Newport Asia LLC

ITEM 5: FEES AND COMPENSATION
As investment adviser to the Newport Funds, we receive an annual advisory fee, paid quarterly in
advance, based on the assets of each investor’s Limited Partners’ Capital account balance at the
beginning of each calendar quarter. The fee schedule is outlined below:

    Fund Name                                    Annual Fee
    Growth & Income Fund                          1.50%
    Partners Fund                                 1.50%
    Advisors Fund                                 1.50%

Investors pay the annual fee in quarterly installments at the beginning of each quarter.

At its discretion, Newport Asia LLC reserves the right to apply a different management fee to different
investors.

If an investor contributes capital on a day other than the first day of a calendar quarter, the Newport Fund
will prorate the management fee for that contribution. For investors that withdraw capital on a date other
than the end of a calendar quarter, no refund of prepaid fees will be given. Fees are paid by transferring
the amount due from the investor account to the Newport Asia LLC account.

Other Costs Involved

The Newport Funds pays or reimburses Newport Asia for all costs and expenses incurred by or on behalf
of the Newport Asia Funds or for their benefit including, without limitation, all costs and expenses of
organizing the Newport Asia Funds and subsequently selling additional interests (including without
limitation legal and accounting fees); all costs and expenses associated with negotiating and entering into
contracts and arrangements in the ordinary course of the Newport Asia Funds’ business; legal, accounting
expert and consulting fees and expenses arising in connection with the Newport Asia Funds’ business;
interest on the Newport Asia Funds’ borrowings and other obligations and direct trading expenses such as
expenses relating to brokerage commissions, custodian fees, closing and settlement charges and margin
interest.

Additional information about brokerage costs and what services provided by brokers is provided in “Item

ITEM 7: TYPES OF CLIENTS
Our only clients are the Newport Funds, which are each organized as private funds exempt from
registration under the Investment Company Act of 1940 (“1940 Act”). The Newport Funds’ investors are
limited to individuals and entities that meet certain suitability criteria including “accredited investors” and
“qualified purchasers”. Investors in the Growth & Income Fund are required to have a minimum net
worth of $1.5 million. Investors in the balance of the Funds are required to have a net worth of $5 million.
Investors in the Newport Funds can include public pension plans, corporate pension plans, endowments
and foundations, and other institutional Investors and high net worth individuals.

In addition to the net worth requirements shown above, each of the Newport Funds has a minimum level
for initial and additional investments. Newport Asia, as the General Partner of each Newport Fund, may
waive the investment level at its sole discretion as long as such waiver does not affect the prospective
investor’s qualification to invest in a particular fund.

Currently, the Newport Funds have the following minimum initial investment levels:

    Fund Name                                     Minimum Investment
    Advisors Fund                                    $1,000,000
    Growth & Income Fund                             $1,000,000
    Partners Fund                                    $1,000,000