did not have a material impact on the Fund’s financial      statements.Fair      value of an investment is the amount that would be received to sell the      investment in an orderly transaction between market participants at the      measurement date (i.e. the exit price).FAS      157 established a hierarchical disclosure framework which prioritizes and      ranks the level of market price observability used in measuring      investments at fair value. Market price observability is impacted by a      number of factors, including the type of investment and the      characteristics specific to the investment. Investments with readily      available active quoted prices or for which fair value can be measured      from actively quoted prices generally will have a higher degree of market      price observability and a lesser degree of judgment used in measuring fair      value.Investments      measured and reported at fair value are classified and disclosed in one of      the following categories:Level      I – Quoted prices are available in active markets for identical      investments as of the reporting date. The type of investments included in      Level I are publicly traded investments. As required by FAS 157, the Fund      does not adjust the quoted price for these investments even in situations      where the Fund holds a large position and a sale could reasonably impact      the quoted price.Level      II – Pricing inputs are other than quoted prices in active markets, which      are either directly or indirectly observable as of the reporting date, and      fair value is determined through the use of generally accepted and      understood models or other valuation methodologies. Investments which are      generally included in this category are investments valued using market      data.Level      III – Pricing inputs are unobservable and include situations where there      is little, if any, market activity for the investment. Fair value for      these investments is determined using valuation methodologies that      consider a range of factors, including but not limited to the nature of      the investment, local market conditions, trading values on public      exchanges for comparable securities, current and projected operating      performance and financing transactions subsequent to the acquisition of      the investment. The inputs into the determination of fair value require      significant management judgment. Due to the inherent uncertainty of these      estimates, these values may differ materially from the values that would      have been used had a ready market for these investments existed.      Investments that are included in this category generally are privately      held debt and equity securities.In      certain cases, the inputs used to measure fair value may fall into      different levels of the fair value hierarchy. In such cases, an      investment’s level within the fair value hierarchy is based on the lowest      level of input that is significant to the fair value measurement. MLAI’s      assessment of the significance of a particular input to the fair value      measurement in its entirety requires judgment, and considers factors      specific to the investment.The      following table summarizes the valuation of the Fund’s investment by the      above FAS 157 fair value hierarchy levels as of December 31,      2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Total      |   | Level      I |   | Level      II |   | Level      III |
|--------------------------------------------------------------|--------|------------|--------|--------------|--------|---------------|--------|----------------|
| Net      unrealized profit      (loss) on open      contract |   | $6,643,829 |   | $6,643,829   |   | N/A           |   |  N/A      |

----

|  4. | RELATED      PARTYTRANSACTIONS |
|----------|--------------------------------|

|   | The      Fund’s U.S. dollar assets are maintained at MLPF&S. On assets held in      U.S. dollars, Merrill Lynch credits the Fund with interest at the most      favorable rate payable by MLPF&S to accounts of Merrill Lynch      affiliates but not less than 75% of such prevailing rate.  The      Fund is credited with interest on any of its assets and net gains actually      held by MLPF&S non-U.S. dollar currencies at a prevailing local rate      received by Merrill Lynch.  Merrill Lynch may derive certain      economic benefit, in excess of the interest which Merrill Lynch pays to      the Fund, from possession of such assets.Merrill      Lynch charges the Fund at prevailing local interest rates for financing      realized and unrealized losses on the Fund’s non-U.S. dollar-denominated      positions. Such amounts are netted against interest income due to the      insignificance of such amounts.The      Fund charges Sponsor fees on the month-end net assets after all other      charges at annual rates equal to 1.50% for Class A, 2.50% for Class C,      1.10% on Class I.  Class D, DS, and DT are not charged a Sponsor      Fee.   Sponsor fees are paid to MLAI.       The      Fund pays brokerage commissions on actual cost per round-turn. The average      round-turn commission rate charged to the Fund for the year ended December      31, 2008 and for the period ended December 31, 2007 was approximately      $7.67 and $7.32, respectively (not including, in calculating round-turn,      forward contracts on a futures-equivalent  basis). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  5. | ADVISORY      AGREEMENT |
|----------|-------------------------|

|   | The      Fund and Chesapeake have entered into an Advisory Agreement. This      agreement shall continue in effect until December 31,      2016.  Thereafter, this agreement shall be automatically renewed      for successive three-year periods, on the same terms, unless terminated at      any time by either Chesapeake or the Fund upon 90 days’ written notice to      the other party.  Chesapeake determines the commodity futures,      options on futures and forward contract trades to be made on behalf of      their respective Fund accounts, subject to certain trading policies and to      certain rights reserved by MLAI.The      Fund charges annual management fees on the Fund’s average month-end net      assets allocated to them after reduction for the brokerage commissions      accrued with respect to such assets and are payable to Chesapeake on a      monthly basis. Management Fees are 2.0% for all classes except for Class      DT which charges a 1.0% Fee.  Chesapeake pays MLAI 50% of the      management fees on all classes except Class DT, in return for sponsoring      and providing ongoing administration and operational support to the      fund.Performance      fees are charged by the Fund on any New Trading Profit, as defined, and      are payable to Chesapeake as of either the end of each calendar year or      upon any interim period for which there are net redemption of Units, to      the extent of the applicable percentage of any New Trading Profit      attributable to such Units. The fund charges a 20% performance fee for all      classes |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  6. | NET      ASSET VALUE PERUNIT |
|----------|------------------------------|

|   | For      financial reporting purposes, in conformity with U.S. GAAP, the Fund      amortizes over a twelve-month period the initial offering costs for      purposes of determining Net Asset Value. Such costs initially were paid by      MLAI.  For all other purposes, including computing Net Asset      Value for purposes of member subscription and redemption activity, such      costs are amortized over 60 months.Consequently,      the Net Asset Value and Net Asset Value per Unit of the different Classes      for financial reporting purposes and for all other purposes as of December      31, 2008 and 2007 are as  follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|          |   | Net      Asset Value                          |        |   |                     |   |        | Net      Asset Value per Unit |   |
|---------------|--------|-----------------------------------------------|-------------|--------|--------------------------|--------|-------------|-------------------------------|--------|
|          |   | All      Other Purposes      (unaudited) |        |   | Financial Reporting |   |        | Number      of Units          |   |   | All      Other Purposes      (unaudited) |   |   | Financial      Reporting |   |
| Class      DS |   | $                                             | 70,779,579  |   |                     | $      | 70,777,655  |                          |   |   | 60,264,652 |   |   | $ | 1.1745 |   |   | $ | 1.1744 |   |
| Class      DT |   |                                          | 88,290,270  |   |                     |   | 88,259,686  |                          |   |   | 73,989,438 |   |   |   | 1.1933 |   |   |   | 1.1929 |   |
|          |   | $                                             | 159,069,849 |   |                     | $      | 159,037,341 |                          |   |   | 134,254,090 |   |   |   |   |   |   |   |   |   |
|          |   |                                          |        |   |                     |   |        |                          |   |   |   |   |   |   |   |   |   |   |   |   |
|          |   |                                          |        |   |                     |   |        |                          |   |   |   |   |   |   |   |   |   |   |   |   |

|          |   | Net      Asset Value                          |        |   |                     |   |        | Net      Asset Value per Unit |   |
|---------------|--------|-----------------------------------------------|-------------|--------|--------------------------|--------|-------------|-------------------------------|--------|
|          |   | All      Other Purposes      (unaudited) |        |   | Financial      Reporting |   |        | Number      of Units          |   |   | All      Other Purposes      (unaudited) |   |   | Financial      Reporting |   |
| Class      A  |   | $                                             | 35,888      |   |                     | $      | 35,885      |                          |   |   | 29,496 |   |   | $ | 1.2167 |   |   | $ | 1.2166 |   |
| Class      C  |   |                                          | 102,319     |   |                     |   | 102,301     |                          |   |   | 111,004 |   |   |   | 0.9218 |   |   |   | 0.9216 |   |
| Class      I  |   |                                          | 9,283       |   |                     |   | 9,282       |                          |   |   | 10,000 |   |   |   | 0.9283 |   |   |   | 0.9282 |   |
| Class      DS |   |                                          | 18,831,754  |   |                     |   | 18,829,228  |                          |   |   | 18,218,323 |   |   |   | 1.0337 |   |   |   | 1.0335 |   |
| Class      DT |   |                                          | 92,508,127  |   |                     |   | 92,480,677  |                          |   |   | 90,542,330 |   |   |   | 1.0217 |   |   |   | 1.0214 |   |
|          |   | $                                             | 111,487,371 |   |                     | $      | 111,457,373 |                          |   |   | 108,911,153 |   |   |   |   |   |   |   |   |   |
|          |   |                                          |        |   |                     |   |        |                          |   |   |   |   |   |   |   |   |   |   |   |   |

|  7. | WEIGHTED      AVERAGEUNITS |
|----------|----------------------------|

|   | The      weighted average number of Units outstanding for each Class is computed      for purposes of calculating net income per weighted average      Unit.  The weighted average number of Units outstanding for each      Class for the years ended December 31, 2008 and for the period ended      December 31, 2007 equals the Units outstanding as of such date, adjusted      proportionately for Units sold or redeemed based on the respective length      of time each was outstanding during the      period. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  8. | RECENT      ACCOUNTINGPRONOUNCEMENTS |
|----------|--------------------------------------|

|   | In      March 2008, the FASB released Statements of Financial Accounting Standards      No. 161, Disclosures      about Derivative Instruments and Hedging Activities – an amendment      to FASB Statement No. 133 (“FAS 161”). FAS 161 requires qualitative      disclosures about objectives and strategies for using derivatives,      quantitative disclosures about fair value amounts of and gains and losses      on derivative instruments, and disclosures about credit-risk related      contingent features in derivative agreements. The application of FAS 161      is required for fiscal years beginning after November 15, 2008 and interim      periods within those fiscal years. Currently, the Fund is evaluating the      implications of FAS 161 on its financial statements.In      May 2008, the FASB issued Statement of Financial Accounting Standards No.      162, “The Hierarchy of      Generally Accepted Accounting Principles” (“FAS 162”). FAS 162      identifies the sources of accounting principles and the framework for      selecting the accounting principles used in preparing financial statements      of nongovernmental entities that are presented in conformity with U.S.      GAAP. Currently, U.S. GAAP hierarchy is provided in the American Institute      of Certified Public Accountants U.S. Auditing Standards (“AU”) Section      411, “The Meaning of      Present Fairly in Conformity With Generally Accepted Accounting      Principles”.  The Fund does not expect the adoption of      FAS 162 to have an impact on its financial      statements |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  9. | MARKET      AND CREDITRISK |
|----------|----------------------------|

|   | The      nature of this Fund has certain risks, which cannot all be presented on      the financial statements.  The following summarizes some of      those risks.Market      RiskDerivative      instruments involve varying degrees of market risk.  Changes in      the level or volatility of interest rates, foreign currency exchange rates      or the market values of the financial instruments or commodities      underlying such derivative instruments frequently result in changes in the      Fund’s net unrealized profit (loss) on open contracts on such derivative      instruments as reflected in the Statements of Financial      Condition.  The Fund’s exposure to market risk is influenced by      a number of factors, including the relationships among the derivative      instruments held by the Fund as well as the volatility and liquidity of      the markets in which the derivative instruments are      traded.  Investments in foreign markets may also entail legal      and political risks. MLAI      has procedures in place intended to control market risk exposure, although      there can be no assurance that they will, in fact, succeed in doing      so.  These procedures focus primarily on monitoring the trading      of Chesapeake, calculating the Net Asset Value of the Fund as of the close      of business on each day and reviewing outstanding positions for      over-concentrations.  While MLAI does not intervene in the      markets to hedge or diversify the Fund’s market exposure, MLAI may urge      Chesapeake to reallocate positions in an attempt to avoid      over-concentrations.  However, such interventions are expected      to be unusual.  It is expected that MLAI’s basic risk control      procedures will consist of the ongoing process of advisor monitoring, with      the market risk controls being applied by Chesapeake.. |
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|   | Credit      RiskThe      risks associated with exchange-traded contracts are typically perceived to      be less than those associated with over-the-counter (non-exchange-traded)      transactions, because exchanges typically provide clearinghouse      arrangements in which the collective credit (in some cases limited in      amount, in some cases not) of the members of the exchange is pledged to      support the financial integrity of the exchange.  In      over-the-counter transactions, on the other hand, traders must rely solely      on the credit of their respective individual      counterparties.  Margins, which may be subject to loss in the      event of a default, are generally required in exchange trading, and      counterparties may also require margin in the over-the-counter      markets.The      credit risk associated with these instruments from counterparty      nonperformance is the Net unrealized profit on open contracts, if any,      included in the Statements of Financial Condition. The Fund attempts to      mitigate this risk by dealing exclusively with Merrill Lynch entities as      clearing brokers.The      Fund, in its normal course of business, enters into various contracts,      with MLPF&S acting as its commodity broker .  Pursuant to      the brokerage arrangement with MLPF&S (which includes a netting      arrangement), to the extent that such trading results in receivables from      and payables to MLPF&S, these receivables and payables are offset and      reported as a net receivable or payable and included in Equity in      commodity futures trading accounts in the Statements of Financial      Condition. |
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