X-Square Capital LLC

Item 5 – Fees and Compensation

Billing Practices

 X-Square deducts or bills clients on either a monthly or quarterly basis, depending on the
 agreement entered into with the client. Depending on X-Square’s role (e.g., Adviser, sub-adviser,
 etc.), we deduct or bill in arrears or in advance and the fee calculation may be based on average
 weekly net asset values, average monthly net asset values, or beginning of period or end of period

 net asset value. All fees and account minimums are non-negotiable and may be different
 depending on an account’s trading volume, size, and/or strategy. With the exception of the Funds
 and certain separately managed accounts, some clients are invoiced for advisory fees.

Managed Accounts

 X-Square’s annual fee schedule for separately managed accounts, both when it functions as an
 adviser or as a sub-adviser, is generally within the range of 1.00% to 2.00%.

The Funds

 X-Square is the investment adviser to the X2 Alternative Dividend Alpha Fund, an open-end
 Puerto Rico investment company whose investment objective is to provide investors with a high
 level of current income. Investors pay certain fees and expenses if they buy and hold shares of
 the Funds, which include:

    •   An investment advisory fee, payable monthly, calculated at an annual rate equal to 1.50%
        of the Fund’s average weekly net assets (which equals total assets minus borrowings and
        other leverage);
    •   An incentive fee, payable annually, equal to 20% of the total annual return to
        shareholders (if certain total return thresholds are met), including dividends and capital
        appreciation (which may be paid in cash or shares of the Fund, at the option of the
        Investment Adviser);
    •   An upfront management fee equal to 0.25% of the aggregate purchase price of shares
        issued by the Fund.
    •   A marketing and distribution fee, payable monthly, calculated at an annual rate equal to
        0.50% of the Fund’s average weekly net assets; and
    •   Other expenses which are estimated to be approximately 0.10% of the Fund’s average
        weekly net assets.

 The Fund also has an upfront placement agency fee equal to 4.00% for purchases of less than $3
 million and 2.50% for purchases of $3mm or more. These fees only apply for new purchases of
 shares and are not levied on dividends which are automatically reinvested at the investor’s
 option.

 The Fund uses leverage and invests in marketable securities which may overlap with X-Square
 managed account holdings. The Fund’s Private Placement Memorandum (“PPM”) details all fees.

X-Square serves also as the investment adviser to the X-Square Balanced Fund, LLC which
investment objective is the conservation of capital, current income and long-term growth of
capital and income. The Fund uses a balanced approach to invest in a broad range of securities,
including common stocks and investment-grade bonds. As compensation for advisory services
to the Fund, the Adviser is entitled to an advisory fee of 1.00% of the average daily net assets of
the Fund.

X-Square serves also as the investment adviser to the X-Square Series Trust (X-Square Municipal
Income ETF) which seeks to provide income exempt from federal income tax by investing in a non-
diversified portfolio of U.S. dollar-denominated municipal securities issued by Puerto Rico, Guam
and the U.S. Virgin Islands. As compensation for advisory services to the Fund, the Adviser is
entitled to an advisory fee of 0.65% of the average daily net assets of the Fund.

Other Fees and Expenses

 Clients may pay other expenses besides advisory fees paid to X-Square. For example, clients may
 pay brokerage commissions, transaction costs, custodial fees, deferred sales charges, odd-lot
 differentials, transfer taxes, wire transfer and electronic fund fees, ticket charges, and other fees
 and taxes which are unrelated to and in addition to the fees paid to X-Square. Mutual funds and
 exchange-traded funds also charge internal management fees, which are detailed in the
 prospectus. Such charges, fees and commissions are exclusive of and in addition to X-Square’s
 advisory fee. Please refer to Item 12 – Brokerage Practices for further information on X-Square’s

Item 7 – Types of Clients

 X-Square provides, or may provide, investment advisory services to the following types of clients:

       Individuals (Other than high net worth)
       High net worth individuals
       Investment companies that are not registered under the Investment Company Act
       Registered Investment Company
       Corporations and Partnerships
       Pooled investment vehicles, such as hedge funds
       Pension and profit sharing plans
       Charitable organizations
       State and municipal government entities
       Insurance companies

 We impose a minimum amount of assets to be initially invested in the separately managed
 account program of $50,000. This minimum amount may be waived on a case-by-case basis.
 Investments in the X2 Alternative Dividend Alpha Fund, Inc. may be made in an initial amount
 of $25,000. Investments in the X-Square Balanced Fund may be made in an initial amount of
 $5,000.

The Funds

 Please refer to the Funds’ corresponding Private Placement Memorandum (PPM) for information
 about the investor requirements regarding requirements for investing in the Funds.