LSY Inc

Item 5. Fees and Compensation

Fees for services will be by agreement between AIC, through its Affiliates, and the client. Fees are
negotiable and vary in part depending upon which Affiliate is engaged to provide services. Fees may be
based on hourly rates, a percentage of assets under management (asset-based or asset management
fees), or fixed fees.

Asset Management Fee Structure

Fees are computed as a percentage of assets under management on either a tiered schedule or using a
fixed annual percentage rate. Fees are billed in arrears and are based on asset values as of the last
business day of the billing period, i.e., calendar quarter-end, month-end, or other period as agreed upon
by the client.

Fees based on the last day of the billing period will be assessed pro-rata for:
       • New Accounts - The first period billing will be pro-rated for the partial period.
       • Cash Flow – Where applicable, additions and withdrawals of $1,000 and above will be pro-
           rated for the partial period. (Additions or withdrawals of less than $1000 will be ignored.)

        AIC’s maximum fee schedule expressed as an annual percentage is as follows:

        Tiered Fee Schedule
        Portfolio Size             Annual %
        First $500,000             2.00%
        $500,001 to $1,000,000     1.50%
        $1,000,001 and above       1.00%

        Fixed Percentage Fee
        1.5% Annual Fee

AIC Form ADV Part 2A                                                                             Page 8 of 20
                                                                                                ver. 06262026

        In lieu of the tiered schedule or the fixed percentage fee, a fixed annual fee payable at agreed-
        upon intervals throughout the year may be charged for asset management services and/or a
        combination of asset management and other advisory services. The amount of the annual fixed
        fee will be negotiated and will be based on factors such as the scope of services provided,
        account values, etc. Fixed fees will be billed in arrears and may be assessed on a quarterly,
        monthly or other period as agreed upon by the client.

        Asset management fees will begin to accrue when the account is funded. Asset management
        fees are for investment advisory services only and do not include any brokerage and transaction
        fees or any other professional services which may be required by the client to implement the
        recommendations made by AIC. Upon termination by either party, the effective date of
        termination shall be used as the concluding date for valuation of the Account. The final charge for
        asset management services covers the period from the beginning of the then current billing
        period to the termination date, and Client agrees to pay any fee, prorated to the termination date.

        In computing the market value of securities held in client accounts for asset management fees,
        the securities prices will be based on valuations which may be provided by the custodian of the
        account and/or by independent, recognized third-party pricing sources. These valuations will be
        relied upon by AIC. Valuations are generally based on the closing price on the exchange or other
        market where the security is traded or the last published redemption price provided by a mutual
        fund or insurance company.

        Valuations are not a guarantee of the market value of the assets in the account. Clients will
        receive quarterly (or monthly if available) statements from the custodian valuing the investment
        positions of the account. For fee calculation purposes, AIC may use the portfolio value from our
        internal portfolio management system, which has been reconciled with custodial information.
        Values on statements that clients receive from account custodians may differ from the values on
        AIC billing statements and/or other reports due to the timing of dividend postings and/or price
        rounding differences. In some instances, securities prices obtained from third-party sources and
        used by the Firm may differ from those reflected by the custodian due to the methodology used to
        obtain the value. Thinly traded securities that do not trade daily and/or securities that are not
        traded on a major exchange (e.g., pink sheet traded) are the most common instances where price
        discrepancies may occur. Accrued interest postings and unsettled transactions may also affect
        statement balances.

        Valuations for direct participation programs and other illiquid investments that have no active
        market from which a market value can be readily derived will be based on the estimated value
        appearing on the account statement provided by the custodian, provided that AIC is satisfied that
        the custodian has reported an estimated value that has been developed in a manner reasonably
        designed to ensure that the estimated value is reliable in accordance with NASD Rule 2340
        (Customer Account Statements).

        That rule requires that the reported value be based on either (1) the net investment methodology
        or (2) the appraised value methodology. The appraised value methodology may be used at any
        time. The net investment methodology may not be used beyond 150 days following the second
        anniversary of breaking escrow in the offering. Whichever valuation methodology is used will be
        disclosed on your custodian’s account statement and will contain the date of said valuation. AIC
        will confirm with the custodian that it is subject to FINRA Rule 2231.

        In some instances, units or shares in direct participation programs trade on relatively inactive
        secondary markets. The prices for such units will generally be lower on these secondary markets
...

Item 7. Types of Clients

AIC provides investment advisory and financial planning services to individuals, pension and profit
sharing plans, trusts, estates, charitable organizations and corporations.

Requirement for Opening Accounts (Minimum Investment Amount)

AIC’s fees for each particular service are subject to negotiation and could vary depending upon
circumstances, including the scope of the services to be provided. AIC does not impose a minimum
account size or minimum fees as a requirement for opening and/or maintaining an account. However,
third-party managers may require account minimums as described in their disclosure documents.