Common use of Model Portfolios Clause in Contracts

Model Portfolios. Client acknowledges that Betterment may make available certain model investment portfolios (each, a “Model Portfolio”) developed by third-party providers (each, a “Model Portfolio Provider”) to provide Advisor and Clients with Products and/or allocations that differ from the Products and/or allocations Betterment has selected based on Betterment’s investment methodology. If instructed by Advisor in accordance with the Advisor Agreements, Betterment will invest a Client’s assets in a Model Portfolio. Betterment will not recommend an IPS to a Client who is placed in a Model Portfolio and will instead allocate the Client’s Accounts in accordance with the parameters specified by the Model Portfolio selected by the Advisor on the Client’s behalf. The Client’s ability to adjust the allocations or risk tolerances within a Model Portfolio, to the extent permitted, will be governed by the Advisor Agreements. With respect to a Client in a Model Portfolio, Advisor, and not Betterment, shall be responsible for managing the Client’s Account on the basis of the Client’s financial situation and investment objectives. Betterment will be responsible for informing a Client who is placed in a Model Portfolio (i) that the Client is placed in a Model Portfolio and not a Betterment-selected portfolio and (ii) of the foregoing allocation of responsibilities between Betterment and Advisor. Neither Betterment nor any Model Portfolio Provider shall be liable for any loss arising out of Advisor’s selection of a Model Portfolio or any actions that Advisor takes, or fails to take, in connection with the management of a Client’s Account. Client acknowledges that the availability of a Model Portfolio is not a recommendation as to the advisability of using such Model Portfolio, and that no Model Portfolio Provider is making any representations regarding the suitability of any Model Portfolio for Client. Client is not relying on a Model Portfolio Provider, including for any individualized investment advice regarding a Model Portfolio, and may have limited recourse against a Model Portfolio Provider in connection with Advisor’s selection of a Model Portfolio on Client’s behalf. Client acknowledges that Model Portfolios may include Products sponsored by the applicable Model Portfolio Provider or an affiliate thereof, and such Model Portfolio Provider or an affiliate may have an affiliation with Advisor, and therefore such Model Portfolio Provider and/or Advisor may be subject to a potential conflict of interest, including incentives by the Model Portfolio Provider to include such affiliated Products in constructing such Model Portfolio and Advisor to select such Model Portfolio for a Client. Client understands that certain features of the Interface may not work in conjunction with a given Model Portfolio, and that Betterment is responsible for explaining these limitations to Client. Betterment shall not be liable for any loss arising from features of the Interface that are not designed to work in conjunction with a Model Portfolio. Except as explicitly modified by this Section, all provisions of this Sub-Advisory Agreement will remain in effect, and Betterment shall provide services as described herein to Client.