Newport Wealth Advisors Inc

Item 5-Fees and Compensation

     Investment Management
        Newport Wealth Advisors bases its fees on a percentage of assets under management.
        Although the Investment Management Agreement is an ongoing agreement and
        constant adjustments are required, the length of service to the client is at the client’s
        discretion. The client or the investment manager may terminate an Agreement by
        written notice to the other party. At termination, fees will be billed on a pro rata basis
        for the portion of the quarter completed. The portfolio value at the completion of the
        prior full billing quarter is used as the basis for the fee computation, adjusted for the
        number of days during the billing quarter prior to termination.

The annual fee for portfolio management services for accounts is billed quarterly in
advance based on the asset value on the last business day of the previous quarter or
billed quarterly in arrears based on the asset value on the last business day of the
quarter, respectively. Fees will be assessed pro rata in the event the portfolio
management agreement is executed at any time other than the first day of a calendar
quarter. Portfolio management fees may be negotiable depending on factors such as the
amount of assets under management, range of investments, and complexity of the
client’s financial circumstances, among others. The annualized negotiable fee for
discretionary and non-discretionary portfolio management services are based on the
following fee schedule:

                                          Moderatel                Moderately
                             Aggressiv                                           Conservativ
       Managed Assets                         y        Moderate    Conservativ
                                e                                                    e
                                          Aggressive                   e
          <250,000             1.50%        1.45%       1.40%        1.35%         1.30%
     250,000 - < 500,000       1.35%        1.30%       1.25%        1.20%         1.15%
     500,000 - < 1,000,000     1.20%        1.15%       1.10%        1.05%         1.00%
         1,000,000 - <
           2,500,000           1.05%        1.00%       1.00%        0.95%         0.90%
         2,500,000 - <
           5,000,000           0.85%        0.80%       0.75%        0.75%         0.70%
                                                       Negotiabl
        Over 5,000,000       Negotiable   Negotiable               Negotiable    Negotiable
                                                          e

One exception to the above schedule is when the client selects an account with a
performance fee. The annual advisory fee for the program ranges from 1.00% to 2.00%.

Variable Annuity Asset Allocation
Newport Wealth Advisors also provides Variable Annuity Asset Allocation services
for Variable Annuity contracts issued by numerous Insurance Companies. The
annualized negotiable fee for discretionary and non-discretionary Variable Annuity
Asset Allocation services are based on the following fee schedule:

VaR Allocation Series 1.25%
RWA Multi-Strategy Allocation 1.50%

Payment of the Firm’s management fees will be made by the qualified custodian
holding the client’s funds and securities provided the client supplies written
authorization permitting the fees to be paid directly from the account.

Financial Planning
Newport Wealth Advisors charges a fee for financial planning services due upon
agreement of engagement. Financial planning fees are based on the scope and
complexity of the plan, the client’s situation, and/or the client’s objectives. Financial

        Planning fees are fully refundable for the 90 days following the delivery of the financial
        plan to the client represented by the dated signature of the client. The Fee Schedule is
        as follows:

                                Newport Wealth Advisors Case Complexity Model

                                   • Combined income exceeding $250,000
                                   • One or more business owners
                                   • Investible assets exceeding $1,000,000
                                   • Rental or Commercial Real Estate owners
                                   • Need complex estate planning
                          (Net worth exceeds Federal and State Estate Tax Exemption)

               Simple Case                      Moderate Case                      Complex Case

           None of the above            Up to 2 of the above Complexity         3 or more of the above
          Complexity Criteria                        Criteria                    Complexity Criteria

         Fee range - $500 - $999          Fee range - $1,000 - $1,499        Fee Range - $1,500 - $5,000

Item 7-Types of Clients

     Description
        Newport Wealth Advisors generally provides investment advice to individuals, pension
        and profit sharing plans, trusts, estates, and corporations or business entities. Client
        relationships vary in scope and length of service.

     Account Minimums
        Generally, Newport Wealth Advisors requires an account minimum of $250,000 for
        asset management services. However, in its sole discretion, Newport Wealth Advisors
        may waive or lower this minimum.
        For the performance fee-based account option there is a minimum investment of
        $1,000,000 for this type of account. The Client must also have a net worth (excluding
        primary residence of least $2,000,000.