Newbore Wealth Management Inc

Item 5 Fees and Compensation

Investment Management Services
NWM charges annual asset-based fees calculated as a portion of the market value of the Client’s
assets under management, generally in accordance with the below fee schedule. However, these
fees may be negotiable for individual Clients based on various factors, such relationships with our
firm and our clients, complexity of the Client’s financial circumstances and needs, expected future
assets under management, the Client’s income level, and other factors.

                                          Fee Schedule

           Market Value of Account(s)                         Annual Advisory Fee
                 $0-$2,999,999                                      1.00%
             $3,000,000-$4,999,999                                  0.85%
              $5,000,000 and over                                   0.65%

Our asset-based fees are pro-rated for partial billing periods (based on the number of days the
account was open during the month) and will ordinarily be billed to you quarterly in advance. The
specific fee to be charged to your account each quarter is calculated based upon the market value
of your assets under our management as of the last day of the preceding quarter. For purposes of
determining the market value of your account, securities and other instruments traded on a market
for which actual transaction prices are publicly reported shall be valued at the last reported sale
price on the principal market in which they are traded (or, if there shall be no sales on such date,
then at the mean between the closing bid and asked prices on such date). Other readily marketable
securities and investments shall be priced using a pricing service or through quotations from one
or more dealers or investment custodians. Should a Client dispute any value, they may contact
NWM for further information.

Asset-based fees are typically deducted directly from your account held at the qualified custodian.
We will only directly deduct our fees from your account where you provide us and your qualified
account custodian with written authorization to do so. Your account custodian will deliver an
account statement to you at least quarterly, showing all disbursements from your account,
including the amount of any advisory fees paid directly to us from your account, if any. We urge you
to review the custodian’s account statements promptly and carefully upon receipt to verify the
accuracy of the fee calculation, as your account custodian will not verify whether our fee has been
properly calculated. The direct payment of fees from your custodial account may result in the
liquidation of certain securities if there is insufficient cash in the account. Lower fees for
comparable services may be available from other sources.

NWM has an account balance minimum for Investment Management Services of $50,000. We will
make exceptions to this minimum under certain circumstances. At our discretion, we may combine
the account values of family members living in the same household to determine the applicable
advisory fee. For example, we may combine account values for you and your minor children, joint
accounts with your spouse, and other types of related accounts. Combining account values may

                                NEWBORE WEALTH MANAGEMENT, INC.
                                   FORM ADV PART 2A – FIRM BROCHURE

increase the asset total, which may result in your paying a reduced advisory fee based on the
available breakpoints in our fee schedule stated above. If NWM agrees to combine household
accounts, we will notify you in writing by the end of the quarter. Additionally, multiple accounts
will be documented in the advisory agreement.

You may make additions or request withdrawals to the account at any time. Clients should note
that some or all of the investments in their account may be intended as long-term investments, and
withdrawals of cash and premature liquidations of securities positions may impair the achievement
of their investment objectives. If cash or securities are deposited in the account during the quarter,
a prorated asset-based fee based on the value of the assets may be charged upon deposit. No fee
adjustment will be made during any quarter for appreciation or depreciation in asset value during
that period. Additionally, unmanaged or excluded assets will not be billed or included in any fee
calculation.

Hourly Consulting & Financial Planning
For Clients on the hourly consulting fee structure, the Client shall pay NWM an hourly fee of $300
per hour for work on a specific consulting project. NWM’s minimum fee for these services is $600.
For hourly consulting projects only, we require that you pay 50% of the fee in advance and the
remaining portion upon the completion of the financial planning or consulting services rendered.
We will not require prepayment of a fee more than six months in advance and in excess of $1,200.
Such fees may generally be paid via check and are negotiable.

Existing Clients may be grandfathered into different planning or consulting fees and terms.

We will prepare an estimate for you before beginning any hourly work, and help assist you in
making an informed decision. The total costs depend on the complexity of the project, the scope of
work to be performed, and the differential expertise of the investment advisor representative
providing the services.

Additional Costs
Separate and in addition to any advisory fees paid to NWM, Clients will also pay customary
brokerage transaction costs (i.e., trade commissions, mark-ups, etc.), custodial charges, and other
costs directly to the custodian and/or broker-dealer utilized for account transactions. See Item 12
– Brokerage Practices. Clients will be required to pay, in addition to NWM’s fee, a proportionate
share of any ETF’s or mutual fund’s internal fees and charges as described in their separate
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Item 7 Types of Clients

NWM offers its services to individuals, high net worth individuals, trusts, and individual
participants of retirement plans. Because each Client is unique, they must be willing to be involved
in the planning and ongoing processes. Such involvement does not have to be time consuming,
however we want our Clients to remain informed and have a sense of security about their
investments. As noted above, NWM has an asset minimum of $50,000 to open an Investment
Management account. NWM will make exceptions to this minimum under certain circumstances.