Essex LLC

Item 5: Fees and Compensation

Essex, LLC receives compensation for the investment portfolio services rendered based upon a
percentage of assets under management or based upon an hourly billing fee.
In certain situations, Essex, LLC provides consultations and services on an hourly fee basis. The
fee structure is as follows:
   •   Partner / Principal    $500-750
   •   Senior Consultant      $200-300
   •   Consultant             $150-200
   •   Account Supervisor     $100-125

The above fees are billed on a monthly basis. Typically, the bill is sent the month after the services
have been provided.
Clients participating in the portfolio management service are required to enter into an investment
advisory engagement. The investment advisory agreement takes effect the date assets are deposited
into the account and continues until terminated. The fees payable by the client, for services
rendered by Essex, LLC, pursuant to the agreement, shall be paid quarterly, in advance at an annual
rate of 1-1.75% based upon the value of the client’s account on the first day of the calendar quarter
and dividing the amount by four. For any time period that may be less than a full quarter, the fee
will be determined by daily proration. This fee is deemed reasonable under the Impartial Conduct
Standards previously mentioned.
Funds deposited or withdrawn during the quarter are billed, based upon “flow of funds” into or out
of your account, and the fee calculation upon that “flow of funds”, will be reflected in the next
quarter billing statement. The fee(s) will be prorated based upon the date of the transaction. A
withdrawal of funds during the quarter will result in a rebate. A deposit will result in a prorated
fee which will be debited from your account.
The fee is typically billed to and paid by the client’s custodian(s) from the assets of the client
portfolio. An arrangement can be made possible for a billing statement to be generated and the
management fee paid directly to Essex, LLC by the client. The usual fee for the investment
management services is one percent per annum. In certain circumstances, typically at the discretion
of the advisor, these fees may be adjusted due to the size and nature of the engagement.
The agreement may be terminated by the client, or the Advisor, by giving written notice to the
other party and specifying the date of termination. In the event that the agreement is terminated
during a calendar quarter, the fees billed to the account will be refunded on a prorated basis.
The client may absorb additional fees in the management of their investment account. These fees
will be generated by the custodian (trade commissions), on a per transaction basis, or a mutual
fund company with their investment management costs, in addition to the fee structure of Essex,
LLC. Please read the section on Brokerage Practices. As of 2019, Schwab no longer charges
commissions on certain types of security transactions.
The fees charged for the portfolio management service are negotiable in certain circumstances and
may be waived in whole or part, depending upon the nature and/or size of the engagement. The
fee may be reduced or waived for members, managers, officers or employees of Essex, LLC and
the members of their families.
Under no circumstance is an employee accepting additional compensation for the sale of securities
or other investment products which would include asset-based sales charges or service fees from
the sale of mutual funds.
The client has the option to utilize the services of other broker/dealers in the execution of securities
transactions for the composition of their portfolios. We recognize that the client may have other
investment relationships unrelated to or not affiliated with Essex, LLC. The client is not solely
bound to use Essex, LLC with regard to securities transactions.

Item 7: Types of Clients

Essex, LLC provides investment management services to a variety of clients. The majority of the
clients are individuals. Some of those clients also have trusts and estates for which we provide
advice. Additionally, the clients may own their business or corporations and as a result of that fact,
we may provide advice for the retirement plans for those self-employed clients. Essex, LLC will
also provide investment advice for individual employer-sponsored retirement plans such as a 401K
or a 403B plan. Essex, LLC also provides investment advice to pension and profit-sharing plans
and charitable organizations. Essex, LLC does not impose any account minimum requirements.