5 v- v- v- Governing Documents for the Client Account in conjunction with this brochure for more complete information on the applicable management fees. The Investors in the Fund pay Jaffa an annual management fee equal to 2% of the net asset value of their capital accounts in the Fund, which is payable quarterly in advance. Current SMA Clients that are also Segregated Portfolios or Series Entities do not pay fees to the Investment Manager. B. For Investors in the Fund, Jaffa’s management fee is deducted from each Investor’s capital account in the Fund. For the Fund, management fees are generally collected quarterly in advance. Jaffa debits management fees directly from the Fund’s custodial or prime brokerage accounts. For other SMA Clients, Jaffa’s management fee is payable quarterly in arrears. The management fees above are generally subject to waiver or reduction by Jaffa in its sole discretion with certain Clients or Investors. For example, Jaffa officers and employees generally will not pay management fees though they do pay their pro-rata share of operating costs. The management fee may vary by Client. The Governing Documents specify the fees applicable to each Client. C. Jaffa is responsible for all ordinary administrative and overhead expenses incurred in connection with maintaining and operating its office, including employee’s salaries, rent, utilities and equipment expenses, as provided in the Investment Management Agreement or other Governing Documents with each Client. The Fund (and thus Investors) is responsible for paying certain fees and expenses including (a) all expenses, incurred in connection with the offer and sale of interests after the initial closing date, other than placement agent fees, including, but not limited

to, marketing expenses, documentation of performance and the admission of Investors, (b) all operating expenses of the Fund such as tax preparation fees (including, without limitation, any such fees related to the preparation of tax returns and Schedule K-1s), governmental fees and taxes (or any other governmental charges levied against the Fund), Fund administrators, custodial and brokerage (and if applicable, prime brokerage) fees and expenses, communications with Investors and ongoing legal, accounting, auditing, administration, appraisal, bookkeeping, consulting and other professional fees and expenses, including for litigation, and preparation of the Fund’s financial statements and reports, (c) all Fund costs, expenses and charges incurred in connection with the investment and trading activities of the Fund (e.g., brokerage commissions, mark-ups, margin interest, expenses related to short sales, custodial fees, clearing and settlement charges and other transaction costs to brokers), (d) professional and other advisory and consulting expenses and travel expenses incurred in connection with investment due diligence, monitoring or the assertion of rights or pursuit of remedies (including, without limitation, pursuant to bankruptcy or other legal proceedings, or participation in informal committees of creditors or other security holders of an issuer), (e) all fees and other expenses incurred in connection with the investigation, prosecution or defense of any claims by or against the Fund, (f) interest on, and fees and expenses arising out of, all borrowings made by the Fund, (g) expenses of any meetings of the Investors, (h) the costs of any litigation and indemnification relating to the affairs of the vi- vi- vi-