Second Line Capital LLC

Item 5 Fees and Compensation

Investment Management Fees
2LC offers investment management services for an annual fee based on the amount of assets under
the Firm’s management. The management fee is determined by the IAR and can be up to 200 basis
points (2.00%). The fee is allocated between the Firm and the IAR and can depend on the services
recommended by the IAR as well as other factors, but clients will agree to any fee that goes to the Firm
(including the IAR). Both the Firm and the IAR will have an incentive to recommend or utilize the
options that result in the most profit for themselves. The Firm and the IAR have a fiduciary duty to act
in the best interest of clients regardless of that incentive.

The annual fee is prorated and charged quarterly, in advance, based upon the market value of the
assets being managed by 2LC on the last day of the previous quarter as determined by a party
independent from the Firm (including the client’s custodian or another third-party).

The Firm includes cash in a clients account in determining the valuation for billing purposes. The Firm
may, in its sole discretion, not include cash in determining the fee, especially where a client has a high
percentage of cash for reasons other than the Firm's investment management decision.

If assets are deposited into or withdrawn from an account after the inception of a billing period, the fee
payable with respect to such assets is adjusted to reflect the interim change in portfolio value. For the
initial period of an engagement, the fee is calculated on a pro rata basis. In the event the advisory
agreement is terminated, the fee for the final billing period is prorated through the effective date of the

Form ADV Part 2A Disclosure Brochure

termination and the outstanding or unearned portion of the fee is charged or refunded to the client, as
appropriate.

Additionally, for asset management services the Firm provides with respect to certain client holdings
(e.g., held-away assets, accommodation accounts, alternative investments, etc.), 2LC can negotiate a
fee rate that differs from the range set forth above. Clients are advised that a conflict of interest exists
for the Firm to recommend that clients engage 2LC for additional services for compensation, including
rolling over retirement accounts or moving other assets to the Firm’s management. Clients retain
absolute discretion over all decisions regarding engaging the Firm and are under no obligation to act
upon any of the recommendations.

Financial Planning and Consulting Fees
2LC charges a fixed and/or hourly fee for providing financial planning and consulting services under a
stand-alone engagement. These fees are negotiable, but can be up to $15,000 on a fixed fee basis
and/or up to $150 on an hourly basis, depending upon the scope and complexity of the services and
the professional rendering the financial planning and/or the consulting services. The fee can be for a
defined project, such as the delivery of a plan, or for ongoing services. If the client engages the Firm
for additional investment advisory services, 2LC can offset all or a portion of its fees for those services
based upon the amount paid for the financial planning and/or consulting services.

The terms and conditions of the financial planning and/or consulting engagement are set forth in the
Advisory Agreement. For project-based services 2LC requires one-half of the fee (estimated hourly or
fixed) payable upon execution of the Advisory Agreement. The outstanding balance is due upon
delivery of the financial plan or completion of the agreed upon services. Ongoing services are charged
as described in the investment management section, below. The Firm does not, however, take receipt
of $1,200 or more in prepaid fees, six or more months in advance of services rendered.

Retirement Plan Consulting Fees
2LC charges a fixed project-based fee or asset-based management fee to provide clients with
retirement plan consulting or management services. Each engagement is individually negotiated and
tailored to accommodate the needs of the individual plan sponsor, as memorialized in the Agreement.

Any LPL Program referenced above is subject to maximum fees, depending on which program is used.

Fees for LPL Advisory Programs
The account fee charged to the client for each LPL advisory program is negotiable, subject to the
following maximum account fees:

Manager Access Select                                 3.0%

OMP                                                   2.5%

PWP                                                   2.5%

MWP                                                   2.65

SMS                                                   0.95%

Form ADV Part 2A Disclosure Brochure
GWP                                                 1.35%

Specific terms of the fees will be disclosed in the Agreement that the client signs. Account fees are
payable quarterly in advance, except that the SMS fee is paid in arrears on the frequency agreed to
between client and 2LC.

Excluding SMS and GWP, LPL serves as program sponsor, investment advisor and broker-dealer for
the LPL advisory programs. In the Managed Service of GWP, LPL is appointed by each client as
custodian of account assets and broker-dealer with respect to processing securities transactions for
the accounts. In general, FutureAdvisor, in its capacity as investment advisor, will submit transactions
through LPL; however, FutureAdvisor may choose to execute transactions through a broker-dealer
other than LPL, subject to its duty to seek to achieve best execution. When securities transactions are

affected through LPL, there are no brokerage commissions charged to the account. If FutureAdvisor
chooses to execute a transaction through a broker-dealer other than LPL, the execution price may
include a commission or fee imposed by the executing broker-dealer. In evaluating whether to execute
...

Item 7 Types of Clients

2LC offers services to individuals, trusts, estates, charitable organizations, corporations and other
business entities, and retirement and profit-sharing plans. While the Firm does not have a stated
minimum fee or account size, certain LPL programs and Independent Managers will impose
minimums.