New England Schooner Inc

Item 5 - Fees and Compensation

 Portfolio Management Services Fees
 For portfolio management services, NES charges an annual fee of up to 1.75% of assets under management
 payable quarterly, in advance, based upon the market value of the assets held in your account as of the last
 business day of the preceding calendar quarter. Fees are tiered or linear depending on the option selected in the
 Statement of Investment Selection in the account opening documents. Other fee payment arrangements can be
 negotiated on a case-by-case basis. All fee payment arrangements will be listed in the Statement of Investment
 Selection. Legacy clients may be subject to a different fee schedule and payment arrangement from the one listed
 here. Such fees and payment arrangements will be clearly listed in the Statement of Investment Selection signed
 by the client. We may modify the fee at any time upon 30 days’ advance written notice.

 Your account fees are negotiable and will be debited from your account by our custodian. If you terminate your
 account, the account fee will be credited back to you on a pro-rata basis for the unused portion of the quarter.

 If you choose to have NES’s fee deducted directly from your account, you must provide authorization. The
 qualified custodian holding your funds and securities will send you an account statement at least quarterly. This

New England Schooner, Inc.
Form ADV Part 2A

 statement will detail account activity. Please review each statement for accuracy. NES will also receive a copy of
 your account statements from the custodian.

 Our annual fee is exclusive of, and in addition to brokerage commissions, transaction fees, and other related costs
 and expenses, which will be incurred by the client. However, we will not receive any portion of the commissions,
 fees, and costs. Please see Item 12 – Brokerage Practices for further information on brokerage and transaction
 costs.

 At the inception of investment management services, the first quarter’s fees will be calculated on a pro-rata basis.
 The Advisory Agreement between NES and the client will continue in effect until either party terminates the
 Agreement in accordance with the terms of the Agreement.

 Financial Planning Services
 Financial planning services are available free of charge only to existing clients of the firm. Clients who are
 interested in receiving a financial plan should request a plan from the Associated Person assigned to their
 portfolio.

 Pension Consulting Services Fees
 The compensation arrangement for these services will be based on a percentage of plan assets. Fees are paid by
 the plan administrator on a quarterly basis, in advance. Pension Consulting Services will be negotiated on a case-
 by-case basis and the exact fee paid by the plan and the payment arrangements will be clearly stated in the
 pension consulting agreement signed by the client and the firm.

 Additional Information About Fees and Expenses
 Negotiability of Fees: We allow Associated Persons servicing the account to negotiate the exact investment
 management fees within the range disclosed in our Form ADV Part 2A Brochure. As a result, the Associated Person
 servicing your account may charge more or less for the same service than another Associated Person of our firm.
 Further, our annual investment management fee may be higher than that charged by other investment advisors
 offering similar services/programs.

 Billing on Cash Positions: The firm treats cash and cash equivalents as an asset class. Accordingly, unless otherwise
 agreed in writing, all cash and cash equivalent positions (e.g., money market funds, etc.) are included as part of
 assets under management for purposes of calculating the firm’s advisory fee. At any specific point in time,
 depending upon perceived or anticipated market conditions/events (there being no guarantee that such
 anticipated market conditions/events will occur), the firm may maintain cash and/or cash equivalent positions for
 defensive, liquidity, or other purposes. While assets are maintained in cash or cash equivalents, such amounts
 could miss market advances and, depending upon current yields, at any point in time, the firm’s advisory fee could
 exceed the interest paid by the client’s cash or cash equivalent positions.

 Periods of Portfolio Inactivity: The firm has a fiduciary duty to provide services consistent with the client’s best
 interest. As part of its investment advisory services, the firm will review client portfolios on an ongoing basis to
 determine if any changes are necessary based upon various factors, including but not limited to investment
 performance, fund manager tenure, style drift, account additions/withdrawals, the client’s financial
 circumstances, and changes in the client’s investment objectives. Based upon these and other factors, there may
 be extended periods of time when the firm determines that changes to a client’s portfolio are neither necessary
 nor prudent. Notwithstanding, unless otherwise agreed in writing, the firm’s annual investment advisory fee will
 continue to apply during these periods, and there can be no assurance that investment decisions made by the
 firm will be profitable or equal any specific performance level(s).

 Investment Company Fees: All fees paid to NES for investment advisory services are separate and distinct from
 the fees and expenses charged by mutual funds or exchange traded funds to their shareholders. These fees and

New England Schooner, Inc.
Form ADV Part 2A

 expenses are described in each fund's prospectus. These fees generally include management fees, other fund
 expenses, early redemption fees, and possible distribution fees. A client could invest in a mutual fund directly,
 without the services of NES. In that case, the client would not receive the services provided by NES, which are
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Item 7 - Types of Clients

 We generally offer investment advisory services to high-net-worth and non-high-net-worth individuals, pension
 and profit-sharing plans and their participants, trusts, estates, charitable organizations, corporations, and other
 business entities.

 NES requires a minimum of $250,000 to open and maintain an advisory account. In our sole discretion, we may
 waive this requirement. This requirement can be met by combining two or more accounts owned by you or
 related family members.