The Herbst Group LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one more
written agreements with the Advisor.

A. Fees for Advisory Services
Wealth Management Services
Wealth management fees are paid monthly in arrears, pursuant to the terms of the wealth management agreement.
Wealth management fees are based on the market value of assets under management at the end of the month.
Wealth management fees range from 0.20% to 2.00% annually based on several factors, including the scope and
complexity of the services to be provided, the level of assets to be managed, and the overall relationship with the
Advisor. Relationships with multiple objectives, specific reporting requirements, portfolio restrictions, and other
complexities may be charged a higher fee.

The wealth management fee in the first month of service is prorated from the inception date of the account[s] to the
end of the first month. Fees may be negotiable at the sole discretion of the Advisor. The Client’s fees will take into
consideration the aggregate assets under management with the Advisor. All securities held in accounts managed
by The Herbst Group will be independently valued by the Custodian. The Herbst Group will conduct periodic reviews
of the Custodian’s valuation to ensure accurate billing.

The Advisor’s fee is exclusive of and in addition to any applicable securities transaction and custody fees and other
related costs and expenses described in Item 5.C below, which may be incurred by the Client. However, the Advisor
shall not receive any portion of these commissions, fees, or costs.

Retirement Plan Advisory Services
Fees for retirement plan advisory services are charged an annual asset-based fee of up to 2.00% and are billed
monthly in arrears, pursuant to the terms of the retirement plan advisory agreement. Retirement plan fees are based
on the market value of assets under management at the end of the month. Fees may be negotiable depending on
the size and complexity of the Plan.

                                                 The Herbst Group, LLC
                                         4 Melon Patch Lane, Westport, CT 06880
 Page 6                                 Phone: (212) 488-1701 | Fax: (212) 488-1701
                                                   www.herbstgroup.com

B. Fee Billing
Wealth Management Services
Wealth management fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] following the respective month-end date. The amount due is calculated by applying the
monthly rate [(annual rate divided by the number of days in the year) multiplied by the number of days in the month]
to the total assets under management with The Herbst Group at the end of each month. Clients will be provided with
a statement, at least quarterly, from the Custodian reflecting the deduction of the wealth management fee. It is the
responsibility of the Client to verify the accuracy of these fees as listed on the Custodian’s brokerage statement, as
the Custodian does not assume this responsibility. Clients provide written authorization permitting wealth
management fees to be deducted by The Herbst Group directly from their account[s] held by the Custodian as part
of the wealth management agreement and separate account forms provided by the Custodian.

Retirement Plan Advisory Services
Retirement plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the Plan,
depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties in connection with investments made on behalf
of the Client’s account[s]. The Herbst Group includes Covered Costs as part of its overall investment advisory fee
through The Herbst Group Wrap Fee Program. Securities transaction fees for Client-directed trades may be
charged back to the Client. Please see Item 4.D. above as well as Appendix 1 – Wrap Fee Program Brochure.

In addition, all fees paid to The Herbst Group for investment advisory services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees
for the funds, other fund expenses, account administration (e.g., custody, brokerage, and account reporting), and
a possible distribution fee. A Client may be able to invest in these products directly without the services of The
Herbst Group but would not receive the services provided by The Herbst Group, which are designed, among other
things, to assist the Client in determining which products or services are most appropriate for each Client’s
financial situation and objectives. Accordingly, the Client should review both the fees charged by the fund[s] and
the fees charged by The Herbst Group to fully understand the total fees to be paid. Please refer to Item 12 –
Brokerage Practices for additional information.

D. Advance Payment of Fees and Termination
Wealth Management Services
The Herbst Group is compensated for its wealth management services after services are rendered each month.
Either party may terminate the wealth management agreement, at any time, by providing advance written notice to
the other party. The Client may also terminate the wealth management agreement within five (5) business days of
signing the Advisor’s agreement at no cost to the Client. After the five-day period, the Client will incur charges for
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Item 7 – Types of Clients

The Herbst Group offers investment advisory services to individuals, high-net-worth individuals, trusts, estates,
college athletes, charitable organizations, businesses, and retirement plans. The amount of each type of Client is
available on The Herbst Group’s Form ADV Part 1A. These amounts may change over time and are updated at
least annually by the Advisor. The Herbst Group generally does not impose a minimum relationship size.