Aegis Financial Corporation

Item 5.        Fees and Compensation

The Adviser charges each client an investment management fee based on the value of the client’s assets under
management. The standard fee schedule is 1.20% per annum of assets under management for small cap deep value
and precious metals mining equity accounts and 1.00% for strategic allocation accounts.

Investment management fees for most separately managed client accounts are charged each quarter in advance based
on the total market value of the assets in the client account (including net unrealized appreciation or depreciation of
investments and cash, cash equivalents and accrued interest, excluding the Fund, unsupervised securities and restricted
cash) on the last day of the preceding quarter. These fees are negotiable based on the nature and extent of services
rendered. Different clients may have differing payment methods and levels of fees charged. The Adviser may offer
temporary and/or partial fees waivers to select accounts, including waiving fees on cash and cash equivalents, which
may create conflicts of interest for the Adviser.

A client can select the method by which it would like to pay the investment management fee: the Adviser either
deducts the investment management fee from client accounts by instructing the client’s custodian each quarter, or bills
clients for investment management fees quarterly.

In addition to paying investment management fees, client accounts will also be subject to other investment expenses
such as custodial charges, brokerage fees, commissions and related costs; interest expenses; taxes, transfer and
registration fees or similar expenses; costs associated with foreign exchange transactions; other portfolio expenses;
and costs, expenses and fees associated with products or services that may be necessary or incidental to such
investments or accounts. Client account assets may be invested in pooled investment vehicles. In these cases, client
accounts will bear their pro rata share of the underlying pooled investment vehicle’s operating and other expenses
including, in addition to those listed above: sales expenses, legal expenses; internal and external accounting, audit and
tax preparation expenses; and organizational expenses. Client accounts will also bear their pro rata share of the
investment management fee and other fees of the underlying pooled investment vehicle, which are in addition to any
fees or other compensation paid to the Adviser.

When managed account client assets are invested in the Fund, the Adviser excludes assets invested in the Fund from
the asset base used for purposes of determining the amount of account level investment advisory fees payable to the
Adviser. The investment management fees the Adviser earns on managed account assets invested in the Fund may be
higher than the advisory fees the Advisor would otherwise earn on those managed accounts assets if they were not
invested in the Fund, thereby giving the Advisor an incentive to invest managed client assets in the Fund.

Please refer to Item 12 of this Firm Brochure for a discussion of the Adviser’s brokerage practices.

As noted above, clients are required to pay the Adviser’s fees in advance. Such clients can obtain a refund of any pre-
paid fee if the advisory contract is terminated before the end of a billing period. The fee refundable to the client is the
difference between the fee paid for the entire billing period and the fee calculated based on the value of the assets on
the termination date and prorated for the number of days during the quarter in which the investment management
agreement was in effect.

Item 7.        Types of Clients

The Adviser’s clients consist of individuals, registered investment companies, trusts, corporations and other business
entities.

The Adviser typically requires that a client invests a minimum of $100,000 to open an account and to maintain a
minimum account size of $100,000 for separate accounts. If the account size falls below the minimum requirement
due to market fluctuations only, a client will not be required to invest additional funds with the Adviser to meet the
minimum account size.