Lafayette Investments Inc

Fees and Compensation
                                                                                FORM ADV Part 2A, Item 5

Description
Lafayette provides investment advisory services on a discretionary basis based on the objectives
of the client. The annual rate for investment advisory services is calculated as a percentage of
assets under management in accordance with the following standard fee table:
First $1 million              1.0%
Next $2 million               .85%
Next $7 million               .65%
Amounts over $10 million      .50%
Fees are payable quarterly, in advance, based on the market value of the account on quarterly
valuation dates (last business day of each quarter). Related accounts may be combined to reduce
the overall rate charged. Fees are negotiable based on the investment objectives and the nature
of the services rendered. Lafayette will prorate fees for partial periods of management service.
Clients will execute an investment advisory agreement with Lafayette that shall continue in force
until either the client or Lafayette gives written notice to the other party of its intentions to
cancel. In the event of cancellation, the contract shall terminate on the date thirty days following
the notice, or on a date mutually agreed upon. Lafayette will prorate fees for partial periods of
management service and will refund any excess. The investment advisory agreement may be
voided by the client, without penalty, within five business days of the effective date.

                                        Lafayette Investments, Inc.

Fee Billing
Investment management fees are billed quarterly, in advance, meaning that we invoice you
before the three-month billing period has begun. Payment in full is expected upon invoice
presentation. Fees are usually deducted from a designated client account to facilitate billing.
The client must consent in advance to direct debiting of their investment account.
Other Fees
In addition to Lafayette’s investment advisory fees, account assets invested in mutual funds, money
market funds or other investment companies (“Funds”) held in the client account will be subjected
to the Funds’ advisory fees and other fees and expenses as set forth in the prospectus of those
Funds.
Custodians may charge commissions or other fees on purchases or sales of securities. Clients
will designate a Custodian to provide brokerage and custody services by opening an account with
the custodian. Lafayette does not provide custody services. We recommend clients use Charles
Schwab Co., Inc. Fees charged by the designated custodian, including commissions and account
fees, are in addition to the investment advisory fees charged by Lafayette.

Performance-Based Fees and Side-By-Side Management
                                                                                 FORM ADV Part 2A, Item 6

Lafayette does not use a performance-based fee structure.

Types of Clients
                                                                                 FORM ADV Part 2A, Item 7

Lafayette offers investment advisory services to individuals, pension and profit sharing plans,
trusts, estates, charitable organizations, corporations, and other business entities. In general, we
require a minimum of $1,000,000 in investible liquid assets to open and maintain an advisory
account. At our discretion, we may waive this minimum account size. For example, we may
waive the minimum if you appear to have significant potential for increasing your assets under
our management, or where a smaller account is tied to a larger client relationship. We may also
combine account values for you and your minor children, joint accounts with your spouse, and
other types of related accounts to meet the stated minimum.

Methods of Analysis, Investment Strategies and Risk of Loss
                                                                                 FORM ADV Part 2A, Item 8