Kennon-Green & Company LLC

Item 5. Fees and Compensation
Kennon-Green & Co. is a fee-only investment advisory firm. Clients pay the Firm fees for its services, usually as
a percentage of assets under management. The Firm does not accept compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of mutual funds.
The Firm manages client assets on a discretionary basis through individually managed accounts, which the Firm
refers to as “private accounts”. Private accounts are held by an independent third-party custodian such as a
registered broker-dealer or bank trust company. Kennon-Green & Co. may also agree to provide advisory
services for so-called “held away” accounts such as work-related retirement plans.

Although Kennon-Green & Co. may at times, and under limited circumstances, negotiate rates and terms on a
case-by-case basis, including higher, lower, or otherwise different billing rates, minimum fees, and minimum
required account sizes, the Firm’s basic billing rates are as follows. Kennon-Green & Co. believes its fees are
reasonable in light of the types of services it provides, the Firm’s experience and expertise, and the sophistication
and bargaining power of its clients. Services similar to those provided by the Firm may be available from other
sources at lower costs. Descriptions of each strategy can be found in Item 8. Methods of Analysis, Investment
Strategies, and Risk of Loss beginning on page 17.

    Private Account          Investment Advisory Fee
                                                             Minimum Account Size          Minimum Annual Fee
  Investment Strategy              (Per Annum)

 Value                     1.25% on all amounts*             $500,000                  $5,000
                                                             for domestic and global   for domestic and global

                                                             $5,000,000                $50,000
                                                             for international         for international
 High Dividend             1.25% on the first $25 million*   $500,000                  $5,000
                           0.75% thereafter                  for domestic and global   for domestic and global

                                                             $5,000,000                $50,000
                                                             for international         for international
 Defensive Balanced        1.25% on all amounts*             $500,000                  $5,000

 Passive                   0.89% on first $1 million         $500,000                  $5,000
                           0.79% on next $2 million          for domestic and global   for domestic and global
                           0.69% on next $2 million
                           0.59% on next $5 million
                           0.49% thereafter
 Fixed-Income              0.75% on first $5 million         $500,000                  $4,000
                           0.50% on next $20 million         for domestic and global   for domestic and global
                           Negotiated thereafter
                                                             $10,000,000               $62,500
                                                             for international         for international
 Donor-Advised Funds       1.00% on all amounts              $500,000                  None

 Bespoke                   Negotiated on a case-by-case     $1,000,000                  $5,000
                           basis depending upon             for domestic and global     for domestic and global
                           relationship size, geographic
                           mandate, complexity, and         $5,000,000                  $50,000
                           other considerations             for international           for international
 *The Firm typically targets accounts with at least $500,000 to $10,000,000 in investable assets depending upon
 investment strategy and geographic mandate but may accept smaller accounts at its discretion. Smaller accounts
 managed using a value, high dividend, or defensive balanced strategy and that have less than $500,000, or which fall
 below $475,000 due to withdrawals, will pay 1.50% per annum, instead. For the purposes of fee billing, the Firm may
 agree to aggregate smaller accounts for some clients to help them qualify for fee breaks.

                       Page 7 | Kennon-Green & Co. Form ADV Part 2A Brochure & Part 2B Brochure Supplement

In rare circumstances, the Firm may agree to manage a private account on a discretionary basis for a qualified
client in exchange for performance-based fees but only on the condition such a fee arrangement conforms with
regulatory requirements. Generally, the Firm considers performance-based fee arrangements for private
accounts with $5 million or more of initial funding and charges 20% of any net realized and unrealized gains in
the capital of the account, inclusive of accrued income such as dividends and interest with the account adjusted
for a high water mark, resulting in an 80/20 split in the client’s favor. Private accounts managed under a
performance-based fee agreement are billed monthly, in arrears, and are typically not subject to minimum fees
because the client usually does not pay any fees to the Firm related to the account for a given month unless the
account increases in value above the high water mark in effect during that month or the client has negotiated a
modified performance-based fee calculation that includes a base fee. For more information, see Item 6.
Performance-Based Fees and Side-By-Side Management beginning on page 13.

The Firm may negotiate and agree to certain fee schedules with certain clients at certain times that consist of a
...

Item 7. Types of Clients
Kennon-Green & Co. provides investment advisory services to high net worth individuals as well as non-high net
worth individuals. The Firm also will work with trusts, corporations, partnerships, other business entities, state
or municipal government entities, pension and profit sharing plans, educational organizations, endowment funds,
charitable organizations and foundations including donor-advised funds, family offices, banks, insurance
companies, and other institutions.

Typically, the Firm requires a minimum investment of $500,000 to $10,000,000 per account depending upon the
investment strategy, geographic mandate, and other considerations though Kennon-Green & Co. reserves the

                      Page 16 | Kennon-Green & Co. Form ADV Part 2A Brochure & Part 2B Brochure Supplement

right to waive or modify this minimum on a case-by-case basis at its sole discretion. In some situations, the Firm
will agree to combine account values for individuals, members of a family, or other affiliations for the purpose of
meeting the minimum account size requirement for a given strategy. Kennon-Green & Co. reserves the right to
terminate an account if the account falls below a minimum size that the Firm, in its sole discretion, determines
to be too small to manage effectively. For more information about minimum account sizes and related topics,
see Item 5. Fees and Compensation beginning on page 7.