Lotus Holdings LLC

Item 5: Fees and Compensation
A. Fee Schedule
Fees for management services are billed and deducted in advance, based on the account
value as of the last day of the quarter. These fees are based on the following schedule:

Equity and Balanced Accounts:
On Securities and cash at the annual rate of: On the first $500,000 2% On the next $500,000 1.75%
On the next $2,000,000: 1.50% On the next $2,000,000: 1.0% On the balance: Negotiable

Fixed Income Only Accounts:
On Securities and cash at the annual rate of: On the first $5,000,000: 1.0% On the balance: Negotiable

The above fees are negotiable in certain circumstances at the discretion of LIA. A quarter-end fee
adjustment may be made for sizable contributions made at the end of the quarter.
Account values include the value of cash and any assets held in money market funds.
LIA implements some investment recommendations with mutual funds. These mutual funds charge asset
management fees or marketing fees which are in addition to the management fees charged by LIA and
are thereby an indirect expense to the client.

B. Payment of Fees
Clients authorize Lotus Investment Advisors LLC to charge their account the fees as they become due
and payable pursuant to the fee schedule outlined in the agreement they sign upon becoming a client.
The client will receive a statement showing the amount of fees paid, the value of the account’s assets
upon which the fee was based. The client is responsible for verifying the accuracy of such fees.
The client’s custodian will send the client a statement at least quarterly, indicating all amounts
disbursed from the account, including the amounts of any and all investment management fees paid
directly to the Adviser.

C. Clients Are Responsible For Third Party Fees
All account assets will be held by a designated custodian of the client’s choice in the client’s name. In
addition to our advisory fees, clients are also responsible for the fees and expenses charged by
custodians and imposed by broker dealers. Such fees may include, but are not limited to, any transaction
charges, fees for duplicate statements and transaction confirmations, and fees for electronic data feeds
and reports. In addition, some mutual fund assets deposited in the account may have been subject to
deferred sales charges and 12(b)(l) fees. Mutual funds also have annual expenses, which are described
in each fund's prospectus. Advisory clients should also note that fees for comparable services vary and
lower fees for comparable services may be available from other sources. We do not accept
compensation for the sale of securities or other investment products. Neither LIA, nor any investment
adviser representative associated with LIA, will act as the custodian. LIA will have no liability with
with respect to custody arrangements or the acts, conduct, or omissions of Custodian.

D. Prepayment of Fees
Clients fees are paid in advance. A client may terminate an advisory account with appropriate written
notice. Upon termination, the fee will be prorated to the date of termination.

E. Outside Compensation For the Sale of Securities to Clients
We do not accept compensation for the sale of securities or other investment products.

Item 7: Types of Clients
We will provide investment advice to individuals, high net worth individuals, trusts, foundations,
Endowments, non-profits and retirement plans.
LIA’s clients are generally required to open an equity, balanced or fixed income account with at least
$1,000,000. The above mentioned minimums may be waived at LIA’s sole discretion.