Paradigm Strategies in Wealth Management LLC

Item 5 Fees and Compensation
Asset Management Services and Data Aggregation Services

A. Fees are negotiable and are not based on a share of capital gains upon or capital appreciation of the
funds or any portion of the funds.

You may make additions to the account or withdrawals from the account. Fees are adjusted for inflows
or outflows of cash and/or securities occurring in the account. No fee adjustments will be made for
account appreciation or depreciation.

       Account Size          Maximum Annual Fee
Up to $2,000,000                      1.75%
$2,000,001 to $3,000,000              1.40%
$3,000,001 to $5,000,000              1.25%
$5,000,001 to $10,000,000             1.00%
$10,000,001 and above                 0.65%

Paradigm aggregates or households all of your managed accounts together to determine your quarterly
fee. Paradigm may change the above fee schedule upon 30-days prior written notice to you.

The formula for computing the quarterly fee is: Annual fee * Quarterly Ending Value / 4 = Quarterly
Fee

EXAMPLE #1: 1.75% * $600,000 (December 31st quarter end value**) / 4 = $2,625 Quarterly Fee

Formula for Additional Deposits to the Account:

   [(Deposit Amount * Annual Fee %) / # days in year] * # days during Quarter that funds were not in
account = Qtrly Fee Credit.

   Example for December 1st Deposit: ($100,000 * 1.75% / 365) * 61 days = $292.47 Credit

   Quarterly Fee Due = $2,625 - $292.47 = $2,332.53

In the above example, Client's account is valued at $500,000. Client made $100,000 deposit on
December 1st. Fee calculation at quarter end (December 31st) is based on ending value of $600,000;
however, $100,000 was not managed for 61 days before the deposit. The quarterly fee is reduced to
compensate Client for those days where the funds did not receive Adviser's management services.

EXAMPLE #2: 1.75% * $400,000 (December 31st quarter end value**) / 4 = $1,750 Quarterly Fee

Formula for Withdrawals from the Account:

   [(Withdrawal Amount * Annual Fee %) / # days in year] * # days during Quarter that funds were in
account = Qtrly Fee Debit.

   Example for December 1st Withdrawal: ($100,000 * 1.75% / 365) * 61 days = $292.47 Additional
Fee Due

   Quarterly Fee Due = $1,750 + $292.47 = $2,042.47.

In the above example, Client's account is valued at $500,000. Client made $100,000 withdrawal on
December 1st. Fee calculation at quarter end (December 31st) is based on ending value of $400,000;
however, $100,000 was managed for 61 days before the withdrawal. The quarterly fee is increased to
compensate Adviser for additional days of management services.

B. Advisory fees will generally be collected directly from your Schwab account, provided you have
given Paradigm written authorization. Paradigm will provide you with a fee invoice that identifies the
advisory fee and the value of the account on which the fee was calculated. Additionally, you will be
provided with an account statement reflecting the deduction of the advisory fee direct from the account
custodian. If the Account does not contain sufficient funds to pay advisory fees, Paradigm has limited
authority to sell or redeem securities in sufficient amounts to pay advisory fees. You may reimburse the
account for advisory fees paid to Paradigm, except for ERISA and IRA accounts.

C. In addition to the advisory fees above, you will pay transaction fees for securities transactions
executed in your account in accordance with the custodian's transaction fee schedule. The account
custodian offers transactions in certain mutual funds with no transaction fees. However, the account
custodian will require a hold period typically ranging up to 90 days or a short term trading fee will be
charged to the client.

Additionally, you will pay fees for custodial services, account maintenance fees, and other fees
associated with maintaining the Account. Such fees are not charged by Paradigm and are charged by the
product, broker/dealer or account custodian. Paradigm does not share in any portion of such fees.
Additionally, you will pay your proportionate share of the fund's management and administrative fees
and sales charges as well as the mutual fund adviser's fee of any mutual fund they purchase. Such
advisory fees are not shared with Paradigm and are compensation to the fund-manager.

Registered investment company securities such as mutual funds offer the securities in various share
classes. Different share classes are priced differently and have varying levels of internal costs. Share
classes other than institutional share classes will involve higher internal costs that over time will cost
you more. Institutional share classes often have higher trading costs; however, the internal costs of the
fund are lower. Over a period of time, share classes other than institutional shares will become more

expensive if held in the account for a long period time, even if there are no transaction fees. A client
needs to consider the amount being invested and the length of anticipated holding to make a decision as
to the share class most suitable to the client. Paradigm will strive to select least expensive share class
funds available and appropriate to the situation taking into consideration trading or transactions costs
and internal expenses. However, in attempting to select the least expensive share class, trading costs are
sometimes higher. Selecting the lowest share class appropriate to the situation does not imply the lowest
cost share class based on internal costs, but means what Paradigm deems lowest cost for the situation.
Representatives consider the anticipated holding period, cost structure, and administrative and
transaction costs associated with selecting a share class. However, there is no way to predict the future
and there will be occasions where a holding is liquidated sooner or held longer resulting in higher costs
to the client. Additional information about share classes can be found in an Investor Alert issued by the
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Item 7 Types Of Clients
Paradigm's services are geared toward individuals and their families including high net worth
individuals and charitable organizations. We do not impose a minimum account size or require a
minimum annual fee for obtaining our services.