PCM Encore LLC

Item 5. Fees and Compensation
PCM Encore offers services on a fee basis, which includes fixed fees, as well as fees based upon assets under
management. Additionally, certain of the Firm’s Access Persons, in their individual capacities, offer insurance
products under a separate commission-based arrangement.

As described above, PCM Tax can obtain fees for tax planning services rendered. The billing and fees for PCM
Tax services are separate from investment advisory fees defined below. Clients are advised that PCM Tax
creates a conflict of interest for PCM Encore to refer clients to services offered by PCM Tax.

Similarly, PCM Kinect can obtain compensaSon for services rendered. The billing and fees for PCM Kinect
services are separate from investment advisory fees defined below. Clients are advised that PCM Kinect creates
a conflict of interest for PCM Encore to refer clients to services or investment opportuniSes offered by PCM
Kinect.

Financial Planning and Consulting Fees

PCM Encore charges a fixed fee for providing financial planning and consulting services under a standalone
engagement. These fees are negotiable, but range from $1,000 to $5,000, depending upon the scope and
complexity of the services and the professional rendering the financial planning and/or the consulting services.
If the client engages the Firm for additional investment advisory services, PCM Encore can offset all or a
portion of its fees for those services based upon the amount paid for the financial planning and/or consulting
services.

The terms and conditions of the financial planning and/or consulting engagement are set forth in the Advisory
Agreement. PCM Encore requires one-half of the fee payable upon execution of the Advisory Agreement. The
outstanding balance is due upon delivery of the financial plan or completion of the agreed upon services. The
Firm does not, however, take receipt of $1,200 or more in prepaid fees, six or more months in advance of
services rendered.

Investment Management Fees

PCM Encore offers investment management services for an annual fee based on the amount of assets under
the Firm’s management. This management fee varies depending upon the size and composition of a client’s
portfolio, the type and amount of services rendered, the individual(s) providing the services, and the
relationship the Firm has with the client. This management fee varies in accordance with the following fee
schedule:

                                            Portfolio Value         Base Fee
                                           Up to $1,000,000           1.25%
                                        $1,000,001 - $3,000,000       1.15%
                                        $3,000,001 - $5,000,000       1.00%
                                       $5,000,001 - $10,000,000       0.85%
                                      $10,000,001 - $25,000,000       0.70%
                                      $25,000,001 - $50,000,000       0.40%
                                     $50,000,001 - $100,000,000       0.30%
                                    $100,000,001 - $250,000,000       0.25%
                                        Above $250,000,000            0.20%

The annual fee is prorated and charged quarterly, in arrears, based upon the market value of the assets being
managed by PCM Encore on the last day of the previous quarter as determined by a party independent from
the Firm (including the client’s custodian or another third-party). If a valuation for private securities is not
available through the custodian, the Firm will typically rely on the valuation provided by the issuer. Because
valuations may only be provided periodically (including monthly, quarterly or even annually), the Firm can be
billing on a valuation that would be different if updated. That valuation can be higher or lower depending on
the increase or decrease in value of the private investment.

The Firm includes cash in a client’s account in determining the valuation for billing purposes. The Firm may, in
its sole discretion, not include cash in determining the fee, especially where a client has a high percentage of
cash for reasons other than the Firm's investment management decision.

If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is adjusted to reflect the interim change in portfolio value. For the initial
period of an engagement, the fee is calculated on a pro rata basis. In the event the advisory agreement is
terminated, the fee for the final billing period is prorated through the effective date of the termination and
the outstanding or unearned portion of the fee is charged or refunded to the client, as appropriate.

Additionally, for asset management services the Firm provides with respect to certain client holdings (e.g.,
held-away assets, accommodation accounts, alternative investments, etc.), PCM Encore can negotiate a fee
rate that differs from the range set forth above. Clients are advised that a conflict of interest exists for the
Firm to recommend that clients engage PCM Encore for additional services for compensation, including rolling
over retirement accounts or moving other assets to the Firm’s management. Clients retain absolute discretion
over all decisions regarding engaging the Firm and are under no obligation to act upon any of the
recommendations.

For reSrement plan advisory engagements, PCM Encore applies its regular investment management fee
schedule described above. ReSrement plan advisory fees are not subject to a separate fee schedule or
different fee arrangement solely because an account is subject to ERISA or other reSrement plan rules.
Depending on the terms of the engagement and applicable law, such fees may be paid by the plan sponsor,
deducted from plan assets, or paid from another source authorized by the client or plan sponsor.
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Item 7. Types of Clients
PCM Encore offers services to individuals, trusts, estates, charitable organizations, corporations and other
business entities.