The Edgar Lomax Company

Item 5 – Fees and Compensation

Our basic proposed fee schedule is:

Amount Under Management*                     Management Fee
Up to $10,000,000                            1.00%
Next $10,000,000                             0.75 of 1%
Thereafter                                   0.50 of 1%

* The minimum initial account value for an institutional account is generally $10 million.
ELC’s minimum initial account value and fees may be negotiable under certain
circumstances.

ELC will quote an exact percentage to each client based on both the nature and dollar value
of that account. Fees are calculated as a percentage of assets under management. Clients
are generally invoiced in arrears at the end of each calendar quarter (unless otherwise
requested), based upon the value of the clients' accounts on the last business day of the

quarter. A client agreement may be canceled at any time, by either party, pursuant to the
terms of each agreement. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded and any earned, unpaid fees will be due and payable.

Client assets invested in shares of mutual funds or other investment companies will
generally be included in calculating the value of the client accounts for purposes of
computing ELC's advisory fees and the same assets will also be subject to additional
advisory and other fees and expenses, as set forth in the prospectuses of those funds, paid
by the funds but ultimately borne by the investor. For those ELC advisory clients who may
be invested in the Edgar Lomax Value Fund, a registered investment company, ELC will not
include the value of the assets invested in our mutual fund in the calculation of the client’s
annual advisory, thereby only earning an advisory fee for managing the mutual fund.

All fees are subject to negotiation. Should ELC elect to provide investment supervisory
services to individuals, which right is reserved, the fee charged will be negotiable.

ELC’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers and other third parties such as fees charged by managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. Such charges, fees and commissions are
exclusive of and in addition to ELC’s fee, and ELC shall not receive any portion of these
commissions, fees, and costs.

Item 12 further describes the factors that ELC considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).

Item 7 – Types of Clients

ELC offers to provide investment advisory services to individuals, banks, thrift institutions,
trusts, investment companies, estates, charitable institutions, corporations or pension
profit-sharing plans.