Lighthouse Financial Services Inc

Item 5: Fees and Compensation
LFS shall engage in both fee-only financial planning activities and investment supervisory
services. All new clients or prospective clients are entitled to 60 free minutes of consultation for
financial planning and asset management. Approximately two (2%) percent of LFS’s total advisory
billings shall be attributable to the provision of advice not involving securities within the context
of providing fee-only financial planning services. With respect to the asset management activity,
LFS shall not have any custody of client assets, other than for direct debiting of advisory fees if
authorized by Client or as discussed in Item 15 of this Brochure, but rather shall use an outside
custodian such as Charles Schwab a subsidiary of Charles Schwab & Co., Inc. Modification of fees
can be facilitated with the approval of the firm’s Chief Compliance Officer (CCO).

LFS charges a flat tiered fee schedule for all investment manage activities as follows:

         Assets Under Management                              Annual LFS Fee
                First $600,000                                     1.20%
                Next $400,000                                      0.90%
               Next $2,000,000                                     0.80%
               Next $3,000,000                                     0.70%
               Over $6,000,000                                     0.60%

The fee for the asset management activity for the Guidance Contract is as follows:

                Account Value                                 Monthly LFS Fee

               Under $200,000                                       $199

By default, all clients will have the fees deducted from their accounts. However, with the approval
of a principal, clients may be billed directly. Investment Advisory Agreement clients are billed on
a quarterly and intra-quarterly basis and Annual Financial Guidance Service clients are billed
monthly.

Because mutual funds could pay advisory fees to their investment advisers and such fees are
therefore indirectly charged to all holders of mutual fund shares, clients with mutual funds in
their portfolio could effectively be paying both the LFS and the mutual fund adviser for the
management of their assets. Clients who place mutual fund shares under LFS’s management are
therefore subject to both the LFS’s direct management fees and indirect management fee of the
mutual fund adviser. Clients could incur a trading fee charged by the custodian. These fees are
deducted by the custodian and LFS does not participate in any fee sharing arrangement.

Some mutual funds and exchange traded funds do not have transaction fees. The client will bear
the cost of all securities transactions, including mutual funds, purchased for the client as well as
taxes, interest (if any), brokerage fees, commissions, custodian charges (if any) and transfer fees
(if any).

For additional information, see Item 12 of this Brochure.

The asset management fee will be payable quarterly in advance. Some grandfathered clients are
billed quarterly in arrears and have different fee schedules. At the end of each 3-month period
(a “quarter”), the value of a Client’s account shall be determined by adding the value of the
securities, cash equivalents and any cash balance in the account as of the end of the previous

quarter. If the account has a negative cash balance, the fee will be charged on the total assets
under management, which will not include any cash debit (borrowing). Fees for funds added or
removed to/from client account(s) are prorated to the end of the current quarter. Fees are
subject to change upon thirty-day (30) notice to client.

LFS shall refund all unearned or unapplied fees in excess of minimum quarterly fees to client
when client provides LFS with a thirty day (30) written notice for termination. The refund is
determined by calculating the remaining days in the quarter and then prorating the amount of
the refund. No fee is ever based on capital gains or capital appreciation of assets. No fee is ever
payable more than six (6) months in advance. Lighthouse Financial Service, Inc. does not accept
compensation for the sale of securities or other investment products, including asset-based sales
charges or service fees from the sale of mutual funds.

See Item 7 of this Brochure for more information regarding fees.

Tax Preparation Fees
Fees for tax preparation services are charged based on the complexity of the client’s tax situation
and the number of filings performed. Fees will be assessed on a flat-fee basis that will typically
range between $200-$1,200. Should the client need additional services, additional fees may
apply and will be captured as part of the tax preparation agreement signed by the client prior to
the initiation of the engagement. The flat fee will be due upon final submission. Fees for this
service may be paid by electronic funds transfer.

Fees and Billing for Annual Financial Guidance Services
For performing Annual Financial Guidance Services, LFS assess an annual fee of $2,388.00, billed
monthly at the beginning of each month at a rate of $199.00 per month. LFS will send all of
client’s invoices to AdvicePay (a secure payment processing application) and AdvicePay will
provide client with invoices from LFS. Client agrees to make all payments through AdvicePay
under the terms of Client’s separate AdvicePay Account. Payments may be automatically
processed through AdvicePay via debit card, ACH, or credit card.

LFS utilizes AdvicePay, a third-party payment processing company, to serve all invoices to the
client. Client acknowledges that LFS will not maintain control, copies or custody of client’s credit
card or payment information at any point. To receive Annual Financial Guidance Services, clients
must agree to set up and register an account with AdvicePay (“AdvicePay Account”) so that client
can timely pay all LFS invoices through AdvicePay’s portal.

Item 7: Types of Clients
LFS’s client base is comprised of individuals, high net worth individuals, trusts, corporations or
other businesses and pension accounts.

We also serve the investment and planning needs of small and mid-size corporation. There is a
minimum fee charged of $600 per quarter for all new clients in the equity strategy, and $600 for
fixed income strategy clients. For all grandfathered clients there is a minimum $300.00 fee per
quarter. The minimum portfolio size is $200,000 for equity and $400,000 for fixed income. This
can be negotiated at the sole discretion of LFS.