Newport Group Securities Inc

ITEM 5: FEES AND COMPENSATION
A. Newport’s advisory services are offered and based upon either:
    1. Fixed fees; or
    2. Percentage of assets under advisement or management.

    1. Fixed Fees
           As appropriate, Newport provides investment advice on a fixed fee basis. Such fees are
           subject to negotiation under certain circumstances based on the nature and complexity of
           the work to be done. Accounts opened or closed during a period will have the consulting
           fee prorated for the period. The terms for termination of services are made part of
           Newport’s investment consulting agreement as negotiated on a client–by–client basis.

    2. A Percentage of Assets under Advisement or Management
           Newport's annual fee for investment consulting services, as further described below, is
           based on the value of the assets under Newport's advisement or management. Such fees
           are subject to negotiation under certain circumstances and at the sole discretion of
           Newport. An exact fee will be agreed upon with each client and will be made a part of the
           investment consulting agreement.

            Investment Consulting Services

            Assets     Included   Annual                  Cumulative
            in Service            Fee (%)                 %                    $

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            First $25 million      0.15                        0.15%                 $       37,500
            $25 to $50 million     0.10                        0.125%                $       62,500
            Over $50 million       0.05 (Negotiable)           0.125% or less        $       62,500+
            Based on the complexity of the service solution, fees may be higher than represented or have
            overriding minimums that would exceed the above referenced fee schedule
            Fee applies to billable assets only (i.e., excludes company stock, self–directed accounts, etc.)
            Fee is “blended” as assets increase
            Please note: typically plans over $50 million are quoted at a fixed annual fee.

B. Fee Invoices
    Consulting fees are assessed and invoiced in accordance with each client agreement.
    Typically, the fee is billed quarterly, in advance of service, based on the quarter–end value of
    the account or on a fixed-fee basis. Accounts opened or closed during a period will have the
    consulting fee prorated for the period. The terms for termination of services are part of
    Newport’s consulting agreement as negotiated on a client–by–client basis. Clients may also
    designate in writing that the fees may be automatically debited from the stated custodial
    account. In such instances, Newport will send the invoice to the client’s custodian and the
    custodian will debit the client account for the amount and forward it to Newport. Clients are
    advised to contact their custodians for monthly or quarterly statements which should include
    fee payments.
C. When acting as an RIA, Newport often recommends the use of asset managers, typically in
   the form of mutual funds or collective trusts. Newport does not receive “indirect” compensation
   from the funds in the form of commissions or other forms of fund–based compensation with
   respect to its consulting services for ERISA–covered plans. All fees are disclosed on the
   client’s quarterly invoice.
    Newport does not intend to receive any additional compensation from fund providers.
    When recommending a fund, Newport takes into consideration the overall fees and expenses
    with the intent to minimize plan expenses. This is evidenced in our investment manager
    evaluation and selection criteria as referenced in Item 4.B.

C. Newport’s service agreements typically terminate upon 30 days’ advance written notice from
   the plan’s named fiduciary. If the consulting contract terminates before the end of the current
   billing period, Newport will return unearned fees by check within 30 days after the contract’s
   termination date. The unearned fees are determined by dividing the remaining number of days
   in the billing period by the total number of days in the billing period.
D. Supervised persons do not accept nor are compensated for the sale of securities or other
   investment products.

ITEM 7: TYPES OF CLIENTS
Newport generally provides investment advice and the services described in this ADV to the
following types of clients:
   Defined contribution and defined benefit pension plans
   Trusts, estates, or charitable organizations
   Corporations or business entities other than those listed above
Newport may interact with plan sponsors, plan committee members, boards of directors, officers
responsible for investments or investment management, trustees and named or functional
fiduciaries (individuals who have discretionary authority).
Participant-level services are provided under written contracts between Newport and the plan’s
named fiduciaries in the form of education and general information as it relates to plan features
or services offered by the plan sponsor. Newport does not provide its services alongside other
advisers under circumstances where a Plan participant may select among the advisers to provide
participant-level advice.