Capstone Wealth Management LLC

Item 5 – Fees and Compensation

The specific manner in which fees are charged by Capstone is established in a client’s written
agreement with Capstone. Clients will be invoiced in advance at the beginning of each
calendar quarter based upon the value (market value based on independent third party
sources or fair market value in the absence of market value; client account balances on which
Capstone calculates fees may vary from account custodial statements based on independent
valuations and other accounting variances, including mechanisms for including accrued
interest in account statements) of the client’s account at the end of the previous quarter. New
accounts are charged a prorated fee for the remainder of the quarter in which the account is
incepted (date of first trade).

Capstone will request authority from the client to receive quarterly payments directly from
the client's account held by an independent custodian. Clients may provide written limited
authorization to Capstone or Advisor Solutions to withdraw fees from the account. Clients
will receive custodial statements showing the advisory fees debited from their account(s).
Certain third-party administrators will calculate and debit Capstone’s fee and remit such fee
to Capstone.

A client agreement may be canceled at any time, by either party, for any reason upon receipt
of 30 days written notice. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded.

Capstone’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions. Mutual funds and exchange traded funds also charge internal management
fees, which are disclosed in a fund’s prospectus. These fees will generally include a
management fee and other fund expenses. All fees paid to Capstone for investment advisory
services are separate and distinct from the fees and expenses charged by mutual funds and
ETFs to their shareholders.

Such charges, fees and commissions are exclusive of and in addition to Capstone’s fee, and
Capstone shall not receive any portion of these commissions, fees, and costs.

Advisory Fees

Investment Management Services:

The annual fee for investment management services will be charged as a percentage of assets
under management, according to the schedule below, although fees may be negotiated:

     Assets under management                    Annual Fee (%)
     First $500,000                             1.25%
     Next $500,000                              0.90%
     Next $1,000,000                            0.70%
     Next $1,000,000                            0.50%
     Next $2,000,000                            0.40%
     On all amounts thereafter                  0.35%

Minimum Annual Fee:         $5,000

Employee Benefit Retirement Plan Services

Assets Under                Focus Partners        Capstone’s Annual         Total Fee
Management                 Advisor Solutions             Fee
                              Annual Fee

On the first $1,000,000          0.20%                 0.70%                 0.90%

On the next $1,000,000           0.15%                 0.60%                 0.75%

On the next $3,000,000           0.15%                 0.40%                 0.55%

On the next $5,000,000           0.08%                 0.25%                 0.33%

 On all amounts above            0.05%                 0.15%                 0.20%
     $10,000,000

Certain pre-existing employee benefit plan services clients may be on a different fee
schedule.

In certain circumstances, all fees, account minimums and their applications to family
circumstances may be negotiable.

Independent Managers

Capstone can also recommend client’s assets be managed by Independent Managers. Fees
for assets managed by an Independent Manager vary based on the Independent Manager’s
fee schedule and will generally range from 0.03 - 0.47% annually. Independent Managers’
fees can be in addition to Capstone’s advisory fee noted above and they will
deduct their own fee directly from the client’s assets separately from the Capstone fee.
Clients should refer to the Independent Manager’s Form ADV Part 2A Brochure for
information on their fees and compensation.

Capstone has contracted with Advisor Solutions, for services including trade processing,
collection of management fees, record maintenance, report preparation, marketing
assistance, and research. Capstone has also contracted with Advisor Solutions for sub-
advisory services with respect to clients’ fixed income accounts. Capstone pays a fee for
Advisor Solutions services based on management fees paid to Capstone on accounts that use
Advisor Solutions. The fee paid by Capstone to Advisor Solutions consists of a portion of the
fee paid by clients to Capstone and varies based on the total client assets participating in
Advisor Solutions through Capstone. These fees are not separately charged to advisory
clients.

Item 7 – Types of Clients

Capstone provides services to individuals (including high net worth individuals), qualified
retirement plans, trusts, charitable organizations and foundations as well as corporations
and small businesses.