BDFS Capital LLC

Item 5: Fees and Compensation

 A. Fee Schedule

Selection of Other Advisers Fees

BDFS may direct clients to third-party investment advisers. BDFS will be compensated via a
fee share from the advisers to which it directs those clients. The fees shared are negotiable and
will not exceed any limit imposed by any regulatory agency. The notice of termination
requirement and payment of fees for third-party investment advisers will depend on the
specific third-party adviser selected.

BDFS may specifically direct clients to Betterment, Inc. The annual fee schedule is as follows:

     Total Assets               BDFS’s Fee        Betterment’s Fee        Total Fee
     $1 – $99,999                 1.25%                0.25%               1.50%
  $100,000 - $249,999             1.00%                0.25%               1.25%
  $250,000 - $999,999             0.75%                0.25%               1.00%
$1,000,000 - $2,499,999           0.65%                0.25%               0.90%
$2,500,000 - $4,999,999           0.60%                0.15%               0.75%
  $5,000,000 and Up               0.35%                0.15%               0.50%

Portfolio Management Services Fees

The fee will be a negotiated annual flat fee paid in monthly installments according to the terms
of the investment advisory contract.

Financial Planning Fees

Fixed Fees

The rate for creating client financial plans is between $500 and $5,000. The fees are negotiable
and the final fee schedule will be attached as Exhibit II of the Financial Planning Agreement.
Fees are withdrawn directly from client account with client written authorization.

Hourly Fees

The negotiated hourly fee for these services is between $100 and $250.

Clients may terminate the agreement without penalty, for full refund of BDFS’s fees, within
five business days of signing the Financial Planning Agreement. Thereafter, clients may
terminate the Financial Planning Agreement generally upon written notice.

 B. Payment of Fees

Payment of Selection of Other Advisers Fees

Fees are paid quarterly in arrears.

Fees for selection of Betterment, Inc. as third-party adviser are withdrawn by Betterment,
Inc. directly from client accounts. BDFS then receives its portion of the fees from Betterment,
Inc.; BDFS does not directly deduct the advisory fees.

Payment of Portfolio Management Fees

The annual flat fee will be paid in monthly installments.

Payment of Financial Planning Fees

Financial planning fees are paid via check, cash, wire, credit card or ACH.

Fixed financial planning fees are collected in advance. Unearned fees if the agreement is
terminated before completion will be refunded on a prorated basis for the amount of work
completed at the point of termination.

Hourly fees are charged in advance, the lesser of $500 or one-half of the fee estimate, and
the balance upon completion. Unearned fees if the agreement is terminated before
completion will be refunded on a prorated basis for the amount of work completed at the
time of termination.

 C. Client Responsibility For Third Party Fees

Clients not participating in our wrap fee program are responsible for the payment of all
third party fees (i.e. custodian fees, brokerage fees, mutual fund fees, transaction fees, etc.).
Those fees are separate and distinct from the fees and expenses charged by BDFS. Please see
Item 12 of this brochure regarding broker-dealer/custodian.

 D. Prepayment of Fees

BDFS collects financial planning fees in advance. Refunds for fees paid in advance will be
returned within fourteen days to the client via check, or return deposit back into the
client’s account.

        E. Outside Compensation For the Sale of Securities to Clients

       Supervised persons of BDFS are registered representatives of a broker-dealer and are also
       licensed insurance agents. In these roles, they accept compensation for the sale of investment
       products to BDFS clients.

       1. This is a Conflict of Interest

           When acting in their separate capacity as registered broker-dealer representatives or
           insurance agents, supervised persons receive commissions or other compensation for
           the sale of investment products, including asset based sales charges or service fees from
           the sale of mutual funds to BDFS's clients although will not receive such compensation
           in advisory client accounts. This presents a conflict of interest and gives the supervised
           person an incentive to recommend products based on the compensation received rather
           than on the client’s needs. When recommending the sale of investment products for
           which the supervised persons receives compensation, BDFS will document the conflict
           of interest in the client file and inform the client of the conflict of interest.

       2. Clients Have the Option to Purchase Recommended Products From
       Other Brokers

           Clients always have the option to purchase BDFS products recommended by supervised
           persons through other brokers or agents that are not affiliated with BDFS.

       3. Commissions are not BDFS's primary source of compensation for
       advisory services

           BDFS does not receive any commissions or other compensation for the sale of investment
           products to advisory clients.

       4. Advisory Fees in Addition to Commissions or Markups

           BDFS does not reduce its advisory fees to offset any commissions its supervised persons
           receive on the sale of investment products to advisory clients.

Item 7: Types of Clients

BDFS generally provides advisory services to the following types of clients:

       ❖      Individuals
       ❖      High-Net-Worth Individuals
       ❖      Charitable Organizations
       ❖      Qualified Retirement Plans
       ❖      Corporations
       ❖      Trusts

There is no account minimum for any of BDFS’s services.