Paradigm Asset Management Company LLC

Item 5:        Fees and Compensation.

We receive fees for our services based on a percentage of the value of the assets in the client’s
account. These are referred to as “asset-based fees”. We also offer clients the ability to establish
performance-based fees, as more fully described under “Performance-Based Fees.” None of our
clients currently have performance-based fees.

Fee Schedule: Our current schedule of asset-based fees, including the minimum amount for
opening an account and minimum annual fee, is as follows.

Large Capitalization Products: Large Capitalization Value

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.50% annually on the first $25 million of assets
   0.45% annually on the next $25 million of assets
   0.35% annually on the next $50 million of assets
   0.20% annually on any portion of assets over $100 million

Dynamic Core All Capitalization Products: All Capitalization

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.65% annually on the first $25 million of assets
   0.45% annually on the next $25 million of assets
   0.35% annually on the next $50 million of assets
   0.20% annually on any portion of assets over $100 million

International Products: International Developed Markets Core

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.75% annually on the first $25 million of assets
   0.60% annually on the next $25 million of assets
   0.45% annually on the next $50 million of assets
   0.35% annually on any portion of assets over $100 million

International Products: World Developed Markets Value

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.75% annually on the first $25 million of assets
   0.60% annually on the next $25 million of assets
   0.45% annually on the next $50 million of assets
   0.35% annually on any portion of assets over $100 million

International Products: International Developed Markets Value

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.75% annually on the first $25 million of assets
   0.60% annually on the next $25 million of assets
   0.45% annually on the next $50 million of assets

   0.35% annually on any portion of assets over $100 million

International Products: International Developed Markets Value – ADR ONLY

Minimum amount for opening an account $10 million
Minimum Annual Fee $75,000

   0.75% annually on the first $25 million of assets
   0.60% annually on the next $25 million of assets
   0.45% annually on the next $50 million of assets
   0.35% annually on any portion of assets over $100 million

These fees and minimums may be negotiable in individual cases upon specific client request. Any
reduction of any fee or minimum is determined solely in our discretion. We reserve the right to
change our fee schedule at any time, to negotiate a performance-based fee, or to adjust our fee
and/or minimums with respect to any client as we deem appropriate in light of the overall facts
and circumstances. Asset-based fees are charged on a client’s total investment in all products
(assets are combined for fee calculation purposes). Paradigm’s advisory fees are exclusive of
brokerage commissions, transaction fees and other similar trading costs and expenses which shall
be incurred by the client. Please see “Item 12 – Brokerage Practices” for further discussion of our

Item 7:        Types of Clients.

We provide investment advisory services primarily to institutions such as trusts, estates, or other
charitable organizations, pension and profit-sharing plans, State or municipal government entities,
and corporations or business entities other than those previously listed.

This description of our clients is not exhaustive and we may at times provide advisory services to
other types of clients.