Common use of Wrap Fees Associated with Additions and Withdrawals Clause in Contracts

Wrap Fees Associated with Additions and Withdrawals. If you make a net deposit of additional assets into your Account of $10,000 or more in a single day during a Wrap Fee period, you will pay an additional Wrap Fee on the market value of the additional assets, prorated for the number of days remaining in the Wrap Fee period. The additional Wrap Fee will be due on the date you deposit the additional assets into your Account. Sponsor will not make pro rata adjustments to or refund prepaid Wrap Fees for partial withdrawals of less than $10,000 from your Account during any Wrap Fee period. However, if you make a net withdrawal amount in a single day from your Account exceeding $10,000 during a Wrap Fee period, you will receive a pro rata adjustment or refund of your prepaid Wrap Fee on the next business day. If the monthly Wrap Fee has not yet been deducted from your Account, it will be deducted on the same day as this rebate. You understand that when transferring assets from one Managed Account to a different Managed Account on the same business day, those assets will be included in the calculation of the Asset- based Fee for both Accounts for that day, provided that account minimums or addition and withdrawal thresholds have been met. You understand that you will not receive a rebate for a withdrawal from one Managed Account that does not meet the withdrawal threshold, even where you subsequently combine those assets with other assets to make a contribution into a different Managed Account that meets the addition threshold.