Volumetric Advisers Inc

Item 5 – Fees and Compensation

Registered Investment Company (Fund) Fees

The Adviser charges the Fund a management fee, which is disclosed in the Fund’s Prospectus. The
management fee is payable monthly, after each calendar month. It is accrued daily at the annual rate of
2.00% of the average daily net assets of the Fund on the first $10 million; 1.90% of such net assets between
$10 million and $25 million; 1.80% of such net assets between $25 and $50 million; 1.50% of such net
assets between $50 and $100 million; and 1.25% of such net assets over $100 million. The management
fee is prorated, based on the daily closing net assets of the Fund. It is calculated and accrued as an expense
daily to the Fund. The management fee is contractual between the Fund and the Adviser and subject to
annual approval by the Fund’s Board of Directors.

The Adviser does not pay the Fund’s brokerage commissions. The Adviser shall not pay those expenses
of the Fund which are related to litigation against the Fund, if any; or if the Fund is required to pay income
taxes or penalties associated with such income taxes.

None of the supervised persons receive compensation for the sale of the Fund or other securities. A
supervised person is defined as any officer, partner, director (or other person occupying a similar status or
performing similar functions), or employee, or any other person who provides investment advice and is
subject to supervision or control.

Separately Managed Accounts (“SMA”)

Investment advisory fees of Advisor are charged based on a percentage of assets under management,
billed in arrears (at the end of the billing period) on a quarterly calendar basis and calculated based on the
fair market value of the account as of the last business day of the current billing period. Fees are prorated
based on the number of days service is provided during each billing period. If assets under management
services commence in the middle of the billing period, then the prorated fee for that billing period will be
billed in arrears at the end of that billing period.

Under this Agreement, the following is the blended annual investment advisory fee schedule of Advisor:

        Amount of Assets under Management                  Annual Investment Advisory Fees
               First $1,000,000                                           1.0%
               Next $1,000,000                                            0.8%
               Next $3,000,000                                            0.6%
               Next $5,000,000                                            0.5%
               Any Assets Thereafter                                      0.35%

When using a blended annual fee schedule, the annual investment advisory fee of Advisor is calculated by
applying different rates to different portions or tiers of the assets under management. Each asset tier shall
be assessed as a fee percentage in accordance with the schedule shown above. The cumulative
investment advisory fee for an account shall be a blended rate based on the applicable percentages applied
to each asset tier.

These fees are negotiable. Fees are paid after the end of each quarter and are calculated based upon the
market values of the account. These fees will automatically be deducted from a client’s account quarterly,
unless other arrangements have been made with the client.

If the Adviser invests SMA assets into Volumetric Fund, those assets will not be charged SMA adviser fees
on the assets invested in the Fund.

Supervised persons do not receive compensation based on the sale of securities, other products, or
services.

Brokers, banks and other third parties may charge fees for their services. This may include but is not limited
to trade commissions, account fees, processing fees, wire fees, custodial fees, etc. These fees and taxes
are the responsibility of the client, and not the Adviser. See Item 12 of this brochure for more information.

SMA contracts may be terminated at any time without penalty.

Item 7 – Types of Clients

The Adviser’s major client is a SEC registered investment (mutual fund) company, Volumetric Fund, Inc.
The minimum dollar amount to open an account is outlined in the Fund’s Prospectus (currently $500).

SMA clients may include but are not limited to individuals and small businesses. The minimum amount of
assets required for such management is $100,000 but this minimum may be reduced.