Common use of TRANSACTION CHARGES Clause in Contracts

TRANSACTION CHARGES. If your Account is a SWM account, you will bear transaction charges for purchases, sales and exchanges in Account, including for mutual funds, equities, exchange-traded funds (“ETFs”), fixed income securities and options. (For SWM II accounts, the transaction costs are borne by the Advisor and are transaction based or asset based. If the transaction costs borne by the Advisor are transaction based, the Advisor has a conflict of interest because Advisor has a financial incentive to trade less frequently. In addition, in SWM II, because transactions charges vary by security type, there is a conflict of interest for Advisor because Advisor has an incentive to select securities for your Account that cost the Advisor less than other types of securities. You should discuss with Advisor these SWM II conflicts and also the differences between SWM and SWM II accounts.) You authorize LPL to deduct from your Account the transaction charges and other fees applicable to your Account. The transaction charges are paid to LPL to defray costs associated with trade execution; however, they are not directly related to transaction- related expenses of LPL and are a source of revenue to LPL. The transaction charges vary depending on the type of security being purchased or sold (e.g., currently $9 for equities, $35 for unit investment trusts). In the case of mutual funds, the transaction charges vary depending on whether LPL retains compensation from the mutual fund (or a share class of the fund) for services it provides to the fund, such as recordkeeping fees, asset-based service fees or 12b-1 fees. If the compensation retained by LPL exceeds a certain qualifying amount (which is set by LPL in its discretion), then the mutual fund or the applicable share class of the mutual fund is considered a Full Participating Fund and its transaction charges will be set at $0. If the compensation retained by LPL does not exceed the qualifying amount or LPL receives no compensation from the mutual fund, then the mutual fund or the applicable share class of the mutual fund is considered a Non-Participating Fund and its transaction charges will be set at $26.50. LPL uses that compensation from mutual funds to reduce its platform and trading costs, and therefore, assesses a lower transaction charge to clients. Although a Full Participating Fund has a $0 transaction charge, Full Participating Funds tend to have a higher expense ratio, which is borne by the client. LPL does not charge a transaction charge for fixed income securities (e.g., bonds or structured products); however, LPL acts as principal on fixed income security transactions and receives a mark-up/down on the transaction. The standard transaction charges applicable to a SWM account will be notified to you in connection with your Account opening. These charges are subject to change at the discretion of LPL. You will be notified of any changes, including through information provided with your periodic statements. You understand that LPL and Advisor may agree to transaction charges for all or certain clients of Advisor or certain associated person of Advisor that are different (and may be less) than the standard transaction charges based on the nature and scope of the business Advisor or a particular associated person of Advisor does with LPL currently and the expected future business. Therefore, the transaction charges for your Account may be more than or less than those applicable to other clients of Advisor or clients of other Advisors. LPL may change the amount of the transaction charges if the nature or scope of your Advisor’s business changes or does not reach certain levels. In this case, the transaction charges you pay would revert to LPL’s standard transaction charges. Certain share classes of mutual funds that participate in LPL’s No Transaction Fee Program ("SWM MF NTF Program") can be purchased in SWM accounts without a transaction charge. In order to participate in the SWM MF NTF Program, mutual funds pay LPL recordkeeping and/or revenue sharing fees in the form of asset-based or transaction-based fees. A complete list of mutual fund sponsors participating in the SWM MF NTF Program can be found by visiting xxx.xxx/xxxxxxxxxxx.xxxx. In the case of SWM II accounts, clients should understand that the cost to Advisor of transaction charges may be a factor Advisor considers when deciding which mutual funds to select and whether or not to place transactions in the account. Advisor has a financial incentive to select funds in order to reduce or eliminate the transaction charges, including but not limited to funds participating in the SWM MF NTF Program. LPL offers a similar NTF Network for ETFs. Under the ETF NTF Network, certain ETF sponsors direct a payment to LPL on behalf of client or for the benefit of client that is used exclusively as a credit to defray bona fide transaction charge obligations of the Account, and LPL waives the transaction charge when the ETF is sold. For purchases of other ETFs in the ETF NTF Network, the sponsor pays LPL a flat annual amount and LPL waives the transaction charge for purchases and sales. The ETF sponsors in the ETF NTF Network are currently Invesco, State Street and WisdomTree. For an updated list of ETF sponsors in the ETF NTF Network, please refer to xxx.xxx/xxxxxxxxxxx.xxxx.

TRANSACTION CHARGES. If your Account is a SWM account, you will bear transaction charges for purchases, sales and exchanges in Account, including for mutual funds, equities, exchange-traded funds (“ETFs”), fixed income securities and options. (For SWM II accounts, the transaction costs are borne by the Advisor and are transaction based or asset based. If the transaction costs borne by the Advisor are transaction based, the Advisor has a conflict of interest because Advisor has a financial incentive to trade less frequently. In addition, in SWM II, because transactions charges vary by security type, there is a conflict of interest for Advisor because Advisor has an incentive to select securities for your Account that cost the Advisor less than other types of securities. You Clients should discuss with Advisor these SWM II conflicts and also the differences between SWM and SWM II accounts.) You authorize LPL to deduct from your Account the transaction charges and other fees applicable to your Account. The transaction charges are paid to LPL to defray costs associated with trade execution; however, they are not directly related to transaction- transaction-related expenses of LPL and are a source of revenue to LPL. The transaction charges vary depending on the type of security being purchased or sold (e.g., currently $9 for equities, $35 for unit investment trusts). In the case of mutual funds, the transaction charges vary depending on whether LPL retains compensation from the mutual fund (or a share class of the fund) for services it provides to the fund, such as recordkeeping fees, asset-based service fees or 12b-1 fees. If the compensation retained by LPL exceeds a certain qualifying amount (which is set by LPL in its discretion), then the mutual fund or the applicable share class of the mutual fund is considered a Full Participating Fund and its transaction charges will be set at $0. If the compensation retained by LPL does not exceed the qualifying amount or LPL receives no compensation from the mutual fund, then the mutual fund or the applicable share class of the mutual fund is considered a Non-Participating Fund and its transaction charges will be set at $26.50. LPL uses that compensation from mutual funds to reduce its platform and trading costs, and therefore, assesses a lower transaction charge to clients. Although a Full Participating Fund has a $0 transaction charge, Full Participating Funds tend to have a higher expense ratio, which is borne by the client. LPL does not charge a transaction charge for fixed income securities (e.g., bonds or structured products); however, LPL acts as principal on fixed income security transactions and receives a mark-up/down on the transaction. The standard transaction charges applicable to a SWM account will be notified to you in connection with your Account opening. These charges are subject to change at the discretion of LPL. You will be notified of any changes, including through information provided with your periodic statements. You understand that LPL and Advisor may agree to transaction charges for all or certain clients of Advisor or certain associated person of Advisor that are different (and may be less) than the standard transaction charges based on the nature and scope of the business Advisor or a particular associated person of Advisor does with LPL currently and the expected future business. Therefore, the transaction charges for your Account may be more than or less than those applicable to other clients of Advisor or clients of other Advisors. LPL may change the amount of the transaction charges if the nature or scope of your Advisor’s business changes or does not reach certain levels. In this case, the transaction charges you pay would revert to LPL’s standard transaction charges. Certain share classes of mutual funds that participate in LPL’s No Transaction Fee Program ("SWM MF NTF Program") can be purchased in SWM accounts without a transaction charge. In order to participate in the SWM MF NTF Program, mutual funds pay LPL recordkeeping and/or revenue sharing fees in the form of asset-based or transaction-based fees. A complete list of mutual fund sponsors participating in the SWM MF NTF Program can be found by visiting xxx.xxx/xxxxxxxxxxx.xxxxxxxxx://xxxxxxxxxxxx.xxx.xxx/disclosures.html. In the case of SWM II accounts, clients should understand that the cost to Advisor of transaction charges may be a factor Advisor considers when deciding which mutual funds to select and whether or not to place transactions in the account. Advisor has a financial incentive to select funds in order to reduce or eliminate the transaction charges, including but not limited to funds participating in the SWM MF NTF Program. LPL offers a similar NTF Network for ETFs. Under the ETF NTF Network, certain ETF sponsors direct a payment to LPL on behalf of client or for the benefit of client that is used exclusively as a credit to defray bona fide transaction charge obligations of the Account, and LPL waives the transaction charge when the ETF is sold. For purchases of other ETFs in the ETF NTF Network, the sponsor pays LPL a flat annual amount and LPL waives the transaction charge for purchases and sales. The ETF sponsors in the ETF NTF Network are currently Invesco, State Street and WisdomTree. For an updated list of ETF sponsors in the ETF NTF Network, please refer to xxx.xxx/xxxxxxxxxxx.xxxx.

TRANSACTION CHARGES. If your Account is a SWM account, you will bear transaction charges for purchases, sales and exchanges in Account, including for mutual funds, equities, exchange-traded funds (“ETFs”), fixed income securities and options. (For SWM II accounts, the transaction costs are borne by the Advisor and are transaction based or asset based. If the transaction costs borne by the Advisor are transaction based, the Advisor has a conflict of interest because Advisor has a financial incentive to trade less frequently. In addition, in SWM II, because transactions charges vary by security type, there is a conflict of interest for Advisor because Advisor has an incentive to select securities for your Account that cost the Advisor less than other types of securities. You Clients should discuss with Advisor these SWM II conflicts and also the differences between SWM and SWM II accountsaccounts with Advisor.) You authorize LPL to deduct from your Account the transaction charges and other fees applicable to your Account. The transaction charges are paid to LPL to defray costs associated with trade execution; however, they are not directly related to transaction- transaction-related expenses of LPL and are a source of revenue to LPL. The transaction charges vary depending on the type of security being purchased or sold (e.g., currently $9 for equities, $35 for unit investment trusts). In the case of mutual funds, the transaction charges vary depending on whether LPL retains compensation from the mutual fund (or a share class of the fund) for services it provides to the fund, such as recordkeeping fees, fees and asset-based service fees or 12b-1 fees. If the compensation retained by LPL exceeds a certain qualifying amount (which is set by LPL in its discretion), then the mutual fund or the applicable share class of the mutual fund is considered a Full Participating Fund and its transaction charges will be set at $0. If the compensation retained by LPL does not exceed the qualifying amount or LPL receives no compensation from the mutual fund, then the mutual fund or the applicable share class of the mutual fund is considered a Non-Participating Fund and its transaction charges will be set at $26.50sales charges. LPL uses that compensation from mutual funds to reduce its platform and trading costs, and therefore, assesses a lower transaction charge to clients. Although a Full Participating Fund has a Mutual fund transaction charges are currently either $0 transaction charge, Full Participating Funds tend to have a higher expense ratio, which is borne by the clientor $26.50. LPL does not charge a transaction charge for fixed income securities (e.g., bonds or structured products); however, LPL acts as principal on fixed income security transactions and receives a mark-mark- up/down on the transaction. The standard transaction charges applicable to a SWM account will be notified to you in connection with your Account opening. These charges are subject to change at the discretion of LPL. You will be notified of any changes, including through information provided with your periodic statements. You understand that LPL and Advisor may agree to transaction charges for all or certain clients of Advisor or certain associated person of Advisor that are different (and may be less) than the standard transaction charges based on the nature and scope of the business Advisor or a particular associated person of Advisor does with LPL currently and the expected future business. Therefore, the transaction charges for your Account may be more than or less than those applicable to other clients of Advisor or clients of other Advisors. LPL may change the amount of the transaction charges if the nature or scope of your Advisor’s business changes or does not reach certain levels. In this case, the transaction charges you pay would revert to LPL’s standard transaction charges. Certain share classes of mutual funds that participate in LPL’s No Transaction Fee Program ("SWM MF NTF Program") can be purchased in SWM accounts without a transaction charge. In order to participate in the SWM MF NTF Program, mutual funds pay LPL recordkeeping and/or revenue sharing fees in the form of asset-based or transaction-based fees. A complete list of mutual fund sponsors participating in the SWM MF NTF Program can be found by visiting xxx.xxx/xxxxxxxxxxx.xxxx. In the case of SWM II accounts, clients should understand that the cost to Advisor of transaction charges may be a factor Advisor considers when deciding which mutual funds to select and whether or not to place transactions in the account. Advisor has a financial incentive to select funds in order to reduce or eliminate the transaction charges, including but not limited to funds participating in the SWM MF NTF Program. LPL offers a similar NTF Network for ETFs. Under the ETF NTF Network, certain ETF sponsors direct a payment to LPL on behalf of client or for the benefit of client that is used exclusively as a credit to defray bona fide transaction charge obligations of the Account, and LPL waives the transaction charge when the ETF is sold. For purchases of other ETFs in the ETF NTF Network, the sponsor pays LPL a flat annual amount and LPL waives the transaction charge for purchases and sales. The ETF sponsors in the ETF NTF Network are currently Invesco, State Street and WisdomTree. For an updated list of ETF sponsors in the ETF NTF Network, please refer to xxx.xxx/xxxxxxxxxxx.xxxx.