<SEC-DOCUMENT>0000949377-14-000553.txt : 20150416
<SEC-HEADER>0000949377-14-000553.hdr.sgml : 20150416

<ACCEPTANCE-DATETIME>20141219154806

<PRIVATE-TO-PUBLIC>

ACCESSION NUMBER:		0000949377-14-000553

CONFORMED SUBMISSION TYPE:	PRE 14A

PUBLIC DOCUMENT COUNT:		2

CONFORMED PERIOD OF REPORT:	20150227

FILED AS OF DATE:		20141219

DATE AS OF CHANGE:		20150122


FILER:


	COMPANY DATA:	

		COMPANY CONFORMED NAME:			ROYCE FOCUS TRUST INC

		CENTRAL INDEX KEY:			0000825202

		IRS NUMBER:				592876580

		STATE OF INCORPORATION:			MD

		FISCAL YEAR END:			1231



	FILING VALUES:

		FORM TYPE:		PRE 14A

		SEC ACT:		1934 Act

		SEC FILE NUMBER:	811-05379

		FILM NUMBER:		141299364



	BUSINESS ADDRESS:	

		STREET 1:		C/O SPROTT ASSET MANAGEMENT L.P.

		STREET 2:		ROYAL BANK PLZ, SO. TOWER, STE 2700

		CITY:			TORONTO

		STATE:			A6

		ZIP:			M5J2J1

		BUSINESS PHONE:		416-943-4065



	MAIL ADDRESS:	

		STREET 1:		C/O SPROTT ASSET MANAGEMENT L.P.

		STREET 2:		ROYAL BANK PLZ, SO. TOWER, STE 2700

		CITY:			TORONTO

		STATE:			A6

		ZIP:			M5J2J1



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	ROYCE FOCUS TRUST INC

		DATE OF NAME CHANGE:	19990525



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	ROYCE GLOBAL TRUST INC

		DATE OF NAME CHANGE:	19961203



	FORMER COMPANY:	

		FORMER CONFORMED NAME:	ALL SEASONS GLOBAL FUND INC

		DATE OF NAME CHANGE:	19950803



</SEC-HEADER>

<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>e32766.htm
<TEXT>
<html>
<body>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>As filed
 with the Securities and Exchange Commission on December 19, 2014</b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>UNITED
 STATES</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SECURITIES
 AND EXCHANGE COMMISSION</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Washington,
 D.C. 20549</b></font></td>
</tr>
<tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SCHEDULE
 14A</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>(Rule
 14a-101)</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>INFORMATION
 REQUIRED IN PROXY STATEMENT</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SCHEDULE
 14A INFORMATION</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Proxy Statement
 Pursuant to Section 14(a) of</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">the Securities
 Exchange Act of 1934 (Amendment No.&#160;&#160;&#160;&#160;)</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Filed by the
 Registrant&#160;&#160;&#160;&#160;[X]</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Filed by a
 Party other than the Registrant&#160;&#160;&#160;[&#160;&#160;&#160;]</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Check the
 appropriate box:</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2">[X]</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Preliminary
 Proxy Statement</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Confidential,
 for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Definitive
 Proxy Statement</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Definitive
 Additional Materials</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Soliciting
 Material Pursuant to &#167;240.14a-12</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>ROYCE
 FOCUS TRUST, INC.</b></font></td>
</tr>
<tr>
<td style="border-top: 1px solid #000000;" valign="bottom" align="center"><font face="Times New Roman" size="2">(Name of
 Registrant as Specified In Its Charter)</font></td>
</tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">N/A</font></td>
</tr>
<tr>
<td style="border-top: 1px solid #000000;" valign="bottom" align="center"><font face="Times New Roman" size="2">(Name of
 Person(s) Filing Proxy Statement, if other than the Registrant)</font></td>
</tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Payment of
 Filing Fee (Check the appropriate box):</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2">[X]</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">No fee required.</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Fee computed
 on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2">(1)</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">Title of
 each class of securities to which transaction applies:</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(2)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="justify"><font face="Times New Roman" size="2">Aggregate
 number of securities to which transaction applies:</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(3)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="justify"><font face="Times New Roman" size="2">Per unit
 price or other underlying value of transaction computed pursuant to Exchange Act
 Rule 0-11 (set forth the amount on which the filing fee is calculated and state
 how it was determined):</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(4)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="justify"><font face="Times New Roman" size="2">Proposed
 maximum aggregate value of transaction:</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(5)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="justify"><font face="Times New Roman" size="2">Total fee
 paid:</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-bottom: 1px solid #000000;" valign="bottom" align="justify"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">Fee paid
 previously with preliminary materials.</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">[&#160;&#160;&#160;]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="justify"><font face="Times New Roman" size="2">Check box
 if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
 identify the filing for which the offsetting fee was paid previously. Identify the
 previous filing by registration statement number, or the Form or Schedule and the
 date of its filing.</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2">(1)</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Amount Previously
 Paid:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(2)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="left"><font face="Times New Roman" size="2">Form, Schedule
 or Registration Statement No.:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(3)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="left"><font face="Times New Roman" size="2">Filing Party:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(4)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;" valign="bottom" align="left"><font face="Times New Roman" size="2">Date Filed:</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="right"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td style="border-top: 1px solid #000000;"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>745 Fifth Avenue<br>
New York, New York 10151</b></font></p>
<p align="right"><font face="Times New Roman" size="2">January [5], 2015</font></p>
<p align="justify"><font face="Times New Roman" size="2">Dear Stockholder:</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">I am inviting
 you to vote on several important proposals relating to Royce Focus Trust, Inc. (the
 &#147;Fund&#148;). A special meeting of the Fund&#146;s stockholders is scheduled
 for February 27, 2015 (the &#147;Meeting&#148;). This package contains information
 about the proposals and includes materials you will need to vote.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Fund recently
 announced that W. Whitney George, the Fund&#146;s portfolio manager since 2002 and
 a Director of the Fund since 2013, would be leaving Royce &#038; Associates, LLC
 (&#147;R&#038;A&#148;), the Fund&#146;s current investment adviser, to join Sprott
 Asset Management L.P. (&#147;Sprott Asset&#148;). Sprott Asset, a business unit
 of Sprott Inc., is a Toronto-based alternative asset manager. At the Meeting, you
 will be asked to consider and approve three separate Proposals. Proposals 1 and
 2 would, in effect, transfer investment management of the Fund from R&#038;A to
 Sprott Asset and its affiliate and enable Mr. George to continue providing portfolio
 management services to the Fund after his departure from R&#038;A. In connection
 with the proposed investment management changes, the Board of Directors of the Fund
 (the &#147;Board&#148;) has determined that it would be appropriate for a new Board
 comprised of qualified persons to be elected to serve on the Board if investment
 management of the Fund is transferred to Sprott Asset. As a result, three new &#147;Independent
 Directors&#148; (<i>i.e.,</i> Directors who are not &#147;interested persons&#148;
 of the Fund or Sprott Inc. within the meaning of the Investment Company Act of 1940)
 and Mr. George are being proposed for election to the Board under Proposal 3. In
 the event each of Proposal 1, Proposal 2, and Proposal 3 receives the required stockholder
 approval, all of the Fund&#146;s current Independent Directors and I will resign
 from the Board and the four Director nominees will then comprise the Board.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The implementation
 of any one Proposal, even if approved by stockholders, is contingent on stockholder
 approval of each of the other two Proposals. In the event each Proposal does not
 receive the required stockholder approval, none of the Proposals will be implemented.
 Mr. George will continue as an R&#038;A employee and as the Fund&#146;s portfolio
 manager until the Meeting and during any transition period should all of the Proposals
 described in this Proxy Statement be approved.</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Although the
 Directors have determined that the proposed changes are in the best interests of
 the Fund and its stockholders, the final decision is yours. The enclosed materials
 explain these proposals in more detail and I encourage you to review them carefully.
 We hope that you will respond today to ensure that your shares of common stock will
 be represented at the Meeting. You may authorize a proxy to vote your shares by
 following the instructions on your proxy card to use one of the methods listed below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" valign="bottom" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By touch-tone
 telephone;</font></td>
</tr>
<tr>
<td colspan="4"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By Internet;
 or</font></td>
</tr>
<tr>
<td colspan="4"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By returning
 the enclosed proxy card in the postage-paid envelope.</font></td>
</tr>
</table>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">&#160;You may also
 vote in person at the Meeting.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><b>If your vote has not been received as the date
 of the Meeting approaches, you may receive a call from a representative of the Fund
 or D.F. King &#038; Co., Inc., _________ _________ _________ (&#147;D.F. King&#148;),
 our proxy solicitor, to request that you vote and to assist you in the voting process.
 If you need assistance voting, please call D.F. King toll-free at 1-_________.</b></font></p>
<p align="justify" style="text-indent: 70px;"><font face="Times New Roman" size="2">As always, thank you for your continued support of our work at R&#038;A.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Sincerely,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">CHARLES M.
 ROYCE</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><i>President
 of Royce Focus Trust, Inc.&#160;&#160;&#160;&#160;&#160;&#160;</i></font></td>
</tr>
</table>
<br>
<table border="1" cellpadding="4" cellspacing="0" width="100%" bordercolor="#000000">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Please
 vote now. Your vote is important.</b></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><b>To avoid
 the wasteful and unnecessary expense of further proxy solicitation, we urge you
 to indicate your voting instructions on the enclosed proxy card, date and sign it
 and return it promptly in the envelope provided, or record your voting instructions
 by touch-tone telephone or via the Internet, no matter how large or small your holdings
 may be. If you submit a properly executed proxy but do not indicate how you wish
 your shares of common stock to be voted, your shares will be voted &#147;FOR&#148;
 each of the proposals.</b></font></td>
</tr>
</table>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>745 Fifth Avenue<br>
New York, New York 10151</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>__________________</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>NOTICE OF SPECIAL MEETING
 OF STOCKHOLDERS<br>__________________</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>TO BE HELD ON FEBRUARY
 27, 2015</b></font></p>
<p align="justify"><font face="Times New Roman" size="2">To the Stockholders of:</font></p>
<p align="justify"><font face="Times New Roman" size="2">ROYCE FOCUS TRUST, INC.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">NOTICE IS
 HEREBY GIVEN that the Special Meeting of Stockholders (the &#147;Meeting&#148;)
 of ROYCE FOCUS TRUST, INC. (the &#147;Fund&#148;) will be held at the offices of
 the Fund, 745 Fifth Avenue, New York, New York 10151 on Friday, February 27, 2015,
 at [Meeting Time] (Eastern Time), for the following purposes:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">1.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">To approve
 a new investment advisory agreement by and between the Fund and Sprott Asset Management
 L.P.</font></div></td>
</tr>
<tr>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">2.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">To approve
 a new investment subadvisory agreement by and among the Fund, Sprott Asset Management
 L.P., and Sprott Asset Management USA Inc.</font></div></td>
</tr>
<tr>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">3.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">To elect four
 (4) Directors to the Board of Directors of the Fund (one of whom
 is a current Director).</font></td>
</tr>
<tr>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="5%" valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">4.</font></p></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">To transact
 such other business as may properly come before the Meeting or any postponement
 or adjournment thereof.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The implementation
 of any one Proposal, even if approved by stockholders, is contingent on stockholder
 approval of each of the other two Proposals. In the event each Proposal does not
 receive the required stockholder approval, none of the Proposals will be implemented.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Board
 of Directors of the Fund has set the close of business on December 29, 2014 as the
 record date for determining those stockholders entitled to vote at the Meeting or
 any postponement or adjournment thereof, and only holders of record at the close
 of business on that day will be entitled to vote.</font></p>
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<p align="center"><font face="Times New Roman" size="2"><b>IMPORTANT</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><b>To save the
 Fund the expense of additional proxy solicitation, please mark your instructions
 on the enclosed Proxy, date and sign it and return it in the enclosed envelope (which
 requires no postage if mailed in the United States), even if you expect to be present
 at the Meeting. You may also authorize a proxy to vote your shares of common stock
 via telephone or the Internet by following the instructions on the proxy card or
 Notice of Internet Availability of Proxy Materials. Please take advantage of these
 prompt and efficient proxy authorization options. </b>The accompanying Proxy is solicited
 on behalf of the Board of Directors of the Fund, is revocable, and will not affect
 your right to vote in person in the event that you attend the Meeting.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width=10%" valign="bottom" align="left" nowrap><font face="Times New Roman" size="2">By order of
 the Board of Directors,&#160;&#160;&#160;&#160;&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
</table>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">January [5],
 2015</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>IMPORTANT NOTICE REGARDING
 THE AVAILABILITY OF PROXY MATERIALS FOR THE SPECIAL MEETING OF STOCKHOLDERS TO BE
 HELD ON FEBRUARY 27, 2015</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>THE NOTICE, PROXY STATEMENT
 AND PROXY CARD FOR THE FUND ARE AVAILABLE AT [WWW.__________.COM]</b></font></p>
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<p align="center"><font face="Times New Roman" size="2"><b>PROXY STATEMENT</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ROYCE FOCUS TRUST, INC.
<br>745 Fifth Avenue<br>New York, New York 10151</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>SPECIAL MEETING OF STOCKHOLDERS
<br>February 27, 2015</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>INTRODUCTION</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The enclosed
 Proxy is solicited on behalf of the Board of Directors of Royce Focus Trust, Inc.
 (the &#147;Fund&#148;) for use at the Special Meeting of Stockholders (the &#147;Meeting&#148;) of the Fund, to be held at the offices of the Fund, 745 Fifth Avenue, New
 York, New York 10151, on Friday, February 27, 2015, at [Meeting Time] (Eastern Time)
 and at any postponements or adjournments thereof. The approximate mailing date of
 this Proxy Statement is January [12], 2015.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Proposals</b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">1.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="justify"><font face="Times New Roman" size="2">To approve
 a new investment advisory agreement by and between the Fund and Sprott Asset Management
 L.P. (&#147;Sprott Asset&#148;).</font></td>
</tr>
<tr>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">2.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="justify"><font face="Times New Roman" size="2">To approve
 a new investment subadvisory agreement by and among the Fund, Sprott Asset, and
 Sprott Asset Management USA Inc. (&#147;Sprott USA&#148; and together with Sprott
 Asset, &#147;Sprott&#148;).</font></td>
</tr>
<tr>
<td colspan="3"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="5%" valign="bottom" align="left"><p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">3.</font></p></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="justify"><font face="Times New Roman" size="2">To elect four (4) Directors to the Board of Directors of the Fund (one of
 whom is a current Director).</font></td>
</tr>
</table>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Fund recently
 announced that W. Whitney George, the Fund&#146;s portfolio manager since 2002,
 would be leaving Royce &#038; Associates, LLC (&#147;R&#038;A&#148;), the Fund&#146;s
 current investment adviser, to join Sprott Asset. As explained in more detail in
 this Proxy Statement, implementation of Proposals 1 and 2 would transfer investment
 management of the Fund from R&#038;A to Sprott Asset and Sprott USA and enable Mr.
 George to continue providing portfolio management services to the Fund after his
 departure from R&#038;A while implementation of Proposal 3 would provide the Fund
 with a new slate of Directors.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The implementation
 of any one Proposal, even if approved by stockholders, is contingent on stockholder
 approval of each of the other two Proposals. In the event each Proposal does not
 receive the required stockholder approval, none of the Proposals will be implemented.</font></p>
<p align="center"><font face="Times New Roman" size="2">2</font></p>
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<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">All properly
 executed Proxies received prior to the Meeting will be voted at the Meeting in accordance
 with the instructions marked thereon or otherwise as provided therein. Unless instructions
 to the contrary are marked, Proxies will be voted:</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">&#147;FOR&#148;&#160;the approval of the new investment advisory agreement;</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">&#147;FOR&#148;&#160;the approval of the new investment subadvisory agreement; and</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">&#147;FOR&#148;&#160;the election of a new slate of Directors to the Board of Directors of
 the Fund (the &#147;Board&#148;) as described in this Proxy Statement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">You may revoke
 your Proxy at any time before it is exercised by sending written instructions to
 the Secretary of the Fund at the Fund&#146;s address indicated above or by filing
 a new Proxy with a later date. Any stockholder attending the Meeting may vote in
 person, whether or not he or she has previously filed a Proxy. Merely attending
 the Meeting, however, will not revoke any previously submitted Proxy.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">[The Fund
 has retained D.F. King &#038; Co., Inc., _________ _________ _________ (&#147;D.F.
 King&#148;), to solicit proxies for the Meeting. D.F. King is responsible for printing
 proxy cards, mailing proxy material to Fund stockholders, soliciting broker-dealer
 firms, custodians, nominees and fiduciaries, tabulating the returned proxies, and
 performing other proxy solicitation services. The cost of these services is expected
 to range from approximately $__________ to $__________, and will be paid by R&#038;A
 and Sprott. If you need assistance voting, please call D.F. King toll-free at 1-__________.]</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">In addition
 to solicitation through the mail, proxies may be solicited by representatives of
 the Fund, R&#038;A, or its affiliates without cost to the Fund. Such solicitation
 may be by telephone, facsimile, or otherwise. It is anticipated that banks, broker-dealers,
 custodians, nominees, fiduciaries, and other financial institutions will be requested
 to forward proxy materials to beneficial owners of shares of the Fund&#146;s common
 stock and to obtain approval for the execution of proxies. Upon request, R&#038;A
 and Sprott will reimburse brokers, custodians, nominees, and fiduciaries for the
 reasonable expenses incurred by them in connection with forwarding solicitation
 material to the beneficial owners of shares of the Fund&#146;s common stock held
 of record by such persons.</font></p>
<p align="center"><font face="Times New Roman" size="2">3</font></p>
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<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Stockholders vote at the Meeting by casting ballots
 (in person or by proxy) which are tabulated by one or two persons, appointed by
 the Board before the Meeting, who serve as Inspectors and Judges of Voting at the
 Meeting and who have executed an Inspectors&#146; and Judges&#146; Oath.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Board
 has set the close of business on December 29, 2014 as the record date (the &#147;Record
 Date&#148;) for determining those stockholders entitled to vote at the Meeting or
 any postponement or adjournment thereof, and only holders of record at the close
 of business on that day will be entitled to vote. Stockholders on the Record Date
 will be entitled to one vote for each outstanding share of common stock held (proportional
 voting rights for fractional shares held), with no shares having cumulative voting
 rights.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">As of the
 Record Date, there were __________shares of the Fund&#146;s common stock outstanding.
 The following persons were known to the Fund to be beneficial owners or owners of
 record of 5% or more of its outstanding shares of common stock as of the Record
 Date:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="70%">
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Name
 and Address of Owner</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount
 and<br><u>Nature of Ownership</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Percent</b></u></font></td>
</tr>
<tr>
<td colspan="6"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">Charles M.
 Royce<br>c/o Royce &#038; Associates, LLC<br>745 Fifth Avenue<br>New York, NY
 10151</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2">__________
 shares&#151;<br>Beneficial (sole<br>voting and<br>investment power)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="top" align="left"><font face="Times New Roman" size="2">_____%</font></td>
</tr>
<tr>
<td colspan="6"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">W. Whitney
 George<br>c/o Royce &#038; Associates, LLC<br>745 Fifth Avenue<br>New York, NY
 10151</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">__________
 shares&#151;<br>Beneficial* (sole<br>voting and<br>investment power)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">_____%</font></td>
</tr>
<tr>
<td colspan="6"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Cede &#038;
 Co.**<br>Depository Trust Company<br>P.O. Box #20<br>Bowling Green Station<br>
New York, NY 10028</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">__________
 shares&#151;<br>Record**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">_____%</font></td>
</tr>
</table>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td colspan="3" valign="bottom" align="left"><font face="Times New Roman" size="2">_____</font></td>
</tr>
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Includes
 __________ shares of common stock held by W. Whitney George Family Foundation, a
 charitable foundation established by Mr. George and members of his family. Also
 includes _______ shares of common stock held in The Mallory Descendant&#146;s Trust
 U/T/A DTD 12/13/2013 (the &#147;Mallory Trust&#148;). Mr. George serves as trustee
 of the Mallory Trust and, in such capacity, has investment and voting discretion
 over shares held by the Mallory Trust. Mr. George&#146;s spouse has a pecuniary
 interest in the Mallory Trust. Also includes ______ shares of common stock held
 in The TDM &#038; BBM Trust U/T/A DTD 3/25/2013 (the &#147;TDM &#038; BBM Trust&#148;). Mr. George serves as trustee of the TDM &#038; BBM Trust and, in such capacity,
 has investment and voting discretion over shares held by the TDM &#038; BBM Trust.</font></div></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Shares
 held by brokerage firms, banks and other financial intermediaries on behalf of beneficial
 owners are registered in the name of Cede &#038; Co.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">4</font></p>
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<!--page-->
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Board
 knows of no business other than that stated in Proposal 1, Proposal 2, and Proposal
 3 of the Notice of Meeting that will be presented for consideration at the Meeting.
 If any other matter is properly presented at the Meeting or any postponement or
 adjournment thereof, it is the intention of the persons named on the enclosed proxy
 card to vote in accordance with their best judgment.</font></p>
<p align="center"><font face="Times New Roman" size="2">5</font></p>
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<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROPOSAL 1: APPROVAL OF
<br>NEW INVESTMENT ADVISORY AGREEMENT</b></font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Background</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Under an investment
 advisory agreement by and between R&#038;A and the Fund (the &#147;Current Investment
 Advisory Agreement&#148;), R&#038;A serves as the Fund&#146;s investment adviser
 and is responsible for the management of its assets. The date of the Current Investment
 Advisory Agreement is October 1, 2001. The Current Investment Advisory Agreement
 was last approved by the Fund&#146;s stockholders on September 14, 2001. The Current
 Investment Advisory Agreement was last approved for continuance by the Board at
 a meeting on June 4-5, 2014.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">R&#038;A is
 a wholly-owned subsidiary of Legg Mason Inc. and has been investing in smaller-company securities
 with a value approach for more than 40 years. Its offices are located at 745 Fifth
 Avenue, New York, NY 10151.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">On November
 10, 2014, the Fund announced that W. Whitney George, the Fund&#146;s portfolio manager
 since 2002, would be leaving R&#038;A to join Sprott Asset Management L.P., a business
 unit of Sprott Inc. Sprott Inc. is headquartered in Toronto, Canada, and is listed
 on the Toronto Stock Exchange under the symbol &#147;SII&#148;. Sprott Asset offers
 a wide variety of investment solutions to Canadian and international investors.
 Its product offerings include mutual funds, alternative strategies, physical bullion
 trusts, and tax-efficient funds.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Board,
 including all of the Directors who are not &#147;interested persons&#148; of the
 Fund and R&#038;A within the meaning of the Investment Company Act of 1940 (collectively,
 the &#147;Current Independent Directors&#148;), met in person at a Board meeting
 held on December 15-16, 2014, for purposes of, among other things, considering whether
 it would be in the best interests of the Fund and its stockholders to approve a
 new investment advisory agreement by and between the Fund and Sprott Asset (the
 &#147;New Investment Advisory Agreement&#148;, and together with the Current Investment
 Advisory Agreement, the &#147;Advisory Agreements&#148;). The form of the New Investment
 Advisory Agreement is attached hereto as Exhibit A to this Proxy Statement. At that
 meeting, and for the reasons discussed below under the heading &#147;Board Considerations,&#148; the Board, including the Current Independent Directors, unanimously approved
 the New Investment Advisory Agreement. R&#038;A will not receive any compensation
 or any other amount from Sprott or any other party in connection with the New Investment
 Advisory Agreement.</font></p>
<p align="center"><font face="Times New Roman" size="2">6</font></p>
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<!--page-->
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Investment
 Company Act of 1940 (the &#147;1940 Act&#148;) requires that the New Investment
 Advisory Agreement be approved by the Fund&#146;s stockholders in order for it to
 become effective. At the December 15-16, 2014 Board meeting, the Board, including
 the Current Independent Directors, also unanimously recommended approval of the
 New Investment Advisory Agreement by the Fund&#146;s stockholders.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The New Investment
 Advisory Agreement is expected to take effect as soon as reasonably practicable
 after all of the required stockholder approvals are obtained. The Current Investment
 Advisory Agreement will terminate upon the effectiveness of the New Investment Advisory
 Agreement as part of the consummation of the transactions contemplated in this Proxy
 Statement. In the event the required stockholder approvals are not obtained for
 any or all of Proposals 1, 2, or 3, R&#038;A would remain the investment adviser
 to the Fund in accordance with the terms and conditions of the Current Investment
 Advisory Agreement. In such an event, R&#038;A may consider selecting a new portfolio
 manager or portfolio management team to replace Mr. George.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Comparison of Current Investment Advisory
 Agreement with New Investment Advisory Agreement</b></font></p>
<p align="justify" style="text-indent: 40px;"><font face="Times New Roman" size="2">The Current
 Investment Advisory Agreement is substantially similar to the New Investment Advisory
 Agreement except that:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">R&#038;A is
 responsible for the day-to-day portfolio management of the Fund under the Current
 Investment Advisory Agreement while Sprott Asset will: (i) retain Sprott USA to
 be responsible for the day-to-day portfolio management of the Fund in accordance
 with the terms of an investment subadvisory agreement by and among the Fund, Sprott
 Asset, and Sprott USA (the &#147;New Investment Subadvisory Agreement&#148; and
 together with the New Investment Advisory Agreement, the &#147;New Agreements&#148;)
 and (ii) supervise and oversee Sprott USA&#146;s performance as investment subadviser
 to the Fund;</font></div></td>
</tr>
<tr>
<td valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">Sprott Asset
 may terminate the New Investment Subadvisory Agreement with Sprott USA in accordance
 with its terms; and</font></div></td>
</tr>
<tr>
<td valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">the terms
 of the Current Investment Advisory Agreement call for it to remain in effect until
 June 30, 2015 (unless terminated earlier), and from year to year thereafter if approved
 annually in accordance with its terms while the New Investment Advisory Agreement
 will remain in effect until December 31, 2016 (unless terminated earlier), and from
 year to year thereafter if approved annually in accordance with its terms.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">7</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Below is a
 comparison of certain terms of the Current Investment Advisory Agreement to the
 corresponding terms of the New Investment Advisory Agreement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Investment
 Advisory Services.&#160;&#160;&#160;&#160;</i>Under each Advisory Agreement, the relevant adviser is responsible
 for: (i) determining the composition of the Fund&#146;s portfolio, the nature and
 timing of the changes in it, and the manner of implementing such changes and (ii)
 providing the Fund with such investment advisory, research and related services
 as the Fund may, from time to time, reasonably require for the investment of its
 assets. The Advisory Agreements require R&#038;A and Sprott to perform such duties
 in accordance with the applicable provisions of the Fund&#146;s Articles of Incorporation,
 By-laws and stated investment objective, policies, and restrictions and any directions
 it may receive from the Board. Under each Advisory Agreement, the relevant adviser
 pays all expenses it incurs in performing such investment advisory duties. As noted
 above, Sprott Asset will retain Sprott USA to be responsible for the day-to-day
 portfolio management of the Fund and will supervise and oversee Sprott USA&#146;s
 performance as investment subadviser to the Fund.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Fees</i>.&#160;&#160;&#160;&#160;The rate of investment advisory compensation payable by the Fund to R&#038;A under
 the Current Investment Advisory Agreement is the same as the rate of investment
 advisory compensation to be payable by the Fund to Sprott Asset under the New Investment
 Advisory Agreement. As compensation for providing services under its agreement,
 the relevant adviser is entitled to receive a monthly investment advisory fee from
 the Fund equal to 1/12 of 1% (1% on an annualized basis) of the average net assets
 of the Fund. (Because the investment advisory fee is a function of the Fund&#146;s
 net assets and not of its total assets, neither adviser receives any fee in respect
 of those assets of the Fund equal to the aggregate unpaid amount of any of its indebtedness.
 The relevant adviser, however, receives a fee in respect of any assets of the Fund
 equal to the liquidation preferences of, and any potential redemption premiums for,
 any outstanding preferred stock.)</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Expenses
 Payable by the Fund and Other Services.</i>&#160;&#160;&#160;&#160;Under each Advisory Agreement, the Fund
 is responsible for determining the net asset value of its shares and for all of
 its other operations. The Advisory Agreements require the Fund to pay all administrative
 and other costs and expenses attributable to its operations and transactions, including,
 without limitation, registrar, transfer agent and custodian fees; legal, administrative
 and clerical services; rent for office space and facilities; auditing; preparation,
 printing and distribution of its proxy statements, stockholders&#146; reports and
 notices; supplies and postage; Federal and state registration fees; NASD and securities
 exchange listing fees and expenses; Federal, state, local and foreign taxes; non-affiliated
 Directors&#146; fees; interest on its borrowings; brokerage commissions; and the
 cost of issue, sale and repurchase of its shares. R&#038;A</font></p>
<p align="center"><font face="Times New Roman" size="2">8</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">seeks reimbursement of such
 expenses from the Fund at cost pursuant to a separate Administration Agreement by
 and between R&#038;A and the Fund. Sprott Asset has advised R&#038;A of its current
 intention to enter into a substantially similar expense reimbursement arrangement
 with the Fund and Sprott USA in the event all of the required stockholder approvals
 are obtained.<b> As a result, implementation of Proposal 1 is not expected to result
 in any material changes to the types and amounts of investment advisory or administration
 expenses that are payable by the Fund.</b></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Limitation
 of Liability.</i>&#160;&#160;&#160;&#160;Under each Advisory Agreement, the relevant adviser will not be
 liable to the Fund for any action taken or omitted to be taken by it in connection
 with the performance of any of its duties or obligations under that Agreement or
 otherwise as an investment adviser of the Fund, except for any liability to which
 it would otherwise be subject by reason of its willful misfeasance, bad faith, or
 gross negligence in the performance of its duties or by reason of its reckless disregard
 of its duties and obligations under such Agreement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Indemnification
 of R&#038;A and Sprott Asset.</i>&#160;&#160;&#160;&#160;Under each Advisory Agreement, the Fund will indemnify
 the relevant adviser and hold it harmless from and against all damages, liabilities,
 costs and expenses (including reasonable attorneys&#146; fees and amounts reasonably
 paid in settlement) incurred by it in or by reason of any pending, threatened or
 completed action, suit, investigation or other proceeding (including an action or
 suit by or in the right of the Fund or its security holders) arising out of or otherwise
 based upon any action actually or allegedly taken or omitted to be taken by it in
 connection with the performance of any of its duties or obligations under such Agreement
 or otherwise as an investment adviser of the Fund, except that the relevant adviser
 will not be entitled to indemnification in respect of any liability to which it
 would otherwise be subject by reason of its willful misfeasance, bad faith, or gross
 negligence in the performance of its duties or by reason of its reckless disregard
 of its duties and obligations under such Agreement. Determinations of whether and
 the extent to which an adviser is entitled to such indemnification will be made
 by reasonable and fair means as set forth in the applicable Advisory Agreement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Duration
 and Termination.</i>&#160;&#160;&#160;&#160;The terms of the Current Investment Advisory Agreement call
 for it to remain in effect until June 30, 2015 (unless terminated earlier) while
 the New Investment Advisory Agreement will remain in effect until December 31, 2016
 (unless terminated earlier). Each Advisory Agreement will remain in effect from
 year to year thereafter if approved annually by (i) the vote of the Board, including
 a majority of the Independent Directors, cast in person at a meeting called for
 the purpose of voting on such approval, or (ii) the vote of a majority of the &#147;outstanding
 voting securities&#148; (as defined in the 1940 Act) of the Fund. Each Advisory</font></p>
<p align="center"><font face="Times New Roman" size="2">9</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">Agreement will terminate
 upon its &#147;assignment&#148; (as defined in the 1940 Act). The Advisory Agreements
 may be terminated without penalty on 60 days&#146; written notice by the vote of
 a majority of the shares of the Fund or by the vote of a majority of the Board or
 by the applicable adviser.</p>
<p align="justify"><font face="Times New Roman" size="2"><b>Information About Sprott Asset</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Sprott Asset
 is an investment adviser with its principal place of business in Toronto, Ontario,
 Canada. Sprott Asset commenced operations as an investment adviser on November 20,
 2002, and is registered as an investment adviser with the U.S. Securities and Exchange
 Commission (the &#147;SEC&#148;). Sprott Asset is a wholly-owned subsidiary of Sprott
 Inc., a public company whose securities are listed on the Toronto Stock Exchange.
 Sprott Asset&#146;s product offerings include mutual funds, alternative strategies,
 physical bullion trusts and tax-efficient funds. Its investment advisory business
 in the United States consists of (i) serving as the investment manager to pooled
 investment vehicles in which U.S. residents invest; and (ii) acting as a sub-adviser
 to Sprott USA in respect of certain managed accounts advised by Sprott USA. Sprott
 Asset also serves as advisor to the Sprott Physical Gold Trust, Sprott Physical
 Silver Trust, and Sprott Physical Platinum and Palladium Trust, each a closed-end
 trust formed under the laws of Canada and dually listed on the TSX and NYSE Arca.
 Sprott Asset is an affiliate of Sprott USA. Certain information regarding the executive
 officers and directors of Sprott Asset is set forth in Exhibit B to this Proxy Statement.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Stockholder Approval</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">To become
 effective, the New Investment Advisory Agreement must be approved by a vote of a
 majority of the outstanding voting securities of the Fund. The &#147;vote of a majority
 of the outstanding voting securities&#148; is defined in the 1940 Act as the lesser
 of the vote of (i) 67% or more of the shares of the Fund entitled to vote thereon
 present at the Meeting if the holders of more than 50% of such outstanding shares
 are present in person or represented by proxy; or (ii) more than 50% of such outstanding
 shares of the Fund entitled to vote thereon.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The New Investment
 Advisory Agreement was approved by the Board after consideration of all factors
 which it determined to be relevant to its deliberations, including those discussed
 below under the heading &#147;Board Considerations.&#148; The Board also determined
 to submit the New Investment Advisory Agreement for consideration by the Fund&#146;s
 stockholders.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><b>The Board
 unanimously recommends that Fund stockholders vote &#147;FOR&#148; approval of the
 New Investment Advisory Agreement.</b></font></p>
<p align="center"><font face="Times New Roman" size="2">10</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROPOSAL 2: APPROVAL OF
<br>NEW INVESTMENT SUBADVISORY AGREEMENT</b></font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Background</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">As set forth
 above, R&#038;A serves as the Fund&#146;s investment adviser and is responsible
 for the management of its assets pursuant to the Current Investment Advisory Agreement.
 The date of the Current Investment Advisory Agreement is October 1, 2001. The Current
 Investment Advisory Agreement was last approved by the Fund&#146;s stockholders
 on September 14, 2001. The Current Investment Advisory Agreement was last approved
 for continuance by the Board at a meeting on June 4-5, 2014.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">R&#038;A is
 a wholly-owned subsidiary of Legg Mason Inc. and has been investing in smaller-company securities
 with a value approach for more than 40 years. Its offices are located at 745 Fifth
 Avenue, New York, NY 10151.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">On November
 10, 2014, as discussed above, the Fund announced that W. Whitney George, the Fund&#146;s portfolio manager since 2002, would be leaving R&#038;A to join Sprott Asset
 Management L.P. In addition to considering the New Investment Advisory Agreement
 at the December 15-16, 2014 in-person Board meeting as described under the heading
 &#147;Proposal 1: Approval of New Investment Advisory Agreement,&#148; the Board
 considered whether it would be in the best interests of the Fund and its stockholders
 to approve the New Investment Subadvisory Agreement by and among the Fund, Sprott
 Asset, and Sprott USA. Sprott USA is an affiliate of Sprott Asset. Sprott USA offers
 a managed account program that focuses on resource and energy related investments.
 The form of the New Investment Subadvisory Agreement is attached hereto as Exhibit
 C to this Proxy Statement. At that meeting, and for the reasons discussed below
 under the heading &#147;Board Considerations,&#148; the Board, including the Current
 Independent Directors, unanimously approved the New Investment Subadvisory Agreement.
 R&#038;A will not receive any compensation or any other amount from Sprott or any
 other party in connection with the New Investment Subadvisory Agreement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The 1940 Act
 requires that the New Investment Subadvisory Agreement be approved by the Fund&#146;s
 stockholders in order for it to become effective. At the December 15-16, 2014 Board
 meeting, the Board, including the Current Independent Directors, also unanimously
 recommended approval of the New Investment Subadvisory Agreement by the Fund&#146;s
 stockholders.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The New Investment
 Subadvisory Agreement is expected to take effect as soon as reasonably practicable
 after all of the required stockholder approvals are obtained. The Current Investment
 Advisory Agreement will terminate upon the effectiveness of the New Investment Subadvisory</font></p>
<p align="center"><font face="Times New Roman" size="2">11</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">Agreement as part of the
 consummation of the transactions contemplated in this Proxy Statement. In the event
 the required stockholder approvals are not obtained for any or all of Proposals
 1, 2, or 3, R&#038;A would remain the investment adviser to the Fund in accordance
 with the terms and conditions of the Current Investment Advisory Agreement. In such
 an event, R&#038;A may consider selecting a new portfolio manager or portfolio management
 team to replace Mr. George.</p>
<p align="justify"><font face="Times New Roman" size="2"><b>Comparison of Current Investment Advisory
 Agreement with New Investment Subadvisory Agreement</b></font></p>
<p align="justify" style="text-indent: 45px;"><font face="Times New Roman" size="2">The Current
 Investment Advisory Agreement is substantially similar to the New Investment Subadvisory
 Agreement except that:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">R&#038;A
 is responsible for the day-to-day portfolio management of the Fund under the Current
 Investment Advisory Agreement while Sprott Asset will appoint Sprott USA as subadviser
 to the Fund to handle such day-to-day portfolio management, subject to the supervision
 and oversight of Sprott Asset and the Board and in accordance with the terms of
 the New Investment Subadvisory Agreement;</font></div></td>
</tr>
<tr>
<td width="3%" valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">the Fund
 pays the applicable investment advisory compensation to R&#038;A while neither the Fund nor Sprott Asset
 will compensate Sprott USA under the New Investment Subadvisory Agreement; and </font></div></td>
</tr>
<tr>
<td valign="top" align="center"><font face="Times New Roman" size="2">&#149;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">the terms
 of the Current Investment Advisory Agreement call for it to remain in effect until
 June 30, 2015 (unless terminated earlier), and from year to year thereafter if approved
 annually in accordance with its terms while the New Investment Subadvisory Agreement
 will remain in effect until December 31, 2016 (unless terminated earlier), and from
 year to year thereafter if approved annually in accordance with its terms.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent: 45px;"><font face="Times New Roman" size="2">Below is a
 comparison of certain terms of the Current Investment Advisory Agreement to the
 corresponding terms of the New Investment Subadvisory Agreement.</font></p>
<p align="justify" style="text-indent: 45px;"><font face="Times New Roman" size="2"><i>Investment
 Advisory Services.</i>&#160;&#160;&#160;&#160;Under these agreements, R&#038;A and Sprott USA are responsible
 for: (i) determining the composition of the Fund&#146;s portfolio, the nature and
 timing of the changes in it, and the manner of implementing such changes and (ii)
 providing the Fund with such investment advisory, research and related services
 as the Fund may, from time to time, reasonably require for the investment of its
 assets. These agreements require R&#038;A and Sprott USA to perform such duties
 in accordance with the applicable provisions of the Fund&#146;s Articles of Incorporation,
 By-laws and stated investment objective, policies, and restrictions and any directions
 they may receive from the Board. Each of R&#038;A and Sprott USA must pay all</font></p>
<p align="center"><font face="Times New Roman" size="2">12</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">expenses it incurs in performing
 such duties. As noted above, Sprott Asset will retain Sprott USA to be responsible
 for the day-to-day portfolio management of the Fund pursuant to the New Investment
 Subadvisory Agreement and will supervise and oversee Sprott USA&#146;s performance
 thereunder.</p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Fees.</i>&#160;&#160;&#160;&#160;As set forth above, the rate of investment advisory compensation
 payable by the Fund to R&#038;A under the Current Investment Advisory Agreement
 is the same as the rate of investment advisory compensation to be payable by the
 Fund to Sprott Asset under the New Investment Subadvisory Agreement. Neither the
 Fund nor Sprott Asset will compensate Sprott USA for the services provided by Sprott
 USA under the New Investment Subadvisory Agreement.</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Expenses
 Payable by the Fund and Other Services.</i>&#160;&#160;&#160;&#160;The New Investment Subdvisory Agreement
 does not address the identification or allocation of expenses payable by the Fund
 nor does it identify the parties responsible for the performance of certain services
 in connection with the operation of the Fund. As noted above, the Fund is responsible
 under the Advisory Agreements for determining the net asset value of its shares
 and for all of its other operations. In addition, each Advisory Agreement requires
 the Fund to pay all administrative and other costs and expenses attributable to
 its operations and transactions, including, without limitation, registrar, transfer
 agent and custodian fees; legal, administrative and clerical services; rent for
 office space and facilities; auditing; preparation, printing and distribution of
 its proxy statements, stockholders&#146; reports and notices; supplies and postage;
 Federal and state registration fees; NASD and securities exchange listing fees and
 expenses; Federal, state, local and foreign taxes; non-affiliated Directors&#146;
 fees; interest on its borrowings; brokerage commissions; and the cost of issue,
 sale and repurchase of its shares. As noted above, R&#038;A seeks reimbursement
 of such expenses from the Fund at cost pursuant to a separate Administration Agreement
 by and between R&#038;A and the Fund. Sprott Asset has advised R&#038;A of its current
 intention to enter into a substantially similar expense reimbursement arrangement
 with the Fund and Sprott USA in the event all of the required stockholder approvals
 are obtained.<b> As a result, implementation of Proposal 2 is not expected to result
 in any material changes to the types and amounts of investment advisory or administration
 expenses that are payable by the Fund.</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Limitation
 of Liability.</i>&#160;&#160;&#160;&#160;Neither R&#038;A nor Sprott USA will be liable to the Fund for
 any action taken or omitted to be taken by it in connection with the performance
 of any of its duties or obligations under the relevant agreement or otherwise as
 an investment adviser or subadviser of the Fund, except for any liability to which
 it would otherwise be subject by reason of its willful misfeasance, bad faith, or
 gross negligence in the performance of its</font></p>
<p align="center"><font face="Times New Roman" size="2">13</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">duties or by reason of its
 reckless disregard of its duties and obligations under such agreement.</p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Indemnification
 of R&#038;A and Sprott USA.</i>&#160;&#160;&#160;&#160;Under each agreement, the Fund will indemnify R&#038;A or Sprott USA, as the case may be, and hold it harmless from and against
 all damages, liabilities, costs and expenses (including reasonable attorneys&#146;
 fees and amounts reasonably paid in settlement) incurred by it in or by reason of
 any pending, threatened or completed action, suit, investigation or other proceeding
 (including an action or suit by or in the right of the Fund or its security holders)
 arising out of or otherwise based upon any action actually or allegedly taken or
 omitted to be taken by it in connection with the performance of any of its duties
 or obligations under such Agreement or otherwise as an investment adviser or subadviser,
 as the case may be, of the Fund, except that the relevant adviser or subadviser
 will not be entitled to indemnification in respect of any liability to which it
 would otherwise be subject by reason of its willful misfeasance, bad faith, or gross
 negligence in the performance of its duties or by reason of its reckless disregard
 of its duties and obligations under such agreement. Determinations of whether and
 the extent to which R&#038;A or Sprott USA is entitled to such indemnification will
 be made by reasonable and fair means as set forth in the applicable agreement.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2"><i>Duration
 and Termination.</i>&#160;&#160;&#160;&#160;The terms of the Current Investment Advisory Agreement call
 for it to remain in effect until June 30, 2015 (unless terminated earlier) while
 the New Investment Subdvisory Agreement will remain in effect until December 31,
 2016 (unless terminated earlier). Each of the Current Investment Advisory Agreement
 and the New Investment Subdvisory Agreement will remain in effect from year to year
 thereafter if approved annually by (i) the vote of the Board, including a majority
 of the Independent Directors, cast in person at a meeting called for the purpose
 of voting on such approval, or (ii) the vote of a majority of the &#147;outstanding
 voting securities&#148; (as defined in the 1940 Act) of the Fund. The Current Investment
 Advisory Agreement and the New Investment Subdvisory Agreement will terminate upon
 their &#147;assignment&#148; (as defined in the 1940 Act). Each of the Current Investment
 Advisory Agreement and the New Investment Subdvisory Agreement may be terminated
 without penalty on 60 days&#146; written notice by the vote of a majority of the
 shares of the Fund or by the vote of a majority of the Board or by the investment
 adviser or subadviser, as the case may be. Additionally, the New Investment Subdvisory
 Agreement may be terminated by Sprott Asset upon no notice to the Fund or Sprott
 USA.</font></p>
<p align="center"><font face="Times New Roman" size="2">14</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><b>Information About Sprott USA</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Sprott USA
 is an investment adviser with its principal place of business in Carlsbad, California,
 and was founded in 2005. Sprott USA is owned by Sprott U.S. Holdings, Inc., a subsidiary
 of Sprott Inc., a Canadian public company. Sprott USA commenced operations as an
 investment adviser and has been registered with the SEC since February 7, 2006.
 Sprott USA provides investment supervisory services on a discretionary basis to
 its clients, which include individuals and institutions with separately managed
 accounts. Sprott USA is an affiliate of Sprott Asset.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Certain information
 regarding the executive officers and directors of Sprott USA is set forth in Exhibit
 D to this Proxy Statement.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><b>Stockholder Approval</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">To become
 effective, the New Investment Subadvisory Agreement must be approved by a vote of
 a majority of the outstanding voting securities of the Fund. The &#147;vote of a
 majority of the outstanding voting securities&#148; is defined in the 1940 Act as
 the lesser of the vote of (i) 67% or more of the shares of the Fund entitled to
 vote thereon present at the Meeting if the holders of more than 50% of such outstanding
 shares are present in person or represented by proxy; or (ii) more than 50% of such
 outstanding shares of the Fund entitled to vote thereon.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The New Investment
 Subadvisory Agreement was approved by the Board after consideration of all factors
 which it determined to be relevant to its deliberations, including those discussed
 below under the heading &#147;Board Considerations.&#148; The Board also determined
 to submit the New Investment Subadvisory Agreement for consideration by the Fund&#146;s stockholders.</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>The Board unanimously
 recommends that Fund stockholders vote<br>&#147;FOR&#148; approval of the New Investment
 Subadvisory Agreement.</b></font></p>
<p align="center"><font face="Times New Roman" size="2">15</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>BOARD CONSIDERATIONS</b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board, including the Current Independent
 Directors, is responsible for approving the New Investment Advisory Agreement by
 and between the Fund and Sprott Asset and the New Investment Subadvisory Agreement
 by and among the Fund, Sprott Asset, and Sprott USA. The Board met in person at
 a regularly scheduled meeting on December 15-16, 2014, for purposes of, among other
 things, considering whether it would be in the best interests of the Fund and its
 stockholders to approve the New Investment Advisory Agreement and the New Investment
 Subadvisory Agreement. The Nominating Committee of the Board also met on December
 15-16, 2014.</font></p>
<p align="justify"><font face="Times New Roman" size="2">In connection with the Board&#146;s review
 of the New Agreements, the Current Independent Directors requested, and Sprott provided
 the Board with, information about a variety of matters, including, without limitation,
 the following information:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Information
 regarding the financial condition of Sprott and any related future business initiatives;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">The expected
 investment advisory compensation to be payable by the Fund to Sprott Asset under
 the New Investment Advisory Agreement;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">The expected
 investment subadvisory compensation, if any, to be payable by Sprott Asset to Sprott
 USA under the New Investment Subadvisory Agreement;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Comparative
 fee and expense information for registered investment companies similar to the Fund
 as identified by Morningstar Associates, LLC (&#147;Morningstar&#148;);</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Background
 information on the qualifications and experience of Sprott senior management and
 the key professional personnel that are expected to provide services to the Fund;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">A description
 of the nature, extent, and quality of services Sprott expects to provide to the
 Fund and how such services may differ from those provided to the Fund by R&#038;A;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Information
 on compliance matters, including background information on the qualifications and
 experience of the expected Chief Compliance Officer for the Fund and a summary of
 Sprott compliance programs that will be applicable to the Fund;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Comparative
 investment performance information for registered investment companies similar to
 the Fund as identified by Morningstar;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Information
 regarding broker selection, trade allocation, brokerage &#147;recapture,&#148; and
 &#147;soft dollars;&#148; and</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Information
 on current legal matters.</font></div></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">16</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">In connection with the Board&#146;s review
 of the New Agreements, the Current Independent Directors considered the matters
 set forth above along with the following information:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Sprott&#146;s assurance that there will not be any diminution in the nature, quality, and
 extent of services provided to the Fund following implementation of the New Agreements;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Sprott&#146;s indication that it has no present intention to increase the investment advisory
 fee rate set forth in the Current Investment Advisory Agreement;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Mr. George&#146;s long portfolio management tenure with the Fund and its historical investment
 performance, which included past periods of significantly outperforming its then-current
 benchmark index and Morningstar peer group;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">That the
 Fund&#146;s portfolio is unlike that of any other Royce Funds;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Mr. George&#146;s significant ownership stake in the Fund;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Mr. George
 has entered into a one-year employment agreement with Sprott Asset to go into effect upon the effective
 date of the New Agreements;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Sprott&#146;s expectation that the Fund will be managed in substantially the same manner
 after implementation of the New Agreements as it has been under the Current Investment
 Advisory Agreement;</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Sprott&#146;s experience in managing pooled investment vehicles and accounts; and</font></div></td>
</tr>
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">&#149;</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom"><div align="justify"><font face="Times New Roman" size="2">Sprott
 and R&#038;A have agreed to pay all: (i) fees and expenses of the Fund in connection
 with the Board&#146;s consideration of the New Agreements and (ii) costs of seeking
 stockholder approval of the New Agreements and the new slate of Directors.</font></div></td>
</tr>
</table>
<p align="justify"><font face="Times New Roman" size="2">At the December 15-16, 2014 meeting, the
 Board and the Current Independent Directors, voting separately, determined that
 the New Agreements are in the best interests of the Fund in light of the services,
 personnel, expenses and such other matters as the Board considered to be relevant
 in the exercise of its reasonable business judgment and approved them for their
 initial terms.</font></p>
<p align="justify"><font face="Times New Roman" size="2">To reach this determination, the Board considered
 its duties under the 1940 Act as well as under the general principles of state law
 in reviewing and approving advisory contracts; the requirements of the 1940 Act
 in such matters; the fiduciary duty of investment advisers with respect to advisory
 agreements and the receipt of investment advisory compensation; the standards used
 by courts in determining whether investment company boards have fulfilled their
 duties; and the factors to be considered by the Board in voting on such agreements.
 To assist the Board in its evaluation of each of the New Agreements, the Current
 Independent Directors received materials in</font></p>
<p align="center"><font face="Times New Roman" size="2">17</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">advance of the Board meeting from Sprott
 and R&#038;A. The Directors also met with a senior executive of Sprott and Mr. George.
 The Current Independent Directors also met separately with their independent legal
 counsel to discuss the information provided by Sprott and R&#038;A. The Board applied
 its business judgment to determine whether the arrangements by and among the Fund,
 Sprott Asset, and Sprott USA are reasonable business arrangements from the Fund&#146;s perspective as well as from the perspective of its stockholders.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><i>The nature, extent and quality of services
 to be provided by Sprott Asset and Sprott USA</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board considered the following factors
 to be of fundamental importance to its consideration of whether to approve the New
 Agreements: (i) Mr. George&#146;s long tenure as the portfolio manager of the Fund;
 (ii) Mr. George&#146;s 33 years of value investing experience and related track
 record; (iii) Mr. George&#146;s focus on mid-cap, small-cap, and micro-cap value
 investing; (iv) background information on the qualifications and experience of Sprott
 senior management and the key professional personnel that are expected to provide
 services to the Fund; and (v) Sprott&#146;s experience in managing pooled investment
 vehicles and accounts and its related organizational capabilities.</font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board found that the investment advisory
 services provided by R&#038;A to the Fund under the Current Investment Advisory
 Agreement are substantially identical to the investment advisory services to be
 provided by Sprott to the Fund under the New Agreements. The Board also considered
 the fact that R&#038;A provided, and Sprott is expected to provide, certain administrative
 services to the Fund at cost pursuant to the relevant administration agreement.
 The Board determined that the overall services to be provided to the Fund by Sprott
 would be substantially identical to those previously provided to the Fund by R&#038;A.
 As it had in its previous considerations of the renewal of the Current Investment
 Advisory Agreement in respect of R&#038;A&#146;s management of the Fund, the Board
 concluded that the nature and quality of the services to be provided by Sprott to
 the Fund would be suitable for the Fund.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><i>Investment performance</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Fund, like other R&#038;A managed funds,
 uses a risk-averse, value approach to investing. In light of that approach, the
 Board believes that risk-adjusted performance continues to be the most appropriate
 measure of the Fund&#146;s investment performance. One measure of risk-adjusted
 performance the Board has historically used in its review of the Fund&#146;s performance
 is the Sharpe Ratio. The Sharpe Ratio is a risk-adjusted measure of performance
 developed by Nobel Laureate William Sharpe. It is calculated by dividing a fund&#146;s annualized excess returns by its annualized standard deviation to determine
 reward per unit of risk. The higher the Sharpe Ratio, the better a fund&#146;s </font></p>
<p align="center"><font face="Times New Roman" size="2">18</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">historical risk-adjusted performance. The
 Board attaches primary importance to risk-adjusted performance over relatively long
 periods of time, typically 3 to 10 years.</font></p>
<p align="justify"><font face="Times New Roman" size="2">The Fund&#146;s use of preferred stock leverage
 from November 1997 to mid-November 2012, however, served to offset R&#038;A&#146;s
 risk-averse, value approach by increasing return volatility (i.e., standard deviation).
 The Fund&#146;s recent over-weighting of metals and mining stocks, its focus on
 more cyclical &#147;quality&#148; stocks, and the greater proportion of yield-oriented
 securities (e.g., master limited partnerships, real estate investment trusts, and
 utilities) in the Russell 2500 Index, the Fund&#146;s current benchmark index, also
 adversely affected the Fund&#146;s absolute and relative investment performance.
 Using Morningstar data, the Board noted that the Fund&#146;s Sharpe Ratio placed
 in the fourth quartile in the Mid Cap Growth category assigned by Morningstar for
 the 3-year, 5-year, and 10-year periods ended December 31, 2013.</font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board also noted that the Fund&#146;s
 relative performance has improved significantly since short-term interest rates
 hit their lows on May 2, 2013. The Board further noted the Fund&#146;s annualized
 total returns for the 3-year, 5-year, and 10-year periods ended October 31, 2014
 were 9.16%, 11.32%, and 8.34%, respectively while those of the Russell 2500 Index
 for those same periods were 19.03%, 18.40%, and 9.18%, respectively.</font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board noted that Mr. George has served
 as the Fund&#146;s portfolio manager since 2002 and that the Fund had enjoyed periods
 of significant investment outperformance relative to its then-current benchmark
 index and Morningstar peer group during his tenure. The Board further noted that
 the portfolio management strategy and methods used in managing the Fund are not
 expected to change as a result of implementation of the New Agreements. Finally,
 the Board noted that Mr. George had also served as a portfolio manager or assistant
 portfolio manager on a number of R&#038;A managed funds that invest in micro-cap,
 small-cap, and mid-cap issuers.</font></p>
<p align="justify"><font face="Times New Roman" size="2">Although the Board recognized that past
 performance is not necessarily an indicator of future results, it found that Mr.
 George, Sprott Asset, and Sprott USA had the necessary qualifications, experience
 and track record in managing micro-cap, small-cap, and mid-cap securities to manage
 the Fund. In light of the foregoing, the Directors determined that Sprott Asset
 was an appropriate investment adviser for the Fund and that Sprott USA was an appropriate
 investment subadviser for the Fund.</font></p>
<p align="center"><font face="Times New Roman" size="2">19</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><i>Cost of the services provided and profits
 realized by Sprott from its relationships with the Fund</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">Because the engagement of Sprott Asset and
 Sprott USA for the provision of investment management services to the Fund is new,
 there was no related historical cost or profitability information for the Board
 to review in connection with its consideration of each of the New Agreements. As
 a result, this factor was generally not considered by the Board.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><i>The extent to which economies of scale
 would be realized as the Fund grows and whether fee levels would reflect such economies
 of scale</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board noted that the investment advisory
 fee rate payable by the Fund would not change in connection with the transition
 of investment management services from R&#038;A to Sprott. As it had in its previous
 considerations of the renewal of the Current Investment Advisory Agreement, the
 Board considered whether there have been economies of scale in respect of the management
 of the Fund, whether the Fund has appropriately benefited from any economies of
 scale and whether there is potential for realization of any further economies of
 scale. The Board again noted the time and effort involved in managing portfolios
 of micro-, small-, and mid-cap stocks and that they did not involve the same efficiencies
 as do portfolios of large-cap stocks. As it had in its previous approvals of the
 renewal of the Current Investment Advisory Agreement, the Board concluded that the
 current fee structure for the Fund was reasonable, that stockholders sufficiently
 participated in economies of scale, and that no changes were currently necessary.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><i>Comparison of services to be rendered
 and fees to be paid to those under other investment advisory contracts, such as
 contracts of the same and other investment advisers or other clients</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Board noted that: (i) the rate of investment
 advisory compensation payable by the Fund to R&#038;A under the Current Investment
 Advisory Agreement is the same as the rate of investment advisory compensation to
 be payable by the Fund to Sprott Asset under the New Investment Advisory Agreement;
 (ii) neither the Fund nor Sprott Asset will compensate Sprott USA for the services
 provided by Sprott USA under the New Investment Subadvisory Agreement; (iii) Sprott
 did not manage any pooled investment vehicles or accounts with an investment objective
 or investment strategy similar to those used to manage the Fund; and (iv) Sprott
 did not manage any investment companies registered under the 1940 Act.</font></p>
<p align="justify"><font face="Times New Roman" size="2">As it had in its previous considerations
 of the renewal of the Current Investment Advisory Agreement, the Board compared
 the investment advisory fee payable by the Fund under the New Investment Advisory
 Agreement to</font></p>
<p align="center"><font face="Times New Roman" size="2">20</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">contracts of other investment advisers to
 registered investment companies investing in micro-, small-, and mid-cap stocks,
 as provided by Morningstar. The Board noted that the Fund&#146;s investment advisory
 fee based on its average net asset level for the year ended December 31, 2013 fell
 within the 4th quartile (88<sup>th</sup> percentile) of its Morningstar-assigned
 open-end peer group. The Board also noted that the Fund&#146;s net expense ratio
 based on average net assets for the year ended December 31, 2013 fell within the
 3rd quartile (69<sup>th</sup> percentile) of its Morningstar-assigned open-end peer
 group, 8 basis points above the Morningstar peer group median (1.09%). Finally,
 the Board noted that the Fund&#146;s net expense ratio based on average net assets
 for the 10-month period ended October 31, 2014 was 1.14%.</font></p>
<p align="justify"><font face="Times New Roman" size="2"><i>Conclusion</i></font></p>
<p align="justify"><font face="Times New Roman" size="2">It was noted that no single factor was cited
 as determinative to the decision of the Directors. Rather, after weighing all of
 the considerations and conclusions discussed above, the entire Board, including
 all of the Current Independent Directors, approved the New Investment Advisory Agreement
 and the New Investment Subadvisory Agreement, concluding that having the Fund enter
 into the New Agreements was in the best interest of the stockholders of the Fund
 and that the investment advisory fee rate was reasonable in relation to the services
 provided.</font></p>
<p align="center"><font face="Times New Roman" size="2">21</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="center"><font face="Times New Roman" size="2"><b>PROPOSAL 3: ELECTION OF
 DIRECTORS</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The Board&#146;s role in management of the Fund is oversight. The Board is currently comprised
 of two Interested Directors and six Independent Directors. The two current Interested
 Directors are Mr. George and Charles M. Royce, the Chief Executive Officer and Chairman
 of the Board of Managers of R&#038;A. The six Current Independent Directors are
 Patricia W. Chadwick, Richard M. Galkin, Stephen L. Isaacs, Arthur S. Mehlman, David
 L. Meister and G. Peter O&#146;Brien.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">In light of
 Mr. George&#146;s long history as a portfolio manager of the Fund and his impending
 move from R&#038;A to Sprott, four nominees (each, a &#147;Nominee&#148; and collectively,
 the &#147;Nominees&#148;) are being proposed for election to the Board under Proposal
 3. The Current Independent Directors interviewed the three Independent Director Nominees at a meeting held on December
 15-16, 2014. The current Board considered the skills and experience, time availability, and
 other attributes of the Nominees. As a result, the current Board determined
 that, in connection with the proposed transfer of investment management responsibilities
 for the Fund from R&#038;A to Sprott, it will be appropriate for the Fund to have
 a Board comprised of three new &#147;Independent Directors&#148; and one &#147;Interested
 Director&#148; as set forth below.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The three
 Independent Director Nominees were interviewed and nominated by the Nominating Committee
 of the Board. As set forth above, Mr. George currently serves as an Interested Director
 of the Fund and has been nominated for re-election in that capacity. If each of
 Proposal 1, Proposal 2, and Proposal 3 receives the required stockholder approval,
 all of the current members of the Board other than Mr. George (<i>i.e.,</i> the
 Current Independent Directors and Mr. Royce) will resign from their positions, the
 size of the Board will be reduced pursuant to the Fund&#146;s By-laws, and the four
 Nominees will then comprise the Board. If each of Proposal 1, Proposal 2, and Proposal
 3 does not receive the required stockholder approval, then all of the current Directors
 are currently expected to remain on the Board for the remainder of their respective
 terms, or until their respective successors are duly elected and qualified.</font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The 1940 Act
 requires that certain percentages of directors on boards of registered investment
 companies must have been elected by stockholders under various circumstances. For
 example, in general, at least a majority of the directors must have been elected
 to such office by stockholders. In addition, new directors cannot be appointed by
 existing directors to fill vacancies created by retirements, resignations, or an
 expansion of a board unless, after those appointments, at least two-thirds of the
 directors have been elected by stockholders. Currently, 75% of the Fund&#146;s Directors
 are Independent Directors. If all four Nominees are elected to the Board and the</font></p>
<p align="center"><font face="Times New Roman" size="2">22</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2">Current Independent Directors
 and Mr. Royce resign from the Board as contemplated in this Proxy Statement, 75%
 of the Fund&#146;s Directors would still be Independent Directors. Accordingly,
 Fund stockholders are being asked to elect all four Nominees to the Board. It is
 intended that the enclosed Proxy will be voted &#147;FOR&#148;&#160;the election
 of all four Nominees, unless such authority has been withheld in the proxy. The
 enclosed Proxy cannot be voted for a greater number of persons than the number of
 Nominees.</p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">The classes
 of Nominees and their respective proposed terms of office are indicated below.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u>
<b>CLASS I DIRECTORS TO SERVE UNTIL 2018 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">W. Whitney
 George (Interested Director)</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">James R. Pierce,
 Jr. (Independent Director)</font></td>
</tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u>
<b>CLASS II DIRECTOR TO SERVE UNTIL 2017 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Barbara Connolly
 Keady (Independent Director)</font></td>
</tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2"><u>
<b>CLASS III DIRECTOR TO SERVE UNTIL 2016 ANNUAL MEETING OF STOCKHOLDERS</b></u></font></p></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Michael W.
 Clark (Independent Director)</font></td>
</tr>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Each of the
 four Nominees has agreed to serve if elected, and R&#038;A and Sprott have no reason
 to believe that any of them will be unavailable for service as a Director. However,
 if any of them become unwilling or unable to serve, the persons named in the accompanying
 Proxy will vote for the election of such other persons, if any, as the Board may
 nominate.</font></p>
<p align="center"><font face="Times New Roman" size="2">23</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p align="justify"><font face="Times New Roman" size="2"><b>Interested Director Nominee</b></font></p>
<p align="justify" style="text-indent: 50px;"><font face="Times New Roman" size="2">Certain biographical
 and other information concerning W. Whitney George, including his proposed designated
 class, is set forth below. Mr. George has been deemed to be an &#147;interested
 person&#148; (as defined in the 1940 Act) of the Fund due to the positions he holds
 and has held with R&#038;A, the positions he is expected to hold with Sprott, and
 his stock ownership in Legg Mason.</font></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%">
<tr>
<td style="vertical-align: bottom; text-align: left"><font face="Times New Roman" size="2"><b>Name, Address*
 and<br>Principal Occupations<br><u>During Past Five Years</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap style="vertical-align: bottom; text-align: center"><font face="Times New Roman" size="2"><u><b>Age</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap style="vertical-align: bottom; text-align: center"><font face="Times New Roman" size="2"><b>Positions
<br>to be Held<br>With<br><u>Fund</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap style="vertical-align: bottom; text-align: center"><font face="Times New Roman" size="2"><b>Term
 of<br>Office to<br>Expire and<br>Length of<br>Time<br><u>Served</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap style="vertical-align: bottom; text-align: center"><font face="Times New Roman" size="2"><b>Number
 of<br>Portfolios<br>in Fund<br>Complex to<br><u>be Overseen</u></b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap style="vertical-align: bottom; text-align: center"><font face="Times New Roman" size="2"><b>Other
<br>Public Company<br>Directorships<br>During Past<br><u>Five Years</u></b></font></td>
</tr>
<tr>
<td colspan="10"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="top" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">W.
 Whitney George Managing Director and Vice President of R&#038;A, having been employed
 by R&#038;A since October 1991. Vice President and Member of Board of Directors of the
 Fund</font><font style="font: x-small Times New Roman">.</font></p></td>
<td style="width: 2%"><font face="Times New Roman" size="1">&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="width: 10%; vertical-align: top; text-align: center"><font face="Times New Roman" size="2">56</font></td>
<td style="width: 2%"><font face="Times New Roman" size="1">&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="width: 12%; vertical-align: top; text-align: center"><font face="Times New Roman" size="2">Class I
<br>Director<br>and<br>Vice<br>President&#134;</font></td>
<td style="width: 2%"><font face="Times New Roman" size="1">&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="width: 10%; vertical-align: top; text-align: center"><font face="Times New Roman" size="2">2018<br>
Director<br>since 2013</font></td>
<td style="width: 2%"><font face="Times New Roman" size="1">&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="width: 10%; vertical-align: top; text-align: center"><font face="Times New Roman" size="2">1</font></td>
<td style="width: 2%"><font face="Times New Roman" size="1">&#160;&#160;&#160;&#160;&#160;&#160;</font></td>
<td style="width: 12%; vertical-align: top; text-align: center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<div><font face="Times New Roman" size="2"><sup><br>________________</sup></font></div>
<div><font face="Times New Roman" size="2">*&#160;&#160;&#160;The current mailing address of Mr. George
 is c/o Royce &#038; Associates, LLC, 745 Fifth Avenue, New York, New York 10151.</font></div>
<div align="justify" style="text-indent: 0px;"><font face="Times New Roman" size="2">&#160;&#160;&#134; Mr. George
 will be elected by, and serve at the pleasure of, the Board in his capacity as an
 officer of the Fund.</font></div>
<p align="center"><font face="Times New Roman" size="2">24</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><b>Independent Director Nominees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Certain biographical
 and other information concerning the three Independent Director Nominees, including their proposed designated classes, is set forth below. None of the Independent
 Director Nominees currently serves as a Director to the Fund.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Number
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Positions
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Portfolios
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Other
</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>to be
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>in Fund
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Public
 Company</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address*
 and</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Held</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Term
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Complex
 to</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Directorships
</b></u></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Principal
 Occupations</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>With</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Office
 to</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>be</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>During
 Past Five</b></u></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>During
 Past Five Years</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Fund
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Expire
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Overseen
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Years
</b></u></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="12%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="12%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">James R. Pierce,
 Jr.<br>Chairman of JLT Specialty Insurance Services, Inc. since 2014. Global Lead
 in Marine and Energy Operations at Marsh (2006-2014). Managing Director at Aon Natural
 Resources (1995-2006). Manager at Energy Insurance International (1986-1995).</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">58</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class I<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2018</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Barbara Connolly
 Keady<br>Director of New Business Development at Ceres Partners, an investment fund
 that acquires and manages farmland (2010-present); Research Analyst at Southport
 Management, a convertible bond hedge fund and Associate in Morgan Stanley Private
 Wealth Management group (1998-1999).</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">52</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class II<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2017</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Michael W.
 Clark<br>President, Chief Operating Officer, Chief Risk Officer, Head of Executive
 Committee, and member of Board of Directors of Chilton Investment Company, an investment
 management firm (2005-present); and Co-Head of Global Equity Department and Executive
 Board member of Credit Suisse First Boston (1991-2005).</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">55</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Class III<br>Director</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2016</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">None</font></td>
</tr>
</table>
<div><hr size="1" color="000000" width="10%" noshade align="left"></div>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%" valign="top" align="left"><font face="Times New Roman" size="2">*</font></td>
<td width="1%" valign="bottom" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">The address
 of each of Ms. Keady and Messrs. Pierce and Clark is c/o Sprott Asset Management
 L.P., Royal Bank Plaza, South Tower, Suite 2700, Bay Street, Toronto, Ontario, Canada
 M5J2J1.</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Set forth
 below is additional information about each Nominee (supplementing the information
 provided in the table above) that describes some of the specific experiences, qualifications,
 attributes or skills that each Nominee possesses which the Board believes have
 prepared them to be effective Directors.</font></p>
<p align="center"><font face="Times New Roman" size="2">25</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" valign="top" align="left"><font face="Times New Roman" size="2"><b>&#149;</b></font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify"><i>W. Whitney
 George</i> &#150; In addition to his previous tenure as a Director/Trustee and portfolio
 manager of certain investment companies managed by R&#038;A, Mr. George currently
 serves as Managing Director and Vice President of R&#038;A, having been employed
 there since 1991. Mr. George has over 30 years of investment business experience.</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><b>&#149;</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify"><i>James R.
 Pierce, Jr.</i> &#150; Mr. Pierce currently serves as the Chairman of JLT Specialty
 Insurance Services, Inc. He has over 30 years of business experience, including
 extensive experience in the insurance and financial services sectors.</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><b>&#149;</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify"><i>Barbara
 Connolly Keady</i> &#150; Ms. Keady currently serves as the Director of New Business
 Development at Ceres Partners. She has over 25 years of business experience, including
 extensive experience in the investing and financial services sectors.</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"><b>&#149;</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify"><i>Michael
 W. Clark</i> &#150; Mr. Clark currently serves as the President, Chief Operating Officer,
 Chief Risk Officer, Head of Executive Committee, and member of Board of Directors
 of Chilton Investment Company, an investment firm. He has over 21 years of business
 experience, including extensive experience in the investing and financial services
 sectors.</font></div></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 believes that each Director&#146;s experience, qualifications, attributes and skills
 should be evaluated on an individual basis and in consideration of the perspective
 such Director brings to the entire Board, with no single Director, or particular
 factor, being indicative of Board effectiveness. However, the Board believes that
 Directors need to have the ability to critically review, evaluate, question and
 discuss information provided to them, and to interact effectively with Fund management,
 service providers and counsel, in order to exercise effective business judgment
 in the performance of their duties; the Board believes that the Nominees satisfy
 this standard. Experience relevant to having this ability may be achieved through
 a Director&#146;s educational background; business, professional training or practice,
 public service or academic positions; experience from service as a board member
 (including the Board) or as an executive of investment funds, public companies or
 significant private or non-profit entities or other organizations; and/or other
 life experiences. The charter for the Board&#146;s Nominating Committee contains
 certain other specific factors considered by the Nominating Committee in identifying
 and selecting Director candidates (as described below).</font></p>
<p align="center"><font face="Times New Roman" size="2">26</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">&#160;&#160;&#160;&#160;&#160;To assist
 them in evaluating matters under federal and state law, the Directors are currently
 counseled by their own independent legal counsel, who participates in Board meetings
 and interacts with R&#038;A, and also may benefit from information provided by R&#038;A&#146;s internal counsel; both Board and R&#038;A&#146;s internal counsel
 have significant experience advising funds and fund board members. The Board and
 its committees have the ability to engage other experts as appropriate. The Board
 evaluates its performance on an annual basis.</font></p>
<p><font face="Times New Roman" size="2"><b>Board Composition and Leadership Structure
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The 1940 Act
 requires that at least 40% of the Fund&#146;s Directors be Independent Directors
 (<i>i.e</i>., 40% of the Fund&#146;s Directors may not be &#147;interested persons&#148; (as defined in the 1940 Act) of the Fund). To rely on certain exemptive rules
 under the 1940 Act, a majority of the Fund&#146;s Directors must be Independent
 Directors, and for certain important matters, such as the approval of investment
 advisory agreements or transactions with affiliates, the 1940 Act or the rules thereunder
 require the approval of a majority of the Independent Directors. Currently, 75%
 of the Fund&#146;s Directors are Independent Directors. If all four Nominees are
 elected and the Current Independent Directors and Mr. Royce resign as contemplated
 in this Proxy Statement, 75% of the Fund&#146;s Directors would still be Independent
 Directors. The Board does not have a chairman, but the current President of the
 Fund, Mr. Royce, an interested person of the Fund, currently acts as chairman at
 the Board meetings. The Current Independent Directors have not designated a lead
 Independent Director, but the current Chairman of the Board&#146;s Audit Committee,
 Mr. Mehlman, generally acts as chairman of meetings or executive sessions of the
 Independent Directors and, when appropriate, represents the views of the Independent
 Directors to R&#038;A. The Board has determined that its current leadership structure
 is appropriate in light of the services that R&#038;A and its affiliates provide
 to the Fund and potential conflicts of interest that could arise from these relationships.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Committee Report</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 has a standing Audit Committee (the &#147;Audit Committee&#148;), which consists
 of the Current Independent Directors, who also are &#147;independent&#148; as defined
 in the listing standards of the NASDAQ Stock Market. The current members of
 the Audit Committee are Patricia W. Chadwick, Richard M. Galkin, Stephen L. Isaacs,
 Arthur S. Mehlman, David L. Meister and G. Peter O&#146;Brien. Mr. Mehlman currently
 serves as Chairman of the Audit Committee. Ms. Chadwick and Mr. Mehlman have been
 designated as Audit Committee Financial Experts, as defined under SEC regulations.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The principal
 purposes of the Audit Committee are to (i) assist Board oversight of the (a) integrity
 of the Fund&#146;s financial statements; (b)</font></p>
<p align="center"><font face="Times New Roman" size="2">27</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify" style="text-indent:00px;"><font face="Times New Roman" size="2">independent accountants&#146; qualifications
 and independence; and (c) performance of the Fund&#146;s independent accountants
 and (ii) prepare or oversee the preparation of any audit committee report required
 by rules of the SEC to be included in the Fund&#146;s proxy statement for its annual
 meeting of stockholders. The Board has adopted an Audit Committee charter for the
 Fund which is attached as Exhibit E to this Proxy Statement.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee also has (i) received written disclosures and the letter required by Independence
 Standards Board Standard No. 1 from Tait, Weller &#038; Baker (&#147;TW&#038;B&#148;), the current independent auditors for the Fund, and (ii) discussed certain
 matters required to be discussed under the requirements of The Public Company Accounting
 Oversight Board with TW&#038;B. The Audit Committee has considered whether the provision
 of non-audit services by the Fund&#146;s independent auditors is compatible with
 maintaining their independence.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">At its meetings
 held on February 14, 2014 and February 26-27, 2014, the Audit Committee reviewed
 and discussed the audit of the Fund&#146;s financial statements as of December 31,
 2013 and for the fiscal year then ended with Fund management and TW&#038;B. Had
 any material concerns arisen during the course of the audit and the preparation
 of the audited financial statements mailed to stockholders and included in the
 Fund&#146;s 2013 Annual Report to Stockholders, the Audit Committee would have been
 notified by Fund management or TW&#038;B. The Audit Committee received no such notifications.
 At the same meeting, the Audit Committee recommended to the Board that the Fund&#146;s audited financial statements be included in the Fund&#146;s 2013 Annual Report
 to Stockholders.</font></p>
<p><font face="Times New Roman" size="2"><b>Nominating Committee</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board
 has a Nominating Committee (the &#147;Nominating Committee&#148;), which is presently
 composed of the six Current Independent Directors, namely Ms. Chadwick and Messrs.
 Galkin, Isaacs, Mehlman, Meister and O&#146;Brien. Messrs. Galkin and O&#146;Brien
 currently serve as co-Chairmen of the Nominating Committee. The Board has adopted
 a Nominating Committee Charter which is attached as Exhibit F to this Proxy Statement.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Nominating
 Committee is responsible for identifying and recommending to the Board individuals
 believed to be qualified to become Board members in the event that a position is
 vacated or created. The Nominating Committee will consider Director candidates recommended
 by stockholders. In considering potential nominees, the Nominating Committee will
 take into consideration (i) the contribution which the person can make to the Board,
 with consideration given to the person&#146;s business and professional experience,
 education and such other factors as the Committee may consider</font></p>
<p align="center"><font face="Times New Roman" size="2">28</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">relevant, including but not limited to whether
 a potential nominee&#146;s personal and professional qualities and attributes would
 provide a beneficial diversity of skills, experience and/or perspective to the
 Board; (ii) the character and integrity of the person; (iii) whether or not the
 person is an &#147;interested person&#148; as defined in the 1940 Act and whether
 the person is otherwise qualified under applicable laws and regulations to serve
 as a Director or Independent Director of the Fund; (iv) whether or not the person
 has any relationships that might impair his or her independence, such as any business,
 financial or family relationships with Fund management, the investment adviser of
 the Fund, Fund service providers or their affiliates; (v) whether or not the person
 is financially literate pursuant to the New York Stock Exchange&#146;s audit committee
 membership standards; (vi) whether or not the person serves on boards of, or is
 otherwise affiliated with, competing financial service organizations or their related
 investment company complexes; (vii) whether or not the person is willing to serve
 as, and willing and able to commit the time necessary for the performance of the
 duties of, a Director of the Fund; and (viii) whether or not the selection and nomination
 of the person would be in the best interest of the Fund in light of the requirements
 of the Fund&#146;s retirement policies. While the Nominating Committee does not
 have a formal policy regarding diversity, as noted above, it may consider the diversity
 of skills, experience and/or perspective a potential nominee will bring to the Board
 as part of its evaluation of the contribution such potential nominee will make to
 the Board. Such factors will be considered in light of the other factors described
 above and in the context of the Board&#146;s existing membership at the time such
 potential candidate is considered. The three Independent Director Nominees were
 recommended by  R&#038A and Sprott for consideration by the Nominating Committee. The
 Nominating Committee interviewed, and nominated, the three Independent Director Nominees
 at a meeting held on December 15-16, 2014.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">To have a
 candidate considered by the Nominating Committee, a stockholder must submit the
 recommendation in writing and must include biographical information and set forth
 the qualifications of the proposed nominee. The stockholder recommendation and information
 described above must be sent to the Fund&#146;s Secretary, John E. Denneen, c/o
 Royce Focus Trust, Inc., 745 Fifth Avenue, New York, New York 10151.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Although the
 Board does not have a standing compensation committee, the Current Independent Directors
 review their compensation annually.</font></p>
<p align="center"><font face="Times New Roman" size="2">29</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2"><b>Board&#146;s Oversight Role in Management
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Board&#146;s role in management of the Fund is oversight. As is the case with virtually
 all investment companies (as distinguished from operating companies), service providers
 to the Fund, primarily R&#038;A and its affiliates, have responsibility for the
 day-to-day management of the Fund, which includes responsibility for risk management
 (including management of investment performance and investment risk, valuation risk,
 issuer and counterparty credit risk, compliance risk and operational risk). As part
 of its oversight, the Board, acting at its scheduled meetings, or the Chairman of
 the Audit Committee, acting between Board meetings, regularly interacts with and
 receives reports from senior personnel of service providers, including the Fund&#146;s and R&#038;A&#146;s Chief Compliance Officer and portfolio management personnel.
 The Audit Committee (which consists of the six Current Independent Directors) meets
 during its scheduled meetings, and between meetings the Chairman of the Audit Committee
 maintains contact with the Fund&#146;s independent registered public accounting
 firm and the Fund&#146;s Vice President and Treasurer. The Board also receives periodic
 presentations from senior personnel of R&#038;A or its affiliates regarding risk
 management generally, as well as periodic presentations regarding specific operational,
 compliance or investment areas such as business continuity, anti-money laundering,
 personal trading, valuation, investment research and securities lending. The Board
 also receives reports from counsel to R&#038;A and the Board&#146;s own independent
 legal counsel regarding regulatory, compliance and governance matters. The Board&#146;s oversight role does not make the Board a guarantor of the Fund&#146;s investments
 or activities.</font></p>
<p><font face="Times New Roman" size="2"><b>Committee and Board of Directors Meetings
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">During the
 year ended December 31, 2013, the Board held six meetings, the Audit Committee held
 two meetings, and the Nominating Committee did not hold any meetings. Each Director
 then in office attended 75% or more of the aggregate of the total number of meetings
 of the Board and the total number of meetings of the Audit Committee held during
 that year.</font></p>
<p><font face="Times New Roman" size="2"><b>Compensation of Directors</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">For the year
 ended December 31, 2013, each Current Independent Director received a base fee of
 $6,500 per year, plus $300 for each in-person meeting of the Board attended. No
 Director received remuneration for services as a Director for the year ended December
 31, 2013 in addition to or in lieu of this standard arrangement. Effective January
 1, 2014, each Current Independent Director receives a base fee of $7,200 per year,
 plus $300 for each in-person meeting of the Board attended.</font></p>
<p align="center"><font face="Times New Roman" size="2">30</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Set forth
 below is the aggregate compensation paid by the Fund and the total compensation
 paid by The Royce Funds and the Fund Complex to each Current Independent Director
 for the year ended December 31, 2013. Interested Directors of the Fund receive no
 compensation relating to their services as a Director.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Pension
 or</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Total
</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Retirement
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Total
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation
</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Benefits
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Estimated
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>From
 the</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Accrued
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Annual
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>From
 The</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Fund
 and</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Compensation
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>as Part
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Benefits
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Royce
 Funds</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Fund
 Complex</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>From
 the</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>of Fund
</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>upon</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Paid
 to</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Paid
 to</b></font></td>
</tr>
<tr>
<td nowrap valign="top" align="left"><font face="Times New Roman" size="2"><u><b>Name
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="top" align="center"><font face="Times New Roman" size="2"><u><b>Fund
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="top" align="center"><font face="Times New Roman" size="2"><u><b>Expenses
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="top" align="center"><font face="Times New Roman" size="2"><u><b>Retirement
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Directors
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="top" align="center"><font face="Times New Roman" size="2"><u><b>Directors
</u><sup>*</sup><u></b></u></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Patricia W.
 Chadwick,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="10%" valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="8%" valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Richard M.
 Galkin,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Stephen L.
 Isaacs,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Arthur S.
 Mehlman,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$391,960</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">David L. Meister,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">G. Peter O&#146;Brien,</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Director</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$8,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">None</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$250,710</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">$381,960</font></td>
</tr>
</table>
<div><hr size="1" color="000000" width="10%" noshade align="left"></div>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">*</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Represents
 aggregate compensation paid to each Director during the calendar year ended December
 31, 2013 from the Fund Complex. The Fund Complex included the 34 portfolios of
 The Royce Funds and the 18 portfolios of the Legg Mason Family of Funds during that
 period.</font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>Current Officers of the Fund</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Officers of
 the Fund are elected each year by the Board. The following sets forth information
 concerning the current officers of the Fund:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address*
 and Principal</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Officer
 of</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Occupations
 During Past Five Years</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Office</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Fund
 Since</b></u></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="25%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles M.
 Royce<br>Chief Executive Officer and Chairman of Board of Managers of R&#038;A.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">74</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1986</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">John D. Diederich
<br>Chief Operating Officer, Managing Director and Member of the Board of Managers
 of R&#038;A; Chief Financial Officer of R&#038;A; Director of Administration of
 The Royce Funds; and President of Royce Fund Services, Inc. (&#147;RFS&#148;), having
 been employed by R&#038;A since April 1993.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">63</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President<br>and<br>Treasurer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1997</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">31</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name, Address*
 and Principal</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Officer
 of</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Occupations
 During Past Five Years</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Age
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b><u>Office</u>**</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Fund
 Since</b></u></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="25%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="15%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Jack E. Fockler,
 Jr.<br>Managing Director and Vice President of R&#038;A; Vice President of RFS,
 having been employed by R&#038;A since October 1989.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">55</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">W. Whitney
 George<br>Managing Director and Vice President of R&#038;A, having been employed
 by R&#038;A since October 1991.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">56</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1995</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Daniel A.
 O&#146;Byrne<br>Principal and Vice President of R&#038;A, having been employed by
 R&#038;A since October 1986.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">52</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1994</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Christopher
 D. Clark<br>President and Co-Chief Investment Officer of R&#038;A having been employed
 by R&#038;A since 2007</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">49</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2014</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Francis D.
 Gannon<br>Co-Chief Investment Officer of R&#038;A having been employed by R&#038;A
 since 2006</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">47</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Vice<br>President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2014</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">John E. Denneen
<br>General Counsel, Chief Legal and Compliance Officer and Secretary of R&#038;A;
 Secretary and Chief Legal Officer of The Royce Funds.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">47</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Secretary
 and<br>Chief Legal<br>Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">1996 to
 2001<br>and<br>since 2002</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:10px; text-indent:-10px;"><font face="Times New Roman" size="2">Lisa Curcio
<br>Chief Compliance Officer of The Royce Funds (since October 2004); and Compliance
 Officer of R&#038;A (since June 2004).</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">54</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">Chief Compliance<br>Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">2004</font></td>
</tr>
</table>
<div><hr size="1" color="000000" width="10%" noshade align="left"></div>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%" valign="top" align="right"><font face="Times New Roman" size="2">*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">The address
 of each current officer of the Fund is c/o Royce &#038; Associates, LLC, 745 Fifth
 Avenue, New York, New York 10151.</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Each officer
 of the Fund is elected by, and serves at the pleasure of, the Board.</font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>Stockholder Communications</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Stockholders
 may send written communications to the Board or to an individual Director by mailing
 such correspondence to the Secretary of the Fund (addressed to 745 Fifth Avenue,
 New York, New York 10151). Such communications must be signed by the stockholder
 and identify the number of shares of common stock held by the stockholder. Properly
 submitted stockholder communications will, as appropriate, be forwarded to the entire
 Board or to the individual Director. Any stockholder proposal submitted pursuant
 to Rule 14a-8 under the Securities Exchange Act of 1934, as</font></p>
<p align="center"><font face="Times New Roman" size="2">32</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">amended (the &#147;Exchange Act&#148;),
 must continue to meet all the requirements of Rule 14a-8. See &#147;Additional Information
 &#150; Stockholder Proposals&#148; herein.</font></p>
<p><font face="Times New Roman" size="2"><b>Director Attendance at Stockholder Meetings
</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Fund has
 no formal policy regarding Director attendance at stockholder meetings. None of
 the Current Independent Directors attended the 2014 Annual Meeting of Stockholders.</font></p>
<p><font face="Times New Roman" size="2"><b>Compliance with Section 16(a) of the
 Exchange Act</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Section 16(a)
 of the Exchange Act requires the officers and Directors of the Fund and persons
 who own more than ten percent of a registered class of the Fund&#146;s equity securities,
 to file reports of ownership and changes in ownership on Forms 3, 4 and 5 with the
 SEC and the New York Stock Exchange. Officers, Directors and greater than ten percent
 beneficial owners are required by SEC regulations to furnish the Fund with copies
 of all Forms 3, 4 and 5 they file.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Based solely
 on the Fund&#146;s review of the copies of such forms and amendments thereto, furnished
 to it during or with respect to its most recent fiscal year, and written representations
 from certain reporting persons that they were not required to file Form 5 with respect
 to the most recent fiscal year, the Fund believes that all of its officers, Directors,
 greater than ten percent beneficial owners and other persons subject to Section
 16 of the Exchange Act due to the requirements of Section 30(h) of the 1940 Act
 (i.e., any investment adviser or affiliated person of the Fund&#146;s investment
 adviser), have complied with all filing requirements applicable to them with respect
 to transactions in the Fund&#146;s shares during the Fund&#146;s most recent fiscal
 year.</font></p>
<p align="center"><font face="Times New Roman" size="2">33</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2"><b>Stock Ownership</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Information
 relating to each current Director&#146;s ownership of shares of common stock as
 of December 29, 2014 and of shares of The Royce Funds overseen by each Director
 is set forth below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar Range of</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Securities
 in all Royce Funds</b></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Aggregate
 Dollar Range</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>overseen
 by each Director</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Name
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>of
 Equity in the Fund</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>in
 the Royce Family of Funds</b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested
 Director:</i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="5%" valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce</font></p></td>
<td width="1%" ><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%" valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">W.
 Whitney George</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors:</i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Patricia
 W. Chadwick</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[None]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[None]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[None]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[$10,001&#160;-&#160;$50,000]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[None]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">[$10,001&#160;-&#160;$50,000]</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Over&#160;$100,000</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">[The three
 Independent Director Nominees do not own any shares of common stock of the Fund.]</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Information
 regarding ownership of shares of common stock by the Fund&#146;s Directors and officers
 as of December 29, 2014 is set forth below:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Amount
 of Beneficial</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Name and
 Address*</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Ownership
 of</b></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Percent
 of Shares</b></font></td>
</tr>
<tr>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>of Owner
</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Shares
 of Common Stock</b></u></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><u><b>Outstanding
</b></u></font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested
 Directors:</i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="5%" valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Charles
 M. Royce</font></p></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="4%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="5%"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">W.
 Whitney George</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Non-Interested
 Directors:</i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Patricia
 W. Chadwick</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Richard
 M. Galkin</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Stephen
 L. Isaacs</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Arthur
 S. Mehlman</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">David
 L. Meister</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">G.
 Peter O&#146;Brien</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Interested
 Officers**:</i></font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Christopher
 D. Clark</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Francis
 D. Gannon</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">John
 D. Diederich</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Jack
 E. Fockler, Jr.</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Daniel
 A. O&#146;Byrne</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">John
 E. Denneen</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><p style="margin-left:20px; text-indent:-10px;"><font face="Times New Roman" size="2">Lisa
 Curcio</font></p></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">34</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<div><hr size="1" color="000000" width="10%" noshade align="left"></div>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="1%" valign="top" align="right"><font face="Times New Roman" size="2">*</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"> The address
 of each current Director and each current officer is c/o Royce &#038; Associates,
 LLC, 745 Fifth Avenue, New York, New York 10151.</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">**</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"> Does not
 include beneficial ownership information with respect to Messrs. Royce and George,
 which information is set forth immediately above under &#147;Interested Directors.&#148;</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Mr. Royce
 has sole voting power and sole investment power as to the shares beneficially owned
 by him. Mr. George has voting power and investment power as to the shares beneficially
 owned by him. As of the Record Date, the Fund&#146;s current Directors and officers
 as a group (13 persons) beneficially owned __________ shares of common stock, constituting
 approximately __________ % of its outstanding shares.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">As of December
 29, 2014, no Independent Director Nominee or any of his immediate family members
 directly or indirectly owned any securities issued by Legg Mason, Sprott, or any
 of their respective affiliates (other than registered investment companies).</font></p>
<p><font face="Times New Roman" size="2"><b>Vote Required for Proposal 3</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">A quorum consists
 of stockholders representing a majority of the outstanding shares of common stock
 entitled to vote, who are present in person or by proxy, and a plurality of all
 of the votes cast at a meeting at which a quorum is present is sufficient to elect
 a Director.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>The Board
 unanimously recommends that Fund stockholders vote &#147;FOR&#148; all Director
 Nominees.</b></font></p>
<p align="center"><font face="Times New Roman" size="2">35</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>FEES PAID TO INDEPENDENT AUDITORS</b></font></p>
<p><font face="Times New Roman" size="2"><b>Audit Fees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The aggregate
 fees paid to TW&#038;B in connection with the annual audit of the Fund&#146;s financial
 statements and for services normally provided by TW&#038;B in connection with the
 statutory and regulatory filings of the Fund for the fiscal years ended December
 31, 2012 and December 31, 2013 were $28,000 and $29,000, respectively, including
 out-of-pocket expenses.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Related Fees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">No fees were
 paid to TW&#038;B in connection with assurance and related services related to the
 annual audit of the Fund and for review of the Fund&#146;s financial statements,
 other than the Audit Fees described above, for each of the fiscal years ended December
 31, 2012 and December 31, 2013.</font></p>
<p><font face="Times New Roman" size="2"><b>Tax Fees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The aggregate
 fees paid for tax-related services, including preparation of tax returns, tax compliance
 and tax advice, rendered by TW&#038;B to the Fund for the fiscal years ended December
 31, 2012 and December 31, 2013 were $7,000 and $7,100, respectively.</font></p>
<p><font face="Times New Roman" size="2"><b>All Other Fees</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">There were
 no other fees billed for non-audit services rendered by TW&#038;B to the Fund for
 the fiscal years ended December 31, 2012 and December 31, 2013. The aggregate non-audit
 fees billed by TW&#038;B for services rendered to R&#038;A and any entity controlling,
 controlled by, or under common control with R&#038;A that provides ongoing services
 to the Fund for the fiscal years ended December 31, 2012 and December 31, 2013 were
 $7,000 and $7,100, respectively. The Audit Committee has determined that the provision
 of non-audit services is compatible with maintaining the independence of TW&#038;B.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">TW&#038;B
 did not provide any other professional services to the Fund or R&#038;A for the
 year ended December 31, 2013. No representatives of TW&#038;B are expected to be
 present at the Meeting.</font></p>
<p><font face="Times New Roman" size="2"><b>Audit Committee&#146;s Pre-Approval Policies
 and Procedures</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee has adopted policies and procedures with regard to the pre-approval of
 audit and non-audit services. On an annual basis, at the December meeting of the
 Audit Committee, the independent auditors of the Fund will submit a schedule of
 proposed audit, audit-related, tax and other non-audit services to be rendered
 to the Fund and/or R&#038;A and its affiliates for the following year that require
 pre-approval by the Audit Committee. Such schedule will include the maximum fees
 that can be paid for such services without further Audit Committee approval. Any
 subsequent revision to pre-approved services or fees will be considered at the
 next regularly scheduled Audit Committee meeting. Services not presented for pre-approval at the</font></p>
<p align="center"><font face="Times New Roman" size="2">36</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">December meeting of the Audit Committee
 will be submitted to the Chief Financial Officer of the Fund for a determination
 that the proposed services fit within the independence guidelines and then considered
 for pre-approval at the next regularly scheduled Audit Committee meeting. A proposal
 to commence an engagement involving audit, audit-related or tax services prior
 to the next regularly scheduled Audit Committee meeting shall be made in writing
 by the Chief Financial Officer to all Audit Committee members and include a summary
 of the engagement, estimated maximum cost, the category of services and the rationale
 for engaging the Fund&#146;s independent auditor. Such proposed engagement can be
 pre-approved by any Audit Committee member who is an Independent Director. Pre-approval
 by the Chairman of the Audit Committee is required for a proposed engagement involving
 non-audit services other than audit-related or tax.</font></p>
<p align="center"><font face="Times New Roman" size="2"><b>ADDITIONAL INFORMATION</b></font></p>
<p><font face="Times New Roman" size="2"><b>Postponement or Adjournment of Meeting;
 Other Matters</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">In the event
 that sufficient votes in favor of any of Proposal 1, Proposal 2, or Proposal 3 referenced
 in the Notice of Special Meeting of Stockholders are not received by the time scheduled
 for the Meeting, the persons named as proxies may propose one or more postponements
 or adjournments of the Meeting to permit further solicitation of proxies for the
 relevant Proposal. Any such postponement or adjournment will require the affirmative
 vote of a majority of the shares present in person or by proxy at the session of
 the Meeting to be postponed or adjourned, as applicable. The persons named as proxies
 will vote in favor of such postponement or adjournment those proxies which they
 are entitled to vote in favor of the Proposal. They will vote against any such postponement
 or adjournment those proxies required to be voted against the relevant Proposal.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">While the
 Meeting has been called to transact any business that may properly come before it,
 the Directors know of no business other than the matters stated in the Notice of
 Special Meeting of Stockholders. However, if any additional matter properly comes
 before the Meeting and on all matters incidental to the conduct of the Meeting,
 it is the intention of the persons named in the enclosed Proxy to vote the Proxy
 in accordance with their judgment on such matters.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Fund expects
 that broker-dealer firms holding shares of the Fund in &#147;street name&#148; for
 the benefit of their customers and clients will request the instructions of such
 customers and clients on how to vote their shares on each of Proposal 1, Proposal
 2, and Proposal 3 before the Meeting. The Fund understands that, under the rules
 of the New York Stock Exchange, such broker-dealer firms may for certain &#147;routine&#148; matters, without instructions from their customers and clients, grant discretionary
 voting authority to the proxies designated by the Board to vote if no instructions
 have been received</font></p>
<p align="center"><font face="Times New Roman" size="2">37</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">prior to the date specified in the broker-dealer
 firm&#146;s request for voting instructions. Broker-dealer firms will not be permitted,
 however, to grant discretionary voting authority to the proxies designated by the
 Board with respect to shares for which no instructions have been received in connection
 with Proposal 1 and Proposal 2. Proposal 3 may be deemed to be a &#147;routine&#148;
 matter and beneficial owners who do not provide proxy instructions or who do not
 return a proxy card may have their shares voted by broker-dealer firms in favor
 of Proposal 3. Certain broker-dealer firms may exercise discretion over shares held
 in their name for which no instructions are received by voting such shares in respect
 of a Proposal in the same proportion as they have voted shares for which they have
 received instructions for that Proposal. Broker-dealers who are not members of the
 New York Stock Exchange may be subject to other rules, which may or may not permit
 them to vote your shares without instruction. We urge you to provide instructions
 to your broker or nominee so that your votes may be counted.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The shares
 as to which the Proxies so designated are granted authority by broker-dealer firms
 to vote on the matters to be considered at the Meeting, the shares as to which broker-dealer
 firms have declined to vote (&#147;broker non-votes&#148;) and the shares as to
 which Proxies are returned by record stockholders but which are marked &#147;abstain&#148; on any matter will be included in the Fund&#146;s tabulation of the total
 number of votes present for purposes of determining whether the necessary quorum
 of stockholders exists. However, abstentions and broker non-votes will not be counted
 as votes cast. Therefore, abstentions and broker non-votes will not have an effect
 on Proposal 3, but will have the same effect as a vote against Proposal 1 and Proposal
 2.</font></p>
<p><font face="Times New Roman" size="2"><b>R&#038;A Address</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">R&#038;A&#146;s
 principal office and place of business is located at 745 Fifth Avenue, New York,
 New York 10151.</font></p>
<p><font face="Times New Roman" size="2"><b>Sprott Asset Address</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The principal
 office and place of business of Sprott Asset is located at Royal Bank Plaza, South
 Tower, Suite 2700, Bay Street, Toronto, Ontario, Canada M5J2J1.</font></p>
<p><font face="Times New Roman" size="2"><b>Sprott USA Address</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The principal
 office and place of business of Sprott USA is located at 1910 Palomar Point Way,
 Suite 200, Carlsbad, California 92008.</font></p>
<p align="center"><font face="Times New Roman" size="2">38</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2"><b>Annual Report Delivery</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Fund&#146;s
 Annual Report to Stockholders for the year ended December 31, 2013 (the &#147;2013
 Annual Report&#148;) and the Fund&#146;s Semiannual Report to Stockholders for the
 six months ended June 30, 2014 (the &#147;2014 Semiannual Report&#148;) were previously
 mailed to its stockholders. The Fund&#146;s Annual Report to Stockholders for the
 year ended December 31, 2014 (the &#147;2014 Annual Report&#148;) will be mailed
 to stockholders in March 2015. Copies of the 2013 Annual Report and the 2014 Semiannual
 Report are available, and copies of the 2014 Annual Report will be available, in
 late August, upon request, without charge, by writing to the Fund at 745 Fifth Avenue,
 New York, New York 10151 or calling toll free at 1-800-221-4268. All publicly released
 material information is always disclosed by the Fund on its website at <u>www.roycefunds.com.
</u></font></p>
<p><font face="Times New Roman" size="2"><b>Stockholder Proposals</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">Proposals
 of stockholders intended to be presented at the Fund&#146;s 2015 Annual Meeting
 of Stockholders must be received by the Fund by April 8, 2015 for inclusion in the
 Fund&#146;s Proxy Statement and form of Proxy for that meeting. The Fund&#146;s
 By-laws generally require advance notice be given to the Fund in the event a stockholder
 desires to nominate a person for election to the Board or to transact any other
 business from the floor at an annual meeting of stockholders. Notice of any such
 nomination or other business intended to be presented at the Fund&#146;s 2015 Annual
 Meeting of Stockholders must be in writing and received at the Fund&#146;s principal
 executive office between April 8, 2015 and May 8, 2015. Written proposals should
 be sent to the Secretary of the Fund, 745 Fifth Avenue, New York, New York 10151.</font></p>
<p><font face="Times New Roman" size="2"><b>Proxy Delivery</b></font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">If you and
 another stockholder share the same address, the Fund may only send one proxy statement
 or Notice of Internet Availability unless you or the other stockholder(s) request
 otherwise. Call or write the Fund if you wish to receive a separate copy of the
 proxy statement and the Fund will promptly mail a copy to you. You may also call
 or write to the Fund if you wish to receive a separate proxy in the future, or if
 you receive multiple copies now, and wish to receive a single copy in the future.
 For such requests, please call 1-800-221-4268, or write the Fund at 745 Fifth Avenue,
 New York, New York 10151.</font></p>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2"><b>PLEASE
 FILL IN, DATE AND SIGN THE ENCLOSED PROXY AND RETURN IT IN THE ACCOMPANYING POSTAGE-PAID
 ENVELOPE.</b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="17%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="18%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By order of
 the Board of Directors,</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><i>Secretary
</i></font></td>
</tr>
</table>
<p align="left"><font face="Times New Roman" size="2">Dated: January
 [5], 2015</font></p>
<p align="center"><font face="Times New Roman" size="2">39</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> A</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>F<small>ORM OF</small> N<small>EW</small> I<small>NVESTMENT</small> A<small>DVISORY</small> A<small>GREEMENT</small>
</b></font></p>
<p align="center"></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<td></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>INVESTMENT
 ADVISORY AGREEMENT</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>BETWEEN
</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>ROYCE
 FOCUS TRUST, INC.</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>AND</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SPROTT
 ASSET MANAGEMENT LP</b></font></td>
</tr>
</table>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">Agreement
 made this ___ day of ______, 20__, by and between ROYCE FOCUS TRUST, INC., a Maryland
 corporation (the &#147;Fund&#148;), and SPROTT ASSET MANAGEMENT LP, a Canadian limited partnership
 (the &#147;Adviser&#148;).</font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">WHEREAS, the
 prior Investment Advisory Agreement between the Fund and Royce &#038; Associates,
 Inc., dated October 31, 1996 (the &#147;1996 Investment Advisory Agreement&#148;),
 terminated on October 1, 2001 (other than the provisions of Paragraph 8 thereof),
 and Investment Advisory Agreement between the Fund and Royce &#038; Associates,
 Inc., dated October 1, 2001 (&#147;2001 Investment Advisory Agreement&#148;), and
 Paragraph 8 of the 1996 Investment Advisory Agreement terminated upon the effectiveness
 of this Agreement.</font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">The Fund and
 the Adviser hereby agree as follows:</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">1.&#160;&#160;&#160;&#160;<u>Duties
 of the Adviser</u>. The Adviser shall, during the term and subject to the provisions
 of this Agreement, (a) determine the composition of the portfolio of the Fund, the
 nature and timing of the changes therein and the manner of implementing such changes,
 and (b) provide the Fund with such investment advisory, research and related services
 as the Fund may, from time to time, reasonably require for the investment of its
 assets. The Adviser shall perform such duties in accordance with the applicable
 provisions of the Fund&#146;s Articles of Incorporation, By-laws and stated investment
 objective, policies and restrictions and any directions it may receive from the
 Fund&#146;s Board of Directors.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">2.&#160;&#160;&#160;&#160;<u>Expenses
 Payable by the Fund</u>. Except as otherwise provided in Paragraphs 1 and 3 hereof,
 the Fund shall be responsible for determining the net asset value of its shares
 and for all of its other operations and shall pay all administrative and other costs
 and expenses attributable to its operations and transactions, including, without
 limitation, registrar, transfer agent and custodian fees; legal, administrative
 and clerical services; rent for its office space and facilities; auditing; preparation,
 printing and distribution of its proxy statements, stockholders&#146; reports and
 notices; supplies and postage; Federal and state registration fees; NASD and securities
 exchange listing fees and expenses; Federal, state, local and foreign taxes; non-affiliated
 directors&#146; fees; interest on its borrowings; brokerage commissions; and the
 cost of issue, sale and repurchase of its shares. Pursuant to a separate Administration
 Agreement between the Fund and Adviser, dated ______ __, 20__, the Adviser may seek
 reimbursement for certain of the expenses set forth in this Section 2.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">3.&#160;&#160;&#160;&#160;<u>Expenses
 Payable by the Adviser</u>. The Adviser shall pay all expenses which it may incur in
 performing its duties under Paragraph 1 hereof.</font></p>
<p align="center"><font face="Times New Roman" size="2">A-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">4.&#160;&#160;&#160;&#160;<u>Compensation
 of the Adviser</u>.</font></p>
<p style="text-indent: 70px;" align="justify"><font face="Times New Roman" size="2">(a)&#160;&#160;&#160;&#160;The Fund
 agrees to pay to the Adviser, and the Adviser agrees to accept, as compensation
 for the services provided by the Adviser hereunder, a monthly fee equal to 1/12
 of 1% (1% on an annualized basis) of the average net assets of the Fund for each
 month during the term of this Agreement. (The net assets of the Fund shall be computed
 by subtracting the amount of any indebtedness and other liabilities of the Fund
 from the value of the total assets of the Fund, and the liquidation preference of
 and any potential redemption premium for any preferred stock of the Fund that may
 hereafter be issued and outstanding shall not be treated as an indebtedness or other
 liability of the Fund for this purpose.) The Fund shall pay such fee to the Adviser
 at or promptly following the end of each such month.</font></p>
<p style="text-indent: 70px;" align="justify"><font face="Times New Roman" size="2">(b)&#160;&#160;&#160;&#160;In the
 event of any termination of this Agreement, the fee provided for in this Paragraph
 4 shall be calculated on the basis of a period ending on the last day on which this
 Agreement is in effect, subject to a<i> pro rata</i> adjustment based on the number
 of days elapsed in the current month as a percentage of the total number of days
 in such month.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">5.&#160;&#160;&#160;&#160;<u>Excess
 Brokerage Commissions.</u> The Adviser is hereby authorized, to the fullest extent
 now or hereafter permitted by law, to cause the Fund to pay a member of a national
 securities exchange, broker or dealer an amount of commission for effecting a securities
 transaction in excess of the amount of commission another member of such exchange,
 broker or dealer would have charged for effecting that transaction, if the Adviser
 determines in good faith that such amount of commission is reasonable in relation
 to the value of the brokerage and/or research services provided by such member,
 broker or dealer, viewed in terms of either that particular transaction or its overall
 responsibilities with respect to the Fund and its other accounts.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">6.&#160;&#160;&#160;&#160;<u>Limitations
 on the Employment of the Adviser</u>. The services of the Adviser to the Fund shall
 not be deemed exclusive, and the Adviser may engage in any other business or render
 similar or different services to others so long as its services to the Fund hereunder
 are not impaired thereby, and nothing in this Agreement shall limit or restrict
 the right of any director, officer or employee of the Adviser to engage in any other
 business or to devote his time and attention in part to any other business, whether
 of a similar or dissimilar nature. At the effective date of this Agreement, the
 Adviser shall be the investment adviser for the Fund and Sprott Asset Management
 U.S., Inc. shall be the sub-adviser for the Fund, and so long as this Agreement
 or any extension, renewal or amendment remains in effect, the Adviser shall have
 the right to terminate its sub-advisory agreement with Sprott Asset Management USA
 Inc. pursuant to the terms of that agreement and subsequent to that event and at
 all times shall have the right to enter into sub-advisory agreements with other
 advisory firms. The Adviser assumes no responsibility under this Agreement other
 than to render the services called for hereunder, and shall not be responsible for
 any action of or directed by the Board of Directors of the Fund, or any committee
 thereof, unless such action has been caused by the Adviser&#146;s gross negligence,
 willful malfeasance, bad faith or reckless disregard of its obligations and duties
 under this Agreement.</font></p>
<p align="center"><font face="Times New Roman" size="2">A-2</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">7.&#160;&#160;&#160;&#160;<u>Responsibility
 of Dual Directors, Officers and/or Employees</u>. If any person who is a director,
 officer or employee of the Adviser is or becomes a director, officer and/or employee
 of the Fund and acts as such in any business of the Fund pursuant to this Agreement,
 then such director, officer and/or employee of the Adviser shall be deemed to be
 acting in such capacity solely for the Fund, and not as a director, officer or employee
 of the Adviser or under the control or direction of the Adviser, although paid by
 the Adviser.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">8.&#160;&#160;&#160;&#160;<u>Protection
 of the Adviser</u>. The Adviser shall not be liable to the Fund for any action taken
 or omitted to be taken by the Adviser in connection with the performance of any
 of its duties or obligations under this Agreement or otherwise as an investment
 adviser of the Fund, and the Fund shall indemnify the Adviser and hold it harmless
 from and against all damages, liabilities, costs and expenses (including reasonable
 attorneys&#146; fees and amounts reasonably paid in settlement) incurred by the
 Adviser in or by reason of any pending, threatened or completed action, suit, investigation
 or other proceeding (including an action or suit by or in the right of the Fund
 or its security holders) arising out of or otherwise based upon any action actually
 or allegedly taken or omitted to be taken by the Adviser in connection with the
 performance of any of its duties or obligations under this Agreement or otherwise
 as an investment adviser of the Fund. Notwithstanding the preceding sentence of
 this Paragraph 8 to the contrary, nothing contained herein shall protect or be deemed
 to protect the Adviser against or entitle or be deemed to entitle the Adviser to
 indemnification in respect of, any liability to which the Adviser would otherwise
 be subject by reason of willful misfeasance, bad faith or gross negligence in the
 performance of its duties or by reason of its reckless disregard of its duties and
 obligations under this Agreement.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">Determinations
 of whether and the extent to which the Adviser is entitled to indemnification hereunder
 shall be made by reasonable and fair means, including (a) a final decision on the
 merits by a court or other body before whom the action, suit or other proceeding
 was brought that the Adviser was not liable by reason of willful misfeasance, bad
 faith, gross negligence or reckless disregard of its duties, or (b) in the absence
 of such a decision, a reasonable determination, based upon a review of the facts,
 that the Adviser was not liable by reason of such misconduct by (i) the vote of
 a majority of a quorum of the directors of the Fund who are neither &#147;interested
 persons&#148; of the Fund (as defined in Section 2(a)(19) of the Investment Company
 Act of 1940) nor parties to the action, suit or other proceeding or (ii) an independent
 legal counsel in a written opinion.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">9.&#160;&#160;&#160;&#160;<u>Effectiveness,
 Duration and Termination of Agreement</u>. This Agreement shall become effective
 as of the date above written. This Agreement shall remain in effect until December
 31, 2016, and thereafter shall continue automatically for successive annual periods
<i>provided that</i> such continuance is specifically approved at least annually
 by (a) the vote of the Fund&#146;s directors, including a majority of such directors
 who are not parties to this Agreement or &#147;interested persons&#148; (as such
 term is defined in Section 2(a)(19) of the Investment Company Act of 1940) of any
 such party, cast in person at a meeting called for the purpose of voting on such
 approval, or (b) the vote of a majority of the outstanding voting securities of
 the Fund and the vote of the Fund&#146;s directors, including a majority of such
 directors who are not parties to this Agreement or &#147;interested persons&#148;
 (as so defined) of any such party. This Agreement may be terminated at any time,
 without the payment of any penalty, on 60 days&#146; written notice by the vote
 of a majority of the outstanding voting securities of the Fund, or by the vote of
 a majority of</font></p>
<p align="center"><font face="Times New Roman" size="2">A-3</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2">the Fund&#146;s directors or by the Adviser,
 and will automatically terminate in the event of its &#147;assignment&#148; (as
 such term is defined for purposes of Section 15(a)(4) of the Investment Company
 Act of 1940); <i>provided, however</i>, that the provisions of Paragraph 8 of this
 Agreement shall remain in full force and effect, and the Adviser shall remain entitled
 to the benefits thereof, notwithstanding any such termination.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">This Agreement
 supersedes and replaces the 1996 Investment Advisory Agreement and the 2001 Investment
 Advisory Agreement and any other previous versions of this Agreement.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">The Fund may,
 so long as this Agreement remains in effect, use &#147;Sprott&#148; and &#147;[
 ]&#148; as part of its name. The Adviser may, upon termination of this Agreement,
 require the Fund to refrain from using the name &#147;Sprott&#148; and &#147;[ ]&#148; in any form or combination in its name or in its business, and the Fund shall,
 as soon as practicable following its receipt of any such request from the Adviser
 or, so refrain from using such name.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">Any notice
 under this Agreement shall be given in writing, addressed and delivered or mailed,
 postage prepaid, to the other party at its principal office.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">This Agreement
 constitutes the entire agreement of the parties, shall be binding upon and shall
 inure to the benefit of the parties hereto and shall be governed by California law
 in a manner not in conflict with the provisions of the 1940 Act.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">A provision
 of this Agreement may be amended, changed, waived, discharged or terminated only
 by an instrument in writing signed by the party against whom enforcement of the
 amendment, change, waiver, discharge or termination is sought. An amendment to this
 Agreement shall not be effective until approved by the Board, including a majority
 of the directors who are not interested persons of the Adviser or of the Fund. To
 the extent legal counsel to the Fund concludes that shareholder approval of a particular
 amendment to this Agreement is required under the 1940 Act, such amendment will
 not be effective until the required shareholder approval has been obtained.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">IN WITNESS WHEREOF, the parties
 hereto have caused this Agreement to be duly executed on the date above written.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">ROYCE FOCUS
 TRUST, INC.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="40%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="40%" valign="bottom" align="left"><font face="Times New Roman" size="2">By:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td valign="bottom" style="border-top: 1px solid #000000;">&#160;</td>
<td><font face="Times New Roman">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Name:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Title:&#160;&#160;&#160;&#160;President</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">SPROTT ASSET
 MANAGEMENT LP</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By:</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td valign="bottom" style="border-top: 1px solid #000000;">&#160;</td>
<td><font face="Times New Roman">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Name:&#160;&#160;&#160;&#160;John
 N.G. Wilson</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Title:&#160;&#160;&#160;&#160;&#160;&#160;Chief
 Executive Officer</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">A-4</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> B</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>I<small>NFORMATION</small> R<small>EGARDING</small><br>E<small>XECUTIVE</small> O<small>FFICERS AND</small> D<small>IRECTORS OF</small> S<small>PROTT</small> A<small>SSET</small></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">Below are the names, addresses, and principal
 occupations of the principal executive officer and each director or general partner
 of Sprott Asset Management L.P.</font></p>
<table border="1" cellpadding="4" cellspacing="0" width="100%" bordercolor="#000000">
<tr bgcolor=#D9D9D9>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Name</b></font></td>
<td nowrap valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Title at
 Sprott Asset Management L.P.</b></font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Address
</b></font></td>
</tr>
<tr>
<td width="6%" valign="top" align="left"><font face="Times New Roman" size="2">Kirstin McTaggart</font></td>
<td width="10%" valign="top" align="left"><font face="Times New Roman" size="2">Chief Compliance
 Officer, Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">James Fox</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">President,
 Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Steven Rostowsky</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Chief Financial
 Officer, Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1</font></td>
</tr>
<tr>
<td nowrap valign="top" align="left"><font face="Times New Roman" size="2">Sprott Asset Management GP Inc.</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">General Partner</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">John Wilson</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Chief Executive
 Officer, Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1</font></td>
</tr>
</table>
<p align="justify"><font face="Times New Roman" size="2">Below is the name of a potential officer
 of the Fund assuming completion of the transactions contemplated by the Proxy Statement
 who is an officer, director, or employee of Sprott Asset Management L.P.:</font></p>
<table border="1" cellpadding="4" cellspacing="0" width="100%" bordercolor="#000000">
<tr bgcolor="#D9D9D9">
<td width="19%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Name</b></font></td>
<td nowrap width="25%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>Title at
 Sprott Asset Management L.P.</b></font></td>
<td nowrap valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Category
</b></font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Steven Rostowsky</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Chief Financial
 Officer, Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Officer and
 Director</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">B-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> C</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>F<small>ORM OF</small> N<small>EW</small> I<small>NVESTMENT</small> S<small>UBADVISORY</small> A<small>GREEMENT</small></b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>INVESTMENT
 SUB-ADVISORY AGREEMENT</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>BETWEEN
</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>ROYCE
 FOCUS TRUST, INC.</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SPROTT
 ASSET MANAGEMENT LP</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>AND</b></font></td>
</tr>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>SPROTT
 ASSET MANAGEMENT USA INC.</b></font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2">Agreement made this ___ day of ______, 20__,
 by and among ROYCE FOCUS TRUST, INC., a Maryland corporation (the &#147;Fund&#148;), SPROTT
 ASSET MANAGEMENT LP (the &#147;Adviser&#148;), a Canadian limited partnership, and
 SPROTT ASSET MANAGEMENT USA Inc., a California corporation&#160;(the &#147;Sub-Adviser&#148;),
 a .</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">WHEREAS, the
 Adviser and the Fund have entered into the Investment Advisory Agreement dated the
 same date as this Agreement; and</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">WHEREAS, the
 Adviser pursuant to the Investment Advisory Agreement, has the authority to appoint
 a sub-adviser for the Fund.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">The Fund and
 the Adviser hereby agree as follows:</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">1.&#160;&#160;&#160;&#160;<u>Appointment
 of the Sub-Adviser</u>. The Fund and Adviser hereby appoints the Sub-Adviser to
 act as the sub-adviser for the Fund, subject to the supervision and oversight of
 the Adviser and the Board of Directors of the Fund, and in accordance with the terms
 and conditions of this Agreement. The Sub-Adviser hereby accepts such appointment
 and agrees to render the services herein set forth, commencing on the effective
 date of this Agreement.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">2.&#160;&#160;&#160;&#160;<u>Duties
 of the Sub-Adviser</u>. The Sub-Adviser shall, during the term and subject to the
 provisions of this Agreement, (a) determine the composition of the portfolio of
 the Fund, the nature and timing of the changes therein and the manner of implementing
 such changes, and (b) provide the Fund with such investment advisory, research and
 related services as the Fund may, from time to time, reasonably require for the
 investment of its assets. The Sub-Adviser shall perform such duties in accordance
 with the applicable provisions of the Fund&#146;s Articles of Incorporation, By-laws
 and stated investment objective, policies and restrictions and any directions it
 may receive from the Fund&#146;s Board of Directors.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">3.&#160;&#160;&#160;&#160;<u>Expenses
 Payable by the Sub-Adviser</u>. The Sub-Adviser shall pay all expenses which it
 may incur in performing its duties under Paragraph 1 hereof.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">4.&#160;&#160;&#160;&#160;<u>Compensation
 of the Sub-Adviser</u>. The Fund and the Adviser will not compensate the Sub-Adviser
 for the services provided by the Sub-Adviser hereunder.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">5.&#160;&#160;&#160;&#160;<u>Excess
 Brokerage Commissions</u>. The Sub-Adviser is hereby authorized, to the fullest
 extent now or hereafter permitted by law, to cause the Fund to pay a member of a
 national securities exchange, broker or dealer an amount of commission for effecting
 a securities</font></p>
<<p align="center"><font face="Times New Roman" size="2">C-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">transaction in excess of the amount of commission
 another member of such exchange, broker or dealer would have charged for effecting
 that transaction, if the Sub-Adviser determines in good faith that such amount of
 commission is reasonable in relation to the value of the brokerage and/or research
 services provided by such member, broker or dealer, viewed in terms of either that
 particular transaction or its overall responsibilities with respect to the Fund
 and its other accounts.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">6.&#160;&#160;&#160;&#160;<u>Limitations
 on the Employment of the Sub-Adviser</u>. The services of the Sub-Adviser to the
 Fund shall not be deemed exclusive, and the Sub-Adviser may engage in any other
 business or render similar or different services to others so long as its services
 to the Fund hereunder are not impaired thereby, and nothing in this Agreement shall
 limit or restrict the right of any director, officer or employee of the Sub-Adviser
 to engage in any other business or to devote his time and attention in part to any
 other business, whether of a similar or dissimilar nature. So long as this Agreement
 or any extension, renewal or amendment remains in effect, the Sub-Adviser shall
 be the only investment adviser for the Fund, subject to the Sub-Adviser&#146;s right
 to enter into sub-advisory agreements. The Sub-Adviser assumes no responsibility
 under this Agreement other than to render the services called for hereunder, and
 shall not be responsible for any action of or directed by the Board of Directors
 of the Fund, or any committee thereof, unless such action has been caused by the
 Sub-Adviser&#146;s gross negligence, willful malfeasance, bad faith or reckless
 disregard of its obligations and duties under this Agreement.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">7.&#160;&#160;&#160;&#160;<u>Responsibility
 of Dual Directors, Officers and/or Employees</u>. If any person who is a director,
 officer or employee of the Sub-Adviser is or becomes a director, officer and/or
 employee of the Fund and acts as such in any business of the Fund pursuant to this
 Agreement, then such director, officer and/or employee of the Sub-Adviser shall
 be deemed to be acting in such capacity solely for the Fund, and not as a director,
 officer or employee of the Sub-Adviser or under the control or direction of the
 Sub-Adviser, although paid by the Sub-Adviser.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">8.&#160;&#160;&#160;&#160;<u>Protection
 of the Sub-Adviser</u>. The Sub-Adviser shall not be liable to the Fund for any
 action taken or omitted to be taken by the Adviser in connection with the performance
 of any of its duties or obligations under this Agreement or otherwise as an investment
 adviser of the Fund, and the Fund shall indemnify the Sub-Adviser and hold it harmless
 from and against all damages, liabilities, costs and expenses (including reasonable
 attorneys&#146; fees and amounts reasonably paid in settlement) incurred by the
 Sub-Adviser in or by reason of any pending, threatened or completed action, suit,
 investigation or other proceeding (including an action or suit by or in the right
 of the Fund or its security holders) arising out of or otherwise based upon any
 action actually or allegedly taken or omitted to be taken by the Sub-Adviser in
 connection with the performance of any of its duties or obligations under this Agreement
 or otherwise as an investment adviser of the Fund. Notwithstanding the preceding
 sentence of this Paragraph 8 to the contrary, nothing contained herein shall protect
 or be deemed to protect the Sub-Adviser against or entitle or be deemed to entitle
 the Sub-Adviser to indemnification in respect of, any liability to which the Sub-Adviser
 would otherwise be subject by reason of willful misfeasance, bad faith or gross
 negligence in the performance of its duties or by reason of its reckless disregard
 of its duties and obligations under this Agreement.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">Determinations
 of whether and the extent to which the Sub-Adviser is entitled to indemnification
 hereunder shall be made by reasonable and fair means, including (a) a final</font></p>
<p align="center"><font face="Times New Roman" size="2">C-2</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">decision on the merits by a court or other
 body before whom the action, suit or other proceeding was brought that the Sub-Adviser
 was not liable by reason of willful misfeasance, bad faith, gross negligence or
 reckless disregard of its duties, or (b) in the absence of such a decision, a reasonable
 determination, based upon a review of the facts, that the Sub-Adviser was not liable
 by reason of such misconduct by (i) the vote of a majority of a quorum of the directors
 of the Fund who are neither &#147;interested persons&#148; of the Fund (as defined
 in Section 2(a)(19) of the Investment Company Act of 1940) nor parties to the action,
 suit or other proceeding or (ii) an independent legal counsel in a written opinion.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">9.&#160;&#160;&#160;&#160;<u>Effectiveness,
 Duration and Termination of Agreement</u>. This Agreement shall become effective
 as of the date above written. This Agreement shall remain in effect until December
 31, 2016, and thereafter shall continue automatically for successive annual periods,
<i>provided that</i> such continuance is specifically approved at least annually
 by (a) the vote of the Fund&#146;s directors, including a majority of such directors
 who are not parties to this Agreement or &#147;interested persons&#148; (as such
 term is defined in Section 2(a)(19) of the Investment Company Act of 1940) of any
 such party, cast in person at a meeting called for the purpose of voting on such
 approval, or (b) the vote of a majority of the outstanding voting securities of
 the Fund and the vote of the Fund&#146;s directors, including a majority of such
 directors who are not parties to this Agreement or &#147;interested persons&#148;
 (as so defined) of any such party. This Agreement may be terminated at any time,
 without the payment of any penalty: (i) upon no notice by the Adviser , (ii) upon
 60 days&#146; written notice by the vote of a majority of the outstanding voting
 securities of the Fund, or (iii) by the vote of a majority of the Fund&#146;s directors
 or by the Sub-Adviser, and will automatically terminate in the event of its &#147;assignment&#148; (as such term is defined for purposes of Section 15(a)(4) of the Investment
 Company Act of 1940); <i>provided, however</i>, that the provisions of Paragraph
 8 of this Agreement shall remain in full force and effect, and the Sub-Adviser shall
 remain entitled to the benefits thereof, notwithstanding any such termination.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">Any notice
 under this Agreement shall be given in writing, addressed and delivered or mailed,
 postage prepaid, to the other party at its principal office.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">This Agreement
 constitutes the entire agreement of the parties, shall be binding upon and shall
 inure to the benefit of the parties hereto and shall be governed by California law
 in a manner not in conflict with the provisions of the 1940 Act.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">A provision
 of this Agreement may be amended, changed, waived, discharged or terminated only
 by an instrument in writing signed by the party against whom enforcement of the
 amendment, change, waiver, discharge or termination is sought. An amendment to this
 Agreement shall not be effective until approved by the Board, including a majority
 of the directors who are not interested persons of the Adviser or Sub-Adviser or
 of the Fund. To the extent legal counsel to the Fund concludes that shareholder
 approval of a particular amendment to this Agreement is required under the 1940
 Act, such amendment will not be effective until the required shareholder approval
 has been obtained.</font></p>
<p align="center"><font face="Times New Roman" size="2">C-3</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">IN WITNESS WHEREOF, the parties
 hereto have caused this Agreement to be duly executed on the date above written.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">ROYCE FOCUS
 TRUST, INC.</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="40%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="40%" valign="bottom" align="left"><font face="Times New Roman" size="2">By:</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td valign="bottom" style="border-top: 1px solid #000000;">&#160;</td>
<td><font face="Times New Roman">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Name:</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Title:&#160;&#160;&#160;&#160;President</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">SPROTT ASSET
 MANAGEMENT LP</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By:</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td valign="bottom" style="border-top: 1px solid #000000;">&#160;</td>
<td><font face="Times New Roman">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Name:&#160;&#160;&#160;&#160;John
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<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Title:&#160;&#160;&#160;&#160;Chief
 Executive Officer</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">SPROTT ASSET
 MANAGEMENT USA INC.</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">By:</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td align="left"><font face="Times New Roman">&#160;</font></td>
<td valign="bottom" style="border-top: 1px solid #000000;">&#160;</td>
<td><font face="Times New Roman">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Name:&#160;&#160;&#160;&#160;Jeffrey
 Howard</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">&#160;&#160;Title:&#160;&#160;&#160;&#160;Chief
 Executive Officer</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">C-4</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> D</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>I<small>NFORMATION</small> R<small>EGARDING</small><br>E<small>XECUTIVE</small> O<small>FFICERS AND</small> D<small>IRECTORS OF</small> S<small>PROTT</small> USA</b></font></p>
<p align="justify"><font face="Times New Roman" size="2">Below are the names, addresses, and principal
 occupations of the principal executive officer and each director or general partner
 of Sprott Asset Management USA Inc.</font></p>
<table border="1" cellpadding="4" cellspacing="0" width="100%" bordercolor="#000000">
<tr bgcolor="#D9D9D9">
<td nowrap width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Name</b></font></td>
<td nowrap width="8%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Title at
 Sprott Asset Management USA Inc.</b></font></td>
<td nowrap width="10%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Address
</b></font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Jeffrey Howard</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">Chief Executive
 Officer</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1910 Palomar
 Point Way Carlsbad, CA 92008</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Peter Grosskopf</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, 2700 Toronto, Ontario 2J1</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Steven Rostowsky</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, 2700 Toronto, Ontario 2J1</font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">John Ciampaglia</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Royal Bank
 Plaza, South Tower 200 Bay Street, 2700 Toronto, Ontario 2J1</font></td>
</tr>
</table>
<p align="justify"><font face="Times New Roman" size="2">Below are the names of potential officers
 of the Fund assuming completion of the transactions contemplated by the Proxy Statement
 who are officers, directors, or employees of Sprott Asset Management USA Inc.</font></p>
<table border="1" cellpadding="4" cellspacing="0" width="100%" bordercolor="black">
<tr bgcolor="#D9D9D9">
<td nowrap width="4%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Name</b></font></td>
<td nowrap width="8%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Title at
 Sprott Asset Management USA Inc.</b></font></td>
<td nowrap width="9%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Category
</b></font></td>
</tr>
<tr>
<td valign="top" align="left"><font face="Times New Roman" size="2">Steven Rostowsky</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Director</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2"> Officer and
 Director</font></td>
</tr>
<tr>
<td nowrap valign="top" align="left"><font face="Times New Roman" size="2">Thomas Ulrich</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Chief Compliance
 Officer and In-House Counsel</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">Officer</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">D-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="center"><font face="Times New Roman" size="2"><b>E<small>XHIBIT</small> E</b></font></p>
<p align="center"><font face="Times New Roman" size="2"><b>C<small>HARTER
 OF THE</small> A<small>UDIT</small> C<small>OMMITTEE <br>OF THE</small> B<small>OARD OF</small> D<small>IRECTORS</small>/T<small>RUSTEES</small> <br>F<small>OR THE</small> R<small>OYCE</small> F<small>UNDS</small>
 L<small>ISTED</small> I<small>N</small> A<small>PPENDIX A</small> H<small>ERETO</small></b></font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>I.</b></font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Composition
 of the Audit Committee</b></u></font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">The Audit
 Committee shall be composed of at least three Directors/Trustees, each of whom:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">(a)</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">shall not
 be an &#147;interested person&#148; of the Fund, as defined in Section 2(a)(19)
 of the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;);</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(b)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">shall not
 accept directly or indirectly any consulting, advisory, or other compensatory fee
 from the Fund (other than fees for serving on the Board of Directors/Trustees or
 any committee thereof); and</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">shall be financially
 literate at the time of his or her appointment to the Audit Committee, as such qualification
 is interpreted by the Board of Directors/Trustees in its business judgment, or shall
 become financially literate within a reasonable period of time after his or her
 appointment to the Audit Committee.</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="justify" style="text-indent:30px;"><font face="Times New Roman" size="2">In the event
 Fund shares are or become listed on a national securities exchange or are or become
 quoted on a national market quotation system, the additional qualification requirements
 set forth below also shall apply:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="top" align="left"><font face="Times New Roman" size="2">(d)</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">each Director/Trustee
 who is a member of the Audit Committee shall satisfy the applicable</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">independence
 requirements for any such national securities exchange or national market quotation
 system; and</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(e)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">at least one
 Director/Trustee who is a member of the Audit Committee shall have accounting or
 related financial management expertise as the Board of Directors/Trustees interprets
 such qualification in its business judgment.</font></td>
</tr>
</table>
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">&#160;The Board of Directors/Trustees shall determine annually: (i) whether at least one
 of the members of the Audit Committee is an &#147;audit committee financial expert,&#148; as defined in rules of the Securities and Exchange Commission and (ii) whether
 simultaneous service on more than three public company audit committees by a member
 of the Audit Committee would not impair the ability of such member to effectively
 serve on the Audit Committee, and,<i> with respect to the closed-end funds only</i>, the Board must disclose any determination made under clause (ii) either on or through
 the applicable Funds website or in its annual proxy statement. If the disclosure
 is made on the Fund&#146;s website, the Fund must disclose that fact in its annual
 proxy statement and provide the website address. Multiple boards in the same fund
 complex are considered one board for this determination.</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" valign="bottom" align="left"><font face="Times New Roman" size="2"><b>II.</b></font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><u><b>Purposes
 of the Audit Committee</b></u></font></td>
</tr>
</table>
<p style="text-indent:30px;" align="justify"><font face="Times New Roman" size="2">The Audit Committee shall be responsible
 for:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="bottom" align="left"><font face="Times New Roman" size="2">(1)</font></td>
<td width="1%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">assisting
 Board oversight of the</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="6%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="2%" valign="bottom" align="left"><font face="Times New Roman" size="2">(a)</font></td>
<td width="2%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">integrity
 of the Fund&#146;s financial statements;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(b)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">independent
 accountants&#146; qualifications and independence; and</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-2</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">(c)</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">performance
 of the Fund&#146;s independent accountants; and</div></font></td>
</tr>
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="left"><font face="Times New Roman" size="2">(2)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" colspan="2" align="left"><font face="Times New Roman" size="2"><div align="justify">
preparation, or overseeing the preparation of, any audit committee report required
 by rules of the Securities and Exchange Commission to be included in the Fund&#146;s
 proxy statement for its annual meeting of stockholders.</div></font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>III.&#160;&#160;&#160;&#160;&#160;&#160;<u>Responsibilities and Duties of
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<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">The Fund&#146;s
 independent accountants shall report directly to the Audit Committee.</font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">As may be
 necessary or appropriate to carry out its purposes, or to comply with applicable
 law or the requirements of any securities exchange or market quotation system on
 which Fund shares are or may become listed or quoted, the Audit Committee shall
 have the following responsibilities and duties:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(a)</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">the appointment,
 compensation, retention and oversight of the work of the Fund&#146;s independent
 accountants, including the resolution of disagreements between management and the
 independent accountants regarding financial reporting;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(b)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to (i) select
 an accounting firm to (1) serve as the Fund&#146;s independent accountants, (2)
 audit the Fund&#146;s financial statements on an annual basis, and (3) provide an
 opinion on an annual basis with respect to the Fund&#146;s financial statements,
 and (ii) recommend that the members of the Board of Directors/Trustees who are not
 &#147;interested persons&#148; of the Fund, as defined in Section 2(a)(19) of the 1940 Act,
 ratify such selection;</div></font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-3</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(c)</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to pre-approve
 (i) all audit and permissible non-audit services to be provided to the Fund by
 the Fund&#146;s independent accountants and (ii) all permissible non-audit services
 to be provided by the Fund&#146;s independent accountants to the Fund&#146;s Investment
 Adviser or any entity controlling, controlled by, or under common control with the
 Investment Adviser (&#147;Adviser Affiliate&#148;) that provides ongoing services
 to the Fund, if the engagement by the Adviser Affiliate relates directly to the
 operations and financial reporting of the Fund;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(d)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">if determined
 to be advisable, to develop policies and procedures for pre-approval of the engagement
 of the Fund&#146;s independent accountants to provide any of the audit or non-audit
 services described in Section III(c) above;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(e)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to consider
 whether each non-audit service provided by the Fund&#146;s independent accountants
 to the Fund and to the Fund&#146;s Investment Adviser or any Adviser Affiliate that
 provides ongoing services to the Fund is compatible with maintaining the independence
 of such independent accountants;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(f)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to ensure
 that the Fund&#146;s independent accountants submit on a periodic basis to the Audit
 Committee a formal written statement delineating all relationships between such
 independent accountants and the Fund, consistent with Independence Standards Board
 Standard No. 1, and to actively engage in a dialogue with, and receive and consider
 specific representations from, the Fund&#146;s independent accountants with respect
 to any disclosed relationships or services</div></font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-4</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">that may affect
 the objectivity and independence of such independent accountants;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(g)</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to review
 the arrangements for annual and special audits and the scope of such audits with
 the Fund&#146;s independent accountants;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(h)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to meet to
 review and discuss the Fund&#146;s audited financial statements and, to the extent
 required by applicable law or regulations, the Fund&#146;s semi-annual financial
 statements with Fund management and the Fund&#146;s independent accountants, including
 the Fund&#146;s disclosure of management&#146;s discussion of Fund performance;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(i)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to review
 with the Fund&#146;s independent accountants any audit problems or difficulties
 the accountants may have encountered during or relating to the conduct of the audit,
 including any matters required to be discussed pursuant to rules of The Public Company
 Accounting Oversight Board and other relevant regulatory and professional organizations,
 and management&#146;s response;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(j)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to establish
 and administer policies and procedures relating to the hiring by the Fund, its Investment
 Adviser, or any administrator that is an Adviser Affiliate of employees or former
 employees of the Fund&#146;s independent accountants;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(k)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to consider
 information and comments from the Fund&#146;s independent accountants with respect
 to the Fund&#146;s accounting and financial reporting policies, procedures and internal
 control over financial reporting (including the Fund&#146;s critical accounting
 policies and practices) and management&#146;s responses to any such comments;</div></font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-5</font></p>
<!--page-->
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<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(l)</font></td>
<td width="3%"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to request,
 receive and/or review from the Fund&#146;s independent accountants such other materials
 as may be deemed necessary or advisable in the discretion of the Committee in the
 exercise of its duties under this Charter; such materials may (but are not required
 to) include, without limitation, any other material written communications relating
 to the Fund&#146;s financial statements, or internal or disclosure controls, between
 the independent accountants and the Fund, the Investment Adviser, the Fund&#146;s
 sub-adviser(s), if any, or other Fund service providers, such as any management
 letter or schedule of unadjusted differences;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(m)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">at least annually,
 to obtain and review a report by the Fund&#146;s independent accountants describing:
 (i) such independent accountants&#146; internal quality-control procedures; (ii)
 any material issues raised by the most recent internal quality-control review, or
 peer review, of such independent accountants, or by any inquiry or investigation
 by governmental or professional authorities, within the preceding five years, respecting
 one or more independent audits carried out by such firm, and any steps taken to
 deal with any such issues; and (iii) all relationships between the Fund&#146;s independent
 accountants and the Fund, the Investment Adviser, Adviser Affiliates and members
 of management of such entities (to assess the independence of the Fund&#146;s independent
 accountants);</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(n)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to establish
 procedures for: (i) the receipt, retention, and treatment of complaints received
 by the Fund regarding accounting, internal accounting controls, or auditing matters;
 and (ii)</div></font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">E-6</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="5%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="3%" valign="bottom" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">the confidential,
 anonymous submission of concerns by employees of the Fund&#146;s Investment Adviser,
 manager, administrator, principal underwriter, or any other provider of accounting
 related services for the Fund regarding questionable accounting or auditing matters;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(o)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to address
 reports received from attorneys in accordance with procedures adopted by the Fund&#146;s Investment Adviser relating to the possible violation of federal or state
 law or fiduciary duty;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(p)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to discuss
 with Fund management and the Fund&#146;s independent accountants policies with respect
 to risk assessment and risk management;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(q)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify"><i>with respect
 to closed-end funds only</i>, to discuss with Fund management the Fund&#146;s press
 releases that discuss earnings (if any), as well as financial information or earnings
 guidance provided to analysts and ratings agencies (this may be done generally,
<i>e.g</i>., the type of information to be disclosed and the type of presentation
 to be made); and</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="2">(r)</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">to perform
 such other functions and to have such other powers consistent with this Charter,
 the Fund&#146;s Articles of Incorporation or Declaration of Trust, as amended and
 supplemented, the Fund&#146;s By-laws, as amended, and applicable law, as the Audit
 Committee or the Board deems necessary or appropriate.</div></font></td>
</tr>
</table>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee may delegate any portion of its authority, including the authority to
 grant preapprovals of audit related services and permitted non-audit services, to
 a subcommittee of one or more members of the Audit Committee pursuant to preapproval
 policies and procedures established by</font></p>
<p align="center"><font face="Times New Roman" size="2">E-7</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2">the Audit Committee; provided, however,
 that the Audit Committee may not delegate preapproval of the audit required by the
 Securities Exchange Act of 1934. Any decision of such subcommittee of the Audit
 Committee to grant preapprovals shall be presented to the full Audit Committee at
 its next regularly scheduled meeting.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">The function
 of the Audit Committee is oversight; it is the responsibility of Fund management
 to maintain appropriate systems for accounting and internal control over financial
 reporting, and the responsibility of the Fund&#146;s independent accountants to
 plan and carry out a proper audit. Specifically, Fund management is responsible
 for: (1) the preparation, presentation and integrity of the Fund&#146;s financial
 statements; (2) the maintenance of appropriate accounting and financial reporting
 principles and policies; and (3) the maintenance of internal control over financial
 reporting and other procedures designed to assure compliance with accounting standards
 and related laws and regulations. The Fund&#146;s independent accountants are responsible
 for planning and carrying out an audit consistent with applicable legal and professional
 standards and the terms of their engagement letter. Nothing in this Charter shall
 be construed to reduce the responsibilities or liabilities of the Fund&#146;s service
 providers, including the Fund&#146;s independent accountants.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">Although the
 Audit Committee is expected to review appropriately the matters that come before
 it, such review of a Fund&#146;s financial statements by the Audit Committee is
 not an audit, nor does the Committee&#146;s review substitute for the responsibilities
 of the Fund&#146;s management for preparing, or the Fund&#146;s independent accountants
 for auditing, the financial statements. Members of the Audit Committee are not employees
 of the Fund and, in serving on the Audit Committee, are not, and do not hold themselves
 out to be, acting as accountants or auditors. As such, it is not the duty or responsibility
 of the Audit</font></p>
<p align="center"><font face="Times New Roman" size="2">E-8</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2">Committee or its members to conduct &#147;field
 work&#148; or other types of auditing or accounting reviews or procedures.</font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">In discharging
 their duties, the members of the Audit Committee are entitled to rely on information,
 opinions, reports, or statements, including financial statements and other financial
 data, if prepared or presented by: (1) one or more officers of the Fund whom the
 Board reasonably believes to be reliable and competent in the matters presented;
 (2) legal counsel, public accountants, or other persons as to matters the Board
 reasonably believes are within the person&#146;s professional or expert competence;
 or (3) a committee of the Board.</font></p>
<p><font face="Times New Roman" size="2"><b>IV.&#160;&#160;&#160;&#160;&#160;&#160;<u>Meetings</u></b></font></p>
<p style="text-indent: 50px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall meet on a regular basis but no less frequently than annually. The
 Audit Committee periodically shall meet separately with the Fund&#146;s independent
 accountants, Fund management, and representatives of Fund management responsible
 for the financial and accounting operations of the Fund. The Audit Committee may
 hold special meetings at such times as the Audit Committee believes necessary or
 appropriate. Members of the Audit Committee may participate in a meeting of the
 Audit Committee by means of conference call or similar communications equipment
 by means of which all persons participating in such meeting can hear each other.</font></p>
<p><font face="Times New Roman" size="2"><b>V.&#160;&#160;&#160;&#160;&#160;&#160;&#160;<u>Assistance from Fund Management; Authority to Engage Advisers; Funding</u></b></font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">The appropriate
 officers of the Fund shall provide or arrange to provide such information, data
 and services as the Audit Committee may request. The Audit Committee shall have
 the power and authority to take all action it believes necessary or appropriate
 to discharge its responsibilities, including the power and authority to retain independent
 counsel and other advisers. The Fund shall provide for appropriate funding, as determined
 by the Audit Committee as a committee of the Board, for payment</font></p>
<p align="center"><font face="Times New Roman" size="2">E-9</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p align="justify"><font face="Times New Roman" size="2">of: (i) compensation to the Fund&#146;s
 independent accountants or any other accounting firm engaged for the purpose of
 preparing or issuing an audit report or performing other audit, review, or attest
 services for the Fund, (ii) compensation to any advisers employed by the Audit Committee
 under this Section V, and (iii) ordinary administrative expenses of the Audit Committee
 that are necessary or appropriate in carrying out its responsibilities.</font></p>
<p><font face="Times New Roman" size="2"><b>VI.&#160;&#160;&#160;&#160;&#160;<u>Annual Performance Evaluation</u>
</b></font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall perform a review and evaluation, at least annually, of the performance
 of the Audit Committee.</font></p>
<p><font face="Times New Roman" size="2"><b>VII.&#160;&#160;&#160;&#160;<u>Reporting</u></b></font></p>
<p style="text-indent: 30px;" align="justify"><font face="Times New Roman" size="2">The Audit
 Committee shall report regularly to the Board. The Chairman of the Audit Committee
 shall report to the Board on the results of its deliberations, and make such recommendations
 as deemed necessary or appropriate.</font></p>
<p><font face="Times New Roman" size="2"><b>VIII.&#160;&#160;&#160;<u>Amendments</u></b></font></p>
<p style="text-indent: 30;" align="justify"><font face="Times New Roman" size="2">This Charter may be amended
 or modified from time to time by vote of the Board.</font></p>
<p><font face="Times New Roman" size="2"><b>Dated: April 11, 2000, as amended through
 December 12, 2013</b></font></p>
<p align="center"><font face="Times New Roman" size="2">E-10</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p ALIGN="CENTER"><font face="Times New Roman" size="2"><b>APPENDIX A</b></font></p>
<p><font face="Times New Roman" size="2">Royce Capital Fund<br>Royce Focus Trust, Inc.<br>Royce Global Value Trust, Inc.<br>Royce Micro-Cap Trust, Inc.<br>Royce Value Trust, Inc.<br>The Royce Fund</font></p>
<p align="center"><font face="Times New Roman" size="2">E-11</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>E<SMALL>XHIBIT</SMALL>
 F</b></font></td>
</tr></font></p>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>C<SMALL>HARTER OF THE</SMALL> N<SMALL>OMINATING</SMALL> C<SMALL>OMMITTEE</SMALL></b></font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b><SMALL>OF THE</SMALL>
 B<SMALL>OARD OF</SMALL> D<SMALL>IRECTORS</SMALL>/T<SMALL>RUSTEES</SMALL></b></font></td>
</tr></font></p>
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>F<SMALL>OR</SMALL> <SMALL>THE</SMALL> R<SMALL>OYCE</SMALL>
 F<SMALL>UNDS</SMALL> L<SMALL>ISTED</SMALL> I<SMALL>N</SMALL> A<SMALL>PPENDIX</SMALL> <SMALL>A</SMALL> H<SMALL>ERETO</SMALL></b></font></td>
</tr>
</table>
<p><font face="Times New Roman" size="2"><b>O<SMALL>RGANIZATION</SMALL></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Nominating Committee (the &#147;Committee&#148;) of the Board of Directors/Trustees for the registered investment companies
 (each, a &#147;Fund&#148;) listed on Exhibit A attached hereto shall be composed
 solely of Directors/Trustees who are not &#147;interested persons&#148; of the Fund
 as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended
 (the &#147;1940 Act&#148;), and who are &#147;independent&#148; as defined in the
 applicable listing standards of the national securities exchange or national market
 quotation system (each, an &#147;Exchange&#148;) on which a Fund is listed or quoted
 (the &#147;Independent Directors&#148;). The Board of Directors/Trustees of the
 Fund (the &#147;Board&#148;) shall appoint the members of the Committee (which may
 or may not be all of the Independent Directors) and shall designate the Chairman
 of the Committee. The Committee shall have authority to retain its own counsel and
 other advisers the Committee deems appropriate and shall have the sole authority
 to approve the compensation and other terms of their retention.</font></p>
<p><font face="Times New Roman" size="2"><b>R<SMALL>ESPONSIBILITIES</SMALL></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">The Committee shall identify individuals
 qualified to serve as Independent Directors of the Fund and shall recommend its
 nominees for consideration by the full Board.</font></p>
<p><font face="Times New Roman" size="2"><b>I<SMALL>DENTIFICATION AND</SMALL> E<SMALL>VALUATION OF</SMALL> P<SMALL>OTENTIAL</SMALL>
 N<SMALL>OMINEES</SMALL></b></font></p>
<p align="justify"><font face="Times New Roman" size="2">In identifying and evaluating a person as
 a potential nominee to serve as an Independent Director of the Fund, the Committee
 should consider among other factors it may deem relevant:</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><div align="justify"><font face="Times New Roman" size="2">the contribution
 which the person can make to the Board, with consideration being given to the person&#146;s business and professional experience, education and such other factors as
 the Committee may consider relevant, including but not limited to whether a potential
 nominee&#146;s personal and professional qualities and attributes would provide
 a beneficial diversity of skills, experience and/or perspective to the Board;</font></div></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">the character
 and integrity of the person;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">F-1</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="3%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="1%" valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the person is an &#147;interested person&#148; as defined in the 1940 Act and
 whether the person is otherwise qualified under applicable laws and regulations
 to serve as a Director or Independent Director of the Fund;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the person has any relationships that might impair his independence, such as
 any business, financial or family relationships with Fund management, the investment
 adviser of the Fund, Fund service providers or their affiliates;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the person is financially literate pursuant to the applicable Exchange&#146;s
 audit committee membership standards;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the person serves on boards of, or is otherwise affiliated with, competing financial
 service organizations or their related investment company complexes;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the person is willing to serve as, and willing and able to commit the time necessary
 for the performance of the duties of a Director of the Fund;</div></font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="top" align="center"><font face="Times New Roman" size="1">&#149;</font></td>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"><div align="justify">whether or
 not the selection and nomination of the person would be in the best interest of
 the Fund in light of the requirements of the Fund&#146;s retirement policies.</div></font></td>
</tr>
</table>
<p align="justify"><font face="Times New Roman" size="2">While the Committee is solely responsible
 for the selection and nomination of the Fund&#146;s Independent Directors, the Committee
 shall review and consider nominations for the office of Director made by management
 and by Fund stockholders as it deems appropriate. Stockholders who wish to recommend
 a nominee should send nominations to the Secretary of the Fund which include biographical
 information and set forth the qualifications of the proposed nominee.</font></p>
<p><font face="Times New Roman" size="2"><b>Q<SMALL>UORUM</SMALL></b></font></p>
<p><font face="Times New Roman" size="2">A majority of the members of the Committee
 shall constitute a quorum for the transaction of business, and the act of a majority
 of the members of the Committee present at any meeting at which there is quorum
 shall be the act of the Committee.</font></p>
<p><font face="Times New Roman" size="2"><b>N<SMALL>OMINATION OF</SMALL> D<SMALL>IRECTORS</SMALL></b></font></p>
<p><font face="Times New Roman" size="2">After a determination by the Committee that
 a person should be selected and nominated as an Independent Director of the Fund,
 the Committee shall</font></p>
<p align="center"><font face="Times New Roman" size="2">F-2</font></p>
<!--page-->
<br clear="all" style="page-break-before:always;">
<p><font face="Times New Roman" size="2">present its recommendation to the full Board
 for its consideration and, if necessary, to the Independent Directors.</font></p>
<p><font face="Times New Roman" size="2"><b>M<SMALL>EETINGS</SMALL></b></font></p>
<p><font face="Times New Roman" size="2">The Committee may meet either on its own
 or in conjunction with meetings of the Board. Meetings of the Committee may be held
 in person, by video conference or by conference telephone. The Committee may take
 action by unanimous written consent in lieu of a meeting.</font></p>
<p><font face="Times New Roman" size="2">Adopted: February 10, 2004<br>Revised through February 16, 2011</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2"><b>A<SMALL>PPENDIX</SMALL>
 A</b></font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Royce Capital
 Fund</font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Royce Focus
 Trust, Inc.</font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Royce Global
 Value Trust, Inc.</font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Royce Micro-Cap
 Trust, Inc.</font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">Royce Value
 Trust, Inc.</font></td>
</tr></font></p>
<p align="center"><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" align="center"><font face="Times New Roman" size="2">The Royce
 Fund</font></td>
</tr></font></p>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr>
</table>
<p align="center"><font face="Times New Roman" size="2">F-3</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<table align="center" border="0" cellpadding="0" cellspacing="0" width="80%">
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="center" valign="bottom" align="left"><font face="Times new roman" size="2"><b><u>FORM OF PROXY CARD</u></b></font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td valign="bottom" align="left"><font face="Times new roman" size="2">PROXY</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
<td align="center" valign="bottom" align="left"><font face="Times new roman" size="2">ROYCE FOCUS
 TRUST, INC.</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times new roman" size="2">PROXY</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="center" valign="bottom" align="left"><font face="Times new roman" size="2">745 Fifth
 Avenue</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="center" valign="bottom" align="left"><font face="Times new roman" size="2">New York,
 New York 10151</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
</table>
<p style="text-align: center; margin-left: 40px; text-indent: -10px"><font face="Times new roman" size="2">This Proxy
 is Solicited on Behalf of the Board of Directors of Royce Focus Trust, Inc.</font></p>
<p align="justify"><font face="Times new roman" size="2">The undersigned hereby appoints Charles
 M. Royce and John E. Denneen or either of them, acting in absence of the other, as
 Proxies, each with the power to appoint his substitute, and hereby authorizes them
 to represent and to vote, as designated on the reverse, all shares of common stock
 of Royce Focus Trust, Inc. (the &#147;Fund&#148;) held of record by the undersigned
 on December 29, 2014 at the Special Meeting of Stockholders of the Fund to be held
 on February 27, 2015, and at any postponement or adjournment thereof.</font></p>
<p align="justify"><font face="Times new roman" size="2">This Proxy, when properly executed, will
 be voted in the manner directed by the undersigned stockholder. If no direction is
 made, this Proxy will be voted FOR each of Proposal 1, Proposal 2, and Proposal 3.</font></p>
<p align="center"><font face="Times new roman" size="2">PLEASE VOTE,
 DATE AND SIGN BELOW AND RETURN PROMPTLY<br>IN THE ENCLOSED ENVELOPE.</font></p>
<br clear="all" style="page-break-before:always;">
<!--page-->
<p><font face="Times New Roman" size="2"><table border="0" cellpadding="0" cellspacing="0" width="100%"></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td colspan="2" valign="bottom" align="left"><font face="Times New Roman" size="2">--------------------------------------------------------------------------------</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" colspan="2" align="left"><font face="Times New Roman" size="2">
To vote by Telephone</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td width="2%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1) Read the
 Proxy Statement and have the Proxy Card below at hand.</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2) Call [1-___-___-____]</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3) Enter the
 [__]-digit control number set forth on the Proxy Card and follow the simple instructions.</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">To vote by
 Internet</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">1) Read the
 Proxy Statement and have the Proxy Card below at hand.</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">2) Go to Website
 [www.__________.com]</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">3) Enter the
 [__]-digit control number set forth on the Proxy Card and follow the simple instructions.</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td><font face="Times New Roman" size="1">&#160;</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">To vote, mark
 blocks below in blue or black ink as follows: x</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td colspan="2"><font face="Times New Roman" size="1">-------------------------</font></td>
</tr></font></p>
<p><font face="Times New Roman" size="2">
<tr>
<td valign="bottom" colspan="2" align="left"><font face="Times New Roman" size="2">
ROYCE FOCUS TRUST, INC.</font></td>
</tr></font></p>
<tr>
<td colspan="2"><font face="Times New Roman" size="1">-------------------------</font></td>
</tr>
</table>
<br>
<table border="1" cellpadding="0" cellspacing="0" width="100%">
<tr>
<tr>
<td rowspan="2" valign="bottom" align="left"><font face="Times New Roman" size="2">1. PROPOSAL
 TO CONSIDER AND APPROVE A NEW INVESTMENT ADVISORY AGREEMENT BY AND BETWEEN ROYCE
 FOCUS TRUST, INC. AND SPROTT ASSET MANAGEMENT L.P.</font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>For</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Against
</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Abstain
</b></font></td>
</tr>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
</tr>
</table>
<br>
<table border="1" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2" valign="bottom" align="left"><font face="Times New Roman" size="2">2. PROPOSAL
 TO CONSIDER AND APPROVE A NEW INVESTMENT SUBADVISORY AGREEMENT BY AND AMONG ROYCE
 FOCUS TRUST, INC., SPROTT ASSET MANAGEMENT L.P., AND SPROTT ASSET MANAGEMENT USA
 INC.</font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>For</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Against
</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Abstain
</b></font></td>
</tr>
<tr>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
</tr>
</table>
<br>
<table border="1" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td rowspan="2" valign="bottom" align="left"><font face="Times New Roman" size="2">3. PROPOSAL
 TO ELECT THE<br> DIRECTOR NOMINEES OF THE FUND</font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>For ALL
</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>Withhold
 ALL</b></font></td>
<td width="15%" valign="bottom" align="center"><font face="Times New Roman" size="2"><b>For All
 Except</b></font></td>
</tr>
<tr>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
<td valign="center" align="center"><font face="Times New Roman" size="2">[ ]</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="50%" align="center">
<tr>
<td valign="center" align="left"><font face="Times New Roman" size="2">(To withhold authority to vote for a specific
 Director Nominee,</font></td>
</tr>
<tr>
<td valign="center" align="left"><font face="Times New Roman" size="2">mark &#147;For All Except&#148; and write the Nominee&#146;s
 number on the line below.)</font></td>
</tr>
<tr>
<td valign="center" align="center"><font face="Times New Roman" size="2">&#160;</font></td>
</tr>
<tr>
<td valign="center" align="center"><font face="Times New Roman" size="2">--------------------------------------------------------------------</font></td>
</tr>
</table>
<br>
<table border="0" cellpadding="0" cellspacing="0" width="50%" align="center">
<tr>
<td valign="center" align="left"><font face="Times New Roman" size="2">01) W. Whitney George, 02) James R. Pierce,
 Jr,</font></td>
</tr>
<tr>
<td valign="center" align="left"><font face="Times New Roman" size="2">03) Barbara Connolly Keady, and 04) Michael W. Clark</font></td>
</tr>
</table>
<br>
<table border="1" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td valign="bottom" align="left"><font face="Times New Roman" size="2">4. THE PROXIES
 ARE AUTHORIZED TO VOTE UPON SUCH OTHER<br>&#160;&#160;&#160;&#160;MATTERS AS MAY PROPERLY COME BEFORE THE SPECIAL
 MEETING.</font></td>
</tr>
</table>
<br>
<p><font face="Times New Roman" size="2">Please sign exactly as your name(s) appear(s)
 on reverse. When shares are held by joint tenants, both should sign. When signing
 as attorney, executor, administrator, trustee or guardian, please give full title
 as such. If a corporation, please sign in full corporate name by president or other
 authorized officer. If a partnership, please sign in partnership name by authorized
 person.</font></p>
<p><font face="Times New Roman" size="2">Please Sign, Date and Return the Proxy Card
 Promptly Using the Enclosed Envelope</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="60%">
<tr>
<td width="10%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="10%" align="left"><font face="Times New Roman" size="1">&#160;</font></td>
<td width="60%"valign="top" align="left"><font face="Times New Roman" size="2">Mark box at
 right if an address change or<br>
 comment has been noted on the reverse<br>
side of this card.<br></font></td>
<td width="5%" valign="top" align="left"><font face="Times New Roman" size="1">[ ]</font></td>
<td valign="bottom" align="left"><font face="Times New Roman" size="2"></font></td>
</tr>
</table>
<br><table border="1" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="2%" valign="top" align="center"><font face="Times New Roman" size="2"><b>Shareholder
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<td width="2%" valign="top" align="center"><font face="Times New Roman" size="2"><b>Date</b></font></td>
<td width="2%" valign="top" align="center"><font face="Times New Roman" size="2"><b>Co-Owner
<br>Sign Here</b></font></td>
<td width="2%" valign="top" align="center"><font face="Times New Roman" size="2"><b>Date</b></font></td>
<td width="2%" valign="top" align="center"><font face="Times New Roman" size="2"><b>RECORD
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<td width="2%" valign="top" align="center" nowrap><font face="Times New Roman" size="2"><b>CONTROL
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</tr>
<tr>
<td align="center"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="center"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="center"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="center"><font face="Times New Roman" size="1">&#160;</font></td>
<td align="center"><font face="Times New Roman" size="1">&#160;</font></td>
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<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>2
<FILENAME>filename2.htm
<TEXT>
<p><font face="Times new roman" size="2"><i><b><i><b>Royce Focus Trust, Inc.</b>
</i></b></i></font></p>
<p align="right"><font face="Times new roman" size="2">745 Fifth
 Avenue<br>New York, NY 10151<br>(212) 508-4500<br>(800) 221-4268</font></p>
<p align="right"><font face="Times new roman" size="2">December 19, 2014</font></p>
<p><font face="Times new roman" size="2">Securities and Exchange Commission<br>100
 F. Street, N.E.<br>Washington, D.C. 20549<br>Attention: Larry Greene, Division of
 Investment Management</font></p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tr>
<td width="38%" align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td width="3%" align="right" valign="bottom" align="left"><font face="Times new roman" size="2">Re:</font></td>
<td width="1%" ><font face="Times new roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times new roman" size="2">Royce Focus
 Trust, Inc. (the &#147;Trust&#148;)</font></td>
<td width="38%" align="left"><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td nowrap valign="bottom" align="left"><font face="Times new roman" size="2">File Nos.
 333-123047 and 811-05379</font></td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr style="font-size:1px;">
<td align="left"><font face="Times new roman">&#160;</font></td>
<td align="left"><font face="Times new roman">&#160;</font></td>
<td colspan="2" valign="bottom" colspan="2" style="border-top: 1px solid #000000;">&#160;</td>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
</tr>
</table>
<p><font face="Times new roman" size="2">Dear Mr. Greene:</font></p>
<p align="justify"><font face="Times new roman" size="2">Enclosed herewith for
 filing with the Securities and Exchange Commission (the &#147;Commission&#148;)
 pursuant to Rule 14a-6 under the Securities Exchange Act of 1934, as amended, are
 preliminary copies of the Notice of Meeting, Proxy Statement, and form of proxy
 card (collectively, the &#147;Proxy Materials&#148;) in connection with the Special
 Meeting of Stockholders of Royce Focus Trust, Inc. (the &#147;Fund&#148;), to be
 held on February 27, 2015. The foregoing materials are expected to be sent to Fund
 stockholders on or about January 12, 2015. The Fund expects to include the required
 record date information and information relating to its proxy solicitor with the
 definitive Proxy Statement filed with the Commission.</font></p>
<p align="justify"><font face="Times new roman" size="2">If you have any questions or comments with
 respect to the Proxy Materials, please contact the undersigned at (212) 508-4578.</font></p>
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<tr>
<td width="50%" align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times new roman" size="2">Very truly
 yours,</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td><font face="Times new roman" size="1">&#160;</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times new roman" size="2">John E. Denneen</font></td>
</tr>
<tr>
<td align="left"><font face="Times new roman" size="1">&#160;</font></td>
<td valign="bottom" align="left"><font face="Times new roman" size="2">Secretary</font></td>
</tr>
</table>
<p><font face="Times new roman" size="2">Encs.</font></p>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
