JTS Fund Advisors LLC

ITEM 5: FEES AND COMPENSATION

Item 5.A: Description of Compensation Arrangements

Management Fees

JTS Fund Advisors has collected/collects and has received/receives payment of management fees from
the JTS II Funds, JTS III Funds, and JTS IV Funds (together, hereinafter, the “JTS Series Funds”).

However, under their limited partnership agreements, none of the JTS Series Funds pay any management
fees in respect of “Related Limited Partners” (i.e., limited partners affiliated with either the general
partners of such funds or with the Sponsor), and, hence, such Related Limited Partners are not charged
for management fees. Instead, management fees are paid by the JTS Series Funds to JTS Fund Advisors
only in respect of “Independent Limited Partners” (i.e., limited partners having no affiliation with such
general partners or the Sponsor), and, hence, only such Independent Limited Partners are charged for
management fees. Furthermore, unless the Management Committee of the Sponsor should otherwise
determine, it is anticipated that this arrangement with respect to management fees will continue for and
in respect of future, successor JTS Private Funds.

Under their limited partnership agreements, the JTS Series Funds pay annual management fees in respect
of their Independent Limited Partners to JTS Fund Advisors in advance, and in semi-annual installments
(every six (6) months, on January 1 and July 1, respectively, and pro-rated for shorter periods), according
to the following schedules:

Until and through their investment period termination date, the annual management fee rate for the JTS
II Funds is the sum of:
  i.    1% per annum of the aggregate total commitments of Independent Limited Partners having
        committed $10 million or more to either of the JTS II Funds;
  ii.   1.5% per annum of the aggregate total commitments of Independent Limited Partners having
        committed more than $4,999,999 and less than $10,000,000 to either of the JTS II Funds; and
 iii.   2% per annum of the aggregate total commitments of Independent Limited Partners having
        committed less than $5 million to either of the JTS II Funds.
However, from and after the first day following such investment period termination date, the annual
management fee rate for the JTS II Funds will change and be equal to the sum of:
  i.    for the first semi-annual installment period (six (6) months) of a given year, (x) the lesser of one-
        half of one percent (0.5%) of (a) the aggregate total commitments of Independent Limited
        Partners having committed $10,000,000 or more to either of the JTS II Funds, and (b) aggregate
        partners’ equity as of December 31 of the immediately preceding year of such Independent
        Limited Partners; plus (y) the lesser of three-fourths of one percent (0.75%) of (a) the aggregate
        total commitments of Independent Limited Partners having committed more than $4,999,999 and

        less than $10,000,000 to either of the JTS II Funds, and (b) aggregate partners’ equity as of
        December 31 of the immediately preceding year of such Independent Limited Partners; plus (z)
        the lesser of one percent (1%) of (a) the aggregate total commitments of the Independent Limited
        Partners having committed less than $5,000,000 to either of the JTS II Funds, and (b) aggregate
        partners’ equity as of December 31 of the immediately preceding year of such Independent
        Limited Partners; and
  ii.   for the second semi-annual installment period (six (6) months) of that same year, (x) the lesser of
        one-half of one percent (0.5%) of (a) the aggregate total commitments of Independent Limited
        Partners having committed $10,000,000 or more to either of the JTS II Funds, and (b) aggregate
        partners’ equity as of June 30 of such year of such Independent Limited Partners; plus (y) the
        lesser of three-fourths of one percent (0.75%) of (a) the aggregate total commitments of
        Independent Limited Partners having committed more than $4,999,999 and less than
        $10,000,000 to either of the JTS II Funds, and (b) aggregate partners’ equity as of June 30 of such
        year of such Independent Limited Partners; plus (z) the lesser of one percent (1%) of (a) the
        aggregate total commitments of Independent Limited Partners having committed less than
        $5,000,000 to either of the JTS II Funds, and (b) aggregate partners’ equity as of June 30 of such
        year of such Independent Limited Partners.
Until and through their investment period termination date, the combined annual management fee rate
for the JTS III Funds is 1.5% per annum of the aggregate total commitments of Independent Limited
Partners to all of the JTS III Funds (as if they comprise a single investment fund). However, from and after
the first day following such investment period termination date, the annual management fee rate for the
JTS III Funds will change and be equal to the sum of:
  i.    for the first semi-annual installment period (six (6) months) of a given year, the lesser of three-
        fourths of one percent (0.75%) of (a) the aggregate total commitments of all Independent Limited
        Partners of the JTS III Funds, and (b) aggregate partners’ equity as of December 31 of the
        immediately preceding year of all such Independent Limited Partners; and
  ii.   for the second semi-annual installment period (six (6) months) of that same year, the lesser of
        three-fourths of one percent (0.75%) of (a) the aggregate total commitments of all Independent
        Limited Partners of the JTS III Funds, and (b) aggregate partners’ equity as of June 30 of such year
        of all such Independent Limited Partners.
The May 12, 2022 JTS Fund II’s amendment provides for a 15 month extension of the original investment
period termination date and a 15 month extension of the term of the Funds. In addition, an amendment
...

ITEM 7: TYPES OF CLIENTS

JTS Fund Advisors serves as investment advisor to the JTS Private Funds (and, by extension, their wholly-
owned SPEs), but does not render investment advice to any limited partner or investor member
individually or outside of any given JTS Private Fund. To date, investors have consisted of high net-worth
individuals, closely-held entities and other personal investment vehicles, trusts, non-taxable state and
local governments, private funds of funds, and other types of institutionally capitalized investors. In
respect of future, successor JTS Private Funds, management anticipates the same types of investors, but
may also accept subscriptions from additional types of investors such as retirement or state pension and
profit-sharing plans, managed accounts, estates, charitable organizations, endowments, insurance
companies, foreign sovereign wealth funds and other types of tax-exempt or non-U.S. investors having an
appetite for distressed debt private equity as a desirable asset class. All investors are and must be
“accredited investors” (as defined in Regulation D promulgated under the Securities Act of 1933, as
amended (the “Securities Act”)), and, for purposes of investing in the JTS III Funds, “qualified purchasers”
(as defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”). In
addition, all Independent Limited Partners must be Qualified Clients at so that the JTS general partners of
the JTS Series Funds may charge carried interest to or against the capital accounts of such Independent
Limited Partners under the Advisers Act and Rule 205-3 thereunder. Employees of JTS who qualify as

“knowledgeable employees” as defined in Rule 3c-5 under the Investment Company Act have also been,
and will continue to be, permitted to invest (directly or indirectly) in the JTS Private Funds. In any case,
each prospective investor, prior to becoming a limited partner or investor member in any JTS Private Fund,
is required to submit a complete, extensive investor questionnaire, all provided answers will be reviewed
by outside counsel and acceptable and satisfactory to management on the advice of counsel.

Minimum investment requirements vary by Fund and the General Partner reserves the right to accept
commitments of a lesser amount in its sole discretion.