The London Company of Virginia LLC

Item 5 – Fees and Compensation

SEPARATELY MANAGED ACCOUNTS
All fees for separately managed accounts are subject to negotiation. The specific manner in which
London Company charges fees is established in a client’s written agreement with London Company
and are payable quarterly, in arrears, based on the quarter-end account value. Some accounts may
choose to be billed in advance. London’s maximum annual fee on a firm-wide basis is 1.00% and the
minimum account size is $10,000,000, which can be waived at the London Company’s discretion.

London Company generally charges each client an investment management fee based on the value of
the client’s assets under management, in accordance with a fee schedule in place at the time the
account is opened. The current fee schedule is as follows:

              Strategy                                       Annual Fee
                                       First $100,000,000 1.00%
 Concentrated
                                       Over $100,000,000 Negotiable
                                       First $50,000,000    0.75%
 Income Equity                         Next $50,000,000     0.65%
                                       Remaining            0.60%
                                       First $50,000,000    0.75%
 Large Cap                             Next $50,000,000     0.65%
                                       Remaining            0.60%
                                       First $25,000,000    0.75%
                                       Next $25,000,000     0.65%
 Mid Cap
                                       Next $50,000,000     0.55%
                                       Remaining            0.50%
                                       First $100,000,000   1.00%
 Small Cap
                                       Over $100,000,000    Negotiable
                                       First $50,000,000    1.00%
 Small-Mid Cap                         Next $50,000,000     0.85%
                                       Remaining            0.70%
                                       First $25,000,000    0.75%
                                       Next $25,000,000     0.70%
 International Equity                  Next $50,000,000     0.65%
                                       Next $150,000,000    0.55%
                                       Remaining            0.50%
                                       First $25,000,000    0.75%
                                       Next $25,000,000     0.70%
 International Equity - ADR            Next $50,000,000     0.65%
                                       Next $150,000,000    0.55%
                                       Remaining            0.50%
 All Cap 25                            First $100,000,000   1.00%
                                       Over $100,000,000    Negotiable

London Company reserves the right to negotiate fees at all levels. Some clients pay more or less than
others depending on certain factors, such as the type, size, inception date of the account, servicing
and reporting requirements, product, vehicle, tax situation and existence of related accounts. The
negotiated fee is specified in the agreement between London Company and the client. Fees are
primarily deducted directly from client assets, but we offer the option to bill clients for fees incurred.

Advisory agreements can be terminated by the client upon prior written notice to London Company.
Wrap program clients must request termination directly with their wrap program sponsor. In the
event that an advisory contract is terminated prior to the conclusion of a billing period, a pro rata
portion of any pre-paid fees will be paid by the wrap program sponsor, in accordance with the
agreement.

SUB-ADVISORY ACCOUNTS:
The fee for accounts for which London Company acts as a mutual fund sub-adviser is negotiated with,
and compensated by, the mutual fund company. Fees for accounts, where London Company serves
as sub-adviser, are separately negotiated and vary by relationship. Sub-advisory fees are charged in
a manner similar to separate accounts or paid directly by the financial intermediaries.

MODEL-BASED PROGRAM ACCOUNTS:
For model accounts, London Company is compensated directly by the outside firms, to which it
provides model accounts at a negotiated rate. The management fees and terms of these accounts are
negotiated by the client directly with the outside firm and do not involve London Company.

WRAP FEE PROGRAMS:
London Company manages accounts in wrap fee programs sponsored by other financial services
firms (“wrap program sponsor”). As part of these programs, the client pays a single bundled fee to
the wrap program sponsor, instead of paying separately for investment advisory services,
commission on transactions, custodian fees, and other transaction-related fees. The wrap program
sponsor pays London Company a portion of the wrap fee for our investment advisory services. The
fee and service arrangements for accounts under any wrap fee program are negotiated between the
client and the wrap program sponsor. London Company is not generally informed of the fee
arrangements, nor do we share in any fees, other than the fee negotiated between London Company
and the wrap program sponsor. Wrap fee clients may be billed advisory fees on a quarterly basis, by
the wrap program sponsor, either in advance or arrears, as negotiated between both parties. London
Company may prepare and send invoices to its wrap program sponsors for distribution to wrap fee
program clients; however, wrap program sponsors may opt to create their own invoices in lieu of
ours. In the case of ERISA accounts, the fee for managing the account, which is paid to London by the
wrap program sponsor, as set forth in the program agreement, may be considered indirect
compensation.

OTHER FEES AND EXPENSES:
Clients in separately managed accounts, model-based accounts, sub-advisory accounts, and wrap fee
...

Item 7 – Types of Clients

Through separately managed accounts, model-based account programs, sub-advisory programs, and
wrap fee programs, London Company provides portfolio management services to individuals, high
net worth individuals, pension, foundations, Taft-Hartley, public, profit-sharing, bank or thrift
institutions, investment companies, trusts, estates, and charitable organizations. The vast majority
of these arrangements are discretionary, and London Company selects the investments and trades
on the client’s behalf without prior consultation with the client. London Company participates in a
limited number of arrangements where it provides a model portfolio to clients, but does not exercise
trading discretion. These arrangements include model-based programs/UMAs of certain Sponsors.

There is a minimum account size of $10,000,000 for all strategies; however, London Company may
agree to manage separate accounts below our stated minimum size.