Paradigm Wealth Advisory LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or
more agreements with the Advisor.

A. Fees for Advisory Services
Investment Management Services
Investment advisory fees are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the
investment advisory agreement[s]. Investment advisory fees are charged at an annual rate ranging from 0.25%
to 2.00% depending on several factors, including the level of assets to be managed, the complexity of the services
to be provided, the investment phase of the Client, and the overall relationship with the Advisor. Fees are based
on the market value of assets under management in each account at the end of the prior quarter. The fee charged
to each individual account will vary based on the level of assets in the respective account. Please note, cash and
cash equivalents will be included in the market value of the accounts upon which the advisory fee will be based.
Variable annuity sub-accounts managed by the Advisor are not charged an investment advisory fee. Please see
                                               Paradigm Wealth Advisory LLC
                                    1140 Highway 22 East, Suite 105, Bridgewater, NJ 08807
                                         Phone: (908) 450-7402 * Fax: (908) 450-7404
                                                      http://pwa.us.com

Items 5.E. and Item 10 below.

The investment advisory fee in the first quarter of service is prorated from the inception date of the Client’s
account[s] to the end of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The Advisor
does not aggregate Client accounts to achieve fee discounts across accounts. All securities held in accounts
managed by Paradigm will be independently valued by the Custodian. Paradigm will not have the authority or
responsibility to value portfolio securities.

Use of Independent Managers – As noted in Item 4, the Advisor will implement all or a portion of a Client’s
investment portfolio utilizing one or more Independent Managers. To eliminate any conflict of interest, the Advisor
does not earn any compensation from an Independent Manager. The Advisor will only earn its investment
advisory fee as described above. Independent Managers typically do not offer any fee discounts but may have a
break- point schedule which will reduce the fee with an increased level of assets placed under management with
an Independent Manager. The terms of such fee arrangements are included in the Independent Manager’s
disclosure brochure and applicable contract[s] with the Independent Manager.

Financial Planning Services
Paradigm offers stand-alone financial planning services on an hourly or fixed fee basis. Hourly fees are at a rate
of up to $350. Fixed fees are negotiated based on the expected number of hours to complete the engagement
at the Advisor’s hourly rate. Fees may be negotiable at the sole discretion of the Advisor, depending on the nature
and complexity of services to be provided. Fees may also be included in an overall investment management
relationship. An estimate for total hours and/or costs will be determined prior to establishing the advisory
relationship.

B. Fee Billing
Investment Management Services
Investment advisory fees are calculated by the Custodian and deducted from the Client’s account[s]. The Client
shall instruct the Custodian to automatically deduct the investment advisory fee from the Client’s account[s] for
each billing period and pay the investment advisory fee[s] to the Advisor. The amount due is calculated by
applying the quarterly rate (annual rate divided by 4) to the total assets under management with Paradigm at the
end of the prior quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting
deduction of the investment advisory fee. Clients provide written authorization permitting advisory fees to be
deducted by Paradigm to be paid directly from their accounts held by the Custodian as part of the investment
advisory agreement and separate account forms provided by the Custodian.

Use of Independent Managers – For Client accounts implemented through an Independent Manager, the Client’s
total fees will include Paradigm Wealth’s investment advisory fee (as noted above) plus investment management
fees and/or platform fees charged by the Independent Manager. The Client shall instruct the Custodian to
automatically deduct the investment advisory fee from the Client’s account[s] for each billing period and pay the
investment advisory fee[s] to the Advisor and the Independent Manager.

Financial Planning Services
Financial planning fees are invoiced up to fifty percent (50%) upon execution of the financial planning agreement
with the balance due upon completion of the engagement deliverables. The Advisor may invoice the Client for
financial planning fees or arrange for the deduction of planning fees from the Client’s account[s] at the Custodian.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than Paradigm, in connection with
investments made on behalf of the Client’s account[s]. Paradigm typically includes securities transactions costs as
part of its overall advisory fees. Then inclusion of these fees into a single, bundled fee is considered a “Wrap Fee
Program”. Please see Item 4.D. above as the as Appendix 1 – Wrap Fee Program Brochure for additional disclosure
regarding investments in the Wrap Fee Program and related disclosures.

                                                Paradigm Wealth Advisory LLC
                                     1140 Highway 22 East, Suite 105, Bridgewater, NJ 08807
                                          Phone: (908) 450-7402 * Fax: (908) 450-7404
...

Item 7 – Types of Clients
Paradigm offers investment advisory services to individuals, high net worth individuals, families, trusts, estates,
charitable organizations and pension and profit-sharing plans. The amount of each type of Client is available on the
Advisor's Form ADV Part 1A. These amounts may change over time and are updated at least annually by the
Advisor. Paradigm generally does not impose a minimum size for establishing a relationship. However, smaller
accounts may be subject to different investment selection and strategies.

                                               Paradigm Wealth Advisory LLC
                                    1140 Highway 22 East, Suite 105, Bridgewater, NJ 08807
                                         Phone: (908) 450-7402 * Fax: (908) 450-7404
                                                      http://pwa.us.com