Avenir Corporation

Item 5          Fees and Compensation

Avenir charges each account an investment management fee based on the value of the client’s assets under
management. The standard fee is 1% of assets under management payable quarterly (0.25%) in advance.
The minimum fee is $2,500 per quarter. Under certain circumstances minimum fees may be waived. The
first quarterly fee payment may be pro-rated in advance or in arrears in the event the account is funded on
any day other than the last business day of the month. Fees are typically deducted directly from the client’s
account; however, the client may request to be billed on a quarterly basis.

In addition to paying investment management fees, accounts are also subject to other expenses such as
custodial charges, brokerage commissions and related costs; taxes; foreign exchange transaction fees; and
costs, expenses and fees that may be specific to the account. Client assets may be invested in money market
mutual funds, ETFs or similar instruments. For such investments, the client will bear its pro-rata share of
the investment management fee and related expenses of the investment separately from the investment
management fee paid to Avenir. For a full discussion of Avenir’s brokerage practices please refer to Item
12 of this brochure.

Avenir or the client may request termination of the investment management agreement and the client may
obtain a pro-rata refund of fees paid by supplying written notice to Avenir 30 days prior to the effective
date.

Item 7           Types of Clients

Avenir’s clients consist of individuals, investment partnerships, retirement plans, pension and profit sharing
plans, trusts, estates, charitable organizations, foundations, private funds, corporations and other business
entities.

Avenir requires that a client invest a minimum of $1 million to open an account. The minimum investment
requirement may be waived at the discretion of Avenir’s management.