SONA Asset Management US LLC

Item 5: Fees and Compensation

The fees and expenses applicable to each Client are set forth in detail in their respective Offering
Documents, the Agreement, and other governing documents. The Firm may enter into different fee
arrangements on a Client-by-Client basis. It is critical that all Clients and Investors refer to the applicable
Client’s governing documents for a complete understanding of how the Firm and its affiliates are
compensated for advisory services. The information contained herein is a summary only and is qualified
in its entirety by each applicable Client’s governing documents.

Paloma Fund
Pursuant to the Agreement, Paloma will pay Sona Asset Management a monthly management fee payable
in advance.
We are also entitled to receive an annual performance fee (subject to a hurdle rate and high-water mark)
calculated based on net trading profits (after the deduction of losses carried forward from the previous
year, if any) as of the end of each calendar year. The performance fee is calculated by the Paloma Fund’s
administrator and approved by the Paloma Fund general partner – we neither calculate the performance
fee, nor authorize its payment.
Other fees and expenses borne by the Managed Account include a pro rata share of the Paloma Fund’s
administration fees and expenses as well as any transaction or investment fees or expenses related to the
Managed Account’s activities.

Sona Funds
The Firm is paid an investment management fee (the “Management Fee”) ranging from 1.5% - 2.0% per
annum of the net asset value of the applicable Sona Funds. The Management Fee is charged on a monthly
basis and paid in arrears based on the applicable Sona Fund’s net asset value on the Valuation Day (as
defined in the Offering Documents).
Generally, the Management Fee is not negotiable. However, Sona Asset Management in its sole discretion,
may waive, rebate or reduce the Management Fee at any time, without notice to or consent from any Sona
Fund (or underlying investor in such Sona Fund).
In addition to the Management Fee and Performance Allocation (see below) and as set forth in more detail
in the applicable Offering Documents, each Sona Fund will generally pay all costs and expenses related to
its investments and its operations. See the Offering Documents for details of all applicable fees and
expenses.
Expenses will generally be shared by all of the investors in the Sona Funds, while expenses related to one
or more particular series or classes of investments will be allocated accordingly. For each Sona Fund that
invests all or a substantial portion of its assets through a “master fund,” each such “feeder fund” will also
be responsible for its pro rata portion of such master fund’s costs and expenses. Expenses of more than
one Sona Fund will be shared on an equitable basis among such Sona Funds in accordance with Sona Asset
Management’s expense allocation policy. The Sona Funds will reimburse the Firm for any expenses it pays
on behalf of the Sona Funds. In addition, certain common expenses of Sona Asset Management and the
Sona Funds may initially be billed to the Firm but will ultimately be allocated among the Firm and the Sona

Funds in accordance with Sona Asset Management’s expense allocation policy regarding common
expenses. Notwithstanding the foregoing, Sona Asset Management may elect to bear some or all of the
above expenses of the Sona Funds.
The Firm and its employees do not accept compensation, including sales charges or service fees, from any
person for the sale of securities or other investment products.

Item 7: Types of Clients
The Firm provides investment advisory services to the Managed Account, which is a portfolio in the Paloma
Fund, under the Agreement between the Cayman Manager, the Firm, and Paloma.
The Firm also provides investment advisory services to the Sona Funds (as described in Item 4 above), and

the Sona Funds are generally open to, among others, institutions, funds of funds, pension plans,
foundations, endowments, high net-worth individuals, financially sophisticated individuals, and other
sophisticated investors.
Generally, the minimum initial investment in the Sona Funds is $1 million. However, Sona Asset
Management may, in its sole discretion, accept smaller initial investments from time to time.