Capstone Financial Advisors Inc

Item 5      Fees and Compensation

Portfolio Management Services Fees

As of January 1, 2020, the annual fee for portfolio management services will be charged as a
percentage of assets under management, according to the following schedule:

               Assets under Management                     Annual Fee (%)
               On the first $2,000,000                       1.00%
               Next $2,000,000                               0.75%
               Next $2,000,000                               0.60%
               On amounts over $6,000,000                    0.50%

Clients will be invoiced or their account directly debited, as authorized, in advance at the beginning
of each calendar quarter based upon the value (market value or fair market value in the absence of
market value), of the client's account at the end of the previous quarter. Fees will not be adjusted
based on additions and withdrawals during the calendar quarter.

We generally require a minimum account size of $1,000,000 of assets under management for this
service. This minimum account size and the above fee schedule may be negotiable under certain
circumstances. Client facts, circumstances and needs may be considered in negotiating and
determining the fee schedule for a particular client. These include the complexity of the client’s
circumstances, assets to be placed under management, anticipated future additional assets, related

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accounts, portfolio style, account composition, and reporting required, among other factors. The
specific annual fee schedule will be identified in the contract between the adviser and each client.

We may group certain related client accounts for the purposes of achieving the minimum account
size requirements and determining the annualized fee.

All Capstone Financial supervised persons are eligible to receive variable compensation based on
discretionary and non-discretionary factors. This variable compensation structure creates a financial
incentive for certain Capstone Financial supervised persons to recommend certain services over
other advisory services or increase the firm’s assets under management. Capstone Financial
maintains and enforces policies reasonably designed to identify, disclose, and minimize these
conflicts of interest. Neither the Capstone Financial supervised persons nor the investment advisors
who deliver advice are compensated for or on the basis of any recommendation or purchases/sales
of specific securities.

Financial Planning Services Fees

For those clients who do not require the continuous investment management services of Capstone
Financial, or who desire financial planning without portfolio management, fees are generally charged
based upon a fixed quarterly retainer or, in limited circumstance, hourly rates.

Fixed fee engagements generally range from $1,000 to $30,000 depending on the particular
situation and the scope of services performed.

Hourly rates generally vary between $150 and $400 depending on the type of services performed,
the employees providing the service, the individual circumstances of each client, the estimated time
required to complete the project, as well as the scope of the engagement.

The minimum fee for financial planning is $6,000. Annual renewal fees for ongoing financial planning
may be adjusted for subsequent years at Capstone Financials’ discretion. Under certain
circumstances, fees may be negotiable. Clients may also be required, as agreed, to reimburse
Capstone Financial for any out-of-pocket expense incurred, such as travel expenses, if any. These
charges are usually invoiced quarterly, in arrears.

For large, more complicated projects or at client request, Capstone Financial will provide the client
with an estimate prior to beginning work.

At the end of each year, we will review your engagement and may adjust your fee to take into account
the extent of the time we expect to spend providing services to you over the next annual engagement
period.

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Pension Consulting Services Fees

Capstone Financial offers several fee options to Pension Consulting Services clients. We may be
compensated based on an annual percentage of plan assets for services involving ongoing reviews or
based on an hourly fee or fixed fee.

The annual fee may range from 0.10% to 1.00% of plan assets depending on the services requested
and the size of the plan. Plan sponsors will be invoiced in advance at the beginning of each calendar
quarter or semi-annually as agreed to at the start of the relationship. Fees will be based upon the
value of the plan at the end of the previous period. Fees will not be adjusted based on additions and
withdrawals during the calendar quarter.

Capstone Financial’s hourly charges range from $150 and $400 per hour. A fixed fee may be quoted
based on an estimate of hours for the services requested. Capstone Financial may request a retainer
for hourly and fixed fee arrangements. The amount of a requested retainer will never exceed the fee
for services to be provided within the first six months of an engagement.

These different types of fees may also be combined as appropriate for the different types of services
requested by the client. A total minimum fee of $5,000 is required. This minimum fee may prevent
Capstone Financial from providing services to very small ERISA plans.

General Information

Other Fee Schedule: Certain family members and personal acquaintances of our affiliated persons
may receive advisory services at a discounted rate which is not available to advisory clients generally.
In addition, certain existing clients may have engaged us under previously applicable fee schedules
which may be lower than those disclosed above. These legacy fee schedules are no longer available
to clients generally.
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Item 7      Types of Clients

Capstone Financial provides advisory services to individuals, including high net worth individuals,
pension and profit-sharing plans, trusts, charitable organizations, corporations and other businesses.
As previously disclosed in Item 5, our firm has established certain initial minimum account size
requirements for initiating and maintaining an account with us, based on the nature of the service(s)
being provided. For a more detailed understanding of those requirements, please review the
disclosures provided in each applicable service.