Sterling Group Wealth Management LLC

Item 5 - Fees and Compensation

Written Financial Planning and Financial Consulting Services: The Sterling Group charges a flat fee
for Written Financial Planning that generally ranges from $2,500 to $10,000. A retainer of fifty percent of the
ultimate financial planning fee is typically collected with the signing of the Service Agreement. The remainder
of the fee is due within thirty days of the delivery of the completed written plan to the client. In all cases, we
will not require a retainer exceeding $1,200 when services cannot be rendered within 6 months.

The Sterling Group charges an hourly fee ranging from $150 to $750 per hour for Financial Consulting. A
retainer fee is not typically required for our consulting services. The total estimated fee, as well as the ultimate
fee that is charged, is based on the scope and complexity of the engagement with the client.

Asset Management: Fees are paid quarterly in advance and billed on a pro-rated annualized basis. Fees are
calculated as a percentage of the market value of all assets on the last trading day of the month of the previous
quarter, including cash holdings. The maximum annual advisory fee is 1.75% and is negotiable between The
Sterling Group and the client. The advisory fee is shared between The Sterling Group and its advisors. The
fee may be higher than the fee charged by other investment advisors for similar services.
Advisory fees may be structured on a tiered basis, where the percentage rate is reduced upon reaching certain
asset value levels within a household of eligible accounts, or on a flat percentage rate based on the value of
assets in an account. The fee structure and amount of the advisory fee will be stated within the written
management agreement between The Sterling Group and the client.

For tiered billing, eligible advisory accounts within the client’s household may be grouped together for
the purpose of assessing tiered fee levels above. Household is generally defined as accounts for the
same decision maker and eligible advisory accounts are typically defined as accounts paying an advisory
fee to The Sterling Group for asset management, including wrap fee accounts. Accounts excluded
from grouping within the household include 529 plan managed assets, assets managed by a third-party
investment advisor, and any account for which The Sterling Group is not engaged to provide
investment advice and therefore not receiving an advisory fee. Within the tiered fee billing structure,
applicable advisory fees will be deducted proportionately from each account contributing to the tiered
billing thresholds unless other arrangements have been agreed upon between The Sterling Group and
client.

              Annual Tiered Fee Rate                        Household Assets Under Management
              1.25%   on the amount from                    $0 to $499,999
              0.95%   on the amount from                    $500,000 to $999,999
              0.80%   on the amount from                    $1,000,000 to $2,499,999
              0.65%   on the amount from                    $2,500,000 to $4,999,999
              0.50%   on the amount from                    $5,000,000 to $9,999,999
              0.40%   on the amount over                    $10,000,000

In order to hire The Sterling Group to provide management services, clients will be asked to enter into a written
investment advisory agreement with The Sterling Group. This agreement will set forth the terms and conditions
of the relationship, including the amount of the investment advisory fee.
In the event that a client wishes to terminate services with The Sterling Group, we request a written statement
from the client stating the instructions to terminate our services. Upon receipt of the letter of termination, we
will suspend advisory services and process a pro-rata refund of unearned advisory fees.
Clients will incur transaction charges for trades executed in their accounts. These transaction charges are
separate from our fees and will be disclosed by the firm through which the trades are executed. These
transaction charges vary based on the type of investment (e.g., stock, mutual fund, exchange traded fund, etc.)
and are paid to the custodian of the client’s assets. The Sterling Group does not receive any portion of the
transaction charges.
There are other fees and charges that are imposed by third parties that apply to investments in client accounts.
Some of these fees and charges are described below:

•   If a client account invests in mutual funds or ETFs, please note that as a shareholder of the fund, a
    management fee will apply, in addition to paying us an advisory fee for managing the assets. As many of
    the funds available may be purchased directly, the second layer of fees could be avoided by not using The
    Sterling Group’s management services and by the client making their own fund investment decisions.
•   Certain mutual funds impose fees and charges such as contingent deferred sales charges, early redemption
    fees and charges for frequent trading. These charges will apply if a client transfers into or purchases such a
    fund in the account.
•   Although only no-load and load-waived mutual funds can be purchased in a client’s account, clients
    should understand that some mutual funds pay asset-based sales charges or service fees (e.g., 12b-1
    fees) to the custodian.
•   If a client holds a variable annuity as part of an account, there are mortality, expense, and
    administrative charges. The annuity Sponsor may also impose fees for additional contract riders,
    and charges for excessive transfers within a calendar year.
•   Certain retirement accounts – IRA and qualified retirement plan fees.
•   Unit investment trusts (“UIT”) – creation and development fees or similar fees imposed by UIT
    sponsors.
•   Alternative investments – Hedge fund and managed future investment management fees, managed
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Item 7 - Types of Clients and Account Requirements

The Sterling Group services Individuals, High-Net-Worth Individuals, Professional Fiduciaries, Trusts, and
Estates. In general, the minimum investment for new clients is $1,000,000 which may be waived at the discretion
of The Sterling Group.