Semmax Financial Advisors Inc

Item 5 - Fees and Compensation
To the extent requested by a client, Semmax Financial may provide financial review or consulting
services on a stand-alone basis. Semmax Financial offers services based on a negotiated fixed fee or on an
hourly fee of up to $300, based on the complexity and unique client needs. The fees for financial review
services may be waived by the investment advisory representative in certain circumstances. As the
circumstances are specific to each financial review client relationship, the investment advisory
representative will make the determination as to whether or not fees will be charged after initial
consultations with the client.
Semmax Financial does not charge fees for educational seminars to attendees.
Fee Basis
Semmax Financial’s annual Advisory Fee for discretionary investment advisory services is negotiable and
may not exceed 1.50% of the total assets placed under Semmax Financial management/advisement. The
Advisory Fee will be based on a percentage of assets under management.

The Advisory Fee structure for Semmax Financial is as follows:

Assets under Management                          Annual Fee                           Quarterly Fee
Up to $2,000,000                                  1.50%                                 0.375%
$2,000,001 - $4,000,000                           1.25%                                 0.3125%
Over $4,000,000                                   1.00%                                 0.250%

Accounts within the same household may be combined for a reduced Advisory Fee. Typically, the more
assets a client has in an advisory account, the more the client will pay in fees, and we may therefore have
an incentive to encourage clients to increase the assets in their account We mitigate this conflict of
interest by ensuring that our recommendations are made in a client’s best interests.
The Advisory Fee does not include brokerage fees that may be assessed by the custodial broker dealer,
which will be paid by the client.
Clients may elect to have Semmax Financial’s Advisory Fee deducted from their custodial account. Both
the Semmax Financial Investment Advisory Agreement and the custodial/clearing agreement may
authorize the custodian to debit the account for the amount of the Semmax Financial Advisory Fee and to
remit said Advisory Fee in compliance with regulatory procedures. In the event that Semmax Financial
bills the client directly, billing will occur quarterly, and payment is due upon receipt of Semmax
Financial’s invoice.
As discussed below, unless the client directs otherwise or an individual client’s circumstances require,
Semmax Financial shall generally recommend that Fidelity Investments, LLC (“Fidelity”), Millennium
Trust Company, LLC (“Millennium Trust”), or Charles Schwab & Co., Inc. (“Charles Schwab”) serve
as the broker-dealer/custodian for client investment management services. Broker-dealers such as
Fidelity and Charles Schwab charge brokerage commissions and/or transaction fees for effecting
certain securities
transactions (i.e. transaction fees are charged for certain no-load mutual funds, commissions are charged
for individual equity and fixed income securities transactions).

In Advance
Semmax Financial’s annual Advisory Fee shall be prorated and deducted from client accounts quarterly in
advance.
Advisory Fees assessed in advance will be based upon the market value of the assets on the last business
day of the previous quarter. For the initial billing period, the Advisory Fee is pro-rated for the remainder
of the quarter.
Semmax Financial has the sole discretion to charge a lesser Advisory Fee based upon certain criteria (i.e.,
anticipated future earning capacity, anticipated future additional assets, dollar amount of assets to be
managed, related accounts, account composition, negotiations with clients, etc.).
The Investment Advisory Agreement between Semmax Financial and the client will continue in effect
until terminated by either party by written notice in accordance with the terms of the Investment Advisory
Agreement. Semmax Financial will be entitled to a pro rata portion of the Advisory Fee for the days
service was provided in the final quarter and will refund the pro-rated portion of Advisory Fees collected
in advance based upon the number of days remaining in the quarter. Clients will be given a thirty (30) day
written notice prior to any increase in Advisory Fees.
Neither Semmax Financial nor any of its investment adviser representatives receive compensation for the
sale of securities.
Some Semmax Financial representatives are also licensed insurance agents in their individual capacities
and receive commissions on insurance products, as discussed in Item 10. The recommendation by
Semmax Financial investment adviser representatives for a client to purchase an insurance product
presents a conflict of interest based upon the incentive of the representative to receive a commission on
the insurance product. Semmax Financial manages this conflict of interest by ensuring that the issuing
insurer reviews the potential sale of any products to determine adherence to insurance suitability
standards. Advisory clients are not required to purchase insurance products or services recommended by
the representative, nor are they required to purchase them through Semmax, Inc., an affiliate of Semmax
Financial.
Semmax Financial’s representatives are compensated via a base salary plus bonuses. Representatives
receive bonuses based on new assets brought to the firm or its insurance affiliate, Semmax, Inc. This
presents a conflict of interest in that our representatives have a financial incentive to encourage you to
place additional funds under our management or with our insurance affiliate. Semmax Financial and
Semmax, Inc. mitigate this conflict by ensuring that regardless of whether a Semmax representative
recommends an advisory or insurance product, the compensation received by the representative is based
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Item 7 - Types of Clients
Semmax Financial’s clients shall generally include individuals, business entities, trusts, estates, and
charitable organizations. Semmax Financial has a minimum account size of $50,000.00 for opening or
maintaining an account unless an exception is approved by appropriate officers of the Firm.