Mercurio & Associates Inc

ITEM 5 – FEES AND COMPENSATION

INVESTMENT MANAGEMENT FEES AND COMPENSATION
MWA charges a fee as compensation for providing Investment Management services on
your account. These services include advisory and consulting services, trade entry,
investment supervision, and other account-maintenance activities. Our recommended
custodian charges transaction costs, custodial fees, redemption fees, retirement plan and
administrative fees or commissions. See Additional Fees and Expenses below for additional
details.
The fees for portfolio management are based on an annual percentage of assets under
management and are applied to the account asset value on a pro-rata basis. Fees are billed
monthly in arrears based on the average daily balance of the account(s) under our Firm’s
management. Unless otherwise agreed upon and stated in the Investment Management
Agreement, fees are assessed on all assets under management, including securities, cash
and money market balances. Legacy positions can be excluded from the fee calculation
when applicable and noted in the Investment Management Agreement.
Our maximum annual advisory fee is for accounts paying a percentage of assets under
management is 1.50% and the specific advisory fees are set forth in your Investment
Advisory Agreement. Fees may vary based on the size of the account, complexity of the
portfolio, extent of activity in the account or other reasons agreed upon by us and you as
the client. In certain circumstances, our fees and the timing of the fee payments may be
negotiated. Our employees and their family related accounts are charged a reduced fee
for our services.
Unless otherwise instructed by the client, we will aggregate asset amounts in managed
accounts from your same household together to determine the advisory fee for all your
accounts. We would do this, for example, where we also service accounts on behalf of
your minor children, individual and joint accounts for a spouse, and/or other types of
related accounts. This consolidation practice is designed to benefit you from an increased
asset total, which could cause your account(s) to be assessed a lower advisory fee.
The independent qualified custodian holding your funds and securities will debit your
account directly for the advisory fee and pay that fee to us. You will provide written
authorization permitting the fees to be paid directly from your account held by the
qualified custodian. Further, the qualified custodian agrees to deliver an account

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statement monthly directly to you indicating all the amounts deducted from the account
including our advisory fees. At our discretion, our Firm will allow advisory fees to be paid
by check as indicated in the Investment Advisory Agreement. You are encouraged to review
your account statements for accuracy.
Either MWA or you may terminate the management agreement immediately upon written
notice to the other party. The management fee will be pro-rated to the date of termination,
for the month in which the cancellation notice was given and billed to your account. Upon
termination, you are responsible for monitoring the securities in your account, and we will
have no further obligation to act or advise with respect to those assets. In the event of
client’s death or disability, MWA will continue management of the account until we are
notified of client’s death or disability and given alternative instructions by an authorized
party.
Additional fees and expenses you may incur are brokerage commissions, principal markups
and discounts, SEC fees, mutual fund/ETF expense ratios, mutual fund 12B-1 fees, tax
withholding on certain foreign securities, postage fees, wire fees, bank charges, and other
administration fees as authorized by you. Please refer to Section 12 for information on
brokerage fees and services.
In no case are Mercurio Wealth Advisors fees based on, or related to, the performance of
your funds or investments.

CONSULTING
Mercurio Wealth Advisors provides hourly planning services for clients who need advice
on a limited scope of work. Mercurio Wealth Advisors will negotiate consulting fees with
you. Fees may vary based on the extent and complexity of the consulting project. The
hourly rate for limited scope engagements is $250. You will be billed monthly as services
are rendered.
Either party may terminate the agreement. Upon termination, fees will be prorated to the
date of termination and any unearned portion of the fee will be refunded to you as
described above.
You should be aware that lower fees for comparable services may be available from other
sources.

FINANCIAL PLANNING FEES
For our Investment Management clients, financial planning services are included in the
Investment Management fees described above.
For stand-alone financial planning arrangements, we will negotiate the planning fees with
you using either a fixed fee or an hourly rate. Fees may vary based on the extent and
complexity of your individual or family circumstances and the amount of your assets under

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FEBRUARY 2026 | PAGE 10

our management. Mercurio Wealth Advisors will determine your fee for the designated
financial advisory services based on a fixed fee arrangement described below.
Under our fixed fee arrangement, any fee will be agreed in advance of services being
performed. The fee will be determined based on factors including the complexity of your
financial situation, agreed upon deliverables, and whether or not you intend to implement
any recommendations through Mercurio Wealth Advisors. Fixed fees for financial plans
will not exceed $25,000 and hourly fees will not exceed $250/hour.
Typically, we complete a plan within a month and will present it to you within 60 days of
the contract date, if you have provided us all information needed to prepare the financial
plan. One hundred (100%) of the Financial Planning Fee is collected upon delivery of the
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ITEM 7 - TYPES OF CLIENTS

Our Firm works with the following types of clients: individuals, high net-worth individuals,
estates, retirement plans, foundations, charitable organizations, and institutions. We do
not impose a minimum account value to initiate our Firm's advisory and money
management services.