Kenney Investments Inc

Item 5: Fees and Compensation
Our fee is .75% per annum of the assets managed for a typical account and 1% for an
account which involves a buy/write covered call program. Fees are paid quarterly in
advance and may be paid directly from the client’s account if authorized in writing by the
client to the custodian. Fees are negotiable for larger accounts or accounts with a large
holding of one security. Under various circumstances we may impose a flat quarterly fee
instead of our normal percentage fee schedule. Generally, our minimum quarterly fee is
$2,500. KI includes the value of ETFs, closed end mutual funds, money funds, and cash
in calculating the quarterly management fee; however, open ended mutual funds are
excluded from the account billing value. Should the billable assets under management be
at a level where the percentage calculation produces a fee below the quarterly minimum,
the minimum fee is enacted for that period. Clients will also incur an embedded advisory
fee on ETFs, closed end mutual funds, and money funds directly from the fund. The
investment advisory contract is terminable by either the client or KI on 30 days-notice
and any unearned portion of the prepaid fee will be refunded upon expiration of the 30
days.

KI has no affiliation with any other company, and we do not make payments of any kind
for new business referrals. As a benefit to housing accounts at Schwab, as described in
Item 12, we receive online access to research, security quotes, and account records. We
have no minimum commission requirements to these brokers, but this benefit could
create a conflict of interest.

Client is responsible for all fees charged by the bank and or broker, see Item 12. KI does
not participate in any “wrap fee” arrangements.

Item 6: Performance-Based and Side-by-Side Management
KI does not participate in any performance-based or side-by-side management fee
arrangements.

Item 7: Types of clients
KI clients are made up of high net worth individuals, corporations, and retirement
accounts. Our minimum account size is generally $1.3 million.