Donald W Nicholson & Associates Ltd

Item 5. Fees and Compensation

Asset Management Services

For Asset Management Services, Donald W. Nicholson & Associates charges its clients an
annualized fee based on a percentage of assets under management. The asset based fee applies to
all assets managed by the firm, except for assets specifically excluded by the firm. The fee for Asset
Management Services is billed in arrears of service being rendered and is based upon the market
value of the assets under management determined as of the close of business on the last trading
day of each month or quarter, depending upon the billing cycle determined between the Advisor
and client. The fee shall be automatically deducted from the client’s account, when pre-authorized
by the client in writing, and is calculated based on an annual fee schedule as follows:

                                        ANNUAL FEE SCHEDULE

                                      1.25% on the first $500,000

                                1.00 % on the next $1,500,000 of assets

                                0.80 % on the next $2,000,000 of assets

                                   0.60 % on all amounts thereafter

Assets managed for a partial billing cycle will be billed a pro-rata amount based on the number of
days during the cycle for which the assets were managed taking into account contributions and
withdrawals. In some cases, clients may be able to pay fees directly by check, upon presentation of
an invoice. Existing clients may pay fees based upon existing fee schedules in effect at the time of
their Assets Under Management Agreement, which may differ from the above stated fee schedule.
These different fee schedules may be higher or lower than current fee arrangements. The firm may,
in its sole discretion, determine when, if ever, previous fee schedules will or will not apply to existing
clients. Clients will receive advance written notice of any change in their applicable fee schedules.
Donald W. Nicholson & Associates maintains the right to charge different clients a different fee for the
same service, depending on the complexity of the services provided. Fees are negotiable at the sole
discretion of the firm. The fees described above may be householded for the management of multiple
accounts under the control of a single client, at the discretion of the firm. Thr Firm does adjust its fee
for intra-period additions to, or withdrawals from, client accounts.

Please Also Note: We rely upon an unaffiliated third party service provider, to support our fee
calculations. Thus, our method for determining account values may differ from that of your
custodian. As a result, the value of your account(s) at the end of each billing period, as reflected in
our fee calculations, may deviate from the values reflected on your custodial statement.
Furthermore, to the extent that our valuation of your account is higher than that of your custodian,
it will result in Donald W. Nicholson & Associates receiving a larger fee than if we relied upon account
values as calculated by your custodian for fee calculation purposes.

Costs associated with account set-up, transaction fees, custody or account statements will generally
be the responsibility of the client. Clients investing in mutual funds and ETFs will pay a

proportionate share of the fund fees and expenses (including management fees) in which they are
invested and such fees are in addition to those set out above.

Retirement Plan Consulting Services
The terms and conditions of the firm’s retirement plan consulting services shall generally be set forth
in a Retirement Plan Consulting Agreement between the firm and the plan sponsor. The firm’s
negotiable retirement plan consulting fees generally range between between 0.40% and 0.60% of
the value of plan assets under advisement, depending upon the level and scope of the service(s)
required and the professional(s) rendering the service(s).

Financial Planning Services
The fee for a Comprehensive Financial Plan is quoted in advance to the client. All fees are calculated
based upon an hourly rate of up to $300 per hour, based upon the complexity of the services to be
provided. In some cases, at the sole discretion of the firm, the fee may be quoted on a fixed-fee or
retainer basis, not to exceed $25,000. The quoted fee does not include the initial consultation
meeting, which is provided at no cost to the client. Donald W. Nicholson & Associates may engage
other consultants as may be needed in the preparation of the financial plan, whose cost shall be
considered in the calculation of the quoted fee. One-half of the quoted fee will be due at the time of
the signing of the Letter of Engagement and the remainder will be due at the time of the presentation
of the final plan. Hourly rates are subject to annual adjustment. Fees are negotiable at the sole
discretion of the firm.

The fee for a Limited Financial Plan is billed at the completion of the work and is calculated based on
an hourly rate of up to $300 per hour, or on a fixed-fee basis at the sole discretion of Donald W.
Nicholson & Associates. The initial consultation meeting is provided at no cost to the client. Fees are
negotiable at the sole discretion of the firm.

General Information Regarding Fees and Account Termination
In addition to advisory fees, clients may be subject to custodial and account fees charged by account
custodians or broker/dealers with whom clients establish accounts. Such additional fees may include,
but are not limited to, transaction charges, IRA fees and other account administrative fees. Please see
additional disclosure made for Item 12, Brokerage Practices, later in this brochure. In cases where
shares of mutual funds or exchange traded funds are included in clients’ portfolios, clients may also be
subject to fees and expenses charged directly by the mutual fund or exchange traded fund company.
...

Item 7. Types of Clients

Donald W. Nicholson & Associates provides investment advisory services to individuals, high-net
worth individuals, pension & profit sharing plans, trusts, and estates. Please Note: Similar
advisory services may be available from other investment advisers for similar or lower fees.
ANY QUESTIONS: Donald W. Nicholson & Associates’ Chief Compliance Officer, Donald W.
Nicholson, Jr., remains available to address any questions that a client may have regarding its
advisory fee schedule.