Curbstone Financial Management Corporation

Item 5 Fees and Compensation
All advisory clients are billed quarterly, in advance of the calendar quarter, for advisory services
rendered by Curbstone. Quarterly billings are calculated based upon one fourth of the following annual
rates:

Fee Schedule

                       Assets                                    Fee Rate
                       On the first $2,000,000                   1.00%
                       On the next $3,000,000                    0.85%
                       Balance over $5,000,000                   0.50%

A non-profit agency may be granted a 10% discount.

Discounts may be extended to clients accounts predominantly invested in ETFs and Mutual Funds.

Fees are expressed on an annualized basis and assessed quarterly in advance based on the market
value of assets on the last trading day of each calendar quarter. Management fees are typically directly
debited from client accounts by the qualified custodian or broker-dealer, as authorized by a Limited
Power of Attorney granted by the client. These fees may be negotiable in advance under certain
circumstances, at the sole discretion of the firm. Family relationships are aggregated for fee calculation
purposes in order to provide the client with the lowest possible fee.

Curbstone and/or the client may terminate the investment management contract at any time. Upon
termination, any investment management fees paid in advance will be prorated to the date of
termination and any excess shall be refunded to the client.

Additional Fees and Expenses
As part of our investment advisory services to you, we may invest, or recommend that you invest, in
mutual funds and exchange traded funds. The fees that you pay to our firm for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds or exchange
traded funds (described in each fund's prospectus) to their shareholders. These fees will generally
include a management fee and other fund expenses. You will also incur transaction charges and/or
brokerage fees when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed. We do not
share in any portion of the brokerage fees/transaction charges imposed by the broker-dealer or
custodian. To fully understand the total cost you will incur, you should review all the fees charged by
mutual funds, exchange traded funds, our firm, and others. For information on our brokerage practices,
refer to the Brokerage Practices section of this brochure.

Variable annuities will also have yearly mortality and expense charges to compensate the insurance
company for funning and assuming the risk of the contract. Most annuity contracts will also have a
surrender charge which is a fee assessed for withdrawing funds from an annuity during an initial pre-
set number of years. Both the M&E and surrender charges are paid to the insurance company.
Curbstone will not receive any portion of these charges. These charges are in addition to the advisory
fee paid to Curbstone.

Item 7 Types of Clients
Curbstone provides investment management services to individuals, high net worth investors,
endowments, charitable organizations, pension and profit-sharing plans, and corporations.

Curbstone does not stipulate a minimum account size. Prospective clients will be accepted upon
review and at the sole discretion of the firm.