Nicholas Investment Partners LP

Item 5: Fees and Compensation
Nicholas is primarily a fee-only investment management firm. Nicholas bases its investment
management fees on a percentage of assets under management and/or the performance of the
account.

Nicholas reserves the right to negotiate different fees and alternative minimum account sizes on a
case-by-case basis. Nicholas may agree to aggregate assets for related accounts for fee calculations.
Nicholas, in its sole discretion, may also waive its fee and/or charge a lesser investment advisory fee
based upon various criteria (e.g., historical relationship, type of assets, account complexity,
anticipated future asset growth, dollar amounts of assets to be managed, related accounts, account
composition, negotiations with clients, investment vehicle, “most favored nation” agreements, etc.).

Institutional and Other Separate Account Fees
Compensation for separate accounts generally consists of an annual fee based upon a percentage of
the assets under management, which is typically payable quarterly in arrears. Fees may be adjusted
for contributions or withdrawals during the billing period. If an account is terminated, fees will be
prorated for the partial quarter. Standard fee schedules:

Nicholas Investment Partners, L.P. ADV Part 2A                                             6

                                     US SMID Cap
       US Small Cap                      Growth            US Growth Equity         US Convertibles
    Acct. Min: $5,000,000         Acct. Min: $5,000,000   Acct. Min: $5,000,000   Acct. Min: $5,000,000

      First $50M 1.00%              First $25M 0.95%       First $25M 0.80%        First $25M 0.75%
      Next $25M 0.85%               Next $25M 0.85%        Next $25M 0.75%         Next $25M 0.70%
      Next $25M 0.75%               Next $50M 0.75%        Next $50M 0.65%         Next $50M 0.60%
      Thereafter 0.65%              Thereafter 0.65%       Thereafter 0.55%        Thereafter 0.50%

                                        US Equity
           NicTech                   Opportunities          Convertible Plus
     Acct. Min: $10,000,000       Acct. Min: $5,000,000   Acct. Min: $5,000,000

  .75% management fee with a            0.85% flat             1.25% flat
 15% performance fee on excess
   returns above the NASDAQ
     Composite Index return

Nicholas will typically waive a portion of, or in some instances the entire management fee, for
accounts related to Nicholas, its principals, or employees.

Nicholas may negotiate performance fees for certain products or Qualified Clients. The performance
fees are generally accrued monthly and paid annually in arrears. Performance fees can have
significantly larger impacts on net performance than standard asset-based fees. Please see Item 6
for additional information on performance fees.

Model Portfolio Fees
For non-discretionary model portfolio services, Nicholas receives a model provider fee from the
platform sponsor based on a percentage of the assets managed pursuant to Nicholas’ model.
Nicholas generally receives an annual fee between 0.30% to 0.50% of such assets, calculated on
billing values determined under the program and paid quarterly in arrears. This fee is paid to
Nicholas by contracted adviser; underlying program investors compensate their Advisors under the
terms of their program agreements, and the total fees paid by a program investor will often exceed
the model provider fee received by Nicholas. Model provider fees may be negotiated and may differ
across platforms.
Registered Investment Companies and Private Funds
Nicholas acts as an adviser for a registered investment company that generally charges a
management fee for its services as investment managers. The advisory fees Nicholas receives from
the fund are described within the fund’s prospectus.

If Nicholas purchases a mutual fund or other investment company in its investment strategies, the
fees charged by the fund are in addition to the fees paid by the shareholder to Nicholas.

The investment management fees received by Nicholas for managing the private funds are described
in the fund’s private offering memorandum and other subscription documents. The fees are
calculated by the fund’s administrator and deducted by Nicholas as outlined in the fund’s offering
documents.

Nicholas Investment Partners, L.P. ADV Part 2A                                              7

Other Fees, Expenses and Charges
In addition to Nicholas’ advisory fees, there may be other fees or expenses charged to clients by
their custodians, broker-dealers or other service providers. Such fees may include custodian fees,
brokerage fees, transaction or ticket charges or taxes, among others. Please see Item 12 for a
description of Nicholas’ brokerage practices.

Termination of Agreement
Nicholas and its clients may terminate the investment management agreement with written notice as
outlined in each client’s agreement. Clients are not charged a termination fee. Clients are generally
charged management fees through the termination date, or another date specified in the agreement.
Any unused portion of fees collected in advance will be refunded within 120 days.

Third-Party Ratings
Nicholas uses third-party ratings from Morningstar in its marketing materials. While Nicholas did
not compensate Morningstar for producing the rating, Nicholas made a payment to Morningstar for
the rights to display and reprint the rating in various forms.

Item 7: Types of Clients
Nicholas generally provides investment advice to individuals, banks or thrift institutions, investment
companies, pension and profit-sharing plans, trusts, estates, or charitable organizations, corporations
or business entities, UMA accounts and private investment vehicles. Client relationships vary in
scope and length of service.

Generally, account minimums depend on the investment vehicle, size and complexity of the account.

Institutional and Other Separate Accounts
The institutional minimum account size is between $5 and $25 million in assets under management.
Nicholas reserves the right to waive institutional account minimums at its sole discretion.

Registered Investment Companies and Private Funds
Nicholas provides advisory services to registered investment companies. The account minimums
for these accounts are described in the registration statements of the funds.

Nicholas currently manages three private funds. The details regarding minimum account sizes, fees
and other important information are outlined in the private offering memorandum and other
subscription documents.

Model Delivery Programs
Nicholas provides non-discretionary model portfolios to unaffiliated platform sponsors, as described
in Item 4. Account minimums for the underlying program accounts are established by the applicable
program and are not set or waived by Nicholas.