Common use of Broker Selection Clause in Contracts

Broker Selection. The Client hereby directs that transactions for the Account should be executed through a Broker/Dealer that will be appointed and hereby promises to notify the Investment Adviser of such appointment in writing. In selecting a Broker/Dealer, the Client has the sole responsibility for negotiating commission rates and other transaction costs with a Broker/Dealer. Although the Client will selected a Broker/Dealer, the Client acknowledges the Investment Advisor will not be required to effect any transaction through a Broker/Dealer if the Investment Advisor reasonably believes that such action may result in a breach of its duties as a fiduciary. The Client understands that by instructing the Investment Advisor to execute all transactions on behalf of the Investment Account through a Broker/Dealer, a disparity may exist between the commissions borne by the Account and the commissions borne by the Investment Advisor’s other clients that do not direct the Investment Advisor to use a particular Broker-Dealer. The Client also understands that by instructing the Investment Advisor to execute all transactions on behalf of the Account through a Broker/Dealer, the Client may not necessarily obtain commission rates and execution as favorable as those that would be obtained if the Investment Advisor was able to place transactions with other broker-dealers. The Client also may forego benefits that the Investment Advisor may be able to obtain for its other clients through, for example, negotiating volume discounts or block trades.