Item 5 – Fees and Compensation
For the Adviser’s services under the Investment Advisory Agreement, clients pay the Adviser a fee equal
to the percent of the daily average market value of the Advisory Account as set forth on Appendix II
below.
Advisory Fees are payable quarterly in arrears, generally within 15 days following the end of each
calendar quarter. Unless the Adviser is instructed to the contrary by the client in writing, the client
authorizes Adviser to direct the custodian broker-dealer of the Advisory Account to debit the Advisory
Fee directly from the Advisory Account and to transfer the Advisory Fee to an account in the name of the
Adviser.
The calculation of the Advisory Fee will be based upon the daily average market value of the client’s
Advisory Account for each calendar quarter, as reflected on the statement of the custodian broker-dealer,
provided, however, that (a) with respect to a client’s initial Advisory Fee, the fee shall be based upon the
daily average market value of the Advisory Account as calculated by the custodian broker-dealer as of the
day the Advisory Account’s assets are placed under the Adviser’s supervision, pro-rated for the balance
of the calendar quarter, and (b) if the custodian broker-dealer for the Advisory Account or other third-
party custodian only issues statements of the Advisory Account as of the last business Friday of each
month (or the next preceding business day if such Friday is a holiday), then the date of the statement so
issued as of the last month in any calendar quarter shall be deemed to be the last business day of such
quarter for fees. Advisory Fees will be deducted directly from Client’s Advisory Account and remitted to
Adviser by the custodian broker-dealer and if necessary, from liquidating holdings in the following order:
(a) cash positions; (b) money market funds; or (c) current positions in the Advisory Account.
Appendix II Advisory Fees
The Advisory Fee will generally be equal to the following annual percentage(s) based on the specific
market value of the Advisory Account.
Market Value of
Advisory Account Annual Fee
First $1,000,000 1.0%
$1,000,001 to $5,000,000 .75%
$5,000,001 to $10,000,000 .50%
Above $10,000,001 ___% (negotiated)
The foregoing fees, based on the market value of the assets held in the account, shall be calculated and
charged quarterly to each account. Reduced minimums are available for certain accounts in a family when
at least one account satisfies the regular minimums. LPC reserves the right, in its sole discretion, to
negotiate and to charge different fees for certain accounts based on the client’s particular needs as well as
overall financial condition, goals, risk tolerance and other factors unique to the client’s particular
circumstances.
LPC ADV Part 2A