Thrax Management LLC

Item 5: Fees and Compensation
Thrax Funds: For its services to the Thrax Funds, the Adviser charges a management fee at annual rate of
2.0% of the capital account balance of each investor in a Thrax Fund. This management fee is payable
monthly in advance and calculated as of the first day of each month. If an investor makes additional
contributions to a Thrax Fund during a month, the management fee will be prorated and charged at the
time of such contribution. If an investor makes a withdrawal at any time other than the end of a month, a
pro rata portion of the management fee will be paid back to the investor. Management fees are deducted
directly from the Thrax Funds.

General: Asset based management fees are negotiable on a case-by-case basis. Thrax may reduce or
waive the management fee to certain investors, including but not limited to Thrax affiliates, employees,
and family members. Early investors in the Thrax Funds may have preferential terms in a form of lower
fees.

Other Expenses Charged to the Thrax Funds: Other fees and expenses clients may pay in connection with
Thrax’s advisory services to the Thrax Funds include: research and related expenses, expenses associated
with regulatory filings that relate to clients, client trading costs and expenses (e.g., brokerage
commissions, margin interest, expenses related to short sales, custodial fees and clearing and settlement
charges), fees and expenses of any kind related to the provision of technology for a Thrax Fund or for
Thrax and/or the General Partner, including but not limited to computers, storage, networking and other
physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of
electronic data, technology associated with research and/or product testing and remote access, and third
party technology providers, and expenses associated with market data services and communication
systems, brokerage services and order management systems expenses, fees in connection with proxy
contests or to protect or preserve any investment held by a client and fees and other expenses incurred in
connection with the investigation, prosecution or defense of any claims by or against a client. See Item

Item 7: Types of Clients
As mentioned in Item 4, Thrax provides investment advisory services to private investment funds for
sophisticated, qualified investors, including: high net worth individuals, retirement plans, trusts,
partnerships, corporations, or other businesses.

The minimum investment amount for an investor investing in a Thrax Fund is $1,000,000; however,
Thrax maintains discretion to accept less than the minimum investment threshold.