Subsequent billings cover one calendar quarter. Renewal billings are based on the market value of the account on the last day of the quarter just ended. We do not make billing adjustments during the quarter for fluctuations in account values due to market conditions, but will do so when there are material interim additions or withdrawals of assets from an account. All Management fees are due and payable at the time the client receives such notice from Merit. We depend primarily on solicitors to refer accounts for management.
Solicitors are other registered investment advisers.
We pay a referral fee to such solicitors, which is a portion of the fee paid to us by their clients. The fee charged the client is the same regardless of whether the client is referred to us by a solicitor or comes directly to us. We believe the fees we charge are comparable to those charged by other advisers offering similar services, but similar or more comprehensive services may be available from other advisers at less cost. Our Asset Management Agreement allows the client or us to terminate the agreement on 30-day written notice to the other party. For Merit employees, a record of all transactions is maintained.