Pettinga Financial Advisors LLC

Item 5 – Fees and Compensation

Investment Management Service Fees
Investment management service fees are typically in the form of a percentage of assets for which
Pettinga has responsibility. Currently, fees are calculated according to the following schedule:

 First   $1,000,000       1.00%
 Next    $2,000,000       0.80%
 Next    $2,000,000       0.60%
 Over    $5,000,000       0.40%

A client’s billing calculation is based on the account value as of the last day of the quarter as
determined by third-party sources. Cash and cash equivalents, as well as margin securities, are
included in the account value for billing purposes, unless we determine otherwise, in our sole
discretion. Accrued but unpaid interest and dividends are excluded from the account value for
billing purposes. For certain clients, account values of held-away accounts mentioned above in
Item 4 are included in the billing calculation. Also, at times, related client accounts will be grouped
together for the purpose of calculating the fee.

Although Pettinga has established the above fee schedule, the Firm retains discretion to negotiate
an alternative fee schedule on a client-by-client basis. In certain circumstances, the Firm will
elect to charge a flat fee. Specific facts and circumstances such as the complexity of assets to be
placed under management, anticipated future additional assets, related accounts, portfolio style,
and account composition, among other factors are considered. Also, investment management
service fees are waived for Pettinga employees and are often waived or discounted for certain
family members or friends of employees.

Each client’s specific fee schedule is identified in the written agreement between Pettinga and the
client. Regardless of the agreed-upon fee schedule, Clients are billed in arrears each calendar
quarter.

Clients can elect to be invoiced or can authorize the Firm to directly debit fees from their accounts.
We strongly recommend that all clients verify the accuracy of their fee calculation by reviewing
their custodian statement(s). Client relationships initiated or terminated during a calendar quarter
will be charged a prorated fee. Upon termination of a client relationship, all earned but unpaid
fees will be due and payable.

In addition to Pettinga’s fees, clients are responsible for fees and expenses associated with the
investment of their assets, such as brokerage commissions, transaction fees, and other expenses
and charges imposed by custodians and broker-dealers who service client accounts. Clients are
additionally responsible for the fees and expenses of mutual funds and exchange-traded funds,
as well as third-party separate account managers. Such fees, expenses, commissions, and
charges are exclusive of and in addition to Pettinga’s fee. Item 12 of this Firm Brochure contains
additional information regarding brokerage practices.

Financial Planning Service Fees
As discussed in Item 4 above, Pettinga offers basic financial planning services at no additional
cost to our investment management clients. More complex or intensive financial planning services
are offered for a separate fee. For those clients who are charged a separate financial planning
fee, the fee is fully disclosed in the client’s financial planning engagement letter and the client is
invoiced as agreed upon.

If Pettinga is engaged by the client to assist with the implementation of the financial planning
recommendations, additional fees based upon the scope of the project will be agreed upon by
Pettinga and the client.

ERISA Plan Service Fees
As a fiduciary to ERISA Plan Clients, Pettinga is subject to specific duties and obligations under
ERISA and the IRC that include, among other things, restrictions concerning certain forms of
compensation. To avoid engaging in prohibited transactions, Pettinga only charges fees for
investment advice about products for which Pettinga does not receive any commission, 12b-1
fees, or other compensation.

Investment management or investment advisory fees for Pettinga’s ERISA Plan Clients are
typically in the form of a percentage of plan assets. Currently, fees are calculated according to
the following schedule:

 First   $1,000,000       1.00%
 Next    $2,000,000       0.80%
 Next    $2,000,000       0.60%
 Over    $5,000,000       0.40%

An ERISA Plan Client’s billing calculation is based on the market value of the included plan assets
as of the last day of the quarter as determined by third-party sources. Included plan assets are
the plan assets for which Pettinga provides services as described in the investment management
or investment advisory agreement. Cash and cash equivalents as well as margined securities are
included in the value of plan assets for billing purposes, unless we determine otherwise, in our
sole discretion. Accrued but unpaid interest is excluded from the value of plan assets for billing
purposes.

Although Pettinga has established the above fee schedule, the Firm retains discretion to negotiate
an alternative fee schedule on a client-by-client basis. In certain circumstances, the Firm will
elect to charge a flat fee. Specific facts and circumstances such as the complexity of assets in the
plan, anticipated future additional assets, related accounts, portfolio style, and account
composition, among other factors are considered.

Each ERISA Plan Client’s specific fee schedule is identified in their investment management or
investment advisory agreement. Regardless of the agreed-upon fee schedule, ERISA Plan Clients
are billed in arrears each calendar quarter.

The ERISA plan is obligated to pay Pettinga’s fee. As part of the investment management or
investment advisory agreement between Pettinga and the ERISA Plan Client, the ERISA Plan
Client can authorize the plan custodian to automatically deduct the fee from the plan account(s)
or the plan sponsor of the ERISA Plan Client can choose to pay the fee. Regardless, we strongly
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Item 7 – Types of Clients

Pettinga provides services to individuals, trusts, estates, pension and profit-sharing plans,
charitable organizations and foundations, and businesses. The Firm does not have a formal
account minimum but retains discretion to decline to engage any client whose portfolio or goals
are not a fit for the Firm.