Donaldson Capital Management LLC

Item 5 – Fees and Compensation

1.      Investment Management Services

A.      One Fee - Investment Management Program

Proprietary Clients in the Program

Unless agreed to otherwise in writing, fees in the One Fee Program are deducted quarterly and are paid
in advance based upon the fair market value of the assets of the account, including cash balances, as
reasonably determined by DCM on the last business day of each calendar quarter. DCM relies on the
securities valuation received from the client’s custodian to calculate the fee. DCM does not bill on margin
balances. If the Wealth Management Services Agreement doesn’t commence at the start of a calendar
quarter, a prorated fee will be charged at inception.

For Donaldson Capital Management’s proprietary clients, DCM will retain the entirety of the investment
management fee. The following is the basic fee schedule charged to DCM’s proprietary clients.

                 Market Value of Portfolio Assets                      Annual Fee
                 First $500,000                                          1.500%
                 Next $1,000,000                                         1.000%
                 Next $2,000,000                                         0.875%
                 Next $3,000,000                                         0.750%
                 Over $6,500,000                                          0.500%
                 Over $10,000,000                                       Negotiable

All accounts by the client and immediate family members which are eligible will be aggregated into a
household for fee billing purposes unless agreed to in writing by all parties. All households will have a
minimum annual fee of $4,500. Donaldson Capital Management reserves the right to negotiate or waive
the minimum annual fee at our sole discretion. Our fee schedules are negotiable and have changed over
time, therefore some clients’ fee schedule may be different than the than our current fee schedule.

Account Minimums
Donaldson Capital Management does not generally impose a minimum household value for investment
management services. Donaldson Capital Management, in its sole discretion, may charge a lesser
management fee and/or reduce or waive the annual minimum fee based upon certain criteria (i.e.,
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, type of services required, account composition, negotiations with client).

Donaldson Capital Management or the third-party investment advisor collects financial and demographic
information and will assist the client in identifying their financial objectives by filling out the Firm’s client
questionnaire. Donaldson Capital Management or the third-party investment advisor will describe the
different investment programs available from the Firm that may be most beneficial and appropriate given
the client objectives in light of the client’s responses.

Miscellaneous Fees
Clients participating in programs other than One Fee Program also incur transaction charges,
commissions, or redemption fees charged by the broker-dealer/custodian. If the client purchases mutual
funds, they may also incur charges imposed directly at the mutual fund level (i.e., fund advisory fees and
expenses) in addition to transaction charges, commissions, or redemption fees charged by the broker-
dealer/custodian. The Firm does not receive any portion of the brokerage commissions or transaction
fees charged to the client in connection with a money manager program. In certain situations, clients
may incur additional transaction fees due to the firm “trading away” from its primary custodian or
establishing a prime brokerage arrangement on behalf of the client. We describe these additional
charges in Item 12 Ability to Select Fixed Income (Bond) Broker-Dealers.

Clients may incur certain charges imposed by the program sponsor and other third parties, other than
Donaldson Capital Management, in connection with investments made through a money manager
program Account, including, but not limited to, mutual fund sales loads, 12b-1 fees and surrender
charges, IRA and qualified retirement plan fees.

Account Termination
The investment advisory agreement between Donaldson Capital Management and the client will continue
in effect unless terminated by either party by written notice in accordance with the terms and conditions of
the Wealth Management Services Agreement. The Firm’s investment management fee shall be prorated
through the date of termination. After DCM receives notice of termination, all transaction expenses
generated as a result of requests made by the client, new advisor, agent, or custodian become the
financial responsibility of the client.

Recommending Rollovers and Transfers to DCM

A client or prospect leaving an employer typically has four options regarding an existing retirement plan
(and may engage in a combination of these options): (i) leave the money in the former employer’s plan, if
permitted, (ii) roll over the assets to the new employer’s plan, if one is available and rollovers are
permitted, (iii) rollover to an Individual Retirement Account (“IRA”), or (iv) cash out the account value
(which could, depending upon the client’s age, result in adverse tax consequences). Our firm and its
financial professionals have an inherent conflict of interest in recommending you rollover or transfer your
accounts to an account managed by DCM since we have an incentive to generate compensation for the
firm.

When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with your interests, so we operate under a
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Item 7 – Types of Clients

Donaldson Capital Management generally provides investment advice to the following types of clients:

     •   Individuals
     •   High-Net Worth Individuals
     •   Pension and profit-sharing plans
     •   Trusts, estates, or charitable organizations
     •   Corporations or business entities other than those listed above

All clients are required to execute an agreement for services in order to establish a client arrangement
with Donaldson Capital Management and/or the sponsor of third-party money manager platforms.

Minimum Investment Amounts
Donaldson Capital Management does not require a minimum investment amount for its investment
management services. Clients will be subject to the minimum annual fee of $4,500.