ITEM 5 FEES AND COMPENSATION
A. DESCRIPTION AND BILLING
Platform Access – Platform Access is billed based on the total number of accounts you have
on the CacheTech platform. The frequency can be on a monthly, quarterly, or annual basis
depending on how frequently your firm does billing. You will be billed $5 per account per
month, $15 quarterly, or $60 annually. This fee is negotiable on a Lead-Advisor-by-Lead-
Advisor basis. Lead Advisors are required to pay this fee directly to CacheTech.
Investment Management – The fee is an annual fee based on a percentage of the market value
of the underlying client account(s). This is billed monthly, quarterly, or annually. It can also
be billed in advance or arrears and can be either based on average daily balance or quarter
end balance depending on how your firm conducts billing. The fee is up to .50% on an annual
basis. If you are billed quarterly, your annual fee would be divided by four to get your quarterly
fee (e.g., .50%/4 = .125%). Similarly, if you are billed monthly, your annual fee would be divided
by twelve to get your monthly fee. This fee is negotiable by each Lead Advisor. Additionally,
Lead Advisors have the option to negotiate a tiered fee schedule. The fee may be billed directly
to a Lead Advisor’s client account if CacheTech has authority to do so. Additionally, the Lead
Advisor may elect to have the fee invoiced to them directly.
Trading & Execution – The fee is an annual fee based on a percentage of the market value of
the underlying client account(s). This is billed monthly, quarterly, or annually. It can also be
billed in advance or arrears and can be either based on average daily balance or quarter end
balance depending on how your firm conducts billing. The standard fee is .08% on an annual
basis. If you are billed quarterly, your annual fee would be divided by four to get your
quarterly fee (e.g., .08%/4 = .02%). Similarly, if you are billed monthly, your annual fee would
be divided by twelve to get your monthly fee. This fee is negotiable by each Lead Advisor.
Additionally, Lead Advisors have the option to negotiate a tiered fee schedule. The fee may be
billed directly to a Lead Advisor’s client account if CacheTech has authority to do so.
Additionally, the Lead Advisor may elect to have the fee invoiced to them directly.
Account Operations & Billing – The fee is an annual fee based on a percentage of the market
value of the underlying client account(s). This is billed monthly, quarterly, or annually. It can
also be billed in advance or arrears and can be either based on average daily balance or
quarter end balance depending on how your firm conducts billing. The standard fee is .08%
on an annual basis. If you are billed quarterly, your annual fee would be divided by four to
get your quarterly fee (e.g., .08%/4 = .02%). Similarly, if you are billed monthly, your annual fee
would be divided by twelve to get your monthly fee. This fee is negotiable by each Lead Advisor.
Additionally, Lead Advisors have the option to negotiate a tiered fee schedule. The fee may
be billed directly to a Lead Advisor’s client account if CacheTech has authority to do so.
Additionally, the Lead Advisor may elect to have the fee invoiced to them directly.
The fees described above are subject to negotiation with each Lead Advisor and may differ from
Lead Advisor to Lead Advisor. CT reserves the right to negotiate, waive, or reduce fees at its
discretion. The MSA is valid for a term of one year with automatic one-year renewals.
B. OTHER FEES AND PAYMENTS
There may be additional fees or charges that result from the maintenance of or trading
within an underlying client’s account. These are fees that are imposed by third parties in
connection with investments made through an underlying client’s account, including but not
limited to: Exchange/SEC fees, no-load mutual fund 12(b)-1 distribution fees, certain
deferred sales charges on previously purchased mutual funds, margin interest, brokerage
and execution fees, and IRA and Qualified Retirement Plan fees. Underlying clients will incur
brokerage and other transaction costs. For more information on this please see Item 12 –