1834 Investment Advisors Co

ITEM 5.      FEES AND COMPENSATION

METHODS OF COMPENSATION AND FEE SCHEDULE

       Investment Management and Retirement Plan Services Fees

        The annual fee for investment management and retirement plan services provided by
1834 will generally be charged as a percentage of assets under management by the firm. These
fees are generally negotiable depending upon the size of the portfolio, complexity of services
required, or individual circumstances. In certain circumstances, 1834 may combine the values of
related accounts for fee calculation purposes. 1834 generally requires a $500,000 minimum of
investment assets to establish an investment advisory relationship. 1834 reserves the right to
waive this minimum account requirement, at its discretion. Fees for 1834’s retirement plan
services are based upon the level of service performed and determined on an account-by-account
basis.

        1834 may deviate (negotiate fees) at its discretion if circumstances warrant. These fee
changes may occur because of changes in the size of the portfolio, complexity of services
required, or individual circumstances. Also, at its discretion, 1834 may combine the values of
related accounts for fee calculation purposes.

        Asset-based fees are calculated and charged in accordance with the investment advisory
agreement between the client and 1834. 1834’s fees are charged at the end of each calendar
quarter in arrears. The quarterly fee is determined by applying one-quarter (1/4) of the applicable
annual percentage fee to the market value of the portfolio on the last business day of each
calendar quarter in arrears. From time to time, fees may be modified, according to the
agreement between the client and 1834.

        An investment advisory agreement may be terminated at any time, by either party, for
any reason upon prior written notice as specified in the investment advisory contract. Upon
termination of any account, any earned, unpaid fees will be immediately due and payable. The
fees will be prorated if the investment advisory relationship commences or terminates other than
at the beginning or end of a calendar quarter.

        Participation in alternatives funds available in partnership with Proteus will require the
client to review and sign a separate subscription agreement. Fees associated with the Proteus
platform are separate and distinct from 1834’s investment management fees and are detailed
within each fund’s subscription agreement.

       Private Investment Consulting Fees

        The annual fee for private investment consulting services provided by 1834 will be
charged as a percentage of the aggregate amount of money paid, loaned or otherwise invested by
a client in any private investment opportunity (including any subsequent series or fund of any
private investment opportunity) identified for the client by 1834 (“invested capital”). Consulting
fees are negotiable depending on a variety of factors, including the size of investments and other
client assets managed by 1834, complexity of services required, or individual circumstances.
Consulting fees are calculated and charged in accordance with the consulting agreement between
the client and 1834. 1834’s fees are charged at the end of each calendar quarter in arrears. The
quarterly fee is determined by applying one-quarter (1/4) of the applicable annual percentage fee
to the client’s invested capital as of the last business day of each calendar quarter in arrears. The
fees may be prorated if the consulting relationship commences or terminates other than at the
beginning or end of a calendar quarter. The Consulting Fee paid to 1834 is in addition to any
fees or expenses incurred at any private fund in which a client invests, including any private fund
management fees, incentive allocations, carried interest and other fund-level expenses. A
consulting agreement may be terminated at any time, by either party, upon prior written notice to
the other party as specified in the consulting agreement.

CLIENT PAYMENT OF FEES

        Fees for investment management and retirement plan services will ordinarily be deducted
directly from the client’s account provided that (i) the client provides written authorization to the
qualified custodian, and (ii) the qualified custodian sends the client a statement, at least quarterly,
indicating all amounts disbursed from the account. If insufficient cash is available to pay such
fees, securities in an amount approximating the balance of unpaid fees will customarily be
liquidated to pay for the unpaid balance. The client is responsible for verifying the accuracy of
the fee calculation, as the client’s custodian will not verify the calculation.

       Clients using 1834’s private investment consulting services will be sent quarterly
invoices for consulting fees with payment due within 30 days of receipt.

ADDITIONAL CLIENT FEES CHARGED

        All fees paid for 1834 advisory and consulting services are separate and distinct from the
fees and expenses charged by American Depositary Receipts (“ADRs”), exchange-traded funds,
mutual funds, alternative asset funds, private funds and other private investments, separate
account managers, broker-dealers, and custodians retained by clients. Such fees and expenses are
described in each exchange-traded fund and mutual fund’s prospectus, each alternative asset
fund subscription agreement, each private investment’s offering memorandum or other offering
documents, each separate account manager’s Form ADV and Brochure and Brochure
Supplement or similar disclosure statement, and by any broker-dealer or custodian retained by
the client. Clients are advised to read these materials carefully before investing. If a mutual fund
also imposes sales charges, a client may pay an initial or deferred sales charge as further
described in the mutual fund’s prospectus. For client accounts invested in funds or private
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ITEM 7.      TYPES OF CLIENTS

         1834 primarily provides investment advisory services to high-net worth individuals and
institutions. The types of clients 1834 provides services to includes, but is not limited to,

individuals, retirement plans and accounts, pension and profit-sharing plans, trusts, estates,
charitable organizations, corporations, and other business entities and institutions.

         1834 generally requires a $500,000 minimum of investment assets to establish an
investment advisory relationship. 1834 reserves the right to waive this minimum requirement at
its discretion.