Blue Line Capital LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our 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 Blue Line
Capital.

Asset 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 as of the last business day of the current 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 a billing period, the prorated fee for the initial
billing period is billed in arrears at the same time as the next full billing period’s fee is billed. Clients will
not pay more than $500 in fees, six months or more in advance.

The asset management services continue in effect until terminated by either party (i.e., Blue Line Capital
or you) by providing written notice of termination to the other party. Any prepaid, unearned fees will be
promptly refunded by Blue Line Capital to you. Fee refunds will be determined on a pro rata basis using
the number of days services are actually provided during the final period.

For our asset management services, client will be charged the following annual fee based upon the
amount of assets under management:

        Assets Under Management                                                Annual Fees
        All Assets                                                             1.50%

Fees charged for our asset management services are negotiable based on the type of client, 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 investment
adviser representative, and the total amount of assets under management for the client. The amount of
the asset management fee for your engagement will be specified in your Client Agreement with
Blue Line Capital.

Blue Line Capital does not accept any compensation for the sale of securities or other investment
products, including asset-based sales charges or service fees from the sale of mutual funds

Blue Line Capital 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 charges imposed at the mutual
fund level (e.g., advisory fees and other fund expenses).

The investment advisory fees will be deducted from your account and paid directly to our firm by the
qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your account to

Blue Line Capital, LLC                               Page 8             Form ADV Part 2A Disclosure Brochure

deduct fees from your account and pay such fees directly to our firm. Our firm will send you a billing
statement prior to time that fee deduction instruction is sent to the qualified custodian(s) of your account.
The billing statement will detail the formula used to calculate the fee, the assets under management and
the time period covered.

Please see Item 12 – Brokerage Practices and Item 15 – Custody for more details.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.

Brokerage commissions and/or transaction ticket fees charged by the qualified custodian are billed
directly to you by the qualified custodian. Blue Line Capital 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 Blue Line Capital in connection with investments made through your
account including, but not limited to, mutual fund sales loads, 12(b)-1 fees and surrender charges,
variable annuity fees and surrender charges, IRA and qualified retirement plan fees, and charges
imposed by the qualified custodian(s) of your account. Management fees charged by Blue Line Capital
are separate and distinct from the fees and expenses charged by investment company securities that
may be recommended to you. A description of these fees and expenses are available in each investment
company security’s prospectus.

Financial Planning Services

Financial planning services are provided to our asset management clients at no additional charge.

Item 7 – Types of Clients

Blue Line Capital generally provides investment advice to the following types of clients:

    •   Individuals
    •   High net worth individuals
    •   Banks or thrift institutions
    •   Investment companies
    •   Pension and profit-sharing plans
    •   Other pooled investment companies (e.g. hedge funds)
    •   State or municipal government entities
    •   Trusts, estates, or charitable organizations
    •   Corporations or business entities other than those listed above

Blue Line Capital, LLC                             Page 9            Form ADV Part 2A Disclosure Brochure

You are required to execute a written agreement with Blue Line Capital specifying the particular advisory
services in order to establish a client arrangement with Blue Line Capital.

Minimum Investment Amounts Required

Blue Line Capital typically requires a minimum of $100,000 in order to open an account. To reach this
account minimum, clients can aggregate all household accounts. Exceptions may be granted to this
minimum based upon the type of client, the complexity of the client's situation, the composition of the
client's portfolio, the relationship of the client with the investment adviser representative, and the total
amount of assets under management for the client.