Item 5: Fees and Compensation
Momentum’s fees are negotiable and vary based on a client’s investment objectives. Generally,
Momentum is compensated for its services based on a pre-negotiated fixed fee (“Budgeted Cost”).
This fee is designed to cover the overhead costs of the Momentum, such as employee salaries,
insurance and other business related expenses.
Subject to certain terms and conditions described in the advisory agreement between Momentum
and Clients, Momentum and/or its employees may be entitled to receive compensation in the form
of carried interest.
Expenses
In addition to Budgeted Cost and carried interest, Clients bear additional expenses that typically
include, but are not limited to, the following: organizational expenses; fees, costs, and expenses
of any administrators, custodians, attorneys, accountants, and other professionals; all out-of-pocket
fees, costs, and expenses incurred in developing, negotiating, structuring, trading, settling,
monitoring, holding, and disposing of actual investments; broken deal expenses; custodial expenses,
other bank service fees, and other investment costs, fees, and expenses; interest on and fees and
expenses arising out of all Client indebtedness; the costs of any litigation, directors’ and officers’
liability or other insurance, and indemnification or extraordinary expenses or liabilities relating to
the affairs of the Client; expenses of liquidating the Client; and certain taxes, fees, or other
governmental charges and all expenses incurred in connection with any tax audit, investigation,
settlement, or review of the Client.
The above listed expenses are not intended to be exhaustive. Due to the nature of services provided
by Momentum, the extent and nature of expenses that clients may bear varies by client. All client
expenses are negotiated before commencement of advisory services.