Scope of Services: Standard ASC 820 Valuations

Service

Carta Responsibilities

Client Responsibilities

Initial account onboarding including:

• Merging all existing fund accounts under the principal account;

• Creating new fund accounts not already existing on the platform;

• Request capitalization table access from any portfolio companies that use Carta for capitalization table management; and

• Add initial users to the Client’s account and determine which users should have Administrative access (the ability to provision access).

Provide the Carta Implementations Manager with a list of all funds to be created or merged under the principal fund account.

Provide the Carta Implementations Manager with a list of users to add to the account as well as which funds those users should have access to.

Create capitalization tables for any companies that do not use Carta for capitalization table management.

Provide an initial valuation software training, including a training of the capitalization table builder so the fund is able to onboard and maintain capitalization structures for companies that do not use Carta for capitalization table management.

Invite any internal users that would like to participate in the initial valuation software training.

Provide notifications of any new feature released and offer demos of these features.

Request training for any new features, if desired.

Annual check-in with a Valuation Manager to discuss any trends we have seen in the ASC 820 valuation market, provide a software re-training if necessary, and get feedback on their experience with the valuation platform in the prior year.

Invite any internal users that would like to participate in the valuation industry update, re-training on the platform, or provide feedback

Track and update list from Client of who can direct Carta on valuations.

Provide Carta with a list of individuals who can direct Carta on valuations, and inform Carta of any applicable changes.

Inform Client of any missing data required to complete valuations.

Provide Carta with the required Data Request Template, to the extent information is available, for each company to be valued (“Subject Company”). Completed Data Request Templates are sent to asc820@carta.com to initiate the valuation.¹

Inform Client of perceived audit risk associated with limited, available data, if applicable.

Upon Client’s request, provide advice on questions related to developing or refining a valuation policy.

Provide Carta with details on Client’s valuation policy to inform the assumptions that Carta will use in completing valuations.

Review Client’s valuation policy with Client’s auditor to ensure Client’s auditor is comfortable with the general framework prior to starting the valuation engagement with Carta.

Respond to Client’s questions related to valuation concepts or using the valuation tool.

Conduct valuations, including selecting valuation methodologies and allocation methods, as well as selecting market inputs (comparable public companies and guideline transactions, revenue and EBITDA multiples, volatility, time to exit, etc.).

Provide auditors with the background calculations related to market data sources.

Defend any methodological assumptions or selections used in the valuation. This includes any selected valuation methodologies, and allocation methods as well as selected market inputs (comparable public companies and guideline transactions, revenue and EBITDA multiples, volatility, time to exit, etc.).

Respond to Client’s auditor’s questions related to the software’s core calculations.

Defend any Subject Company data incorporated in the valuation analysis.

Respond to Client’s questions related to valuation concepts.