Ranger Investment Management LP

Item 5 – Fees and Compensation

The Firm charges Clients advisory fees which are a fixed percentage of assets under
management (“Management Fees”). Management Fees are charged in accordance with the
schedule set forth in this Brochure, and in the case of a Private Fund or Mutual Fund, the
offering documents, prospectus and/or statement of additional information about such fund.

RIM reserves the right to negotiate Management Fees, performance fees and other
compensation structures with Clients (and investors in Private Funds) which may differ from
the standard schedule presented herein, based on specific circumstances and on a case-by-case
basis. Examples of these circumstances include, without limitation: the relative size of a
Client’s account, a Client’s affiliation to RIM, and/or a Client’s status as a seed investor.
Accordingly, Management Fees incurred by Clients can vary substantially. In addition, with
respect to Separate Accounts, all other terms of such investment, including terms relating to
expenses and redemption terms, are negotiable on a case-by-case basis. As such, Client
investments in Separate Accounts may provide flexibility with respect to investment terms
which are not as readily afforded to investors in the Private Fund or Mutual Funds.

Management Fees:

Private Fund (Qualified Investors Only) – The Firm currently manages one Private Fund
Class under the Ranger Investment Master Fund, LP– Ranger Investment Small Cap Fund.
Portfolio. Management Fees may be negotiable for the Ranger Investment Small Cap Fund, are
calculated and accrued monthly, payable quarterly in advance per the Private Placement
Memorandum (“PPM”). Limited Partners of the Small Cap Portfolio Class are not subject to a
performance allocation. To the extent that a limited partner in a Private Fund redeems its
investment, the Firm will promptly refund all fees paid in advance for periods after such

Ranger Investment Management, L.P.                                                           5

applicable redemption date. It is important for private fund investors to carefully read the Fund
PPM for a full description of management fees.

A second Fund Class (AP3 Small Cap) was established in 2020 that included one Limited
Partner. This AP3 Class was subject to a performance-based fee arrangement. This Fund Class
was liquidated and closed in March 2024.

Mutual Funds – Management Fees are calculated and accrued daily and wired to the RIM
account on a quarterly basis by the Mutual Fund’s transfer agent.

Collective Investment Trust – (Qualified Plans Only) – The CIT is available as a qualified
plan investment vehicle. The CIT remains unfunded currently.

Separately Managed Accounts – The time, manner, and fee schedule in which fees are
invoiced and paid are negotiable on an account-by-account basis. The Firm calculates the fee
based on a reconciled account valuation on a quarterly basis. Generally, the fees are calculated
in arrears, but Clients do have the option to choose to be billed in advance. A detail of the fee
schedule and manner of invoicing are included in the Investment Management Agreement. The
Firm does not charge a minimum fee. The Firm does not maintain authority to unilaterally
deduct fees from Separate Account Clients.

As described in Item #6 below, performance-based fees are negotiated on a Client-by-Client
basis for Qualified /Accredited investors only.

Standard Fee Schedule for Available Classes of the Private Funds

  Private Fund – Classes of Interest                   Annual Management Fee
  Small Cap Portfolio Class                            One Percent (1.00%)

Standard Fee Schedule for Available Classes of the Collective Investment Trust (“CIT”)

  CIT – Classes of Interest                            Annual Management Fee
  Unfunded at this time                                To be determined

Standard Fee Schedule for Available Ranger Mutual Funds

  Mutual Fund                                          Annual Management Fee
  Ranger Small Cap Mutual Fund (RFISX)                 One Percent (1.00%)
  Ranger Micro Cap Mutual Fund (RFIMX)                 One Percent (1.00%)
* Non-Institutional share classes of each Mutual Fund listed above may be subject to 12b-1 fees of up
to 0.25%.

Ranger Investment Management, L.P.                                                                  6

Standard Fee Schedule for RIM Separately Managed Accounts in Available Strategies

                                              Annual Management Fee
  RIM Strategy
                       First $25mm        Next $25mm          $50-100mm         Above $100 mm
  RIM Small Cap      100 Basis           Eighty Basis       Seventy Basis      Negotiable
  Strategy           Points (1.0%)       Points (0.80%)     Points (0.70%)
                                         Ninety-Five
  RIM Micro Cap      110 Basis                              Eighty Basis
                                         Basis Points                          Negotiable
  Strategy           Points (1.10%)                         Points (0.80%)
                                         (0.95%)

Fees for RIM Model Accounts

The Firm anticipates that the range of services provided with respect to Model Accounts will
significantly differ on a Client-by-Client basis. As such, the Firm does not maintain a standard
fee schedule with respect to Model Accounts. However, advisory or management fees with
respect to Model Accounts generally fall below equivalent fees charged for full service,
discretionary accounts based on the same investment strategy.

Management Fees and Other Expenses

Management Fees are negotiable, depending on the size of the investment and other factors.
Management Fees are exclusive to expenses associated with investments in Separate Accounts,
Mutual Funds, the Private Funds and/or Model Accounts. Although the Firm is responsible for
...

Item 7 – Types of Clients

RIM provides direct investment advisory services to institutional investors such as, but not
limited to, mutual funds, private pooled investment vehicles, public and private pension plans,
insurance companies, foundations, endowments, sovereign wealth funds, and high net worth

Ranger Investment Management, L.P.                                                             10

individuals (which invest through Private Funds or the Ranger Small Cap and/or Micro Cap
Mutual Funds). In addition, RIM provides indirect investment advisory services to both
institutional and non-institutional investors, through shares and interests in registered and
unregistered pooled investment vehicles, with each of such vehicles deemed Clients of the
Firm.

Generally, the minimum investment thresholds to open an account are: (i) five million dollars
($5,000,000.00) for a Separate Account, (ii) one million dollars ($1,000,000.00) for a limited
partnership interest in a Private Fund, and (iii) between twenty-five thousand dollars
($25,000.00 Investor Class) and two hundred fifty thousand dollars ($250,000.00 Institutional
Class), for shares of the Ranger Small Cap Fund and the Ranger Micro Cap Fund, depending
on the class of shares (select broker dealers may offer a lower minimum investment).
However, the Firm, in its discretion, can waive these minimum investment thresholds.