Capstone Wealth Advisors LLC

Item 5 – Fees and Compensation

      Capstone Wealth Advisors provides investment advisory and financial planning services to its
      clients. Services may include the analysis of the Client’s current portfolio, development of an
      investment policy statement, implementation of a recommended portfolio(s), and ongoing
      monitoring of the investment portfolio(s).

      Capstone Wealth Advisors also charges annual fees for managing Clients’ portfolios. The fees
      charged vary between 0.10% and 1.5% of assets under management according to the amount of
      assets under management and the specific needs of the client. Capstone Wealth Advisors has no
      set account minimum, but fees are generally not negotiable.

      We bill client advisory fees in advance, quarterly. A notice, detailing the amount of the fee to be
      deducted from the Client’s account, is sent directly to the custodian. Fees are paid directly to us
      from the account by the custodian upon our submission of an invoice to custodian. Payment of
      fees may result in the liquidation of Client’s securities if there is insufficient cash in the account.
      The fee is based on an average daily balance calculated using the daily market value of the Client’s
      account based on the number of days in the prior quarter.

      Market value means the value of all assets in the account (not adjusted by any margin debit). To
      determine value, securities and other instruments traded on a market for which actual transaction
      prices are publicly reported shall be valued at the last reported sale price on the principal market
      in which they are traded (or, if there shall be no sales on such date, then at the mean between the
      closing bid and asked prices on such date). Other readily marketable securities and other
      instruments shall be priced using a pricing service or through quotations from one or more dealers.
      All other assets shall be valued at fair value by Capstone Wealth Advisors and in accordance with
      Capstone Wealth Advisor’s fiduciary duty.

      Fees for a partial quarter at the commencement of an agreement will be prorated based on the
      number of days the account was open during the quarter.

      For fixed fee and hourly projects 50% of the fixed fee or of the estimated total project cost for
      hourly projects shall be billed and prepaid up front with the remainder immediately due and
      payable upon completion of the project.

      Clients pay brokerage transaction costs and other charges directly to the custodian. See Item 12.
      Clients may be required to pay, in addition to Capstone Wealth Advisors fee, a proportionate share
      of any Exchange Traded Fund’s (ETF) or mutual fund’s fees and charges. For example, Mutual
      fund operating expenses are paid out of the fund and are an additional expense incurred by the
      Client.

      In circumstances where a TPAM or a sub-advisor is utilized to provide certain investment advisory
      services to a Client, Capstone Wealth Advisors will submit an invoice to the custodian quarterly

                           CAPSTONE WEALTH ADVISORS, LLC
                              Form ADV Part 2A – Firm Brochure

in advance for the advisory services and the custodian will deduct the TPAM or sub-advisor’s fee
directly from the Client’s custodial account as well as Capstone Wealth Advisor’s investment
advisory fee. The TPAM or sub-advisor’s fee will always be a portion of the Client’s total advisory
fees as stated in the Client’s investment advisory agreement with Capstone Wealth Advisors. The
TPAM or sub-advisory fees may range from 0.15% to 1.25% of the Clients AUM. Fees for these
services are generally not negotiable.

We also offer investment consultations or financial planning services at an hourly or fixed fee rate.
Hourly consulting or financial planning rates range from $100 to $750 per hour, depending on the
complexity of the project, the scope of work to be performed, and the differential expertise of the
IAR providing the services. Some of the factors contributing to determination of the hourly rate
for financial planning services may include which and how many of the following areas will be
addressed in the financial planning services: statements of financial position (includes net worth
and cash flow statements), risk assessment, long term care and disability evaluation, core tax
planning, core estate planning, asset allocation, real estate analysis, retirement planning, and
business transition planning. Fixed fee projects are estimated to range from $500 - $10,000.
Pricing will be developed on a project-by-project basis for each Client, also depending on the
complexity, scope of work to be performed, expertise of the investment advisor representative
providing the services, and the estimated time required to complete the project. Examples of the
factors contributing to the determination of the hourly rate for fixed fee projects may include the
same areas as described above for financial planning rates. Lower fees for comparable services
may be available from other sources. Advisor does not require the prepayment six months or more
in advance of more than $500 of advisory fees.

Hourly fees will be charged monthly in arrears. Fixed fee projects may require one half of the
fixed fee to be paid up front, with the balance due upon completion of the project.

New accounts are pro-rated from the time we begin charging a fee to the Client. Fees for partial
quarters at the commencement or termination of this Agreement will be billed on a pro-rated basis
contingent on the number of days the account was open during the quarter. Additionally, all
service agreements may be terminated at any time by providing us with 15 days written notice.
Any compensation paid for services beyond the time the agreement was terminated in writing will
be refunded to the Client.
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Item 7 – Types of Clients

We provide investment advice to individuals, high net worth individuals, and businesses. Because each
Client is unique, they must be willing to be involved in the planning and ongoing processes. Such
involvement does not have to be time consuming, however we want our clients to remain informed and
have a sense of security about their investments. Capstone Wealth Advisors has no minimum account
size for opening or maintaining an account.