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MEMORANDUM
TO: Ed Sabin, Tequesta PSO
FROM: Celeste Richardville
RE: Commission Recapture
DATE: April 7, 2006
We are adding another commission recapture broker to your
account for diversification. Please sign the enclosed documents,
make a copy for your records, and return the originals to us.
Thank you for your assistance and if you have any questions,
• please contact our office at (863)293-8289.
340 West Central Avenues Suite 300 • Winter Haven, Florida 33880
Telephone (863) 293-8289 • Facsimile (863) 292-8717
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CAI''ITAL
INST'ITC]TI41~AL
SEI~YICES, INC.
Prepared For:
Tequesta Public Safety Pension Fund
Prepared By:
Capital Institutional Services, Inc.
Devin Benton
Vice President
750 N. St. Paul, Suite 2200 Dallas, TX 75201 800-247-6729 www.cagis.com
C
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Commission Recapture Proposal
April 7, 2006
Tequesta Public Safety Pension Fund
Assumptions: Investment Advisors normal negotiated commission rate on domestic and
fixed income.
Recapture Ratios
E uit
Domestic CAPIS 60% ($15.00 Minimum Ticket)
Sincerely,
Devin Benton
Vice President
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Action Plan:
The following steps should be taken to implement a commission recapture
program:
1. Complete Commission Recapture Agreement Letter
• Make any necessary changes to the agreement letter
• Ensure that you provide the account information where you would like the
recaptured funds to be sent
• Sign letter and mail to CAPIS
2. Send Directed Brokerage Letters to Money Managers
• Printed on your letterhead and sent to Money Managers
• Send copies to CAPIS
• 3. CAPIS sales/trader will contact Money Managers
• Initiate trading relationship on your behalf
4. Recapture balances monthly as outlined in the Commission
Recapture Agreement Letter
• Commissions can be delivered to a custodian or directly to the plan
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C,~rrrAr.
• ixsTl'IVTIONAL
S~xvrc~ INC.
COMMISSION RECAPTURE LETTER
Apri17, 2006
Ed Sabin, Chairman
255 River Drive
Tequesta Public Safety Pension Fund
Tequesta, FL 33469
Dear Mr. Sabin,
This letter will constitute our agreement with respect to the brokerage transactions on behalf of
the Tequesta Public .Safety Pension Fund be directed to Capital Institutional Services, Inc. (LAPIS). You
understand, in making this Agreement, there are no required volumes, no fees (other than the transaction
charges associated with executing your orders), and no time requirements.
The Tequesta Public Safety Pension Fund agrees to direct its investment managers to effect
through LAPIS, consistent with best execution, certain brokerage transactions for the Tequesta Public
• Safety Pension Fund. All commission charges per share will continue to be based on your managers'
normal negotiated rate schedule. Therefore, pursuant to this agreement, we will refund to the Tequesta
Public Safety Pension Fund an agreed upon percentage of the total brokerage commissions that may be
paid to us in connection with such transactions. Those percentages are as follows:
ui
Domestic LAPIS 60% ($15.00 minimum ticket charge)
LAPIS will mail monthly commission recapture payments to:
Custodian: Salem Trust
Attention: Karen Russo
Address: 455 Fairway Drive, Suite 103
City, State, Zip: Deerfield Beach, FL 33441
Reference Account # FBO Tequesta Public Safety Pension Fund
#80103784
Tax ID#: 59-6044081
In entering into this Agreement, you represent and warrant that these refunds will be used
exclusively for the benefit of the Tequesta Public Safety Pension Fund and in no event will be used to pay
any expenses properly chargeable to the plan sponsor or any other person or entity. In addition, the
Tequesta Public Safety Pension Fund agrees to have record-keeping and other controls to assure the
foregoing.
•
• ~ CAPITAL
~ IN3T1TtJTIONAL
SB1tVICBSr INC.
You understand that in making these refunds for the Plan, we will be relying on the representations and
agreements contained herein which you hereby authorize us to do.
You represent that you are the Chairman of the Tequesta Public Safety Pension Fund and that the
governing documents of the Plan authorize you to make these representations and to execute this
Agreement. You further agree to advise us promptly of any changes in any material fact contained in this
letter.
Each confirmation issued with respect to securities transactions effected by you on behalf of the Plan shall
contain a notation indicating the following:
A portion of the remuneration maybe returned to the plan.
Please indicate your agreement with and acceptance of the foregoing by signing and returning a copy of
this letter to me at your earliest convenience.
• Sincerely,
Devin Benton
Vice President
Approved and Accepted for the Plan by:
Ed Sabin
Chairman
Date
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April 7, 2006
Rockwood Capital Advisors
Andy Holtgrieve
Re: Domestic Equity Direction Letter
Dear Mr. Holtgrieve,
This letter will confirm our arrangement concerning brokerage commissions for the
Tequesta Public Safety Pension Fund, (herein referred to as "the Fund"). We have
contracted with Capital Institutional Services, Inc. (CAPIS) to provide certain services
for the Fund. Accordingly, we would like your firm, to the extent possible, direct a
portion of the equity securities transactions in our account to CAPIS. All securities
transactions in our account should be consistent with your obligation to seek best
execution of our orders. Commission charges should continue to be based upon your
normal negotiated rate schedule.
Please have your traders inform CAPIS that transactions for our account are to be
credited to the Tequesta Public Safety Pension Fund's commission recapture account. To
initiate transactions specifically for our account, call your regular trader at CAPIS or
• Joanna Horton at 214-922-3201.
We would appreciate a quarterly report of total commissions generated under this
arrangement so that we maybe able to reconcile it with reports received from CAPIS.
I would like to emphasize that we do not wish this arrangement to hamper your
effectiveness in managing the Fund, but hope that these services will provide valuable
benefits to the Fund. If you have any questions regarding trading arrangements, please
call Devin Benton of CAPIS at 214-978-4790. Any other questions regarding this
relationship should be directed to my attention.
Sincerely,
Ed Sabin
Chairman
cc: Devin Benton, Capital Institutional Services, Inc.
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