Xiginvent LLC

Item 5.        Fees and Compensation

Industry Ventures’ compensation is negotiable and varies, but typically, it charges each Fund an
annual management fee. In addition, the Affiliated General Partner of each Fund, or, with respect
to Funds with an Independent General Partner, an affiliate of Industry Ventures, receives a
percentage of net profits distributed to the Limited Partners in that Fund.

Management Fees

The annual management fee payable to Industry Ventures or affiliates by a Fund typically is 1%
to 2% of the capital commitments by that Fund’s Limited Partners during that Fund’s investment
period (which is typically 3 to 7 years) and, thereafter, 1% to 2% of the Limited Partners’ capital
actually invested, or contributed capital in that Fund. Such amount is payable in quarterly
installments at the beginning of each calendar quarter based on the amount of the Limited Partners’
committed, invested, or contributed capital, as the case may be, on the date the fee accrues and
becomes payable. Industry Ventures (or a Fund’s Affiliated General Partner) receives management
fees directly from the Funds.

Carried Interest

The Affiliated General Partner or, with respect to Funds with an Independent General Partner,
another affiliate of Industry Ventures (such affiliate, together with the Affiliated General Partner
in its capacity as a recipient of carried interest, the “Carry Parties” and each, a “Carry Party”),
typically is allocated between 5% and 20% of a Fund’s net profits. In some Funds, Limited Partners
have the option to select either a priority return or a non-priority return with a lower associated
carried interest, subject to a detailed “waterfall” as outlined in the Governing Documents. The
relevant Carry Party receives distributions of the carried interest directly from the Funds.

In connection with a Fund’s dissolution and liquidation, if the carried interest distributions
(excluding certain tax distributions) to the applicable Carry Party exceed the cumulative carried
interest distributions that should have been made to the Carry Party, the Carry Party will return the
excess to the Fund.

Receipt of carried interest creates an incentive for Industry Ventures to cause the Funds to make
more risky and speculative investments than it would otherwise cause the Funds to make.

Industry Ventures’ Funds typically invest in venture capital, growth and small-cap buyout funds
managed by third parties. The managers of such funds typically receive management fees and
carried interests from their investors, including Industry Ventures’ Funds. As a result, the Limited
Partners will be subject to these fees and carried interests, in addition to the management fees and
carried interests to Industry Ventures and its affiliates. The management fees and carried interests
to Industry Ventures and its affiliates will not be reduced by any fees or carried interests paid to
managers of portfolio funds.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in a Fund of which
Industry Ventures is the investment adviser, to use the “alternative reporting option” to report
Industry Ventures’ and its affiliates’ compensation as “eligible indirect compensation” on the
Schedule C of the plan’s Form 5500 Annual Return/Report of Employee Benefit Plan.

Relationships between Industry Ventures and each Fund are terminable on expiration of the Fund’s
term or dissolution. In addition, a Fund may terminate the account agreement with Industry
Ventures on 30 days’ prior written notice. Limited Partners generally may not withdraw from a
Fund until the Fund liquidates its underlying investments.

In all cases, expenses, management fees and the carried interest through the date of termination of
a Fund are charged to the Fund.

Each Fund is responsible for its own costs and expenses, as applicable to each Fund. Such expenses
generally include, without limitation, (i) organization and syndication costs, excluding placement
agent fees unless there is a management fee offset; (ii) legal, accounting, audit, custodial, directors
and officers insurance, consulting and other professional fees; (iii) banking, brokerage, broken-
deal, registration, qualification, finders, depositary and similar fees or commissions; (iv) fees,
expenses, transfer, capital and other taxes, duties and costs incurred in acquiring, holding, selling,
or otherwise disposing of Fund assets; (v) costs of financial statements and other reports; (vi)
indemnification obligations; (vii) cost of liability and other premiums for insurance; and (viii)
costs of advisory committee and Fund meetings. Industry Ventures bears its own operating, general,
administrative and overhead costs and expenses, other than the expenses described above. Please
see Item 12 for a discussion of Industry Ventures’ brokerage practices.

It is critical that investors refer to the confidential offering documents of the relevant Fund for a
complete understanding of expenses borne by that Fund. The information contained herein is a
summary only and is qualified in its entirety by such documents.

Item 7.        Types of Clients

Industry Ventures provides investment advice to the Funds, which are typically structured as
limited partnerships. In general, a Limited Partner’s minimum initial investment amount varies by
Fund, and ranges between $50,000 to $5,000,000, as stated in the applicable Governing
Documents. The minimum initial investment amount is subject to waiver by the General Partner
in its sole and absolute discretion. Industry Ventures also advises a Separate Account that invests
in certain of the Funds or in one or more co-investment or special purpose vehicles.

From time to time, the Funds purchase all or a portion of the interests in a fund managed by an
investment adviser that is unaffiliated with Goldman Sachs (an “Unaffiliated Adviser”). In those
cases, that adviser would continue to manage the purchased fund and at times Industry Ventures
has the right to veto investments proposed by that adviser. Industry Ventures does not provide
investment advice to those funds and does not supervise those advisers.