McDonald Capital Investors Inc

Item 5 - Fees and Compensation
A. Compensation Schedule
   • Accounts of three million dollars and under are charged a management fee of 1%
     annually (or 0.25% quarterly). Accounts between $3 million and $10 million are charged
     an annual fee of 1%/year on the first $3 million and 0.75%/year on the balance.
     Accounts of $10 million or greater are assessed a management fee of 0.75%/year
     (0.1875% per quarter) on all of their assets.
   • Fees may be waived or modified for a client.
   • Fees are negotiable.
   • Some clients may pay more or less than others for similar services and may receive
     similar services elsewhere at lower cost.

B. How Fees are Calculated and Billed
Fees are billed quarterly in arrears. Fees are calculated based on the fair market value of assets
at the end of each quarter (March 31, June 30, September 30 and December 31).

For portfolios that have had significant cash flows during a quarter (defined as total contributions
or withdrawals greater than ten percent of the fair market value on the last day of the previous
quarter), fees are based on the average of the three month-end portfolio values during the quarter.

Clients are given the option of having the custodian for their investment account pay McDonald
Capital’s management fees directly from their account or paying the fees themselves. Those who
elect to have McDonald Capital bill the custodian may: (1) sign a letter of authorization to that
effect which is kept with their permanent records’ file; (2) provide such authorization in the body
of a custodial account agreement (kept with our permanent records if made available to us); or (3)
in some instances where McDonald Capital Investors is not involved in setting up the relationship
with the custodian, the agreement between the custodian and client may be that the custodian
accepts the invoice and requests permission from the client each time a bill is submitted. Such
approval may be verbal or written, and McDonald Capital will only have documentation for our
file if it is provided by the client/custodian.

All clients receive an invoice for their quarterly fees that reflects to whom the invoice is directed,
the calculation method used, the amount due and the period that the fee covers. All clients are
notified that verifying the accuracy of the invoiced amount is their responsibility. McDonald
Capital Investors will submit invoices to custodial accounts - for clients who elect to have the fee
paid from the account - within five to ten business days after the invoice has been mailed or emailed
to the client for review.

Fees are prorated for clients whose accounts are initially funded at any day other than the first day
of the quarter (January 1, April 1, July 1 or October 1) as well as for clients who terminate their
accounts before a quarter-end. The proration calculation is as follows:
        Market value as of termination date multiplied by that client’s fee rate
        Divided by the number of days in that quarter
        Multiplied by the number of days the portfolio was managed until the termination

C. Other Fees
Equity and Balanced Accounts
All client accounts will incur brokerage, other transaction costs and/or fees as a result of
investment decisions McDonald Capital makes. In the case of brokerage commissions, the firm
seeks to find the best execution for every client (see Item 12. A. of this document).

   •   In the process of buying and selling securities for equity and balanced accounts, brokers
       will charge a commission to execute trades. Please read Item 12. A. of this document for
       more information about brokerage choices and costs.
   •   Commission rates generally range from $0.01/share to $0.05/share, although some
       brokers impose a minimum commission on smaller trades. The minimum commission
       varies by broker but can range from $5 to $20 per trade (not per share).

Certain custodians that also have a brokerage unit may charge a fee for the execution of
securities trades at other brokers (away trades). These charges range from $5 to $25/trade
depending on the custodian and type of security traded (equity or bond). Clients and/or
McDonald Capital may or may not be able to negotiate transaction costs and expenses charged
by custodians.

D. Fees in Advance
Advisory fees are not charged or paid in advance for these services.

E. Other Compensation
Neither McDonald Capital nor its employees accept compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds.

Item 7 - Types of Clients
The firm has a stated account minimum of $5 million. This minimum can be modified by Drew
and Trent McDonald at their discretion. The types of clients that the firm currently serves are
banks (generally as trustees of private client accounts), individuals, trusts, estates, foundations,
other charitable organizations, corporations, IRAs, pension and profit-sharing plans,
endowments, and partnerships.