BDT & Associates Inc

Item 5: Fees and Compensation

A. Fee Schedule

Fees for Financial Planning

One-Time Financial Plan

The One-Time Planning Fee for building a financial plan is up to 1.5% of gross annual
income (the amount of money a person earns in one year from all sources before taxes).
BDT collects the One-Time Planning Fee in advance. The fee is negotiable based on the
complexity of the plan with the BDT Adviser having the latitude to discount the client fee
based on a number of other factors – such as current debt load, amount in savings, etc.
This one-time planning fee covers the building of the client’s plan and implementation up
to the first 90 days. This includes the presentation and review of the implementation plan
(known as a Written Financial Action Plan).

Example: Client’s gross annual income is $100,000.00/year. BDT can charge up to 1.5% of gross
annual income for the “One-Time Planning Fee,” which would amount to a one-time advisory fee
of $1,500.00.

The client and BDT Adviser agree on the final fee by signing the financial planning
agreement – One-Time Planning Fee.

Ongoing Services Fee

The Ongoing Services Fee (referred to as Wealth Management Services) is up to 3% of
gross annual income (the amount of money a person earns in one year from all sources
before taxes). BDT begins collecting this fee after the initial period. The fee is negotiable
based on the complexity of plan with the BDT Adviser having the latitude to discount the
client fee based on a number of other factors – such as current debt load, amount in
savings, etc. This ongoing services fee covers the full implementation of the client’s plan,
which usually takes 18 to 30 months, and ongoing maintenance thereafter. The adviser
and clients meet monthly throughout implementation until the plan is fully implemented.
Upon full implementation of the plan the adviser and clients meet a minimum of 3 times
a year, on a trimester basis, in order to review and update every cornerstone of the client’s
strategy. This ensures the clients strategy stays on track to achieving their goals for the
reasons that are important to them.

The Ongoing Services Fee is paid quarterly in arrears following the initial period. The fee
is paid via automatic bank draft from a client's checking or savings account.

Example: Client’s gross annual income is $100,000.00/year. BDT can charge up to 3.0% of gross
annual income for the “Wealth Management Service” fee, which would amount to $3,000.00

annually ($750.00 quarterly in arrears starting the second full calendar quarter after the initial
one-time financial planning engagement started).

The client and BDT Adviser agree on the final fee by signing the financial planning
agreement – Ongoing Services.

Fees for Financial Advisory Services via Selection of Other Advisers

BDT directs clients to third-party investment advisers (money managers), specifically
Howard Capital Management (CRD# 118070 / SEC# 801-69763), American Trust, 401GO,
and Sonnet, LLC (CRD# 282882).

        Howard Capital Management

                         Total Assets                                Total Annual Advisory Fee
                            All Assets                                          Up to 2.20% *

        * BDT and Howard Capital Management typically share this fee equally. While certain types of accounts
        differ in the portion of fees paid to each advisory firm, the aggregate advisory fee paid by the client does not
        differ.

        American Trust

        Total Assets                                                 Total Annual Advisory Fee
                            All Assets                                          Up to 1.90% *

        * BDT and American Trust typically share this fee equally. While certain types of accounts differ in the
        portion of fees paid to each advisory firm, the aggregate advisory fee paid by the client does not differ.

        401GO

        Total Assets                                                 Total Annual Advisory Fee
                            All Assets                                          Up to 1.90% *

        * BDT and 401GO typically share this fee equally. While certain types of accounts differ in the portion of fees
        paid to each advisory firm, the aggregate advisory fee paid by the client does not differ.

        Sonnet, LLC

        Total Assets                                                 Total Annual Advisory Fee
                            All Assets                                          Up to 2.20% *

        * BDT and Sonnet typically share this fee equally. While certain types of accounts differ in the portion of fees
        paid to each advisory firm, the aggregate advisory fee paid by the client does not differ.

These advisory fees are generally negotiable, will not exceed any limit imposed by any
regulatory agency, and are calculated using the value of the assets in the account on the
last business day of the prior billing period. The notice of termination requirement and
payment of fees for third-party investment advisers (money managers) will depend on
the specific third-party adviser selected.

B. Payment of Fees

Payment of Fees for Financial Planning

The One-Time Planning Fee is payable in advance via check, or ACH debit from the
client’s checking or savings accounts, whereas BDT’s advisory fee for ongoing wealth
management services is payable quarterly in arrears via ACH debit from the client’s
checking or savings accounts.

Payment of Fees for Financial Advisory Services via Selection of Other Advisers

Asset-based fees for management of securities portfolios are withdrawn directly from the
client's accounts with client's written authorization by the third-party adviser (money
managers), which in turn remits to BDT its portion of the advisory fee. Fees are payable
monthly in advance.

C. Client Responsibility for Third-party Fees
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Item 7: Types of Clients

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

       ❖      Individuals
       ❖      High-Net-Worth Individuals
       ❖      Corporations or Business Entities

BDT has no minimum fees for financial planning services.

Howard Capital Management has a minimum requirement of $2,500 to $1,000,000 based on the
platform. American Trust and 401GO do not have a minimum requirement to open or maintain
an account. Sonnet, LLC has a minimum requirement of $5,000 to $1,000,000 based on the
platform.