Hayek Kallen Investment Management LLC

Item 5: Fees and Compensation

We bill in advance and assess fees quarterly on the market value of the accounts at each
quarter end. For example, a 1.00% annual fee will be broken into 4 quarterly payments of
0.25% each. We calculate the First Quarter management fee from the account value as of
December 31st, and deduct the fee from the clients’ account at the start of January. We do
negotiate fees on a case-by-case basis and some of our clients pay a fixed fee instead of a
percentage-based fee.

We assess our Basic Fee for our ongoing management of a client's brokerage accounts using
these tiers:

Fixed Income Only Accounts: Annual Fee of .60% of Assets Managed

Balanced & Growth Accounts:

                                        Scaled Annual Fee - as a % of
        Market Value of Assets
                                              Assets Managed
     First   $ 500,000                              1.50%
     Next    $ 500,000                              1.25%
     Next    $ 1,000,000                            1.00%
     Next    $ 1,000,000                            0.90%
     Above   $ 3,000,000                            0.80%

We prorate fees to reflect the effective date of service and the effective date of termination. A
client may terminate our services at any time by writing to us of their intention to do so. Upon
termination, we refund the fees paid in advance by a check mailed to the client. Our pro rata
refund may exclude a 30-day notice period, per our standard advisory agreement.

We will occasionally advise clients on their assets which we do not actively manage. Fees for
this type of consulting are negotiated on a case-by-case basis, but are generally lower than our
standard fee scale. This service may include market and security analysis, regularly scheduled
meetings to review the client’s position against their goals and guidance in structuring a
portfolio with an appropriate amount of risk.

Other Fees and Expenses

Clients may incur other fees than those charged by us. Clients will see custodial and
transactional costs charged by their custodians (Charles Schwab or Fidelity), brokers and other
third parties. Clients should review all fees charged to them, including our fees, and should fully
understand the amount and reason for fees charged. We do not receive commissions for
transactions in client accounts.

For details about brokers we use see "Our Brokerage Practices." For information about referrals
fees we pay see "Client Referrals and Other Compensation."