Farrell Financial LLC

Item 5 Fees and Compensation

Asset Management Fees
Pursuant to an investment advisory contract signed by each client, the client will pay Farrell
Financial a management fee of up to 1.0% per annum, payable monthly in advance, based on the
value of portfolio assets of the account managed by the Advisor as of the opening of business on
the first business day of each month. New account fees will be prorated from the inception of the
account to the end of the first month.

Fees will be calculated on a breakpoint schedule. These fees may be negotiated at the sole
discretion of the Advisor. Asset management fees will be directly deducted from the client account
on a monthly basis by the qualified custodian. The client will give written authorization permitting
the Advisor to be paid directly from their account held by the custodian. The custodian will send
a statement at least quarterly to the client.

All fees paid to Farrell Financial for investment advisory services are separate and distinct from
the expenses charged by mutual funds to their shareholders and the product sponsor in the case of
variable insurance products. These fees and expenses are described in each fund’s or variable
product’s prospectus. These fees will generally include a management fee and other fund

Farrell Financial                           Page 5

expenses. Client is responsible for all custodial and securities execution fees charged by the
custodian and executing broker-dealer. The Advisor’s fee is separate and distinct from the
custodian and execution fees.

At no time will Farrell Financial accept or maintain custody of a client’s funds or securities except
for authorized fee deduction.

Farrell Financial’s management fee is payable in advance. Upon termination, any fees paid in
advance will be prorated to the date of termination and any unearned fees will be refunded to client.

Where acting in the capacity of an insurance agent, investment advisor representatives of Farrell
Financial may as broker or agent effect insurance transactions for typical and customary
compensation. This practice may present a conflict of interest by creating an incentive to
recommend insurance products based on the compensation received, rather than on a client’s
needs. Clients are not obligated to use investment advisor representatives of Farrell Financial to
execute such insurance transactions. However, in such instances, there is no advisory fee
associated with these insurance products and clients will be made aware of all commissions
associated with the products prior to the transactions. A client may be able to invest in products
recommended by the firm directly, without the services of Farrell Financial. In that case, the client
would not receive the services provided by Farrell Financial which are designed, among other
things, to assist the client in determining which products or services are most appropriate to each
client’s financial condition and objectives.

As it is impossible to directly debit Farrell Financial's investment advisory fees from held-away
asset accounts, those fees will be assigned to the client’s taxable accounts on a pro-rata basis. If
the client does not have a taxable account, those fees will be billed directly to the client. Client
will be required to enter into a separate investment advisory agreement with the Advisor that will
clearly disclose the fees and billing and payment structure. This fee will be up to 1.0% and is
separate from the client’s taxable account fee. Farrell Financial’s fees are a separate and apart
from fees charged by the third-party platform, which range up to 0.30% annually and are based on
the value of the client’s held-away assets. Client will not be responsible for paying the third-party
platform fees. Farrell Financial will not increase its fees in order to recoup the cost it pays for
platform access to the client’s held-away assets.

Item 7 Types of Clients

The Advisor will offer its services to individuals, trusts, estates, or charitable organizations,
corporations, and other business entities.

The Advisor does not have any minimum requirements for opening or maintaining an account.

Farrell Financial                           Page 6