Jaffe Asset Management LLC

Item 5 – Fees and Compensation
The Company charges fees for investment advisory and investment supervisory services at a rate of
1.00% per annum. Advisory fee rates are negotiable and may be waived and/or reduced at the
Company’s discretion. We waive management fees for all of Mr. Jaffe's immediate family accounts
and, at our discretion, may manage some smaller accounts on a pro bono basis.

We charge fees quarterly and in advance at the beginning of each calendar quarter. We charge one
fourth of the annual fee each quarter based on the market value of the client’s portfolio as of the last
day of the prior calendar quarter. The formula used for the calculation is as follows: (Annual Rate) x
(Total Assets Under Management at Quarter-End) / 4.

We generally combine multiple accounts from the same investor or from related investors for the
purposes of calculating fees, but the Company will work with Clients to establish a mutually
acceptable billing structure. At commencement of services, we will wait until the beginning of the
next full quarter before billing fees and will not charge for the partial period. However, if the client
or we terminate services in writing at any time, we will refund any unearned fees on a pro-rata basis
to the Client.

With client authorization, the Company will instruct the custodian to automatically withdraw our
advisory fee from the client’s account. All clients will receive brokerage statements from the
custodian no less frequently than quarterly. The custodian statement will show the deduction of the
advisory fee. We bill some accounts differently honoring prior agreements.

We advise clients and prospective clients to bear in mind that lower fees for services comparable to
those offered by the Company may be available from other sources.

Termination
Either party may terminate the advisory agreement at any time by providing written notice to the
other party.

Jaffe Asset Management                              5                                     Part 2A Brochure

Other Fees and Expenses
The Company’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses, all of which the client incurs. Further, clients will incur certain charges imposed
by custodians, brokers, third-party investment and other third parties such as fees charged by
managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Mutual funds and exchange traded funds also charge internal management fees, which are disclosed
in a fund’s prospectus. Such charges, fees, and commissions are exclusive of and in addition to our
management fee, and we shall not receive any portion of these commissions, fees, or costs.

Item 7 – Types of Clients
The Company provides investment planning, strategy, and portfolio management services to
individuals, trusts, endowments, pension and profit sharing plans, corporations, charities, and other
businesses and similar persons and entities.