Taglich Brothers Inc

Item 5: Fees and Compensation

Investment Advisory Wrap Program Fees:

Clients enter into an investment advisory contract that provides that each client agrees to
pay Taglich IA a quarterly Asset Management Fee, billed and payable in advance, based
on the balance at the end of the billing period. There is no minimum annual fee for our
Investment Advisory Program. If the investment advisory contract is executed at any time
other than the first day of a calendar quarter, our fees will apply on a pro rata basis, which
means that the advisory fee is payable in proportion to the number of days in the quarter
for which you are a client.

The Asset Management Fees calculated by the custodian, Axos Clearing LLC, our clearing
firm, and are automatically deducted from the client's account on a quarterly basis. All fees
for our services are negotiated.

Our advisory fee is negotiable, depending on individual client circumstances.

The Asset Management Fee is 2% of all the client's assets we manage.

Taglich IA fees exclude the following from the Asset Management Fee Calculation:

       Cash
       Money Market Funds
       Restricted Securities
       Non-public Investments

Taglich IA, in its sole discretion, may waive its investment advisory fee based upon certain
criteria (e.g., historical relationship, type of assets, anticipated future earning capacity,
anticipated future additional assets, dollar amounts of assets to be managed, related
accounts, account composition, negotiations with Clients, etc.).

Clients should note that similar advisory services may or may not be available from other
registered or unregistered investment advisers for similar or lower fees. In addition, fee-
based accounts are typically more expensive over time versus commission-based accounts
due to a higher level of service and ongoing management delivered.

The more assets the advisory client deposits into the account, the more fee the Firm earns,
which may be identified as a conflict of interest.

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Part 2A: Investment Adviser Brochure                                               v. 03242026

Additional Client Fees and Expenses:

Custodians and Taglich IA may charge fees that are not included or covered by the Asset
Management Fees. These charges may include: (you pay these fees separately; we do not
participate in or earn any portion of these fees):

       Account Maintenance Fees
       Wire Transfer Fees
       Returned Check Fees
       Ticket Charges
       Margin Interest
       Transaction fees, and other related costs,
       Charges imposed by custodians,
       Charges imposed by brokers,
       Fees charged by other investment managers,
       Transfer fees
       Taxes,
       Electronic fund fees
       Other fees and taxes on brokerage accounts and securities transactions.

Mutual funds and exchange-traded funds also charge management fees, which are
disclosed in a fund’s prospectus.

There is a fee charged for participation in investment banking or private placement
transactions, which amount is clearly identified in the Private Placement Memorandum or
Prospectus for each specific transaction.

Termination of Advisory Relationship:

Clients may request to terminate their Investment Advisory Wrap Program Contract with
Taglich IA, in whole or in part, by providing advance written notice. Upon termination,
any fees paid in advance are prorated to the date of termination and any excess fees are
refunded to client. Client’s advisory agreement with the Advisor is non-transferable
without Client’s written approval.

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Part 2A: Investment Adviser Brochure                                              v. 03242026

Compensation for the Sale of Securities or Other Investment Products:

Our Firm is also registered as a securities broker-dealer (member of FINRA and SIPC) and
persons providing investment advisory services to you may also be registered
representatives in our Firm’s capacity as a broker-dealer. In order to address the conflict of
interest, Taglich BD does not accept brokerage commissions from investment advisory
clients. All client assets are held by Axos Clearing LLC as custodian.

Taglich Brothers, Inc. BD often serves as the placement agent for the private placement
financing of the companies the client invests through its Advisory Account. The BD
receives a placement agent fee in the amount of cash and warrants which is fully disclosed
in the offering documents for that financing transaction. The private placement fees the BD
earns may increase the overall compensation the Firm earns in addition to the Asset
Management Fee.

Item 7: Types of Clients

Taglich IA provides investment advisory services predominately to individuals, trusts,
estates, charitable organizations, and corporations or other business entities. IRA accounts;
including but not limited to, Traditional, Roth, SEP, and Inherited IRA’s; are not eligible
to open an advisory account.

In general, we do not require a minimum dollar amount to open and maintain an advisory
account; however, we have the right to close your advisory account if it falls below a
minimum size which, in our sole opinion, is too small to manage effectively. Further, the
Firm maintains the right to close your advisory account, based on management's review of
the account and circumstances.

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Part 2A: Investment Adviser Brochure                                               v. 03242026