Jacobs Asset Management LLC

Item 5: Fees and Compensation
Management Fees: Hedge Fund
JAM receives a management fee at the annual rate of 1.0% or 1.5% of each limited partner’s capital,
depending on the class of limited partnership interest, as described more fully in the Limited Partnership
Agreement. Although the management fee is not negotiable, JAM or its affiliates, in their sole discretion,
waives or modifies the management fee for certain limited partners including members, employees, or
affiliates of the JAM or the Managing Member, or other strategic investors.

The management fee for each fiscal quarter will be calculated as of the first day of such quarter based
on the value of net assets of the Hedge Fund as of such date and will generally be paid in three equal
installments within 10 days after the beginning of each month in the relevant quarter. The management
fee will be prorated for periods less than a full fiscal quarter.

All investment management services may be terminated in accordance with the terms outlined in each
respective investment management agreement.

                                Jacobs Asset Management, LLC

Other Fees
In addition to the management fee, the Fund bears its allocable share of expenses associated with the
operations of the Fund, which may include but are not limited to:

      Organizational expenses, including legal, accounting, and administration fees, and filing fees,
       and all other out of pocket expenses reasonably incurred in connection with the organization of
       the Fund
      Ongoing expenses, including costs relating to the due diligence of prospective Portfolio
       Companies, legal, tax, accounting, auditing, administration, regulatory registration and filing
       fees (including, fees and expenses incurred in connection with the preparation and filing of
       Form PF, Section 13 filings and other similar regulatory filings), independent valuations, and
       professional advice of consultants retained on behalf of the Fund
      Investment expenses, including commissions, certain research fees, interest on margin
       accounts and other indebtedness, borrowing charges on securities sold short, custodial fees,
       bank service fees, and all other investment related expenses
      Extraordinary expenses such as litigation and indemnification
      Due diligence and related travel expenses

Broken deal expenses, if any, are generally allocated to JAM’s Clients based upon their indicative level
of commitment. Co-investors invited to invest alongside JAM Clients will share in the cost of broken
deal expenses if they are directly attributable to and/or compounded by the co-investor’s
participation; otherwise, JAM will absorb their pro-rata share of broken deal expenses.

Potential investors should review the appropriate offering documents for complete disclosure of
investor expenses.

Neither JAM nor any of its supervised persons accepts compensation for the sale of securities or other
investment products.

Item 7: Types of Clients
As described in Item 4 above, JAM’s Client is a private fund. The investors in the private fund are
primarily accredited investors or qualified clients as defined in the Investment Company Act, and may
include, amongst others, high net worth individuals, banks, thrift institutions, pension and profit-sharing
plans, trusts, estates, charitable organizations, corporations, limited partnerships and limited liability

                              Jacobs Asset Management, LLC

companies.

The offering documents of the Hedge Fund set minimum amounts for investment by prospective
investors. These minimum amounts may be waived by JAM or an affiliate for one or more investors (or
prospective investors) as long as they qualify to invest based on all other suitability and regulatory
requirements. JAM may decline to accept an investment even if the proposed investor satisfies such
suitability and regulatory requirements.

Occasionally, JAM may find investment opportunities that are larger than the desired investment size
for any of JAM’s Clients. In such instances, JAM may present co-investment opportunities to certain
underlying investors and/or other strategic partners of JAM. Co-investors that enter into an investment
management agreement with JAM would be considered JAM Clients.