Chapman Financial Group LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional details
regarding the firm’s services along with descriptions of each service’s fees and compensation arrangements.
It should be noted that lower fees for comparable service may be available from other sources. The exact
fees and other terms will be outlined in the agreement between you and Chapman Financial Group.

Chapman Financial Group is required to pay Hawaii’s General Excise Tax (GET) on revenues derived from
clients based in Hawaii. This is a tax on the gross receipts for goods and services in the state which is paid
by businesses but passed through to customers (similarly to how a sales tax functions in many other states).
Chapman Financial Group has clients located in the state of Hawaii and these clients will be assessed this
tax. The tax ranges from 0.5% to 4.6% depending on the county of residence and the nature of the client-
business relationship.

Wealth Management Services
Fees charged for our asset management services are charged based on a percentage of assets under
management, billed in advance (at the start of the billing period) on a quarterly calendar basis and calculated
based on the fair market value of your account (including any cash and cash equivalents, margin or other
borrowing balances and accrued interest) as of the last business day of the previous billing period. Fees are
prorated (based on the number of days service is provided during the initial billing period) for your account
opened at any time other than the beginning of the billing period. If asset management services are
commenced in the middle of the billing period, then the prorated fee for that billing period is based on the
value of the Account when services commence and is due immediately and will be deducted from Account
when services commence.

The asset management services continue until terminated by either party. You or Chapman Financial Group
can cancel services at any time upon prior written notice unless the agreement between you and CFG
specifies otherwise. Any prepaid, unearned fees will be promptly refunded by Chapman Financial Group to

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you. Fee refunds will be determined on a pro rata basis using the number of days services are actually
provided during the final period.

Fees charged for our asset management services are negotiable based on a number of factors, including the
complexity of the client's situation, the composition of the client's account (i.e., equities versus mutual funds),
the potential for additional account deposits, the relationship of the client with the firm, and the total amount
of assets under management for the client.

We typically use a blended, tiered fee schedule to determine the percentage fee assessed to your Account.
The following is a sample fee schedule provided for illustrative purposes but represents a typical fee schedule
used by the firm. In some cases, our annual fee for advisory services is as much as 1.25%. Your exact fee
schedule will be detailed in your service agreement.

                       Asset Level                                            Annualized Fee

                   Zero - $1 million                               100 basis points (1.00% per annum)
                $1 million to $2 million                            75 basis points (0.75% per annum)
                $2 million to $5 million                            60 basis points (0.60% per annum)
                $5 million to $10 million                           45 basis points (0.45% per annum)
                     $10 million+                                               Negotiable

Chapman Financial Group believes that its annual fee is reasonable in relation to: (1) services provided and
(2) the fees charged by other investment advisers offering similar services/programs. However, our annual
investment advisory fee may be higher than that charged by other investment advisers offering similar
services/programs.

In addition to our compensation, you may also incur brokerage commissions and/or transaction ticket fees
charged by the qualified custodian billed directly to you by the qualified custodian. Chapman Financial Group
does not receive any portion of such commissions or fees from you or the qualified custodian. In addition,
you may incur certain charges imposed by third parties other than Chapman Financial Group in connection
with investments made through your account including, but not limited to, mutual fund sales loads, 12b-1
fees and surrender charges, variable annuity fees and surrender charges, IRA and qualified retirement plan
fees, and charges imposed by broker-dealers and the qualified custodian(s) of your account (including but
not limited to any custodian fees, account maintenance fees and trade away fees). Management fees
charged by Chapman Financial Group are separate and distinct from the fees and expenses charged
externally managed investments (including separately managed accounts and private funds) and by
investment company securities including mutual funds and ETFs recommended to you. A description of
mutual fund and ETF fees and expenses are available in each investment company security’s prospectus.

You can choose how to pay your investment advisory fees. The investment advisory fees can be deducted
from your account and paid directly to the firm by the qualified custodian(s) of your account or you can pay
the firm upon receipt of a billing notice sent directly to you.

If you choose to have the investment advisory fees deducted from your account, you must authorize the
qualified custodian(s) of your account to deduct fees from your account and pay such fees directly to
Chapman Financial Group.

You should review your account statements received from the qualified custodian(s) and verify that
...

Item 7 – Types of Clients

Chapman Financial Group generally provides investment advice to individuals including high net worth
individuals.

You are required to execute a written agreement with Chapman Financial Group specifying the particular
advisory services in order to establish a client arrangement with Chapman Financial Group.

Minimum Investment Amounts Required
Chapman Financial Group generally requires a minimum of $500,000 in order to open an account. To reach
this account minimum, clients can aggregate all household accounts. Exceptions can be granted to this

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minimum for at our discretion. For example, we waive the account minimum in certain situations for our
family members and children of current clients.