Karani Asset Management LLC

Item 5 - Fees and Compensation
Karani charges Management Fees to separately managed account clients for its investment advisory
services. Management Fees for separately managed accounts are calculated at annual rates between
one percent (1.00%) and two percent (2.00%) of the account value depending on the investment
strategy employed.

For accounts custodied at Interactive Brokers, Management Fees are calculated and payable in
arrears based on the calculation method and frequency described in the Managed Account
Agreement between the client and Karani. Clients agree to authorize Interactive Brokers to
calculate and pay the Management Fee directly from their custody accounts. Karani will make
available through Interactive Brokers a monthly report that includes the daily details of the month’s
Management Fee.

For accounts custodied at all other custodians, Management Fees are calculated and payable
quarterly in advance based on the account value at the beginning of each calendar quarter. Karani
requires approval of the client and its authorized custodian to receive its fees from custody accounts.
Accounts initiated or terminated during a calendar quarter are charged a pro‐rated fee. The
Management Fee is also adjusted for any contributions or withdrawals made during the quarter.
Upon termination of an account or withdrawal of funds, any prepaid, unearned fees are either
promptly refunded, applied to amounts owed by the client to Karani pursuant to the terms of the
Managed Account Agreement, or applied as a credit against future invoices.

All clients bear the custodial fees, transaction costs and brokerage expenses of their accounts, as
discussed below in the Brokerage Practices section.

Karani has adopted valuation policies and procedures to govern the valuation of securities held in
client accounts. Karani primarily relies on asset prices obtained from the custodians, as established
every business day and recorded on custodial records. However, Karani has a fair value pricing
policy that it follows in situations where custodians may be unable to price certain investments, or
where custodians may assign prices that do not reflect Karani’s reasonable view of current market
conditions. In such instances, Karani works directly with the applicable custodian to establish the
appropriate valuation.

Item 7 - Types of Clients
Karani provides investment advisory services to individuals (including estate planning vehicles)
and institutional clients (including charitable organizations, endowments and foundations).
Karani’s minimum account size is generally $100,000 for separately managed accounts opened at
Interactive Brokers. The minimum account size for separately managed accounts opened at all
other custodians is generally $5,000,000.