Trigran Investments Inc

Item 5 – Fees and Compensation

We are compensated for advisory services in the manner set forth in our written agreements with
our clients, as explained more fully below and in Item 6 of this Brochure.
Management Fees
Trigran charges each Partnership a management fee equal to 0.125% per month (1.5% annually) of
the net assets of each Partnership (the “Management Fee”), and is attributable to each Partner’s pro-
rata ownership percentage of the Partnership’s net assets. Trigran determines the net assets of each
Partnership at the beginning of each calendar month, and the Management Fee earned by Trigran in
a quarter is wired to Trigran by each Partnership in arrears. Fees payable on Partnership interests
held less than a full quarter are prorated for the number of days an interest was actually held in the
quarter.

Trigran is permitted to reduce or waive entirely its Management Fee with respect to any of its
Partners. To date, Trigran has not reduced or waived its Management Fee with respect to any
Partner and does not expect to do so in the future. All Partners, including Trigran’s Principals and
members of their families, pay the same Management Fee percentage.

Management fees from separately managed accounts are negotiated and calculated on a client by
client basis as memorialized in each managed account client’s agreement with Trigran. In the event
installments of the management fee for a managed account client become payable for any period
other than a full performance period, Trigran will adjust the management fee on a pro-rata basis
according to the actual number of days in the period. Trigran does not deduct management fees
from its clients’ separately managed accounts. Instead, Trigran sends an invoice to its managed
account clients who then pay the management fees by check or wire transfer in arrears.

Item 7 – Types of Clients

Trigran provides investment advisory services to the Partnerships and to the owners of a small
number of separately managed accounts.

Trigran I and Trigran II are private investment partnerships that are exempt from registration as
privately offered funds pursuant to Section 3(c)(1) and Section 3(c)(7), respectively, of the
Investment Company Act of 1940. Interests in the Partnerships are not made available to the general
public and are offered only by the delivery of the Offering Documents to prospective Partners who
meet the relevant investor eligibility requirements (i.e., certain suitability and net worth
qualifications). Please see the Offering Documents for more information on the investor eligibility
requirements for the Partnerships.

Partners and managed account clients typically consist of high net worth individuals, family offices,
profit sharing and retirement plans, trusts, endowments, estates, retirement accounts, corporations
and other business entities and institutions. In addition, employees of Trigran and their family
members are also Partners. All of Trigran’s clients are domiciled in the United States.

The minimum investment amount in the Partnerships is $500,000. Trigran is permitted to lower the
minimum investment amount and has in its discretion accepted lower amounts. The minimum
investment for a separately managed account is determined by Trigran based on a variety of factors,
including the client’s desire for account customization, reporting requirements and capacity.