Regal Bay Investment Group LLC

Item 5: Fees and Compensation

The specific manner of fees charged by Regal Bay is established in a client’s written Agreement.
Fees charged by Regal Bay for its Investment Management Service and Advisory Service are either
based upon the value of assets under management (“AUM”) or an hourly fee. All fees, including the
minimum annual fee, may be negotiated but generally conform to the following fee schedule:

Equity and Balanced Accounts

Value of Assets                   Annual Fee*                       Quarterly Fee

$50,000 to $249,999               1.70%                             .425%

$250,000 to $499,999              1.50%                             .375%

$500,000 to $999,999              1.20%                             .300%

$1,000,000 to $1,999,999          1.10%                             .275%

$2,000,000 to $4,999,999          .90%                              .225%

$5,000,000 to $9,999,999          0.80%                             .20%

$10,000,000 & Above               0.60%                             .15%

*Subject to a minimum quarterly fee of $200 for equity and balanced accounts.

Fixed Investment Accounts

Value of Assets Annual            Fee**                             Quarterly Fee

First $2,000,000                  .50%                              .125%

Over $2,000,000                   Negotiable                        Negotiable

**Subject to a minimum quarterly fee of $150 for fixed accounts.

The fees shown above are for the Investment Management Service and Advisory Service. Regal Bay
reserves the right to change these fees upon ninety days advance written notice. Regal Bay’s
Investment Management Services fees are exclusive of brokerage commissions, transaction fees, and

other related costs and expenses which may be incurred by the client.

Clients may incur certain charges imposed by custodians, brokers, third party investment managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds
and exchange traded funds may also charge internal management fees, which are disclosed in a
fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to Regal
Bay’s fees.

Negotiated fees are based upon several factors, including but not limited to, the type of account, the
size of the account, the projected nature of trading for the account and the number and range of
supplemental advisory and client-related services to be provided by Regal Bay. Negotiated fees may
be in the form of a flat fee.

Investment Management Service fees are due and billed in arrears on a calendar-quarter basis at a
rate of one-quarter of the annual fee rate. Fee calculations are based upon the market value of the
account as of the last business day of the prior quarter. Clients are invoiced directly for the fee. The
invoice will show the amount of the fee, the value of the client’s assets on which the fee was based,
the specific way the fee was calculated. In addition, the statement will include a reminder that it is
the client’s responsibility to verify the accuracy of the computation, and that the custodian will not
do an independent verification of the accuracy of the computation of fees. For purposes of valuing
assets, the following and other related accounts may, at the discretion of Regal Bay, be combined
and the net fee due from each account apportioned on a pro-rata basis among the accounts so
combined: separate accounts of an individual, his or her spouse and close relatives of each, their
minor children, trusts established on behalf of any of them, any corporation, partnership, association
or similar organized group in which any of the foregoing hold a controlling interest, all profit
sharing, pension and other retirement trusts and all funds and foundations maintained by a
corporation, partnership or other entity, and their direct affiliates. Fees applicable to securities or
other assets exceeding $20,000 deposited into the account are also pro-rated. No adjustment or
refund will be made with respect to partial withdrawals by a client during any fee period.

The initial Investment Advisory service fees will be calculated on the value of the initial assets
deposited into the account (valued as of the Effective Date of the Agreement) and shall cover the
initial quarter pro-rata fee based on the number of remaining days in such quarter. If the Agreement
is terminated prior to the last day of a billing quarter, a pro-rated portion of the fee paid in advance
will be refunded to the client, based upon the number of days remaining in such quarter.

Investment Advisory service fees will be automatically deducted in advance from the account on a
quarterly basis unless the client elects, in accordance with the instructions in the Agreement, to be

billed directly for the fees or to have the fees deducted from another account held by the clearing
firm, RBC. Fee deductions are based on a similar valuation methodology to the Investment
Management Service and are funded from available cash or the proceeds of the sale of securities in
the account. Unless directed by the client, fee deductions will be funded first from the redemption
of amounts in the money market, then from the sale or redemption of sufficient securities. If the
client has elected to be billed for Program fees and such fees and/or other Program charges are not
paid within sixty days of the date of the invoice for such fees and/or charges, Regal Bay may request
the clearing firm to debit the applicable account for the invoiced amounts due from the client.

Investment Consulting Services are performed in the scope requested by a client and usually
include an analysis of a client’s current investments, time horizon, investment objectives, liquidity
...

Item 7: Types of Clients

Regal Bay provides financial advice to a wide variety of clients including, but not limited to high-net- worth
individuals, educational institutions, commercial banks, foundations, cultural institutions, investment banks,
pension and profit-sharing plans, trusts, estates, corporations, and other entities.
At Regal Bay’s discretion, a minimum account size may be established relative to a client’s assets before
providing financial advice. The firm may also charge a minimum fee to accounts receiving any financial
services.

When Regal Bay accepts a new account, clients are required to sign an Investment Management and Advisory
or Consulting Agreement that among other things details the nature of the investment advice to be provided,
the authority given to Regal Bay and the fee to be charged. Under this authority clients are also made aware
of the possible potential conflict of interest in transaction services being provided by Regal Securities and/or
RBC. Regal Bay, RBC and Regal Securities are separate legal entities and are not affiliated in any way.

Regal Bay will not accept an account from any investor whose investment objectives or guidelines are
inconsistent with Regal Bay’s philosophy or investment approach.