Kanani Advisory Group Inc

Item 5: Fees and Compensation

A. Fee Schedule

Portfolio Management Fees
Lower fees for comparable services may be available from other sources.

KAG will be compensated via a fee share arrangement with the advisers with whom KAG
has shared or delegated responsibilities. The sharing of responsibilities for each outside
manager relationship will be documented in the contract between KAG and the applicable
co-advisor or third-party adviser. The total fee to be paid will be quoted in advance as a
percentage of assets under management, and the annual rate will generally range from
0.8% to 2.0% (but the total fee paid will not exceed any limit imposed by any regulatory
agency).
In instances where KAG shares responsibilities with a co-adviser, KAG and the co- adviser
will share the total fee.
In instances where KAG delegates responsibilities to a third-party investment advisers,
KAG and the third party adviser will receive separate fees. The fees in both cases are
negotiable and will not exceed any limit imposed by any regulatory agency.
Clients are encouraged to review the applicable adviser’s Form ADV including firm
brochure and brochure supplement as well as the respective client agreement information
about Third-Party Advisers and their arrangement with KAG.
Clients may terminate the agreement without penalty for a full refund of KAG's fees
within five business days of signing the advisory agreement. Thereafter, clients may
terminate the advisory agreement generally with 7 days' written notice.

Educational Seminars/Workshops
KAG provides periodic educational seminars and workshops to clients and the general
public.

B. Payment of Fees

Payment of Portfolio Management Fees
Advisory fees are charged monthly or quarterly and may be due in advance or in arrears
depending on the management platform. Fees are withdrawn directly from the client’s
accounts with written authorization from the client.
The timing, frequency and method of paying fees for election of third party managers will
depend on the specific third party advisor selected and will be disclosed the client
prior to entering into a relationship with the third party adviser.
For advisory fees that are charged quarterly in advance, we use the value of the account as of

the last business day of the prior billing period, after taking into account deposits and
withdrawals, for purposes of determining the market value of the assets upon which the
advisory fee is based. For advisory fees that are charged monthly in advance, we use the value
of the account as of the last business day of the prior billing period, prorated for account
opening and closing, for purposes of determining the market value of the assets upon which
the advisory fee is based.
For advisory fees that are charged in arrears, KAG uses the average daily value of the
account for the billing period or the value of the account on the last business day of the
billing period after taking into account deposits and withdrawals, for the purpose of
determining the market value of the assets upon which the advisory fee is based.

Payment of Educational Seminar/Workshop Fees

Educational seminars and workshops are offered free of charge.

C. Client Responsibility For Other Costs
Fees paid to KAG are for portfolio management services only. Clients are responsible for
the payment of all other costs (e.g. custodian fees, brokerage fees, mutual fund fees,
transaction fees, etc.). Those fees are separate and distinct from the fees and expenses
charged by KAG. Please see Item 12 of this brochure regarding broker-dealer/custodian.

D. Prepayment of Fees
For all asset based fees paid in advance, the fee refunded will be equal to the balance of
the fees collected in advance minus the daily rate* times the number of days elapsed in
the billing period up to and including the day of termination. (*The daily rate is calculated
by dividing the annual asset-based fee by 365.)

E. Outside Compensation For the Sale of Securities to Clients
David Kanani, Neda Kanani, Leila Parvaneh and Max Lepley are insurance agents and in
this role, they accept compensation for the sale of investment products to KAG clients.

1. This is a Conflict of Interest
Supervised persons may accept compensation for the sale of investment products,
including asset based sales charges or service fees from the sale of mutual funds to KAG's
clients. This presents a conflict of interest and gives the supervised person an incentive to
recommend products based on the compensation received rather than on the client’s
needs. When recommending the sale of investment for which the supervised persons
receives compensation, KAG will document the conflict of interest in the client file and
inform the client of the conflict of interest.

       2. Clients Have the Option to Purchase Recommended Products From
       Other Brokers
           Clients always have the option to purchase KAG recommended products through
           other brokers or agents that are not affiliated with KAG.

       3. Commissions are not KAG's primary source of compensation for
       advisory services
           Commissions are not KAG’s primary source of compensation for advisory services.

       4. Advisory Fees in Addition to Commissions or Markups
           Advisory fees that are charged to clients are not reduced to offset the commissions or
           markups on investment products recommended to clients.

Item 7: Types of Clients
KAG generally provides advisory services to the following types of clients:
     ❖       Individuals
     ❖       High-Net-Worth Individuals
     ❖       Pension & Profit Sharing Plans
     ❖       Corporations or Other Businesses

There is no account minimum for any of KAG’s services.