EFTA01451880.pdf

SOF III - 1081 Southern Financial LLC Reports Limited Partners in the Onshore Feeder Fund will receive annual reports containing audited financial statements of the Onshore Feeder Fund, an unaudited individual capital statement, and applicable U.S. tax reporting information, including Schedules K-I. Limited Partners will also receive quarterly status reports (on an aggregate basis) and unaudited individual capital statements as soon as is reasonably practicable following the Investment Manager's receipt of relevant information from the Master Fund. Reports from the Offshore Feeder Fund (other than tax reports) will be similar to reports from the Onshore Feeder Fund. The information required to be provided to the Limited Partners pursuant to the Onshore Feeder Fund's reporting requirements may be provided by any means permitted by the Onshore Feeder LP Agreement, including by a posting on a password protected website maintained by the Onshore Feeder Fund, its affiliates or third party providers. For U.S. federal income tax purposes, the Limited Partners will be treated as partners investing in a partnership, the Onshore Feeder Fund. Because the Onshore Feeder Fund's ability to report to Limited Partners information regarding its income, gains, losses, and deductions is dependent upon receipt of such information from the Master Fund, the Onshore Feeder Fund anticipates that it will not be able to deliver Schedules K-1 to Limited Partners prior to April 15 of each year and expects to deliver Schedules K-1 to Limited Partners in respect of a particular year in September of the following year. Further, the Master Fund expects to deliver Schedules K-1 to the Onshore Feeder Fund in September of each year. If the Onshore Feeder Fund does not receive all of the required information in a timely manner, it may need to rely on estimates in preparing its tax return and any schedules thereto (including Schedules K-1). Accordingly, Limited Partners will be required to obtain extensions for filing their federal, state and local income tax returns, or if they are unable to obtain extensions to file estimated returns followed by amended returns following the receipt of annual tax information. In order to avoid the imposition of U.S. withholding tax on U.S. source income (if any) and backup withholding requirements, each Limited Partner will be required to submit a valid Internal Revenue Service Form W-9 to the Onshore Feeder Fund with its Subscription Agreement, and each Investor in the Offshore Feeder Fund will be required to submit a valid Internal Revenue 28 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0108723 CONFIDENTIAL SONY GM_00254907 EFTA01451880