Common use of Advisor fee Clause in Contracts

Advisor fee. The Advisor Fee is an annual fee for the investment advisory services of IAR that is set out in the Account Application. The Advisor Fee is a straight percentage based on the value of all assets in the account, including cash holdings. The Advisor Fee will not exceed 2.00%. The Advisor Fee is negotiable between the client and the IAR and is shared between LPL and the IAR. LPL shares up to 100% (typically between 90% and 100%) of the Advisor Fee with the IAR based on the agreement between LPL and the IAR. A portion of the Advisor Fee to the IAR may be paid by the IAR to his or her LPL branch manager or another LPL representative for supervision or administrative support. Strategist Fee. Depending upon the model selected for the account, clients will pay a fee for the model portfolio design services of a Portfolio Strategist. This fee presently ranges from 0% to 0.20%. A list of the current models and their associated fee rates are set out below. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays all or a portion of the Account Fee to the Portfolio Strategist. Portfolio Strategist Fee Rate LPL Financial Research 0.00% IAR 0.00% AB 0.15% AlphaSimplex Group 0.00% BlackRock 0.00% for all strategies except the Tactical ETF at 0.15% Cougar Global Investments 0.20% Innealta Capital 0.20% X.X. Xxxxxx Asset Management 0.00% Morningstar Investment Services 0.15% – 0.20% Xxxxxxx Investments 0.00% S&P Investment Advisory Services 0.16% LPL Program Fee. Clients will pay a fee for the investment advisory, administrative, trading and custodial services of LPL according to the schedule set out below, and depending on the investment model selected for the account. The schedule below indicates the Program Fee for models under Program Fee A and B. LPL determines whether a model is under Program A or B based on the strategic or tactical investment mandate of the model. Model Allocation Value Program Fee A Program Fee B $0 – $99,999 0.35% 0.45% $100,000 – $749,999 0.25% 0.35% $750,000 – $1,249,999 0.20% 0.30% $1,250,000 – $4,999,999 0.18% 0.28% $5,000,000 – $24,999,999 0.13% 0.23% $25,000,000 + 0.08% 0.18% Please note that if the Account includes more than one model, the applicable Strategist Fee and Program Fee rate applies to the assets invested in that model. LPL reserves the right to increase the upper limit of the Strategist Fee range and Program Fee range upon 30 days’ prior notice to clients. If the IAR changes the model selected for the Account, or if the model investment value changes, the aggregated Account Fee may increase or decrease, depending on the applicable Strategist Fee and the LPL Program Fee level. Legacy Fee Structure Accounts remaining under the legacy fee structure (those Accounts opened before January 1, 2016 that have not converted to the new fee structure described above) are charged an aggregate Account Fee, which was negotiated between the client and the IAR and set out in the Account Application. This aggregate Account Fee under the legacy fee structure is a straight percentage based on the value of all assets in the account, including cash holding. The maximum aggregate Account Fee is 2.50%. The Account Fee is paid to LPL, and LPL retains the LPL Program Fee pursuant to the schedule set forth above. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays a portion of the Account Fee to the Portfolio Strategist. LPL shares up to 100% (typically between 90% and 100%) of the remaining portion of the Account Fee with the IAR based on the agreement between LPL and the IAR. The portion of the Account Fee paid to the Portfolio Strategist is negotiated between LPL and the Portfolio Strategist and ranges from 0.00% to 0.20% as set forth in the schedule above. The fee rates charged by Portfolio Strategists vary based on the Portfolio selected. In providing ongoing advice and management for the Account, the IAR may recommend or select a Portfolio that would result in the IAR retaining more or less of the Account Fee than it would if another Portfolio were recommended or selected. How the Account Fee is Charged LPL deducts the Account Fee and other fees and charges associated with an MWP account from the account. LPL calculates and deducts the Account Fee in the method described in the Account Agreement, unless other arrangements are made in writing. If a client wishes to be billed for the Account Fee, rather than a deduction directly from the account, the client needs to make a request to LPL through the IAR. Payment in Advance and Refund of Pre-Paid Fees LPL deducts the Account Fee quarterly in advance. If the Account Agreement is terminated before the end of the quarterly period, LPL will pay the client a pro-rated refund of any pre-paid quarterly Account Fee based on the number of days remaining in the quarter after the termination date. However, if the account is closed within the first six months by the client or as a result of withdrawals that bring the account value below the required minimum, LPL reserves the right to retain the pre-paid quarterly Account Fee for the current quarter in order to cover the administrative costs of establishing the account (for example, the costs related to transferring positions in and out of the account, data entry in opening the account, reconciliation of positions in order to issue quarterly performance information, and re-registration of positions). After the termination date, LPL may convert the account to a brokerage account. In a brokerage account, client is charged a commission for each transaction and LPL and the IAR have no responsibility to provide ongoing investment advice.

Advisor fee. The Advisor Fee is an annual fee for the investment advisory services of IAR that is set out in the Account Application. The Advisor Fee is a straight percentage based on the value of all assets in the account, including cash holdings. The Advisor Fee will not exceed 2.00%. The Advisor Fee is negotiable between the client and the IAR and is shared between LPL and the IAR. LPL shares up to 100% (typically between 90% and 100%) of the Advisor Fee with the IAR based on the agreement between LPL and the IAR. A portion of the Advisor Fee to the IAR may be paid by the IAR to his or her LPL branch manager or another LPL representative for supervision or administrative support. Strategist Fee. Depending upon the model selected for the account, clients will pay a fee for the model portfolio design services of a Portfolio Strategist. This fee presently ranges from 0% to 0.20%. A list of the current models and their associated fee rates are set out below. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays all or a portion of the Account Fee to the Portfolio Strategist. Portfolio Strategist Fee Rate LPL Financial Research 0.00% IAR 0.00% AB 0.15% AlphaSimplex Group 0.00% BlackRock 0.00% for all strategies except the Tactical ETF at 0.15% Cougar Global Investments 0.20% Innealta Capital 0.20% X.X. Xxxxxx Asset Management 0.00% Morningstar Investment Services 0.15% – 0.20% Xxxxxxx Investments 0.00% S&P Investment Advisory Services 0.16% LPL Program Fee. Clients will pay a fee for the investment advisory, administrative, trading and custodial services of LPL according to the schedule set out below, and depending on the investment model selected for the account. The schedule below indicates the Program Fee for models under Program Fee A and B. LPL determines whether a model is under Program A or B based on the strategic or tactical investment mandate of the model. Model Allocation Value Program Fee A Program Fee B $0 – $99,999 0.35% 0.45% $100,000 – $749,999 0.25% 0.35% $750,000 – $1,249,999 0.20% 0.30% $1,250,000 – $4,999,999 0.18% 0.28% $5,000,000 – $24,999,999 0.13% 0.23% $25,000,000 + 0.08% 0.18% Please note that if the Account includes more than one model, the applicable Strategist Fee and Program Fee rate applies to the assets invested in that model. LPL reserves the right to increase the upper limit of the Strategist Fee range and Program Fee range upon 30 days’ prior notice to clients. If the IAR changes the model selected for the Account, or if the model investment value changes, the aggregated Account Fee may increase or decrease, depending on the applicable Strategist Fee and the LPL Program Fee level. Legacy Fee Structure Accounts remaining under the legacy fee structure (those Accounts opened before January 1, 2016 that have not converted to the new fee structure described above) are charged an aggregate Account Fee, which was negotiated between the client and the IAR and set out in the Account Application. This aggregate Account Fee under the legacy fee structure is a straight percentage based on the value of all assets in the account, including cash holding. The maximum aggregate Account Fee is 2.50%. The Account Fee is paid to LPL, and LPL retains the LPL Program Fee pursuant to the schedule set forth above. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays a portion of the Account Fee to the Portfolio Strategist. LPL shares up to 100% (typically between 90% and 100%) of the remaining portion of the Account Fee with the IAR based on the agreement between LPL and the IAR. The portion of the Account Fee paid to the Portfolio Strategist is negotiated between LPL and the Portfolio Strategist and ranges from 0.00% to 0.20% as set forth in the schedule above. The fee rates charged by Portfolio Strategists vary based on the Portfolio selected. In providing ongoing advice and management for the Account, the IAR may recommend or select a Portfolio that would result in the IAR retaining more or less of the Account Fee than it would if another Portfolio were recommended or selected. How the Account Fee is Charged LPL deducts the Account Fee and other fees and charges associated with an MWP account from the account. LPL calculates and deducts the Account Fee in the method described in the Account Agreement, unless other arrangements are made in writing. If a client wishes to be billed for the Account Fee, rather than a deduction directly from the account, the client needs to make a request to LPL through the IAR. Payment in Advance and Refund of Pre-Paid Fees LPL deducts the Account Fee quarterly in advance. If the Account Agreement is terminated before the end of the quarterly period, LPL will pay the client a pro-rated refund of any pre-paid quarterly Account Fee based on the number of days remaining in the quarter after the termination date. However, if the account is closed within the first six months by the client or as a result of withdrawals that bring the account value below the required minimum, LPL reserves the right to retain the pre-paid quarterly Account Fee for the current quarter in order to cover the administrative costs of establishing the account (for example, the costs related to transferring positions in and out of the account, data entry in opening the account, reconciliation of positions in order to issue quarterly performance information, and re-registration of positions). After the termination date, LPL may convert the account to a brokerage account. In a brokerage account, client is charged a commission for each transaction and LPL and the IAR have no responsibility to provide ongoing investment advice. Other Types of Fees and Expenses of LPL In addition to the Account Fee, clients also pay LPL other additional miscellaneous administrative or custodial-related fees and charges that apply to an MWP account. LPL notifies clients of these charges at account opening and makes available a current list of these charges on its website at xxx.xxx.xxx. These fees include retirement account fees and termination fees, including, for example, a fee for loans processed for qualified retirement plan and 403(b)(7) plan accounts and an account termination fee for processing a full account transfer to another financial institution. These miscellaneous fees are not directly based on the costs of the transaction or service by LPL, may include a profit to LPL, and certain of the fees may be lowered or waived for certain clients. Fees Charged by Third Parties There are other fees and charges that are imposed by third parties other than LPL that apply to investments in MWP accounts. Some of these fees and charges are described below. In MWP, assets are invested in mutual funds or ETFs and, therefore, there are two layers of advisory fees and expenses for those assets. Client will pay an advisory fee to the fund manager and other expenses as a shareholder of the fund. In the case of mutual funds that are fund of funds, there could be an additional layer of fees, including performance fees that vary depending on the performance of the fund. Client will also pay LPL and IAR the Account Fee with respect to those assets. The mutual funds and ETFs available in the program can be purchased directly. Therefore, clients could generally avoid an additional layer of fees by not using the advisory services of LPL and IAR and by making their own decisions regarding the investment. Clients should understand that the share class offered for a particular mutual fund through the Program in many cases will not be the least expensive share class that the mutual fund makes available. Other financial services firm may offer the same mutual fund at a lower overall cost to the investor than is available through the Program. If client transfers into an MWP account a previously purchased mutual fund, and there is an applicable contingent deferred sales charge on the fund, client will pay that charge when the mutual fund is sold. If the account is invested in a mutual fund that charges a fee if a redemption is made within a specific time period after the investment, client will be charged a redemption fee. If a mutual fund has a frequent trading policy, the policy can limit a client’s transactions in shares of the fund (e.g., for rebalancing, liquidations, deposits or tax harvesting). Decisions regarding the sale of mutual funds in an account may be made by LPL without regard to whether a client will be assessed a redemption fee. Clients can find more information regarding the fees and expenses of a mutual fund or ETF in the fund’s prospectus, which is available upon request from the IAR or directly from the fund. When transferring securities into an MWP account, client should be aware that certain securities are not be eligible for the account. In such case, the securities may be rejected, sold after the transfer, or moved to a brokerage account. Note that when an ineligible security is transferred into an account and subsequently sold or moved to a brokerage account, the advisory fee will be charged on such asset for the period of time the security was held in the account. Client should be aware that securities transferred into an account may have been subject to a commission or sales load when the security was originally purchased. After transfer into an MWP account, client should understand that an advisory fee will be charged based on the total assets in the account, including the transferred security. When transferring securities into an account, client should consider and speak to IAR about whether: • a commission was previously paid on the security; • client wishes for the security to be managed as part of the account and be subject to an advisory fee; or • client wishes to hold the security in a brokerage account that is not managed and not subject to an advisory fee. For those Portfolios consisting of mutual funds, LPL selects only no-load and load-waived mutual funds. In some cases, a mutual fund in MWP will charge shareholders an asset based sales charge or service fee (e.g., 12b-1 fee) that is paid to LPL. For retirement accounts, 12b-1 fees paid to LPL by mutual funds are credited to the account. A retirement account for purposes of this Brochure is an account held by plan subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) or an account otherwise subject to Section 4975 of the Internal Revenue Code (e.g., an individual retirement account or XXX). The receipt of 12b-1 fees presents a conflict of interest because it gives an incentive to LPL or an affiliated Portfolio Strategist to recommend mutual funds for non-retirement accounts based on the compensation received rather than on a client’s needs. LPL does not share 12b-1 fees with IARs in the MWP program. Portfolio Strategists (other than LPL) do not share in this compensation. Clients also incur charges imposed by third parties or LPL in connection with investments made through their accounts, including, but not limited to, taxes and charges required by law or imposed by exchanges or regulatory bodies. For example, an industry- wide charge mandated by a regulator applies to sales of certain securities. The amount of this regulatory fee may vary over time, and because variations might not be immediately known to LPL, the amount may be estimated and assessed in advance. To the extent that such estimated amount differs from the actual amount of the regulatory fee, LPL retains the excess. These charges will be reflected on transaction confirmations and/or monthly statements. Important Things to Consider About Fees on a MWP Account • The Account Fee is a wrap fee for investment advisory services, the execution of transactions and other administrative and custodial services. Clients do not pay a commission or transaction charge to LPL for the execution of transactions in the account. The Account Fee may cost the client more than purchasing the program services separately, for example, paying an advisory fee plus commissions or transaction charges to a broker-dealer for each transaction in the account. Factors that bear upon the cost of the account in relation to the cost of the same services purchased separately include the: • type and size of the account • type of securities in the Portfolio (whether mutual funds or ETFs) • historical and or expected size or number of trades for the account, and • number and range of supplementary advisory and client-related services provided to the client. • The Account Fee may be higher than the fees charged by other investment advisors for similar services. This is the case in particular if the Advisor Fee component of the Account Fee is at or near the maximum fee set out above. The IAR is responsible for determining the Advisor Fee to charge each client based on factors such as total amount of assets involved in the relationship, the number, complexity and mix of the Portfolios, and the number and range of supplementary advisory and client-related services to be provided to the account. Clients should consider the level and complexity of the advisory services to be provided when negotiating the Advisor Fee with IAR. With regard to accounts under the legacy aggregate Account Fee structure, although the IAR cannot increase the overall Account Fee, because the portion of the Account Fee retained by the IAR varies depending on the Portfolio Strategist fee associated with a Portfolio, the IAR has a financial incentive to select one Portfolio instead of another Portfolio. • The investment products available to be purchased in the program can be purchased by clients outside of an MWP account, through broker-dealers or other investment firms not affiliated with LPL. • Clients should consider the impact of fees and expenses on their investment portfolio, as described in the informational brochure titled “How Fees and Expenses Affect Your Portfolio” on the XXX.xxx Investor Regulatory Resources page.

Advisor fee. The Advisor Fee is an annual fee for the investment advisory services of IAR that is set out in the Account Application. The Advisor Fee is a straight percentage based on the value of all assets in the account, including cash holdings. The Advisor Fee will not exceed 2.00%. The Advisor Fee is negotiable between the client and the IAR and is shared between LPL and the IAR. LPL shares up to 100% (typically between 90% and 100%) of the Advisor Fee with the IAR based on the agreement between LPL and the IAR. A portion of the Advisor Fee to the IAR may be paid by the IAR to his or her LPL branch manager or another LPL representative for supervision or administrative support. Strategist Fee. Depending upon the model selected for the account, clients will pay a fee for the model portfolio design services of a Portfolio Strategist. This fee presently ranges from 0% to 0.20%. A list of the current models and their associated fee rates are set out below. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays all or a portion of the Account Fee to the Portfolio Strategist. Portfolio Strategist Fee Rate LPL Financial Research 0.00% IAR 0.00% AB 0.15% AlphaSimplex Group 0.00% BlackRock 0.00% for all strategies except the Tactical ETF at 0.15% Cougar Global Investments 0.20% Innealta Capital 0.20% X.X. Xxxxxx Asset Management 0.00% Morningstar Investment Services 0.15% – 0.20% Xxxxxxx Investments 0.00% S&P Investment Advisory Services 0.16% LPL Program Fee. Clients will pay a fee for the investment advisory, administrative, trading and custodial services of LPL according to the schedule set out below, and depending on the investment model selected for the account. The schedule below indicates the Program Fee for models under Program Fee A and B. LPL determines whether a model is under Program A or B based on the strategic or tactical investment mandate of the model. Model Allocation Value Program Fee A Program Fee B $0 – $99,999 0.35% 0.45% $100,000 – $749,999 0.25% 0.35% $750,000 – $1,249,999 0.20% 0.30% $1,250,000 – $4,999,999 0.18% 0.28% $5,000,000 – $24,999,999 0.13% 0.23% $25,000,000 + 0.08% 0.18% Please note that if the Account includes more than one model, the applicable Strategist Fee and Program Fee rate applies to the assets invested in that model. LPL reserves the right to increase the upper limit of the Strategist Fee range and Program Fee range upon 30 days’ prior notice to clients. If the IAR changes the model selected for the Account, or if the model investment value changes, the aggregated Account Fee may increase or decrease, depending on the applicable Strategist Fee and the LPL Program Fee level. Legacy Fee Structure Accounts remaining under the legacy fee structure (those Accounts opened before January 1, 2016 that have not converted to the new fee structure described above) are charged an aggregate Account Fee, which was negotiated between the client and the IAR and set out in the Account Application. This aggregate Account Fee under the legacy fee structure is a straight percentage based on the value of all assets in the account, including cash holding. The maximum aggregate Account Fee is 2.50%. The Account Fee is paid to LPL, and LPL retains the LPL Program Fee pursuant to the schedule set forth above. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays a portion of the Account Fee to the Portfolio Strategist. LPL shares up to 100% (typically between 90% and 100%) of the remaining portion of the Account Fee with the IAR based on the agreement between LPL and the IAR. The portion of the Account Fee paid to the Portfolio Strategist is negotiated between LPL and the Portfolio Strategist and ranges from 0.00% to 0.20% as set forth in the schedule above. The fee rates charged by Portfolio Strategists vary based on the Portfolio selected. In providing ongoing advice and management for the Account, the IAR may recommend or select a Portfolio that would result in the IAR retaining more or less of the Account Fee than it would if another Portfolio were recommended or selected. How the Account Fee is Charged LPL deducts the Account Fee and other fees and charges associated with an MWP account from the account. LPL calculates and deducts the Account Fee in the method described in the Account Agreement, unless other arrangements are made in writing. If a client wishes to be billed for the Account Fee, rather than a deduction directly from the account, the client needs to make a request to LPL through the IAR. Payment in Advance and Refund of Pre-Paid Fees LPL deducts the Account Fee quarterly in advance. If the Account Agreement is terminated before the end of the quarterly period, LPL will pay the client a pro-rated refund of any pre-paid quarterly Account Fee based on the number of days remaining in the quarter after the termination date. However, if the account is closed within the first six months by the client or as a result of withdrawals that bring the account value below the required minimum, LPL reserves the right to retain the pre-paid quarterly Account Fee for the current quarter in order to cover the administrative costs of establishing the account (for example, the costs related to transferring positions in and out of the account, data entry in opening the account, reconciliation of positions in order to issue quarterly performance information, and re-registration of positions). After the termination date, LPL may convert the account to a brokerage account. In a brokerage account, client is charged a commission for each transaction and LPL and the IAR have no responsibility to provide ongoing investment advice. Other Types of Fees and Expenses of LPL In addition to the Account Fee, clients also pay LPL other additional miscellaneous administrative or custodial-related fees and charges that apply to an MWP account. LPL notifies clients of these charges at account opening and makes available a current list of these charges on its website at xxx.xxx.xxx. These fees include retirement account fees and termination fees, including, for example, a fee for loans processed for qualified retirement plan and 403(b)(7) plan accounts and an account termination fee for processing a full account transfer to another financial institution. These miscellaneous fees are not directly based on the costs of the transaction or service by LPL, may include a profit to LPL, and certain of the fees may be lowered or waived for certain clients. Fees Charged by Third Parties There are other fees and charges that are imposed by third parties other than LPL that apply to investments in MWP accounts. Some of these fees and charges are described below. In MWP, assets are invested in mutual funds or ETFs and, therefore, there are two layers of advisory fees and expenses for those assets. Client will pay an advisory fee to the fund manager and other expenses as a shareholder of the fund. In the case of mutual funds that are fund of funds, there could be an additional layer of fees, including performance fees that vary depending on the performance of the fund. Client will also pay LPL and IAR the Account Fee with respect to those assets. The mutual funds and ETFs available in the program can be purchased directly. Therefore, clients could generally avoid an additional layer of fees by not using the advisory services of LPL and IAR and by making their own decisions regarding the investment. Clients should understand that the share class offered for a particular mutual fund through the Program in many cases will not be the least expensive share class that the mutual fund makes available. Other financial services firm may offer the same mutual fund at a lower overall cost to the investor than is available through the Program. If client transfers into an MWP account a previously purchased mutual fund, and there is an applicable contingent deferred sales charge on the fund, client will pay that charge when the mutual fund is sold. If the account is invested in a mutual fund that charges a fee if a redemption is made within a specific time period after the investment, client will be charged a redemption fee. If a mutual fund has a frequent trading policy, the policy can limit a client’s transactions in shares of the fund (e.g., for rebalancing, liquidations, deposits or tax harvesting). Decisions regarding the sale of mutual funds in an account may be made by LPL without regard to whether a client will be assessed a redemption fee. Clients can find more information regarding the fees and expenses of a mutual fund or ETF in the fund’s prospectus, which is available upon request from the IAR or directly from the fund. When transferring securities into an MWP account, client should be aware that certain securities are not be eligible for the account. In such case, the securities may be rejected, sold after the transfer, or moved to a brokerage account. Note that when an ineligible security is transferred into an account and subsequently sold or moved to a brokerage account, the advisory fee will be charged on such asset for the period of time the security was held in the account. Client should be aware that securities transferred into an account may have been subject to a commission or sales load when the security was originally purchased. After transfer into an MWP account, client should understand that an advisory fee will be charged based on the total assets in the account, including the transferred security. When transferring securities into an account, client should consider and speak to IAR about whether: • a commission was previously paid on the security; • client wishes for the security to be managed as part of the account and be subject to an advisory fee; or • client wishes to hold the security in a brokerage account that is not managed and not subject to an advisory fee. For those Portfolios consisting of mutual funds, LPL selects only no-load and load-waived mutual funds. In some cases, a mutual fund in MWP will charge shareholders an asset based sales charge or service fee (e.g., 12b-1 fee) that is paid to LPL. For retirement accounts, 12b-1 fees paid to LPL by mutual funds are credited to the account. A retirement account for purposes of this Brochure is an account held by plan subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) or an account otherwise subject to Section 4975 of the Internal Revenue Code (e.g., an individual retirement account or XXX). The receipt of 12b-1 fees presents a potential conflict of interest because it gives an incentive to LPL or an affiliated Portfolio Strategist to recommend mutual funds for non-retirement accounts based on the compensation received rather than on a client’s needs. LPL does not share 12b-1 fees with IARs in the MWP program. Portfolio Strategists (other than LPL) do not share in this compensation. Clients also incur charges imposed by third parties or LPL in connection with investments made through their accounts, including, but not limited to, taxes and charges required by law or imposed by exchanges or regulatory bodies. For example, an industry- wide charge mandated by a regulator applies to sales of certain securities. The amount of this regulatory fee may vary over time, and because variations might not be immediately known to LPL, the amount may be estimated and assessed in advance. To the extent that such estimated amount differs from the actual amount of the regulatory fee, LPL retains the excess. These charges will be reflected on transaction confirmations and/or monthly statements. Important Things to Consider About Fees on a MWP Account • The Account Fee is a wrap fee for investment advisory services, the execution of transactions and other administrative and custodial services. Clients do not pay a commission or transaction charge to LPL for the execution of transactions in the account. The Account Fee may cost the client more than purchasing the program services separately, for example, paying an advisory fee plus commissions or transaction charges to a broker-dealer for each transaction in the account. Factors that bear upon the cost of the account in relation to the cost of the same services purchased separately include the: • type and size of the account • type of securities in the Portfolio (whether mutual funds or ETFs) • historical and or expected size or number of trades for the account, and • number and range of supplementary advisory and client-related services provided to the client. • The Account Fee may be higher than the fees charged by other investment advisors for similar services. This is the case in particular if the Advisor Fee component of the Account Fee is at or near the maximum fee set out above. The IAR is responsible for determining the Advisor Fee to charge each client based on factors such as total amount of assets involved in the relationship, the number, complexity and mix of the Portfolios, and the number and range of supplementary advisory and client-related services to be provided to the account. Clients should consider the level and complexity of the advisory services to be provided when negotiating the Advisor Fee with IAR. With regard to accounts under the legacy aggregate Account Fee structure, although the IAR cannot increase the overall Account Fee, because the portion of the Account Fee retained by the IAR varies depending on the Portfolio Strategist fee associated with a Portfolio, the IAR has a financial incentive to select one Portfolio instead of another Portfolio. • The investment products available to be purchased in the program can be purchased by clients outside of an MWP account, through broker-dealers or other investment firms not affiliated with LPL. • Clients should consider the impact of fees and expenses on their investment portfolio, as described in the informational brochure titled “How Fees and Expenses Affect Your Portfolio” on the XXX.xxx Investor Regulatory Resources page.

Advisor fee. The Advisor Fee is an annual fee for the investment advisory services of IAR that is set out in the Account Application. The Advisor Fee is a straight percentage based on the value of all assets in the account, including cash holdings. The Advisor Fee will not exceed 2.00%. The Advisor Fee is negotiable between the client and the IAR and is shared between LPL and the IAR. LPL shares up to 100% (typically between 90% and 100%) of the Advisor Fee with the IAR based on the agreement between LPL and the IAR. A portion of the Advisor Fee to the IAR may be paid by the IAR to his or her LPL branch manager or another LPL representative for supervision or administrative support. Strategist Fee. Depending upon the model selected for the account, clients will pay a fee for the model portfolio design services of a Portfolio Strategist. This fee presently ranges from 0% to 0.20%. A list of the current models and their associated fee rates are set out below. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays all or a portion of the Account Fee to the Portfolio Strategist. Portfolio Strategist Fee Rate LPL Financial Research 0.00% IAR 0.00% AB 0.15% AlphaSimplex Group 0.00% BlackRock 0.00% for all strategies except the Tactical ETF at 0.15% Cougar Global Investments 0.20% Innealta Capital 0.20% X.X. Xxxxxx Asset Management 0.00% Morningstar Investment Services 0.15% – 0.20% Xxxxxxx Investments 0.00% S&P Investment Advisory Services 0.16Quantitative Advantage 0.20% LPL Program Fee. Clients will pay a fee for the investment advisory, administrative, trading and custodial services of LPL according to the schedule set out below, and depending on the investment model selected for the account. The schedule below indicates the Program Fee for models under Program Fee A and B. LPL determines whether a model is under Program A or B based on the strategic or tactical investment mandate of the model. Model Allocation Value Program Fee A Program Fee B $0 – $99,999 0.35% 0.45% $100,000 – $749,999 0.25% 0.35% $750,000 – $1,249,999 0.20% 0.30% $1,250,000 – $4,999,999 0.18% 0.28% $5,000,000 – $24,999,999 0.13% 0.23% $25,000,000 + 0.08% 0.18% Please note that if the Account includes more than one model, the applicable Strategist Fee and Program Fee rate applies to the assets invested in that model. LPL reserves the right to increase the upper limit of the Strategist Fee range and Program Fee range upon 30 days’ prior notice to clients. If the IAR changes the model selected for the Account, or if the model investment value changes, the aggregated Account Fee may increase or decrease, depending on the applicable Strategist Fee and the LPL Program Fee level. Legacy Fee Structure Accounts remaining under the legacy fee structure (those Accounts opened before January 1, 2016 that have not converted to the new fee structure described above) are charged an aggregate Account Fee, which was negotiated between the client and the IAR and set out in the Account Application. This aggregate Account Fee under the legacy fee structure is a straight percentage based on the value of all assets in the account, including cash holding. The maximum aggregate Account Fee is 2.50%. The Account Fee is paid to LPL, and LPL retains the LPL Program Fee pursuant to the schedule set forth above. For Portfolios designed by Portfolio Strategists other than LPL and IAR, LPL pays a portion of the Account Fee to the Portfolio Strategist. LPL shares up to 100% (typically between 90% and 100%) of the remaining portion of the Account Fee with the IAR based on the agreement between LPL and the IAR. The portion of the Account Fee paid to the Portfolio Strategist is negotiated between LPL and the Portfolio Strategist and ranges from 0.00% to 0.20% as set forth in the schedule above. The fee rates charged by Portfolio Strategists vary based on the Portfolio selected. In providing ongoing advice and management for the Account, the IAR may recommend or select a Portfolio that would result in the IAR retaining more or less of the Account Fee than it would if another Portfolio were recommended or selected. How the Account Fee is Charged LPL deducts the Account Fee and other fees and charges associated with an MWP account from the account. LPL calculates and deducts the Account Fee in the method described in the Account Agreement, unless other arrangements are made in writing. If a client wishes to be billed for the Account Fee, rather than a deduction directly from the account, the client needs to make a request to LPL through the IAR. Payment in Advance and Refund of Pre-Paid Fees LPL deducts the Account Fee quarterly in advance. If the Account Agreement is terminated before the end of the quarterly period, LPL will pay the client a pro-rated refund of any pre-paid quarterly Account Fee based on the number of days remaining in the quarter after the termination date. However, if the account is closed within the first six months by the client or as a result of withdrawals that bring the account value below the required minimum, LPL reserves the right to retain the pre-paid quarterly Account Fee for the current quarter in order to cover the administrative costs of establishing the account (for example, the costs related to transferring positions in and out of the account, data entry in opening the account, reconciliation of positions in order to issue quarterly performance information, and re-registration of positions). After the termination date, LPL may convert the account to a brokerage account. In a brokerage account, client is charged a commission for each transaction and LPL and the IAR have no responsibility to provide ongoing investment advice. Other Types of Fees and Expenses of LPL In addition to the Account Fee, clients also pay LPL other additional miscellaneous administrative or custodial-related fees and charges that apply to an MWP account. LPL notifies clients of these charges at account opening and makes available a current list of these charges on its website at xxx.xxx.xxx. These fees include retirement account fees and termination fees, including, for example, a fee for loans processed for qualified retirement plan and 403(b)(7) plan accounts and an account termination fee for processing a full account transfer to another financial institution. These miscellaneous fees are not directly based on the costs of the transaction or service by LPL, may include a profit to LPL, and certain of the fees may be lowered or waived for certain clients. Fees Charged by Third Parties There are other fees and charges that are imposed by third parties other than LPL that apply to investments in MWP accounts. Some of these fees and charges are described below. In MWP, assets are invested in mutual funds or ETFs and, therefore, there are two layers of advisory fees and expenses for those assets. Client will pay an advisory fee to the fund manager and other expenses as a shareholder of the fund. In the case of mutual funds that are fund of funds, there could be an additional layer of fees, including performance fees that vary depending on the performance of the fund. Client will also pay LPL and IAR the Account Fee with respect to those assets. The mutual funds and ETFs available in the program can be purchased directly. Therefore, clients could generally avoid an additional layer of fees by not using the advisory services of LPL and IAR and by making their own decisions regarding the investment. Clients should understand that the share class offered for a particular mutual fund through the Program in many cases will not be the least expensive share class that the mutual fund makes available. Other financial services firm may offer the same mutual fund at a lower overall cost to the investor than is available through the Program. If client transfers into an MWP account a previously purchased mutual fund, and there is an applicable contingent deferred sales charge on the fund, client will pay that charge when the mutual fund is sold. If the account is invested in a mutual fund that charges a fee if a redemption is made within a specific time period after the investment, client will be charged a redemption fee. If a mutual fund has a frequent trading policy, the policy can limit a client’s transactions in shares of the fund (e.g., for rebalancing, liquidations, deposits or tax harvesting). Decisions regarding the sale of mutual funds in an account may be made by LPL without regard to whether a client will be assessed a redemption fee. Clients can find more information regarding the fees and expenses of a mutual fund or ETF in the fund’s prospectus, which is available upon request from the IAR or directly from the fund. When transferring securities into an MWP account, client should be aware that certain securities are not be eligible for the account. In such case, the securities may be rejected, sold after the transfer, or moved to a brokerage account. Note that when an ineligible security is transferred into an account and subsequently sold or moved to a brokerage account, the advisory fee will be charged on such asset for the period of time the security was held in the account. Client should be aware that securities transferred into an account may have been subject to a commission or sales load when the security was originally purchased. After transfer into an MWP account, client should understand that an advisory fee will be charged based on the total assets in the account, including the transferred security. When transferring securities into an account, client should consider and speak to IAR about whether: • a commission was previously paid on the security; • client wishes for the security to be managed as part of the account and be subject to an advisory fee; or • client wishes to hold the security in a brokerage account that is not managed and not subject to an advisory fee. For those Portfolios consisting of mutual funds, LPL selects only no-load and load-waived mutual funds. In some cases, a mutual fund in MWP will charge shareholders an asset based sales charge or service fee (e.g., 12b-1 fee) that is paid to LPL. For retirement accounts, 12b-1 fees paid to LPL by mutual funds are credited to the account. A retirement account for purposes of this Brochure is an account held by plan subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) or an account otherwise subject to Section 4975 of the Internal Revenue Code (e.g., an individual retirement account or XXX). The receipt of 12b-1 fees presents a potential conflict of interest because it gives an incentive to LPL or an affiliated Portfolio Strategist to recommend mutual funds for non-retirement accounts based on the compensation received rather than on a client’s needs. LPL does not share 12b-1 fees with IARs in the MWP program. Portfolio Strategists (other than LPL) do not share in this compensation. Important Things to Consider About Fees on a MWP Account • The Account Fee is a wrap fee for investment advisory services, the execution of transactions and other administrative and custodial services. Clients do not pay a commission or transaction charge to LPL for the execution of transactions in the account. The Account Fee may cost the client more than purchasing the program services separately, for example, paying an advisory fee plus commissions or transaction charges to a broker-dealer for each transaction in the account. Factors that bear upon the cost of the account in relation to the cost of the same services purchased separately include the: • type and size of the account • type of securities in the Portfolio (whether mutual funds or ETFs) • historical and or expected size or number of trades for the account, and • number and range of supplementary advisory and client-related services provided to the client. • The Account Fee may be higher than the fees charged by other investment advisors for similar services. This is the case in particular if the Advisor Fee component of the Account Fee is at or near the maximum fee set out above. The IAR is responsible for determining the Advisor Fee to charge each client based on factors such as total amount of assets involved in the relationship, the number, complexity and mix of the Portfolios, and the number and range of supplementary advisory and client-related services to be provided to the account. Clients should consider the level and complexity of the advisory services to be provided when negotiating the Advisor Fee with IAR. With regard to accounts under the legacy aggregate Account Fee structure, although the IAR cannot increase the overall Account Fee, because the portion of the Account Fee retained by the IAR varies depending on the Portfolio Strategist fee associated with a Portfolio, the IAR has a financial incentive to select one Portfolio instead of another Portfolio. • The investment products available to be purchased in the program can be purchased by clients outside of an MWP account, through broker-dealers or other investment firms not affiliated with LPL. • Clients should consider the impact of fees and expenses on their investment portfolio, as described in the informational brochure titled “How Fees and Expenses Affect Your Portfolio” on the XXX.xxx Investor Regulatory Resources page.