Mercantile Advisors I LLC

Fees and Compensation
We are a fee-based only firm. This means we do not participate in sales fees, 12b-1 fees,
or commissions of any kind. Clients are billed quarterly in advance on a percentage of
assets managed (see schedule below). Accounts may incur third party (bond broker)
transaction costs and, in a few cases, custody fees for individual transactions. When using
mutual funds, we select ‘no-load’ or funds which waive the sales fee.
       Annual Expense ratio:               1.00% on the first     $ 500,000
                                            .85% on the next      $ 500,000
                                            .75%on the next       $ 1,000,000
                                            .60% on the next      $ 3,000,000
                                            .50% on the next      $ 5,000,000

Account minimum $500,000 – waived under certain circumstances.

Types of Accounts
              Individuals, couples, and families
              Retirement accounts
              IRAs (conventional, rollover, Roth, Inherited)
              401(k), 403 (b)
              Profit Sharing Trust
              Public and Private Pension Plans
              Trusts, Family Limited Partnerships, Estates
              Institutions
              Foundations, Charitable Organizations

METHODS OF ANALYSIS -- Investment Strategies – Risk of Loss
Analysis: An overall financial assessment of the client is made in order to structure an
asset allocation which matches both the overall return needs and the limitation of risk
profile. This assessment is done, if necessary, quantitatively, but also based upon manager
experience and client knowledge and an agreed upon level of asset allocation. We use a
combination of stocks, exchange traded and mutual funds, bonds (tax-free and taxable) and
money market instruments.

Fundamental: Securities are identified with the following characteristics:

          ▪   Current value as compared to the market and comparable securities
          ▪   Current and expected dividend yield
          ▪   Country/Industry/market exposure
          ▪   Expected return during anticipated holding period

Technical: Price and volume charts are utilized to anticipate both purchase and sales
timing and to identify securities to review fundamentally. Charts are also utilized to
anticipate possible market trends and adjust exposure accordingly while attempting to
maintain at least the minimum agreed upon market exposure.

Risk of Loss: Most if not all investments are subject to risk of losing principal for various
reasons. We attempt to measure the amount of risk associated with both the general
market and individual securities or funds. No performance is guaranteed and strategies
which were successful in the past may not be successful in the future.