Verition Fund Management LLC

ITEM 5. FEES AND COMPENSATION

Verition’s fee schedule is omitted because this brochure is being delivered only to “qualified
purchasers,” as defined in section 2(a)(51)(A) of the Investment Company Act of 1940 (the “Investment
Company Act”).

Management Fee

Verition is entitled to receive a management fee from certain classes of shares and interests of the Multi-
Strategy Feeder Funds.

Certain classes of the Multi-Strategy Feeder Funds are subject to a management fee, payable monthly in
arrears, equal to the management fee rate applicable to such class multiplied by the month-end net asset
value attributable to such class prior to any reduction for any profit allocations not yet made or for the
management fee then being calculated.

The Multi-Strategy Feeder Funds have certain classes, the “Initial Classes” and the “Modified Classes.”
The Initial Classes are not subject to a management fee, but do bear the Operating Expenses (as defined
below) and certain direct and indirect trading, general operating and administrative costs of Verition in
providing services to the Funds (which are described under “Pass-Through Costs” below). These pass-
through costs include, without limitation, employee compensation, rent, utilities, hardware and all legal,
accounting, auditing and other professional services of the Manager. These fees and costs are more fully
described below. The management fees are paid by the Modified Classes only and are first applied to
pay any pass-through costs that would have been allocated to them if they had the same fee structure as
the Initial Classes. If the management fee is not sufficient to defray the pass-through costs, the Initial
Classes will bear the shortfall; if the management fee exceeds the pass-through costs, the management
fee will effectively pay a portion of the pass-through costs otherwise allocated to the Initial Classes. If
the management fee exceeds: (i) the pass-through costs that would be allocated to the Modified Classes
were they subject to pass-through costs; and (ii) the pass-through costs actually allocated to the Initial

Classes, the remaining management fee will be retained by the Manager. The Multi-Strategy Funds’ fees
and expenses are described in more detail in their offering documents.

Performance-Based Compensation

As compensation for Verition’s advisory services, an affiliate of Verition receives a profit allocation from
investors in the Multi-Strategy Feeder Funds. The profit allocation is equal to a percentage of any new
appreciation of the investor’s account subject to a high water mark. The profit allocation, if any, received
by such affiliate is calculated monthly and deducted from accounts each December 31. Generally, a
profit allocation is assessed when an investor withdraws or transfers its interest in a Multi-Strategy
Feeder Fund or when a Multi-Strategy Feeder Fund makes a distribution to an investor.

Once paid or distributed to such affiliate of Verition, any performance‐based compensation received is
generally not subject to reversal.

Funds’ Trading, Operating and Administrative Costs

In addition to a management fee, if any, the Funds pay their ongoing trading, operating and
administrative costs and expenses, including, but not limited to: organizational and initial offering costs;
investment costs and all other trading costs, including, without limitation, all brokerage commissions,
clearing and settlement charges, all other costs of executing transactions, interest on margin accounts
and other indebtedness, borrowing charges on securities sold short, interest expenses, investment-
related travel and lodging expenses, financing charges and applicable withholding and other taxes,
related to the purchase, sale, transmittal or custody of investment assets and related items, as well as
the costs associated with obtaining and maintaining regulatory licenses, exchange memberships and
credit ratings; costs associated with maintaining trading co-location sites and data transmission and
communications equipment used in connection with trading and research activities; all research-related
expenses, including, without limitation, market data, news and quotation equipment and services; on-
going costs of investment assets, if any (e.g., the Funds’ investment in exchange traded funds (“ETFs”) is
also subject to the fees borne by all investors in those ETFs, including transaction, management and
marketing fees); all legal costs, including, without limitation, investment and litigation-related costs of
the Funds; accounting, auditing and tax preparation costs; fees and expenses of the administrator and
other third parties providing administrative, accounting, operations and valuation services, including
any valuation agent retained to provide valuation services for the Funds; professional fees and expenses,
including, without limitation, fees and expenses of consultants and experts; fees and expenses of any
shareholders’ representative; employee recruiting costs (including costs of counsel); fees and out-of-
pocket costs of any service providers incurred in performing services for the Funds; costs of preparing,
printing and distributing annual and periodic reports, marketing materials, updates to offering
documents and other investor communications; any taxes, licenses and duties payable in any
jurisdiction in connection with the Funds’ operations; insurance costs, including the premiums paid for
directors and officers, errors and omissions and other comparable insurance for the Manager, Mr.
Maounis, certain individuals and entities affiliated with the Manager and third parties providing services
to the Funds; costs of paying agency, transfer agency and accounting verification services, if any; costs
associated with regulatory compliance related to Verition’s management of the Funds, including,
without limitation, costs of compliance programs, including employee-related compliance tracking
...

ITEM 7. TYPES OF CLIENTS

Verition provides discretionary investment advice to the Funds. The investors in the Funds may include,
without limitation, high net worth individuals, funds of funds, institutional investors, family offices,
endowments, foundations, pension plans, sovereign wealth investors, consultants, insurance companies,
banks, bank platforms and trusts. The U.S. Multi-Strategy Feeder limits its investors to persons who are
both “qualified purchasers” as defined in the Investment Company Act and “accredited investors” as
defined in the Securities Act of 1933, as amended (the “Securities Act”). Investors in the Offshore
Multi-Strategy Feeder must either be both qualified purchasers and accredited investors, or non‐United
States persons. The minimum initial investment in the Funds is $10,000,000 (or the equivalent in the
currency applicable to the relevant Modified Class).

Verition may, in its sole discretion, waive any of the minimum investment requirements specified above,
subject to applicable law.