Ark Royal Wealth Management LLC

Fees and Compensation

The following types of fees will be assessed:

Asset Management – Fees are charged in advance and are based primarily on asset size and the
level of complexity of the services provided. In individual cases, ARWM has the sole discretion
to negotiate fees that are lower than the standard fee shown or to waive fees. Fees are not based
on the share of capital gains or capital appreciation of the funds or any portion of the funds.
Comparable services for lower fees may be available from other sources. Fees for the initial
quarter will be prorated based upon the number of calendar days in the calendar quarter that the
advisory agreement is in effect. Fees are based on the market value of the assets on the last
business day of the previous quarter. Annual fees range from .4% - 1.00% depending on the
amount of assets under management (“AUM”) – See chart below. There is a minimum annual
fee of $7,500. ARWM will not bill pro-rated fees on cash outflows during a quarter. Consulting
services are included in these fees for asset management services with the exception of unique
circumstances that may require a separate agreement for financial planning services (description
and fees are discussed below). If the situation warrants separate financial planning fees, it will
be discussed upfront and a separate agreement will be negotiated.

Fee Schedule for Asset Management:

   Total Account Value                                Maximum Annual Advisory Fee

  Up to $2,000,000                                                 1.00%

 Next $2,000,001 - $5,000,000                                      0.70%

 Next $5,000,001 or more                                           0.40%

As authorized in the client agreement, the account custodian withdraws ARWM’s advisory fees
directly from the clients’ accounts according to the custodian’s policies, practices, and
procedures. The custodian in turn remits these fees to ARWM. The custodial statement includes
the amount of any fees paid directly to ARWM to manage the account. Ark Royal Wealth
Management LLC also sends quarterly invoices detailing the manner and amount of advisory
fees to all clients. You should compare the statement we send to your custodian/broker-dealer’s
statement and verify the calculation of fees. Your custodian/broker-dealer does not verify the
accuracy of fee calculations. If the account does not contain sufficient funds to pay advisory

fees, ARWM has limited authority to sell or redeem securities in sufficient amounts to pay
advisory fees. With the exception of IRA accounts, clients may reimburse the account for
advisory fees paid to ARWM.

Fees are charged in advance on a quarterly basis, meaning that advisory fees for a quarter are
charged on the first day of the quarter. Clients may terminate investment advisory services
obtained from ARWM, without penalty, upon written notice within five (5) business days after
entering into the advisory agreement with ARWM. The client is responsible for any fees and
charges incurred by the client from third parties as a result of maintaining the account such as
transaction fees for any securities transactions executed and account maintenance or custodial
fees. Thereafter, the client may terminate advisory services upon 30 days’ written notice
delivered to and received by ARWM. Clients who terminate investment advisory services
during a quarter are charged a prorated advisory fee based on the date of ARWM’s receipt of
client’s written notice to terminate. Any earned but unpaid fees are immediately due and
payable.

Financial Planning and Consulting – Financial planning and Consulting services are charged
in advance through fixed fee or hourly arrangement as agreed upon between the client and
ARWM. There will never be an instance where $500 or more in fees is charged six or more
months in advance. Fees are negotiable and vary depending upon the complexity of the client
situation and services to be provided. Fixed fees range from $2,000 to $7,500 per project. On
occasion ARWM may do financial planning/consulting on an hourly arrangement of $385 per
hour. Similar services may be available elsewhere for a lower cost to the client.

Seminars – Ark Royal Wealth Management occasionally offers financial planning and/or
investment education seminars, often in association with employers and educational institutions.
Seminars are provided on a generic basis and do not take into account individual situations and
circumstances. These educational services are provided on a cost of attendance basis, ranging
from $0 - $100 per participant.

Clients who wish to terminate the planning process prior to completion may do so with written
notice. Upon receipt of written notification, any earned fee will immediately become due and
payable. A client may terminate an advisory agreement without being assessed any fees or
expenses within five (5) days of its signing.

Additional Fees and Expenses

In addition to advisory fees paid to ARWM as explained above, clients may pay custodial
service, account maintenance, transaction, and other fees associated with maintaining the
account. These fees vary by broker and/or custodian. Clients should ask ARWM for details on
transaction fees or other custodial fees specific to their account, as these fees are not included in
the annual advisory fee. ARWM does not share any portion of such fees. Additionally, for any
mutual funds purchased, the client may pay their proportionate share of the funds’ distribution,
internal management, investment advisory and administrative fees. Such fees are not shared
with ARWM and are compensation to the fund manager. Clients are urged to read the mutual
fund prospectus prior to investing.

Mutual fund companies impose internal fees and expenses on clients. These fees are in addition
to the costs associated with the investment advisory services as described above. Complete
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Types of Clients

ARWM offers investment advisory services to individuals, trusts, estates, and charitable
organizations. In general, a minimum of $500,000 is required to open and maintain an advisory
account. At our discretion, we may waive the minimum account size. For example, we may
waive the minimum if you appear to have significant potential for increasing your assets under
management. We may also combine account values for you and your minor children, joint
accounts with your spouse, and other types of related accounts to meet the stated minimum.

Form ADV, Part 2A, Item 8

Methods of Analysis, Investment Strategies, and Risk of Loss