Alapocas Investment Partners Inc

ITEM 5 – FEES AND COMPENSATION

Clients are required to sign a written investment management agreement, which can be
terminated without penalty at any time. Client accounts are generally subject to an investment
management fee based on a percentage of assets under management that is currently ranging
up to 1% — dependent upon the client’s relationship with the Adviser and the strategy
employed. The Adviser’s fees, billing frequency, and method of calculation will be described in

the client investment advisory agreement. Clients may be billed quarterly either in advance or
in arrears based on the methodology described in the client agreement.

Fees may be negotiated considering a client’s special circumstances, such as asset levels,
service requirements, or other factors. For comparable services, other investment advisers
may charge higher or lower fees than those charged by AIP.

Clients generally authorize AIP to deduct management fees directly from each account or
accounts through custodial paperwork. When authorized, AIP may deduct fees from one
account on behalf of other accounts in the relationship.

Termination

A client agreement may be canceled at any time by either party but must be promptly followed
up in writing if termination is oral. The termination will be effective at the close of business on
the day notice was received. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded.

In the event a client decides to terminate his or her relationship with AIP, and for those clients
that pay advisory fees in advance, the Adviser will refund a portion of the investment
management fee that reflects periods in which those services were not yet provided. Clients
may direct in what form or manner they would like their refund. In the event a client who pays
in arrears terminates their relationship, the Adviser will bill the client account for the partial
period in which those services were rendered. Clients always have the right to terminate their
agreement without penalty at any time.

Additional Fees and Expenses Payable by the Client

In addition to AIP’s management fees, clients will be charged other fees, including brokerage
commissions (including markups and markdowns), custodial fees (as described in Item 12
below), and management or other fees that may be charged by the underlying investments
selected for the client portfolios (e.g., mutual fund advisory and distribution fees, ETF
management fees). Commissions (including markups and markdowns) do not apply to all
transactions. Some transactions may be assessed a ticket charge only. Each custodian provides
a summary of fees and charges at the time of account opening. Please let us know if you have
any questions on these fees and charges. As described above, some investments, including
mutual funds and exchange-traded funds, also charge internal management fees. These fees
are disclosed in each fund’s prospectus. Such charges, fees, and commissions are exclusive of
and in addition to the Adviser’s fee. AIP does not receive any portion of these commissions,
fees, and costs. Refer to Item 12 “Brokerage Practices,” which further describes the factors that
AIP considers in recommending broker-dealers for the execution of transactions.

ITEM 7 – TYPES OF CLIENTS

AIP primarily provides customized investment management services to individuals, high-net-
worth individuals, charitable organizations, corporations, trusts, including pooled investment
trusts, and other entities. AIP generally does not impose a minimum account size for
establishing a relationship.