Common use of Xxxxx-based Fees Clause in Contracts

Xxxxx-based Fees. You understand and acknowledge that (i) all Active Portfolios Account(s) you currently own, and (ii) any Active Portfolios Account(s) you open in the future are subject to an updated component-based pricing framework in which the sub-components of the Asset-based Fee (referred to as “fee components”) are separately itemized. The fee components are (i) a negotiable Advisory Fee of up to a maximum annual rate of 2.0%; and (ii) if you are engaged in the consolidated advisory fee service, an AFPS Fee. The fee components will be displayed to you when you open a new Active Portfolios Account. Based on the investment strategy and services you choose, the fee components will vary. Each possible fee component that may apply to your Active Portfolios Account is described below. Additional details are included in the “Fees and Compensation” section of the current Disclosure Brochure and Combined Disclosure Brochure.