Royal Capital Management LLC

Item 5 – Fees and Compensation

All fees are subject to negotiation.

The specific manner in which fees are charged by ROYAL CAPITAL MANAGEMENT LLC is
established in a client’s written agreement with ROYAL CAPITAL MANAGEMENT LLC.
ROYAL CAPITAL MANAGEMENT LLC bills its fees on a quarterly basis in arrears at the end
of each quarter. Clients may elect to be billed directly for fees or to authorize ROYAL
CAPITAL MANAGEMENT LLC to directly debit fees from client accounts. Management fees
shall be prorated for each capital contribution and withdrawal made during the applicable

calendar quarter (with the exception of de minimis contributions and withdrawals).
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee.
Accounts may be terminated by either party with written notice. Upon termination of any
account any earned, unpaid fees will be due and payable.

Clients may from time to time incur additional charges or fees assessed by mutual fund
companies, the custodian or broker-dealer. However, since accounts are managed using
primarily no-load mutual funds, and arrangements have been made to purchase load funds
at net asset value, it is expected that clients will seldom or never incur any additional costs
and in any event, ROYAL CAPITAL MANAGEMENT LLC does not receive any portion of
these fees or costs. While we make every effort to make sure executions are made
efficiently and back office support is ample, it is theoretically possible that the same or
similar trades and services may be obtained elsewhere for less cost.

Item 7 – Types of Clients

ROYAL CAPITAL MANAGEMENT LLC provides portfolio management services to
individuals, high net worth individuals, trusts, estates, corporations and corporate pension
and profit-sharing plans. Minimum account size is $50,000. This minimum and the fees
charged may be negotiable under certain circumstances.