Sonata Capital Group Inc

Item 5 – Fees and Compensation

Compensation:
Basis for compensation is a percentage of assets as described below. In general, extenuating
circumstances could require fee negotiation and/or manager grandfathered fees, i.e.: non-
supervised assets, closely held corporations, charitable funds, or related accounts. Household
Assets as well as Family of Account Relationships are aggregated for fee structure breakpoints.
Our standard annual fee structure for Equity and Balanced Accounts is:
                                 1.00% on the first $2,000,000.00
                                 0.80% on the next $3,000,000.00
                                 0.50% on the next $5,000,000.00
                                    0.40% over $10,000,000.00
Compensation Timeframe:
Fees paid to Sonata are computed on the portfolio assets as priced on the final business day of
the quarter and are paid in arrears of the previous quarter.

Payment of Fees:
Fees are deducted directly from clients’ assets based on this schedule. Clients may choose to be
billed for fees incurred and payable upon receipt.

Either party upon 30 days prior written notice may terminate the contractual relationship.
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account, any earned, unpaid fees will be due and payable.

Fees other Than Sonata’s:
Sonata’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may 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, 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 may also charge internal management fees, which are disclosed in a
fund’s prospectus. Sonata, as a practice, will select low fee exchange traded funds or no-load
mutual funds over higher fee or load funds when selecting these investment products.

Sonata may choose to execute fixed income trades with firms other than the custodian/broker-
dealer holding the client’s account. This occurs when the other firm may have a more extensive
inventory than the custodian. Typically, custodians charge an additional fee for settling trades
executed in this manner. Sonata considers the additional fee when deciding whether to execute
with or away from the custodian.

Such charges, fees and commissions are exclusive of and in addition to Sonata’s fee, and Sonata
shall not receive any portion of these commissions, fees, and costs.

Please also see Item 12, Brokerage Practices, of this Brochure for further information.

Item 7 – Types of Clients
Sonata provides portfolio management services to individuals, high net worth individuals, trusts,
charitable institutions, foundations, and endowments.