Kapstone Financial Advisors LLC

Item 5 – Fees and Compensation

The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each Client engaging the Advisor for services described herein shall be required to enter into a written
advisory agreement with the Advisor.

A. Fees for Advisory Services
Wealth management fees are paid monthly, in advance of each month, pursuant to the terms of the wealth
management agreement. Fees range from 0.50% to 1.50% annually based on several factors, including: the scope
and complexity of the services to be provided; the level of assets to be managed; and the overall relationship with
the Advisor. Relationships with multiple objectives, specific reporting requirements, portfolio restrictions and other
complexities may be charged a higher fee. Wealth management fees are based on the market value of assets
under management at the end of the prior month. Certain Clients of the Advisor may be subject to a legacy fee
schedule that is different from the fee range disclosed above.

The wealth management fee in the first month of service is prorated from the inception date of the account[s] to the
end of the first month. Fees may be negotiable at the sole discretion of the Advisor. In certain circumstances, the
Advisor may charge a fixed annual fee for its services. The Client’s fees will take into consideration the aggregate
assets under management with the Advisor across all accounts, unless otherwise agreed in writing. All securities
held in accounts managed by Kapstone will be independently valued by the Custodian. The Advisor will conduct
periodic reviews of the Custodian’s valuation to ensure accurate billing

                                              Kapstone Financial Advisors LLC
                                           212 N Broadway St., Lebanon OH 45036
                      Phone: (937) 751-1000 Facsimile: (937) 949-8023 | https://www.kapstoneadvisors.com

Clients may make additions to and withdrawals from their account[s] at any time, subject to Kapstone’ right to
terminate an account. Additions may be in cash or securities provided that Kapstone reserves the right to liquidate
any transferred securities or decline to accept particular securities into a Client’s account[s]. Clients may withdraw
account assets on notice to Kapstone, subject to the usual and customary securities settlement procedures.
However, Kapstone designs its portfolios as long-term investments, and the withdrawal of assets may impair the
achievement of a Client’s investment objectives. Kapstone may consult with its Clients about the options and
ramifications of transferring securities. However, Clients are advised that when transferred securities are liquidated,
they may be subject to transaction fees, fees assessed at the mutual fund level (i.e. contingent deferred sales
charge) and/or tax ramifications.

Retirement Plan Advisory Services
Retirement plan advisory fees are charged an annual asset-based fee of up to 1.50%. Fees may be billed monthly
or quarterly (“Billing Period”) in advance or arrears pursuant to the terms of the retirement plan advisory agreement.
Retirement plan fees are based on the market value of assets under management at the end of the Billing Period.
Fees may be negotiable depending on the size and complexity of the Plan but shall not exceed the fee range
stated above.

B. Fee Billing
Wealth management fees are calculated by the Advisor or its delegate and deducted from the Client’s account[s] at
the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the Client’s account[s] in advance of each month. The amount due is calculated by applying the monthly rate
(annual rate divided by 12) to the market value of assets under management as of the end of the prior month.
Clients will be provided with a statement, generally monthly, from the Custodian reflecting the deduction of the
wealth management fee. Clients provide written authorization permitting advisory fees to be deducted by Kapstone
to be paid directly from their account[s] held by the Custodian as part of the wealth management agreement and
separate account forms provided by the Custodian.

Retirement Plan Advisory Services
Retirement plan advisory fees may be directly invoiced to the Plan Sponsor or deducted from the assets of the
Plan, depending on the terms of the retirement plan advisory agreement.

C. Other Fees and Expenses
Clients may incur certain fees or charges imposed by third parties, other than Kapstone, in connection with
investments made on behalf of the Client’s account[s]. The Client is responsible for all custody and securities
execution fees charged by the Custodian, as applicable. The Advisor's recommended Custodian does not charge
securities transaction fees for ETF and equity trades in a Client's account, provided that the account meets the
terms and conditions of the Custodian's brokerage requirements. However, the Custodian typically charges for
mutual funds and other types of investments. The fees charged by Kapstone are separate and distinct from these
custody and execution fees.

In addition, all fees paid to Kapstone for wealth management services are separate and distinct from the
expenses charged by mutual funds and ETFs to their shareholders, if applicable. These fees and expenses are
described in each fund’s prospectus. These fees and expenses will generally be used to pay management fees
for the funds, other fund expenses, account administration (e.g., custody, brokerage and account reporting), and
a possible distribution fee. A Client may be able to invest in these products directly, without the services of
Kapstone but would not receive the services provided by Kapstone which are designed, among other things, to
assist the Client in determining which products or services are most appropriate for each Client’s financial
...

Item 7 – Types of Clients

Kapstone offers advisory services to individuals, high net worth individuals, families, trusts, estates, and
businesses. Kapstone generally does not impose a minimum relationship size.