Item 5. Fees and Compensation
Management Fees
GH Fund I Management, LLC receives a management fee (the “Management Fee”) equal to 1.5% of the
Greenhouse Fund’s aggregate unreturned Capital Contributions. The Management Fee is calculated,
prorated, and paid at the end of each calendar month regardless of the Greenhouse Fund’s performance or
whether there will be any cash available for distribution to the Members after payment of the Management
Fee. For purposes of compliance with SEC rules and regulations, Management fees are deemed received
by Axcent as an advisory fee pursuant to an investment advisory agreement.
The Axcent Litigation Finance Fund, LP does not charge a Management Fee. As such certain expenses
are charged directly to the Axcent Litigation Finance Fund, LP, including compliance services which are
provided through Dinsmore Compliance Services, LLC. All fees charged for CCO and compliance
consulting services will be paid by the Axcent Litigation Finance Fund, LP pro-rata to LPs. We feel this
is reasonable since Axcent does not charge management fees to the Axcent Litigation Finance Fund, LP.
Fund Expenses:
Each Client Fund will pay any and all expenses related to its own organization and operations (“Fund
Expenses”). For example, Fund Expenses typically include: organizational expenses, Management Fees,
accounting fees and audit expenses; administrative fees; tax preparation expenses and any applicable tax
liabilities (including transfer taxes and withholding taxes); other governmental charges or fees payable by
the Fund; legal expenses (including, without limitation, the costs of on-going legal advice and services,
blue sky filings, as well as extraordinary legal expenses, such as those related to litigation or regulatory
investigations or proceedings); costs of printing and mailing reports and notices; director and officer and/or
errors and omissions liability insurance premiums or fiduciary liability insurance premiums for directors,
officers and personnel of the General Partner/Manager, and all costs and expenses related to or incurred
in connection with the General Partner’s compliance obligations under applicable federal and/or state
securities and investment adviser laws arising out of its relationship to the Partnership; and other similar
expenses related to the Partnership or Fund, as the General Partner/Manager determines in its sole
discretion. Please review each Client Fund’s Offering Documents for a complete discussion of
Partnership/Fund fees and expenses.
As a limited partner in the Longford Fund, the Axcent Litigation Fund will also be responsible for its pro
rata share of the Longford Fund’s operating expenses, investment related expenses, organizational
expenses, the management fee payable to the Fund GP and all other liabilities and reserve of the Longford
Fund as further described in the Longford Fund’s PPM.