Beresh Patrick Michael

Item 5 - FEES AND COMPENSATION

INVESTMENT MANAGEMENT FEES
For its investment management clients, PMB Advisors charges a fee based on a percentage of
the market value of the investments held in each client’s account. Assets in the account are
included in the fee assessment unless specifically identified in writing for exclusion. The annual
management fee is prorated and billed quarterly, in arrears. For purposes of calculating the
investment management fee, related client accounts are combined, subject to certain
conditions.

The management fee is computed on the last day of the billing period by determining the market
value of the account using the following guidelines: (a) for marketable securities: the current market
price provided by custodian; (b) for securities for which there exists no active market (such as real
estate, gas and oil, or other illiquid securities), by using such information as PMB Advisors shall in
good faith deem relevant to determine the value thereof, or in the absence of such information, at
cost; and (c) for cash or equivalents, at dollar value.

Unless otherwise negotiated between the Firm and the client, the annual fee is calculated
according to the following standard fee schedule:

   Assets under Management                                                          Annual Fee
   On the market value of Account up to $249,999                                    1.25%
   On the market value of Account between $250,000 to $999,999                      1.0%
   On the market value of Account between $1,000,000 to $1,999,999                  0.90%
   On assets totaling above $2,000,000                                              0.75%

The client’s fee is determined in accordance with the above fee structure, with exceptions
negotiated on a case-by-case basis. Any deviations from the fee structure are based upon a
number of factors including any agreements not to trade certain assets or constraints on trading
applied to parts of the portfolio, the amount of work involved, the amount of assets placed under
management and the attention needed to manage the account.

Clients provide a written authorization permitting the management fee to be deducted from their
account by the custodian and paid to PMB Advisors. At the time PMB Advisors directs the
custodian to deduct the fee PMB Advisors sends a copy of its invoice to the client showing the
amount of the fee and the calculation method. In addition, the custodian will send the client a
monthly account statement showing any fee amounts deducted during the month. It is the
client’s responsibility to verify the accuracy of the fee calculation, as the custodian will not
determine whether the fee is properly calculated.

At the discretion of the Firm, clients may arrange to pay their fee directly to the Firm. Under this
arrangement, payment is due upon client’s receipt of its billing invoice.

To the extent that a client authorizes the use of margin, and margin is thereafter employed, the
market value of the client’s account and corresponding fee payable by the client to PMB Advisors
would be increased. As a result, in addition to understanding and assuming the additional

principal risks associated with the use of margin, clients authorizing margin are advised of the
potential conflict of interest whereby the client’s decision to employ margin would increase the
management fee payable to the Firm. Accordingly, the decision as to whether to employ margin
is left to the sole discretion of client. Clients employing margin are advised that the margin
balance is not deducted when calculating the quarterly advisory fee.

FINANCIAL PLANNING AND CONSULTATION FEES
Fees for financial planning and financial consultations are based upon an hourly rate of $400 per
hour. Under certain circumstances, and in its sole discretion, the Firm may negotiate an
alternative financial planning fee.

COMMISSIONS EARNED
Mr. Beresh is a licensed insurance agent in the State of California. In the course of providing its
financial planning or investment management services, PMB Advisors also may recommend
insurance solutions. When PMB Advisors recommends an insurance product to a client, the
applicable insurance issuer likely will pay a sales load or commission to Mr. Beresh in his licensed
agent role. Please refer to Item 10 – Financial Industry Activities and Affiliates for additional
information regarding Mr. Beresh insurance sales activities and conflicts of interest related thereto.

GENERAL FEE DISCLOSURE
Please refer to Item 4 “Termination”, above, for the effect of termination of the advisory or
financial planning relationship on the payment or refund of investment management or financial
planning fees.

PMB Advisors believes its investment management fees are competitive with the fees charged by
other investment advisors in the San Francisco Bay area for comparable services. However,
comparable services might be available from other sources for lower fees than those charged by
PMB Advisors.

PMB Advisors does not provide clients advice as to the tax deductibility of its advisory fees. Clients
are directed to consult a tax professional to determine the potential tax deductibility of the
payment of advisory fees.

CUSTODIAN AND BROKERAGE FEES
Clients incur certain charges imposed by their custodians and other third parties such as 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. Additionally,
clients will incur charges by the executing broker-dealer in the form of brokerage commissions
and transaction fees on the investment transactions entered into for their account(s). All of these
charges, fees and commissions are in addition to Advisor’s investment management fee. Please
refer to Item 12 – Brokerage Arrangements for additional information regarding fees and services.

FUND DISCLOSURES
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Item 7 - TYPES OF CLIENTS

The firm’s clients include individuals and high net worth individuals and their trusts and estates.
PMB Advisors has established a $100,000 minimum value of assets for opening an individual
client relationship, although multiple accounts for the same client may be aggregated to meet
this minimum. This minimum may be waived in certain circumstances. As a result of the
minimum account requirement, PMB Advisors’ services may not be appropriate for everyone.
Other investment advisors may provide somewhat similar services for lower compensation,
although still others may charge more for similar services.