Threadgill Financial LLC

Item 5 – Fees and Compensation

We provide Portfolio management services for a fee.

Fee Structure

1% Under $1 Million

0.80% 1-$10 Million

0.50% Next $10 Million

0.25% Next $20 Million

The fee listed above is the annual cost. Fees are billed quarterly in arrears and are calculated based
on account balances for the preceding quarter.

Threadgill                    ADV Part 2AB                                                                 Page 5 of 21
                                                                             © 2021– 2031 Red Oak Compliance Solutions LLC

1% Example:

Account balance at end of quarter X 0.25%

0.25%/Quarter x Four Quarters=1%/year 0.80%

Example:

Account balance at end of quarter X 0.20%

0.20%/Quarter x Four Quarters=0.80%/year

The fee shown above is an annual fee and may be negotiable based upon certain circumstances. No
increase in the annual fee shall be effective without prior written notification to you. We believe our
advisory fee is reasonable considering the fees charged by other investment advisers offering similar
services and/or programs.

In addition to the Adviser’s annual investment management fee, the Client may also incur additional costs.
Foreign stock trades are $6.95 for example. ETFs and Mutual Funds will have an expense ratio. You
acknowledge that trading costs may be assessed by the custodian Charles Schwab.

Third Party Fees
We generally invest in individual stocks and ETFs. There may be nominal costs associated with purchasing
or selling some individual stocks. ETFs have a separate cost called an expense ratio. Our fees do not
include brokerage commissions, transaction fees, and other related costs and expenses nor do they
include expense ratios associated with ETFs or mutual funds. You may incur certain charges imposed by
custodians, third party investment companies and other third parties. These include fees charged by
managers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. Our brokerage practices are
discussed in more detail under Item 12 – Brokerage Practices.

Other Compensation
For a handful of clients, we may recommend Fixed Deferred Annuities. We believe these may be
appropriate for more conservative clients who may not be accustomed to stock market risk. In the event
your portfolio includes an annuity/insurance product, Zachary Threadgill may receive additional
compensation from sales of such. They may be eligible to receive incentive awards (including prizes such
as trips or bonuses) for recommending certain types of insurance policies or other investment products
that he recommends.

While Zachary Threadgill endeavors at all times to put the interest of our clients first as part of our
fiduciary duty, the possibility of receiving incentive awards creates a conflict of interest and may affect
their judgment when making recommendations. We require that all Advisors disclose this conflict of
interest when such recommendations are made. Also, we require Advisors to disclose that Clients may
purchase recommended insurance products from other insurance agents not affiliated with us.

Threadgill                    ADV Part 2AB                                                               Page 6 of 21
                                                                           © 2021– 2031 Red Oak Compliance Solutions LLC

Item 6 – Performance Based Fee and Side by Side Management

Annual Performance Fee
We do not charge any performance-based fees. These are fees based on a share of capital gains on or
capital appreciation of the assets of a client.

Item 7 – Types of Client(s)

We provide portfolio management services to individuals and high net worth individuals. Our minimum
account opening balance is $500,000 which may be negotiable based upon certain circumstances.