56 Capital Partners Ltd

Item 5 Fees and Compensation

ADVISORY FEES

The following information describes how 56 CP is compensated for the advisory services we
provide to our clients. The specific manner in which fees are charged and the compensation
we receive may differ between clients depending upon the individual Engagement Agreement
with each client. 56 CP reserves the right to negotiate our compensation with clients depending
on the scope of our advisory relationship, and we may charge higher or lower fees than are
available from other firms for comparable services. 56 CP has the general discretion to waive
all or a portion of our fees, but typically only exercises this discretion for our employees.

Invest ment Management Fees. In consideration for providing investment management
services and pursuant to the Engagement Agreement with the client, 56 CP charges an annual
asset-based fee of up to 2.0% based on the client’s assets under management (“AUM”) as
valued by the custodian. Fees are negotiated with each client based on a variety of factors, such
as the number of assets being managed, future deposits to the accounts under our
management, the level and type of services provided and/or the nature of the relationship with
the client. 56 CP does not receive a commission related to any annuity for which assets
underlying the annuity are managed.

The fee that Clients will generally pay will depend largely on the level of services and
complexity of the Client’s portfolio. There are two general fee structures for investment
management. First, clients may be charged a 1% fee of assets under management for standard
asset allocation models that utilize typical investments like ETFs, stocks, bonds, and mutual
funds. The second tier is a 2% asset management fee, which includes the same services as the
first tier, but also includes the use of options, derivatives, warrants, metals, complex products,
hedging, and other advanced investing methods.

56 CP bills our fees on a quarterly basis in arrears. Clients must authorize the deduction of our
fees from their managed accounts by the applicable qualified custodian and choose the
method by which our fees will be calculated. The client generally can make this election
directly with the qualified custodian at account opening or at any time, or cancel the existing
arrangement. Upon deduction of our fees, either our firm or the qualified custodian will send

56 Capital Partners, Ltd.                                                                       7
Form ADV Part 2B – Derek Martin

an itemized invoice to the client which includes the formula used to calculate the fee, the
amount of assets under management the fee is based on, and the time period covered by the
fee.

Clients may elect to have our advisory fees calculated by our firm or the qualified custodian
and deducted from their managed account(s). If the client elects to have fees calculated by the
qualified custodian, fees are based on an annualized percentage of the client’s net liquidation
value, applied on a daily basis for each trading day in the quarter. If the client elects to have
fees calculated by 56 CP, fees are based on an annualized percentage of each client’s average
daily balance during the quarter. These fees are negotiable as stated above.
Client may cancel the investment management agreement in writing without penalty within
five (5) business days from the date of execution.

Financial Planning Fees. 56 CP charges a fixed fee for our financial planning and consulting
services. We generally charge a fixed fee between $3,000 and $25,000 for our financial planning
and consulting services for the initial preparation of a plan or for the initial consultation. The
total estimated fee, as well as the ultimate fee that we charge the client, is based on the scope
and complexity of the services being provided.

56 CP may also charge financial planning clients an ongoing fixed fee, assessed on an annual,
semi-annual or quarterly basis, or an hourly fee, for financial planning and consulting services,
which fees will be billed in arrears with prior authorization by the client per the client financial
planning agreement. The scope of ongoing services, fee type, and frequency will be agreed
upon in the client’s financial agreement. Financial planning clients may terminate the ongoing
fee and services at any time. The total estimated fee, as well as the ultimate fee that we charge
the client, will be based on the scope and complexity of the services being provided. Fixed fees
will generally range between $1,000 to $3,000 per year, and hourly rates for ongoing services
will range between $100 and $500 per hour, depending upon the complexity of the services
requested. Some examples of financial planning services offered under this ongoing service
fee arrangement include debts and financing, emergency fund efficiencies, education
planning, risk management reviews, estate planning coordination, tax law changes or
retirement planning as shown in the Financial Planning Agreement.

Clients will be invoiced directly for financial planning fees upon completion of the financial
plan or consultation. Financial planning fees are generally billed separately as a unique service
from our investment management services, but we have discretion to completely waive the
planning fees for certain clients based on the amount of the client’s assets already managed
by our firm which would justify a fee waiver. These fees are negotiable as stated above.

Client may cancel the financial planning agreement in writing without penalty within five (5)
business days from the date of execution.

56 Capital Partners, Ltd.                                                                         8
Form ADV Part 2B – Derek Martin

Pension Consult ing Fees. 56 CP charges a fixed consulting fee between 0.1% and 1.0% based
on the assets in the Plan. The total estimated fee, as well as the ultimate fee that we charge the
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TYPES OF CLIENTS

56 CP offers investment advisory services to a diversified group of clients including individuals,
high net worth individuals, trusts, estates, pension and profit-sharing plans (other than plan
participants), non-profit/charitable organizations, and corporations and other business
entities. Client relationships may vary in scope and length of service.

ACCOUNT REQUIREMENTS

56 CP does not require a minimum account balance for our investment management services.