Item 5: Fees and Compensation
Management Fee
As an investment adviser to the Funds, as governed by the Offering Documents, Lotus receives a
management fee generally equal to an annual rate of 1.5% to 2%, depending on the particular class of
the Funds.
Lotus Technology Management, LP Form ADV Part 2A
The Master Fund will pay the management fee within 10 days of beginning of each fiscal quarter. Lotus
may, in its sole discretion and without the consent of the Investors, cause the management fee to be
charged to, and paid by, the Feeder Funds instead of the Master Fund.
The management fee is prorated and payable as of a subscription date for any capital contribution by
an Investor that is effective other than as of the first day of a fiscal quarter. In the event of a withdrawal
by an Investor other than as of the last day of a fiscal quarter, Lotus will return to the Master Fund,
and the Master Fund will pay to the relevant Feeder Fund for payment to, or credit to the capital
account of, the withdrawing Investor, an amount equal to the pro rata portion of the management fee,
based on the actual number of days remaining in such fiscal quarter.
Other Fees and Expenses
Each Feeder Fund bears its own expenses and its pro rata share of the Master Fund's, any trading
vehicle's and any special purpose vehicle's expenses, including the following: (i) its pro rata share of the
Management Fee; (ii) investment-related expenses of the Master Fund (e.g., the Master Fund's
brokerage commissions and transaction costs (including fees, commissions and expenses paid or
reimbursed to an outsourced trading desk)), clearing and settlement charges, intermediation fees,
exchange fees, custodial fees, financing fees, interest expense, consulting, investment banking and any
other professional fees or compensation relating to particular investments or contemplated
investments, and research-related expenses and expenses related to obtaining research and market
data, including, without limitation, investment consultants, third-party research and market data
(including information technology hardware, software or other similar equipment and software
applications provided by third-party service providers), including research and market data, and
including fees and expenses related to obtaining, processing and analyzing research or market data that
may be considered "big data" or "alternative data" and news and quotation equipment and services
(including fees for data and software providers), reasonable investment-related travel expenses
(including meals, lodging, travel and conference fees), expenses incurred by the Master Fund related
to risk management provided by third parties, third-party valuation services, investment-, operations-
and trading-related software, including trade order management software (i.e., software used to route
trade orders), expenses incurred by the Master Fund related to data warehouses, expenses incurred
by the Funds associated with investment-related telecommunication services and equipment, expenses
related to connectivity with risk and trade processing systems, expenses relating to notices and reports
provided to Investors; (iii) fees and expenses of third-party professionals, including, consultants,
valuation service providers, attorneys, accountants and third-party administrative fees and expenses
(including the fees and expenses of the Fund administrator) and outsourced middle and back office
providers, and including, to the extent applicable, the costs of engaging or appointing a Money
Laundering Reporting Officer, a Deputy Money Laundering Reporting Officer and an Anti-Money
Laundering Compliance Officer; (iv) the costs of any litigation or investigation involving the activities
of the Funds; (v) taxes and third-party accounting, audit and tax preparation expenses; (vi) legal and
compliance expenses (including fees and expenses of third-party compliance consultants) (which
include, without limitation, fees, responding to formal and informal inquiries, indemnification expenses,
fees and expenses related to compliance with the rules of any self-regulatory organization or applicable
law in connection with the activities of the Funds, including, any governmental, regulatory, licensing,
filing or registration fees or taxes (including without limitation, fees and expenses incurred in
connection with the preparation and filing of Section 13 filings, Section 16 filings, blue sky filings and
other similar regulatory filings)); (vii) expenses incurred in connection with the offering and sale of
interests and other similar expenses related to the Funds; (viii) insurance expenses, including,
premiums for cybersecurity insurance and liability insurance covering the Lotus, the General Partner,
and the members, partners, officers, employees and agents of any of them (including, without limitation,
acquiring and maintaining D&O and/or E&O insurance for Lotus, the General Partner and their
respective affiliates), organizational expenses, expenses relating to the offer and sale of the interests,
Lotus Technology Management, LP Form ADV Part 2A
expenses incurred in connection with any amendments, modifications, revisions or restatements to
the constituent documents of the Funds, expenses incurred in connection with meetings with investors
and prospective investors in the Funds; (ix) expenses incurred in connection with negotiating,
amending, modifying, revising, restating and complying with provisions of any side letter agreement,
expenses incurred in connection with any transfers of interests or an Investor’s admission or
withdrawal, unless otherwise charged to or borne by the applicable transferee or Investor; (x)
extraordinary expenses (including, without limitation, indemnification expenses and fees and fees and
...