Sonnet LLC

Item 5 – Fees and Compensation

We provide asset management services for a fee.

You can terminate the relationship without penalty within the first five (5) days after the signing of this
agreement. After the initial five days, either party may terminate the relationship with a thirty (30) day
written notice.

Asset Management Fee Schedule
Our minimum account opening balance requirement is $5,000.00, however, a higher minimum account
opening balance might be required, depending upon the strategy selected. The fee charged is based upon
the amount of money you invest. Multiple accounts of immediately-related family members, at the same
mailing address, may be considered one consolidated account for billing purposes. Sonnet may charge a
fee of up to 2.20% annually, which may be negotiable based upon certain circumstances and/or
dependent upon the model portfolio strategy selected by the client. The fee will be deducted monthly in
advance, and is the maximum fee that may be charged by Sonnet for investment management services.
Advisory fees are billed monthly in advance at a rate of 1/12th of the annual percentage rate. The
prior month’s closing account value is the basis for each monthly advisory fee. A pro-rata fee based
on the initial management start date will be deducted for the first month’s fee. If a managed account

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is terminated, any fees collected in advance will be refunded, if applicable, and if requested in writing
by the client on a pro-rata basis.

No increase in the annual fee shall be effective without prior written notification to you. We believe our
advisory fee is reasonable considering the fees charged by other investment advisers offering similar
services/programs.
The fees we charge can be deducted directly from your account at the custodian. We will instruct the
custodian to deduct the fees from your account at the beginning of the month. This fee will show up as a
deduction on your monthly account statement from the custodian.

Third Party Fees
Our fees do not include brokerage commissions, transaction fees, and other related costs and expenses.
You may incur certain charges imposed by custodians, third party investment companies and other third
parties. These include fees charged by managers, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds, money market funds, and exchange-traded funds
(ETFs) also charge internal management fees, which are disclosed in the fund’s prospectus. These fees
may include, but are not limited to, a management fee, upfront sales charges, and other fund expenses.
Certain strategies offered by us may involve investment in mutual funds and/or ETFs. Load and no-load
mutual funds may pay annual distribution charges, sometimes referred to as “12(b)(1) fees”. These
12(b)(1) fees come from fund assets, and thus indirectly from clients’ assets. We do not receive any
compensation from these fees. All of these fees are in addition to the management fee you pay us. You
should review all fees charged to fully understand the total amount of fees you will pay. Services similar
to those offered by us may be available elsewhere for more or less than the amounts we charge. Our
brokerage practices are discussed in more detail under Item 12 – Brokerage Practices.

Item 6 – Performance Based Fee and Side by Side Management

We do not charge any performance-based fees. These are fees based on a share of capital gains on or
capital appreciation of the assets of a client.

Item 7 – Types of Client(s)

We provide asset management services to individuals, high net worth individuals, trusts, small businesses
and/or churches.

Our minimum account opening balance requirement is $5,000.00, however, a higher minimum account
opening balance might be required, depending upon the strategy selected.

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