Paragon Financial Services

Item 5 Fees and Compensation
Portfolio Management Services
Our annual fee for portfolio management services is based upon the following fee schedule:

Assets                           Annualized Fee
$25,000 to $499,999              1.50%
$500,000 to $999,999             1.25%
$1,000,000 to $4,999,999         1.00%
$5,000,000 to $9,999,999         0.80%
Over $10,000,000                 Negotiable

Our fee are negotiable depending upon the market value of your assets under our management, the
type and complexity of the asset management services provided, as well as the level of administration
requested either directly or assumed by the client. Assets in each of your account(s) are included in
the fee assessment unless specifically identified in writing for exclusion. This is a non-tiered fee
schedule where you are billed one fee for the total assets under management based upon the above
fee schedule.

*Certain legacy clients may be assessed a lower fee.

Our annual portfolio management fee is billed and payable quarterly in advance based on the value of
your account on the last trading day of the previous quarter.

If the portfolio management agreement is executed at any time other than the first day of a calendar
quarter, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the quarter for which you are a client.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you, your
spouse, joint accounts with your spouse, your minor children, and other types of related accounts.
Combining account values may increase the asset total, which may result in your paying a reduced
advisory fee based on the available breakpoints in our fee schedule stated above.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.
    • The qualified custodian agrees to send you a statement, at least quarterly, indicating all

       amounts dispersed from your account including the amount of the advisory fee paid directly to
       our firm.

You may terminate the portfolio management agreement upon 30-days' written notice to our firm. You
will incur a pro rata charge for services rendered prior to the termination of the portfolio management
agreement, which means you will incur advisory fees only in proportion to the number of days in the
quarter for which you are a client. If you have pre-paid advisory fees that we have not yet earned, you
will receive a prorated refund of those fees.

We encourage you to reconcile the statement(s) you receive from the qualified custodian. If you find
any inconsistent information please call our main office number located on the cover page of this
brochure.

Financial Planning Services
We charge a non-negotiable hourly fee of $350for financial planning services. An estimate of the total
time/cost will be determined at the start of the advisory relationship. In limited circumstances, the
cost/time could potentially exceed the initial estimate. In such cases, we will notify you and request that
you approve the additional fee.

We require that you pay 50% of the fee in advance and the remaining portion upon the completion of
the services rendered. We will not require prepayment of a fee more than six months in advance and in
excess of $1200.

You may terminate the financial planning agreement by providing written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
paid advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

Clients retaining Paragon for estate planning coordination services will pay a flat fee to cover the cost
of Encore Estate Plans. Fees for this service range from $125 to $2000, depending on the type of plan,
complexity of the information required and the time required to develop the plan. The fees are payable
upon invoice. Depending on each client's financial profile and need, Paragon retains the right to waive
the fee payable to Paragon for the Encore Estate Plan. Please see Item 10 Financial Industry
Affiliations and 14 Client Referrals and Other Compensation for additional information.

Clients retaining Paragon for tax preparation and tax planning coordination services through our
affiliate Paragon Tax Strategy will pay a flat fee to Paragon Tax Strategy to cover the costs by the CPA
of United Cloud Partners Services to develop, prepare, file (if necessary), and deliver the tax
preparation or planning documents. Please see Item 10 Financial Industry Affiliations and Item 14
Client Referrals and Other Compensation for additional information.

Referral arrangements with our affiliate, Paragon Tax Strategy, presents a conflict of interest for us
because we may have a direct or indirect financial incentive to recommend an affiliated firm's services.
While we believe that compensation charged by Paragon Tax Strategy and United Cloud Partners
Services, which includes client service from Paragon Financial Services associated persons, is
competitive, such compensation may be higher than fees charged by other firms providing the same or
similar services. You are under no obligation to use the services of Paragon Tax Strategy or United
Cloud Partners Services, whether affiliated or otherwise, and may obtain comparable services and/or
lower fees through other firms.

Pension Consulting Services
The compensation arrangement for these services will be a non-negotiable hourly fee of $350 payable
...

Item 7 Types of Clients
We offer investment advisory services to individuals, high net worth individuals, pension and profit
sharing plans, trusts, estates, charitable organizations, corporations, and other business entities.

If you do not maintain at least $250,000 in your account, you would not be eligible for the Wrap Fee
Program and would incur transaction costs.

In general, we require a minimum of $25,000 to open and maintain an advisory account. At our
discretion, we may waive this minimum account size. For example, we may waive the minimum if you
appear to have significant potential for increasing your assets under our management. We may also
combine account values for you, your spouse, joint accounts with your spouse, your minor
children, and other types of related accounts to meet the stated minimums.