Kelly Financial Services LLC

Item 5: Fees and Compensation
Except as described below, Kelly Financial Services bases its fees on a percentage of assets under management at the end
of a billing period. All fees are negotiable and are generally billed quarterly in arrears based on end of period account
balance. The fee schedule will be determined in accordance with the billing schedule of each client contract.

Fee Structure
KFS charges an investment advisory fee based on a percentage of the value of the client’s account as of the end of each
calendar quarter, not to exceed an annual rate of 1.5% (or .375% on a quarterly basis). There is a minimum annual fee of
$500 per year ($125 per quarter). All fees are negotiable and are generally billed quarterly in arrears based on end of
period account balance. KFS will generally maintain some cash and cash equivalent positions (such as money market funds)
for defensive and liquidity purposes. Unless otherwise agreed in writing, all cash and cash equivalent positions will be
included as part of assets under management for purposes of calculating KFS’ investment advisory fee.

The fee rates described above would also apply with client consent if Kelly Financial Services uses the services of a sub-
advisor. In such cases, KFS will charge its customary fee and will be responsible for compensating the sub-advisor for its
services.

In general, KFS does not require a minimum to provide advisory management services. Kelly Financial Services retains the
discretion to waive or reduce the minimum account deposit and annual fee. However sub-advisory management services
require a $1 million account size which may be negotiated.

Manner of Payment
Generally, the client authorizes KFS to deduct the investment advisory fee directly from the client’s account. Clients will
receive, at least quarterly, statements from the custodian which will reflect all the activity in the account, including the
deduction of the Advisor’s fee from KFS. In limited cases KFS will, in lieu of an automatic deduction from the account, send
the client an invoice for the investment advisory fee, which will be payable upon receipt. KFS does not send an account
statement or notification to clients when fees are withdrawn; however, on a quarterly basis, performance reports (net of
fees) can be generated upon request.

Clients will receive at least 30 days’ notice of any increase in fees.

Other Costs Involved
In addition to the above fees, client accounts will pay any fees and expenses charged by third parties in connection with
portfolio transactions and maintenance of a custodial account. Such fees may include, as applicable, TPA fees, brokerage
commission, transaction fees, custodial fees, transfer taxes, wire and electronic fund fees, and other fees and taxes related
to transactions and investments in the account. KFS does not receive any portion of these fees.

REV 031126                                                Page 6 of 18                                               KFS2004

                                                  ADV Part 2A (Brochure)                             CRD/Number: 291996
Mutual Fund and ETF Fees and Expenses
If client accounts are invested in mutual funds, closed-end funds, or exchange-traded funds (ETFs), clients will indirectly
bear the fees and expenses paid by the funds to their service providers. These fees will include management fees, custody
and administration fees and expenses, and in some cases a sales load or distribution fee. These fees and expenses are
described in each fund’s prospectus.

Brokerage and Custodial Fees
The clients’ accounts will also bear custodial fees and expenses associated with transactions in the account, such as
brokerage fees. Please see Item 12 of this Brochure for important disclosures regarding the Advisor’s brokerage practices.

KFS does not receive any compensation for the sale of securities to clients, nor do any of its investment advisor
representatives. Trading costs will reduce portfolio returns.

Fixed Annuity Commissions
KFS investment advisor representatives are also licensed insurance agents. When an investment advisor representative
recommends that a client purchase a fixed index annuity (or other insurance product), the client is informed that the
investment advisor representative will be paid a commission by the insurance company based on the value of the product
purchased, and that this arrangement creates a conflict of interest.

Fees in General
Under no circumstances will Kelly Financial Services collect fees in excess of $1,200 more than six months in advance of
services rendered.

Account Termination
Client agreements typically require either party to provide a 30-day notice of termination. The fee for the final fee period
will be pro-rated as appropriate.

Compensation for Sales of Investment Products
Except as disclosed above, the firm does not receive commissions for sales of investment products.

Financial Planning Services
Kelly Financial Services charges an hourly rate for Financial Planning. In addition, Kelly Financial Services may charge
additional flat fees based on specific types of Financial Plans. Kelly Financial services may also charge a monthly rate for
retainer services related to Financial Planning.