van Eck Associates Corporation

Item 5         Fees and Compensation
The Adviser generally charges asset-based fees (which may be on a sliding scale with
breakpoints dependent upon the value of assets under management) which generally range from
0.10% to 2.00% of assets under management for accounts managed on a discretionary basis. For
certain accounts managed by the Adviser, the Adviser charges a performance-based fee up to
10% annually of the increase in value of the account in excess of a benchmark return or hurdle
rate. The Adviser may choose to waive all or a portion of its fees in its sole discretion.

The Adviser will negotiate fees within these limits or may negotiate higher or lower fees
depending on various factors including, the nature of the advisory services or its overall
relationship with a client. It is not anticipated that fees will exceed industry norms but will be
designed to provide reasonable compensation to the Adviser for its services. Certain related
persons of the Adviser may also charge performance-based fees.

The Adviser’s advisory fees for its clients are determined prior to commencement of services and
depending on the client, are generally billed and paid in arrears or in advance.

The fees that the Adviser is entitled to receive for the investment advisory services provided to
registered investment companies, private funds, and other pooled investment vehicles are
generally disclosed in each company’s or fund’s prospectus or offering documents, as applicable.
Registered investment company fees are accrued daily and are paid monthly. It is not anticipated
that the Adviser will require the payment of fees six months or more in advance. A client
contract may be terminated at any time in accordance with the termination provision in the
contract.

Investors in registered investment companies and other pooled investment vehicles managed by
the Adviser will generally bear the expenses associated with the operation of such companies and
funds, which may include, but are not limited to, advisory, trading, transfer agency, custodial,
distribution, administrative, accounting and/or auditing, legal and offering fees or expenses and
certain other expenses pursuant to agreements with their service providers and as disclosed in
their offering materials.

The investment accounts managed by the Adviser will bear custodial and administrative
expenses and other expenses pursuant to agreements with service providers and according to
requirements set out in the investment advisory agreements between each client and the Adviser.

The registered investment companies, and other pooled investment vehicles advised by the
Adviser will incur brokerage and other transaction costs, as discussed more fully under
“Brokerage Practices” below.

At the time of termination of an investment advisory contract for a client who pays fees in
advance, the client would be paid a pro rata refund for the portion of the quarter (or other period)
for which fees were paid but for which services were not rendered.

                                                                                              Page | 7

The Adviser’s compensation pursuant to model portfolio arrangements may be lower than the
Adviser’s standard fee schedule for client accounts that employ similar investment strategies.
The Adviser may be paid a fee at a certain rate of the assets of the Program Sponsor’s accounts
managed pursuant to the Adviser’s model securities portfolio. Such model securities portfolio
may include pooled investment vehicles advised and/or sponsored by the Adviser or its affiliates.

                                                                                         Page | 8

Item 7         Types of Clients
Our types of Accounts typically include mutual funds, exchange-traded funds (“ETFs”), other
pooled investment vehicles, and institutional accounts, including pension plans, advised through
investment accounts. These clients may also include Program Sponsors. As a provider of
advisory services under a Model or UMA Program, the Adviser is not responsible for
determining whether a particular program, investment style or a strategy is suitable or advisable
for any Program Participant. Such determinations are the responsibility of the Program Sponsor.

The Adviser shall determine from time to time the minimum dollar value of Accounts that shall
be accepted for management, since below a certain dollar value the Adviser may be unable to
make appropriate investments based on a client’s investment needs. Also, Accounts below a
certain asset value may not be economical for the Adviser or the client.

Currently, the Adviser imposes a $50,000,000 minimum asset criteria for managing certain
Accounts which employ an active and/or passive approach primarily through the use of, but not
limited to, equity and fixed income instruments. The Adviser evaluates the viability of each
Account on an individual basis and may therefore increase or decrease the minimum without
notice.

                                                                                         Page | 10