Paragon Private Wealth Management LLC

Item 5 Fees and Compensation
Paragon Private Wealth Management offers services on a fee basis, which include fixed fees, as well
as fees based upon assets under management. Additionally, certain of the Firm’s Supervised
Persons, in their individual capacities, offer insurance products under a separate commission-based
arrangement.

Financial Planning and Consulting Fees

Paragon Private Wealth Management charges a fixed fee for providing financial planning and
consulting services under a stand-alone engagement. These fees typically range from $500 to
$5,000 depending upon the scope and complexity of the services and the professional rendering
the financial planning and/or the consulting services. Financial planning services may also be billed

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on a recurring basis, starting at $250/mo. This fee varies depending upon the complexity and scope
of the plan, your financial situation, and objectives. If the client engages the Firm for additional
investment advisory services, Paragon Private Wealth Management can offset all or a portion of its
fees for those services based upon the amount paid for the financial planning and/or consulting
services at our discretion.

The terms and conditions of the financial planning and/or consulting engagement are set forth in
the Advisory Agreement. Paragon Private Wealth Management requires one-half of the fee
(estimated hourly or fixed) payable upon execution of the Advisory Agreement. The outstanding
balance is due upon delivery of the financial plan or completion of the agreed-upon services. The
Firm does not, however, take receipt of $1,200 or more in prepaid fees, six or more months in
advance of services rendered.

You may terminate the financial planning agreement upon written notice to our firm. If you have
pre-paid financial planning fees that we have not yet earned, you will receive a prorated refund of
those fees. If financial planning fees are payable in arrears, you will be responsible for a prorated fee
based on services performed prior to termination of the financial planning agreement.

Investment Management and Wealth Management Fees

Paragon Private Wealth Management offers investment management services and wealth
management services for an annual fee based on the amount of assets under the Firm’s
management. This management fee varies between 50 and 150 basis points (0.50% - 1.50%),
depending upon the size and composition of a client’s portfolio, the type and amount of services
rendered and the individual(s) providing the services.

The annual fee is prorated and charged monthly, in advance, based upon the market value of the
average daily account balance during the previous month as determined by a party independent
from the Firm (including the client’s custodian or another third-party).

If assets are deposited into or withdrawn from an account after the inception of a billing period, the
fee payable with respect to such assets is adjusted to reflect the interim change in portfolio value.
For the initial period of an engagement, the fee is calculated on a pro rata basis. In the event the
advisory agreement is terminated, the fee for the final billing period is prorated through the
effective date of the termination and the outstanding or unearned portion of the fee is charged or
refunded to the client, as appropriate.

Additionally, for asset management services the Firm provides with respect to certain client
holdings (e.g., held-away assets, accommodation accounts, alternative investments, etc.), Paragon
Private Wealth Management can agree to a fee rate that differs from the range set forth above.
Clients are advised that a conflict of interest exists for the Firm to recommend that clients engage
Paragon Private Wealth Management for additional services for compensation, including rolling
over retirement accounts or moving other assets to the Firm’s management. Clients retain absolute
discretion over all decisions regarding engaging the Firm and are under no obligation to act upon
any of the recommendations.

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Fee Discretion

Paragon Private Wealth Management may, in its sole discretion, agree to charge a lesser fee based
upon certain criteria, such as anticipated future earning capacity, anticipated future additional
assets, dollar amount of assets to be managed, related accounts, account composition, pre-
existing/legacy client relationship, account retention, pro bono activities, or competitive purposes.

Additional Fees and Expenses

In addition to the advisory fees paid to Paragon Private Wealth Management, clients also incur
certain charges imposed by other third parties, such as broker-dealers, custodians, trust companies,
banks and other financial institutions (collectively “Financial Institutions”). These additional charges
include transaction fees, custodial fees, fees charged by the Independent Managers, margin and
other borrowing costs, charges imposed directly by a mutual fund or ETF in a client’s account, as
disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), deferred
sales charges, odd lot differentials, transfer taxes, and other fees and taxes on brokerage accounts
and securities transactions. Neither the Firm nor any of its Supervised Persons receive any share of
the additional fees and expenses referenced above. The Firm’s brokerage practices are described
at length in Item 12, below.

Direct Fee Debit

Clients provide Paragon Private Wealth Management and/or certain Independent Managers with
the authority to directly debit their accounts for payment of the investment advisory fees. The
Financial Institutions that act as the qualified custodian for client accounts, from which the Firm
retains the authority to directly deduct fees, have agreed to send statements to clients not less than
...

Item 7 Types of Clients
Paragon Private Wealth Management offers services to individuals, trusts, estates, corporations and
other business entities, and state or municipal government entities. In general, we do not require a
minimum dollar amount to open and maintain an advisory account; however, we have the right to
terminate your Account at our discretion.

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