Common use of Other Business Activities Clause in Contracts

Other Business Activities. Each of the individuals above is (or is in the process of becoming) a registered representative of LPL. Each of Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx-Xxxxx and Xx. Xxxxxx is (or is in the process of becoming) an investment adviser representative of Fortigent, LLC (“Fortigent”), a registered investment adviser and related person of LPL. Xx. Xxxxx is also the Chief Investment Officer of Fortigent. LPL is a registered broker-dealer and member of FINRA. Although these individuals are registered representatives of LPL, they do not engage in the sale of securities or receive commissions or other compensation based on the sale of securities or other investment products. Each of these individuals receives a regular salary and a discretionary bonus. Such bonus for LPL Research personnel is based on the performance of certain portfolios managed by LPL Research. This bonus presents a potential conflict of interest because it could incentivize the LPL Research team to focus on short-term performance, take undue risk, or favor certain portfolios over others. However, LPL mitigates this conflict by basing the bonus calculation on short and long-term performance, capping the amount of compensation paid regardless of the return, and tying a portion of the compensation to the outperformance of all LPL managed portfolios.

Other Business Activities. Each of the individuals above is (or is in the process of becoming) a registered representative of LPL. Each of Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx-Xxxxx and Xx. Xxxxxx is (or is in the process of becoming) an investment adviser representative of Fortigent, LLC (“Fortigent”), a registered investment adviser and related person of LPL. Xx. Xxxxx is also the Chief Investment Officer of Fortigent. LPL is a registered broker-dealer and member of FINRA. Although these individuals are registered representatives of LPL, they do not engage in the sale of securities or receive commissions or other compensation based on the sale of securities or other investment products. Each of these individuals receives a regular salary and a discretionary bonus. Such bonus for LPL Research personnel is based on the performance of certain portfolios managed by LPL Research. This bonus presents a potential conflict of interest because it could incentivize the LPL Research team to focus on short-term performance, take undue risk, or favor certain portfolios over others. However, LPL mitigates this conflict by basing the bonus calculation on short and long-term performance, capping the amount of compensation paid regardless of the return, and tying a portion of the compensation to the outperformance of all LPL managed portfolios.

Other Business Activities. Each of the individuals above is (or is in the process of becoming) a registered representative of LPL. Each of Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx-Xxxxx and Xx. Xxxxxx is (or is in the process of becoming) an investment adviser representative of Fortigent, LLC (“Fortigent”), a registered investment adviser and related person of LPL. Xx. Xxxxx is also the Chief Investment Officer of Fortigent. LPL is a registered broker-dealer and member of FINRA. Although these individuals are registered representatives of LPL, they do not engage in the sale of securities or receive commissions or other compensation based on the sale of securities or other investment products. Each of these individuals receives a regular salary and a discretionary bonus. Such bonus for LPL Research personnel is based on the performance of certain portfolios managed by LPL Research. This bonus presents a potential conflict of interest because it could incentivize the LPL Research team to focus on short-term performance, take undue risk, or favor certain portfolios over others. However, LPL mitigates this conflict by basing the bonus calculation on short and long-term performance, capping the amount of compensation paid regardless of the return, and tying a portion of the compensation to the outperformance of all LPL managed portfolios.

Other Business Activities. Each of the individuals above is (or is in the process of becoming) a registered representative of LPL. Each of Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx, Xx. Xxxxx-Xxxxx and Xx. Xxxxxx is (or is in the process of becoming) an investment adviser representative of Fortigent, LLC (“Fortigent”), a registered investment adviser and related person of LPL. Xx. Xxxxx is also the Chief Investment Officer of Fortigent. LPL is a registered broker-dealer and member of FINRA. Although these individuals are registered representatives of LPL, they do not engage in the sale of securities or receive commissions or other compensation based on the sale of securities or other investment products. Each of these individuals receives a regular salary and a discretionary bonus. Such bonus for LPL Research personnel is based on the performance of certain portfolios managed by LPL Research. This bonus presents a potential conflict of interest because it could incentivize the LPL Research team to focus on short-term performance, take undue risk, or favor certain portfolios over others. However, LPL mitigates this conflict by basing the bonus calculation on short and long-term performance, capping the amount of compensation paid regardless of the return, and tying a portion of the compensation to the outperformance of all LPL managed portfolios.