Encore Consumer Capital LP

ITEM 5 – FEES AND COMPENSATION

    A. Advisory Fees and Compensation

Management Fees

Encore is generally compensated for advisory services through asset-based management fees (the
“Management Fee”). In addition, affiliates of Encore are entitled to performance-based
compensation.

Encore receives a quarterly management fee from each Fund in an amount equal to 2.00% per annum.
The Management Fee is based on a percentage of capital commitments or capital contributions
remaining invested, as applicable.

Performance-Based Fees (Carried Interest)

Affiliates of Encore may be eligible to receive a percentage of investment proceeds on distributions
(the “Carried Interest”). All distributions are split between Investors and the Affiliated General
Partner as set forth in the applicable Fund’s governing documents. The Carried Interest is generally
equal to 20% of realized gains, which applies once an Investor in the relevant Fund has received a
specific preferred return (the “Return”), as outlined in the Fund’s governing documents. Investors
are generally allocated all gains until they have surpassed the Return. Thereafter, the Affiliated
General Partner is then allocated are greater portion of the gains until it has received a specified
portion of the cumulative distributions. Thereafter, gains are generally shared on an 80% / 20% basis
between Investors and the Affiliated General Partner.

    B. Payment of Fees

It should be noted that the fees paid by Investors are negotiable prior to an investment being made in
the Fund, Encore, or the Affiliated General Partner has the ability to waive or reduce the fees. Encore,
or the Affiliated General Partner, deducts fees applicable to the applicable Fund (and Investors)
directly from the Funds’ assets. Clients and Investors do not have the ability to choose to be billed
directly for fees incurred. The Management Fee is payable quarterly in advance and the Carried
Interest is made pursuant to the detailed terms as described in the respective Fund’s governing
documents.

It should be noted that Management Fees and/or Carried Interest may and have been waived by
Encore, as applicable, in certain cases. Affiliated persons of Encore are generally not subject to such
fees/allocations.

It is critical that Investors refer to the relevant confidential private placement memorandum
or other governing documents for a complete understanding of how fees are paid to Encore, or
an Affiliated General Partner. The information contained herein is a summary only and is
qualified in its entirety by such documents.

    C. Other Advisory Client Fees and Expenses

The Funds are responsible for all expenses related to the operation of the applicable Fund, including
fees, costs and expenses directly related to the purchase, holding and sale of investments in portfolio
companies, expenses of any administrators, consultants (including operating executives, described

below), custodians, counsel and accountants (including the audit and certification fees), any
insurance, indemnity or litigation expense, the out-of-pocket expenses of the advisory board, certain
taxes and any fees or other governmental charges levied against the relevant Fund. In addition, each
Fund will pay any unreimbursed expenses for transactions not completed (i.e. “broken deals”),
including amounts payable to third parties and all fees and expenses of lenders, investment banks
and other financing sources in connection with arranging financing for transactions which are not
consummated, and any deposits or draw-down payments which are forfeited in connection with
unconsummated transactions.

Each Fund bears all expenses associated with the organization of such Fund in connection with
marketing, formation, staffing and organization of such Fund, up to a maximum as detailed in the
respective offering documents of the Fund.

If any Fund expenses are associated with two or more Funds, such expenses will typically be
allocated according to the aggregate capital commitments of the applicable funds. In circumstances
where one or more Funds invest alongside a Fund into a specific investment, direct costs pertaining
to such investment will typically be allocated based on the relative share of invested capital in such
investment of the Fund or the applicable Encore Vehicles.

In addition, Encore or the Affiliated General Partners may receive certain transaction fees, advisory
fees, director’s fees, break-up fees or other similar fees in connection with portfolio investments of
the Funds as compensation for financial advisory and similar services provided to the Funds’
Portfolio Companies.

The Management Fees payable by the Funds may be offset by a portion (typically 50%) of such fees
pursuant to the terms of the applicable fund’s limited partnership agreement or other offering
document. As noted above, the Encore Vehicles do not pay management fees, and as a result, there
is no offset with respect to fee income attributable to portfolio investments held by Encore Vehicles.
These fees, and the associated conflicts of interest they present, are further described in Item 11
below.

Encore and its affiliates engage and retain certain senior executives, advisors, consultants, and other
similar professionals (“Operating Executives”) who are not employees or affiliates of Encore but
provide advice and assistance with respect to identifying, analyzing, and working with the companies
in which the Funds invest and who may receive payments from the Funds and/or portfolio companies.
These payments will not be subject to the Management Fee offset described above. Please refer to
Item 10 for additional information relating to the conflicts of interest presented by such arrangements.

Please refer to Item 12 of this Brochure for information regarding Encore brokerage practices.

It is critical that Investors refer to the relevant confidential private placement memorandum and/or
...

ITEM 7 – TYPES OF CLIENTS

Encore provides investment advisory services to the Funds, as described in Item 4. During the periods
of time when the Funds are open to new Investors, the Funds are open only to Investors meeting
certain suitability requirements. In addition, the Funds required and do require a significant minimum
capital commitment.