Barnes Pettey Financial Advisors LLC

Item 5 - Fees and Compensation

Barnes Pettey charges fees based on a percentage of assets under management as well as fixed fees and
hourly fees, depending on the particular types of services to be provided. The specific fees charged by
Barnes Pettey for services provided will be set forth in each client’s agreement.

Financial Planning and Investment Management Services

Fees for Investment Management Services
Barnes Pettey charges an annual advisory fee that is agreed upon with each client and set forth in an
agreement executed by Barnes Pettey and the client. Barnes Pettey will bill clients quarterly, unless
otherwise agreed upon. The advisory fee for the initial quarter shall be paid, on a pro rata basis, in arrears,
based on the average daily balance of the assets in the client’s accounts for such initial quarter. For
subsequent months, the advisory fee shall be paid, in advance, based on the average daily balance of the
client’s accounts as of the last business day of the month as provided by third-party sources, such as
pricing services, custodians, fund administrators, and client-provided sources. For purposes of fee

Barnes Pettey Financial Advisors, LLC                                                    Disclosure Brochure

calculation, the asset value of client accounts includes cash and cash equivalents, as well as margined
securities and interest. Barnes Pettey does not reduce management fees for margin borrowing, regardless
of whether the assets are in cash or other securities, and bills on the absolute market value of the
margined assets. Barnes Pettey has a financial incentive to recommend that clients borrow money for the
purchase of additional securities for the client’s account managed by Barnes Pettey or otherwise not
liquidate some or all the assets Barnes Pettey manages, resulting in additional fees and interest charges.
Barnes Pettey addresses this conflict of interest by this disclosure and working to ensure that any
recommendation to a client regarding the use of margin is suitable for the client.

Following is Barnes Pettey’s asset-based fee schedule for Investment Management Services:

                                            FEE SCHEDULE
                          Market Value of Assets                       Rate
                 Up to $1,000,000                                     1.25%
                 Over $1,000,000 to $2,000,000                        1.10%
                 Over $2,000,000 to $5,000,000                        0.95%
                 Over $5,000,000 to $10,000,000                       0.80%
                 Over $10,000,000                                     0.65%
                 The percentage for the highest range of Managed Asset value
                 achieved applies to all Managed Assets, not just Managed Assets
                 within that range.

Barnes Pettey’s policy is to include all related client accounts, specifically the accounts of direct family
members sharing the same residence address and can include others that are “householded” for
purposes of determining a client’s market value of assets.

Fees for Financial Planning and Consulting Services
Clients that are receiving financial planning services are charged only a fixed fee ranging from $750 to
$3,000, depending upon the complexity of a client’s plan and services provided. In the alternative clients
that are receiving financial planning services may only be charged an hourly fee rate up to $200. For clients
receiving ongoing financial planning services the annual fee is charged quarterly. For financial planning
services that are completed upon the delivery of the financial plan to the client, the fixed or hourly fee
can be charged in monthly or quarterly installments, as mutually agreed upon, or otherwise in full upon
delivery of the completed financial plan. Actual fees charged are clearly outlined in the financial planning
agreement and clients receive invoices reflecting the amount of the fee due and payable.

Notwithstanding the foregoing, Barnes Pettey and the client may choose to negotiate an annual advisory
fee that varies from the schedules set forth above. Factors upon which a different annual advisory fee
may be based include, but are not limited to, the size and nature of the relationship, the services rendered,
the nature and complexity of the products and investments involved, time commitments, and travel
requirements. The advisory fee charged by the Firm will apply to all of the client’s assets under
management, unless specifically excluded in the client agreement. The advisory fee may include the

Barnes Pettey Financial Advisors, LLC                                                   Disclosure Brochure

financial planning services described above. Although Barnes Pettey believes that its fees are competitive,
clients should understand that lower fees for comparable services may be available from other sources
and firms.

The investment advisory agreement between Barnes Pettey and the client may be terminated at will by
either Barnes Pettey or the client upon written notice. Barnes Pettey does not impose termination fees
when the client terminates the investment advisory relationship, except when agreed upon in advance.

Payment of Fees

Barnes Pettey generally deducts its advisory fee from a client’s investment account(s) held at his/her
custodian. Upon engaging Barnes Pettey to manage such account(s), a client grants Barnes Pettey this
limited authority through a written instruction to the custodian of his/her account(s). The client is
responsible for verifying the accuracy of the calculation of the advisory fee; the custodian will not
determine whether the fee is accurate or properly calculated. A client may utilize the same procedure for
financial planning or consulting fees if the client has investment accounts held at a custodian.

Although clients generally are required to have their investment advisory fees deducted from their
...

Item 7 - Types of Clients

Barnes Pettey offers investment advisory services to individuals, including high net worth individuals,
families, trusts, estates, charitable organizations, corporations, and other business entities. Barnes Pettey
does not impose a minimum portfolio size or a minimum initial investment to open an account. However,
Barnes Pettey does reserve the right to accept or decline a potential client for any reason in its sole
discretion.