Xponance Alts Solutions LLC

ITEM 5 – FEES AND COMPENSATION
XAlts is compensated for its advisory services to the Fund in the form of an asset management fee
(the “Management Fee”) and the General Partner will be paid a performance fee (the “Performance
Fee”).

The Fund will pay all expenses other than “overhead expenses,” including, without limitation, the
fee to the administrator, accounting, legal and certain compliance expenses, insurance premiums,
organizational expenses, and all investment related expenses such as commissions, research fees,
interest on indebtedness, and any other expenses reasonably related to the purchase, sale or
transmittal of the Fund’s assets (including the investment expenses of the Portfolio Funds in which
the Fund invests). The Fund also bears indirectly the fees and expenses of any investment entities
in which a Portfolio Fund may invest. The expenses of the organization of the Fund, including all
expenses incurred in connection with the offer and sale of interests in the Fund, will be paid by the
Fund.

XAlts offered a lower, founder class Management Fee to investors who closed during the initial
investing period. The initial fees for such investors were 1.4% to 1.5%, depending upon the timing
of their investment. Later investors pay a Management Fee of 1.75%. However, there were no
adjustments to the carried interest of 20%, which is allocated to the General Partner.

The Management Fee is generally payable quarterly in advance from drawdowns of the Limited
Partners’ remaining capital commitments, provided, however, that the Management Fee may be
waived or deferred and paid at a later date and/or paid out of amounts otherwise distributable to
the Limited Partners. The Management Fee will be prorated for any period that is less than a full
quarter.

Performance Compensation

The General Partner is entitled to receive an annual Performance Fee from the partnership for
which it serves as the general partner. The Performance Fee is equal to 20% of the annual net
profits, but only to the extent that such profits exceed both (i) a “hurdle rate” equal to 8.0% for the
year, and (ii) any losses carried forward from prior years, based on a “high water mark” formula.
The “hurdle rate” is calculated net of management fees, but before the performance-based
allocation. The “hurdle rate” is not cumulative from year to year and is applied to each Limited
Partner’s capital account balance as of the commencement of the year, as adjusted for any
additional contributions or partial withdrawals during the year. Once the “hurdle rate” is achieved,
the performance-based allocation is applied to all net profits in the Limited Partner’s capital
account for the year. Net profit includes unrealized appreciation or depreciation of marketable
positions, as well as any dividends and distributions.

XAlts deducts fees from Fund assets. As described above, the Investment Advisor deducts the
Management Fee and the General Partner deducts the Performance Fee from Fund assets on a
quarterly and annual basis, respectively.

Notwithstanding the foregoing, the Investment Advisor, on behalf of the Fund, will have discretion
to waive the Management Fee relative to the capital commitment of certain Limited Partners that:
(i) are affiliated with or employed by the Investment Advisor or Xponance; (ii) are friends and
family investors; or (iii) provide consulting and advisory services to the Fund, the Portfolio
Advisors or Portfolio Funds and, in each case, are designated as “Xponance Partners” by the
General Partner in its sole discretion (each, an “Xponance Partner”). In addition, the Management
Fee is subject to reduction equal to the amounts of portfolio company directors’ fees, transaction
fees, break-up fees, reverse break-up fees, monitoring fees, and other similar fees received by the
Investment Advisor.

IT IS CRITICAL THAT INVESTORS REFER TO THE FUND OFFERING DOCUMENTS
FOR A COMPLETE UNDERSTANDING OF HOW XALTS IS COMPENSATED FOR ITS
ADVISORY SERVICES. THE INFORMATION CONTAINED IN THIS ITEM 5 IS A
SUMMARY ONLY AND IS QUALIFIED IN ITS ENTIRETY BY THE FUND OFFERING
DOCUMENTS.

ITEM 7 – TYPES OF CLIENTS
XAlts’ client is the above-mentioned Fund, which is a pooled investment vehicle. The Fund will
not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any
other U.S. or non-U.S. securities laws. Interests in the Fund will be offered and sold without
registration in reliance upon the Securities Act exemption for transactions not involving a public
offering and generally will be sold only to accredited investors, as defined in Regulation D
promulgated under the Securities Act.

The minimum subscription per investor in the Fund is $5,000,000, however, the General Partner
may accept subscriptions in lesser amounts in its sole discretion.