Perritt Capital Management Inc

Fees & Compensation
                                                                                              (continued)
               Financial Planning Services Fees (cont’d)

               A fee for subsequent updates of the financial plan may be charged in addition to the initial
               fee, as agreed between the client and us. We reserve the right to waive any update fees.

               In determining the appropriate fee to charge a client, we assess the complexity of the
               client’s financial circumstances, the level of skill required to complete the proposed financial
               planning process and related financial plan, and the time likely to be required to perform the
               services. One-half of the fee is usually due and payable upon acceptance of the Financial
               Planning Agreement, with the balance of the fee due and payable upon presentation of the
               plan. Under no circumstances do we require prepayment of a fee more than six months in
               advance.

               Fi-Care

               Employers who have retained our consulting and financial planning services for their
               employees will pay the Financial Planning Services Fee as described above. Employees sign
               the financial planning agreement with no financial obligations to them.

               Participant Account Management (Discretionary)
               We use a third party platform to facilitate management of held away assets such as Defined
               Contribution Plan participant accounts. We are not affiliated with the platform and receive
               no compensation from them for using their platform. A link is provided to the Client allowing
               them to connect their account(s) to the platform. Once Client account(s) connect to the
               platform, we will review the current account allocations and will rebalance the account
               considering client investment goals and risk tolerance, as well as current economic and
               market trends. Client account(s) are reviewed at least quarterly, and allocation changes will
               be made as deemed necessary

               Mutual Fund

               The Perritt MicroCap Opportunities Fund annual investment advisory fee is 1% of its
               average daily net assets.

Types of Clients

               We provide investment advisory services to many different types of clients including open-
               end registered investment companies, individuals, institutional investors, trusts, estates,
               pension and profit sharing plans, and retirement plans.

               The minimum account size to open a separately managed account is generally $250,000.
               We may waive this initial investment requirement. Minimum investments in The Perritt
               Fund, Inc. are as described in the prospectus, which can be found at
               http://www.perrittcap.com.

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