Essex Financial Services Inc

Item 5 – Fees and Compensation
                                             Essex Financial Services, Inc.
                                          176 Westbrook Road, Essex, CT 06426
                                        Phone: (860) 767-4300 * Fax: (860) 767-4310

                                                https://www.essex.financial

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into one or more
written agreements with the Advisor.

Wealth Management Services
Investment management fees are paid quarterly, in advance of each three-month period (“Billing Period”) pursuant
to the terms of the investment advisory agreement. Investment advisory fees are based on the market value of
assets under management at the end of the prior Billing Period. Investment advisory fees range from 0.50% to
1.50% annually based on several factors, including: the scope and complexity of the services to be provided; the
level of assets to be managed; and the overall relationship with the Advisor. Relationships with multiple objectives,
specific reporting requirements, portfolio restrictions and other complexities may be charged a higher fee.

The investment management fee in the first Billing Period of service is prorated from the inception date of the
account[s] to the end of the first Billing Period. Fees may be negotiable at the sole discretion of the Advisor. The
Client’s fees will take into consideration the aggregate assets under management with the Advisor. All securities
held in accounts managed by Essex Financial will be independently valued by the Custodian. The Advisor will
conduct periodic reviews of the Custodian’s valuation to ensure accurate billing.

Investment management fees are calculated by the Advisor or its delegate and deducted from the Client’s
account[s] at the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to
be deducted from the Client’s account[s] at the beginning of the respective Billing Period. The amount due is
calculated by applying the quarterly rate (annual rate divided by the number of days in the year, multiplied by the
number of days in the quarter) to the total assets under management with Essex Financial at the end of the prior
Billing Period. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction
of the investment advisory fee. Clients are urged to review the brokerage statement from the Custodian, as the
Custodian does not perform a verification of fees. Clients provide written authorization permitting advisory fees to
be deducted by Essex Financial to be paid directly from their account[s] held by the Custodian as part of the
investment management agreement and separate account forms provided by the Custodian.

Third-Party Managed Account Programs – Fees charged for Third-Party Managed Account Programs shall be in
addition to Essex Financial’s investment management fee. Third-Party Managed Account Program fees range up to
2.00% based on the dollar amount of the individual account with a platform fee minimum of $65. The Investor Fee
charged is calculated as an annual percentage of assets based on the market value of the account at the end of
each quarter and is charged on a quarterly basis. The Investor Fee is prorated to the end of the billing cycle upon
inception of the account. For accounts utilizing the FMAX platform, the fees are outlined in the Statement of
Investment Selection that is provided to Clients prior to investing. Fees for all other Third-Party Managers are
outlined in a respective Schedule C of the Essex Financial Investment Management Agreement that is provided to
the Clients prior to investing. The combined fee with Essex Financial shall not exceed 2.00% in total. Clients will
receive a copy of the managers Form ADV Part 2A, which provides greater detail regarding the Third-Party
Managed Account Program. Upon termination of any Account in a Third-Party Managed Account Program, any
prepaid, unearned fees will be promptly refunded on a pro-rata basis, and any earned, unpaid fees will be due and
payable

Use of Independent Managers (Via Dual Contract) – As noted in Item 4, the Advisor will implement all or a portion
of a Client’s investment portfolio utilizing one or more Independent Managers. To eliminate any conflict of interest,
the Advisor does not earn any compensation from an Independent Manager. The Advisor will only earn its
investment advisory fee as described above. Independent Managers typically do not offer any fee discounts but
may have a breakpoint schedule which will reduce the fee with an increased level of assets placed under
management with an Independent Manager. The terms of such fee arrangements are included in the Independent
Manager’s disclosure brochure and applicable contract[s] with the Independent Manager. The total blended fee,
including the Advisor’s fee and the Independent Manager’s fee, will not exceed 2.00% annually.

                                             Essex Financial Services, Inc.
                                          176 Westbrook Road, Essex, CT 06426
                                        Phone: (860) 767-4300 * Fax: (860) 767-4310

                                                https://www.essex.financial

For Client accounts implemented through an Independent Manager, the Client’s overall fees will include Essex
Financial’s investment advisory fee (as noted above) plus investment management fees and/or platform fees
charged by the Independent Manager. The Independent Manager will assume the responsibility for calculating the
Client’s fees and deducting all fees from the Client’s account[s].

In the event that a Client should wish to terminate their relationship with the Independent Manager, the terms for
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Item 7 – Types of Clients

Essex Financial offers investment advisory services to a variety of clients including individuals, high net worth
individuals, corporations, corporate pension and profit-sharing plans, Taft-Hartley plans, trusts, estates, charitable
institutions, foundations, endowments and municipalities.

Essex Financial generally requires a minimum account size of $250,000 to effectively implement its investment
process. The account minimum may be waived at the sole discretion of the Advisor. Additionally, certain platforms
and/or independent managers may impose their own minimums which are outlined in their respective Form ADV
Part 2A – Disclosure Brochure documents.