Lifeway Financial Corporation

Item 5 – Fees and Compensation

Financial Planning Fees

Fees for an initial Financial Plan are charged as a flat fee, based on an hourly rate of $300.00.
The fee to complete the required services is presented to the client prior to contract
execution, with the contract requiring 50% of the fee to be paid at the time of contract
execution. The remaining 50% is due and payable to us upon completion and final
presentation of the initial plan document, which under normal circumstances is within six
months. Either the client or we may terminate the agreement effective immediately upon
receipt of notice in writing. Unearned prepaid financial planning fees will be refunded by us
to the client within 30 days of termination. Clients may terminate the relationship within 5
days with no penalty or fees assessed.

After the initial financial plan is completed, a client may hire us on an ongoing basis for
further monitoring, revision and implementation of the financial plan. For this ongoing
financial planning service, an annual fee, based on an estimated hourly fee, is charged to
each financial planning client and is payable quarterly in advance at the rate of ¼ of the
annual fee. Any additional special projects are charged on an hourly basis to the client,
payable as accrued monthly in arrears. Either the client or we may terminate the agreement
effective immediately upon receipt of notice in writing.

Investment Management Fees

Clients pay us a fee for our investment management services based on a percentage of the
fair market value of all assets in the account on the last trading day of each calendar quarter
as priced by the custodian, except for private placements. The management fee is payable
quarterly in advance and is charged on cash and accrued interest. When opening a managed
Account, the fee will be billed in arrears based on the cumulative value of fees attributed to
individual assets held in the Account as determined by the market value of each asset on its
contribution date during first billable quarter, (defined as the first quarter-end the Account
has funds), and the number of days that said asset was managed during the first billable
quarter. Additional deposits in the second quarter will be charged in arrears based on the
number of days the new assets were in the account over the actual number of days in the
quarter. Thereafter, no deposits or withdrawals will be factored into our quarterly fee. In
any partial calendar quarter for an Account closing, the management fee will be prorated
based on the number of days that the Account was managed.

When we recommend a client participate in a private placement, we include a valuation for
each such private placement in our base calculation of the quarterly fee. This fee is in
addition to all internal fees within the private placement, such as paying the property or
investment manager. Such internal fees are fully disclosed to each limited partner before
subscribing to the private placement. Valuation of private placements for fee basis is based
on the actual amount invested, adjusted for distributions of capital from the partnership.

The Annual Investment Management fees generally charged by us are 1.00% or less of the
fair market value and are negotiable in certain circumstances. In the case of an agreed
upon tiered fee schedule, the rate will be a blended rate. For example: 0.80% of the fair
market value not exceeding $2.5 million; plus 0.60% of the fair market value exceeding
$2.5 million up to $5 million; plus 0.40% of the fair market value exceeding $5 million.

Either the client or we may terminate the agreement effective immediately upon receipt of
notice in writing. Unearned prepaid investment management fees will be refunded to the
client within 30 days of termination. Clients may terminate the relationship within 5 days
without penalty or fees assessed.

Accounts owned by members of the same household will be aggregated for billing
purposes. Once a child becomes sole legal owner of an account, they will be considered a
separate client and will be billed separately according to the fees outlined in the agreement.

Because we have a long history of serving our clients and pride ourselves on serving clients’
needs individually, different clients are on different fee schedules and some have different
structures. For example, some earlier clients are not on a “tiered” schedule, and pay the
same percentage on all assets, regardless of the size of their account. This means some
clients may be paying more (or less) than clients on other schedules or with other
structures. We do not differentiate our investment management service we provide to
clients based on each client’s fee schedule or structure.

With the client’s permission our fees (including financial planning fees) may be deducted
directly from the client account(s) we require the following. First, clients must provide
written authorization to its custodian directing the withdrawal of management fees from
the account upon receiving instructions to do so from us. Secondly, the client always
receives an informational invoice showing the base amount upon which the fee is
calculated, the calculation, and the dollar amount being deducted. Thirdly, the statement
from the custodian to the client lists the deduction of the management fee in the transaction
history for the period. Additionally, clients understand the custodian does not check the
accuracy of the fee calculation when fees are deducted. Clients are reminded to compare our
statements with those from their custodian. Slight differences may occur due to reporting
dates and receipt of accrued interest. If there are significant differences, clients should
notify us.

Consultation Fees

Fees for consultations are charged on an hourly basis at $300 per hour. The estimated fee
to complete the required services is presented to the client prior to contract execution.
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Item 7 – Types of Clients

We provide investment management services to individuals and high net worth individuals.