Mack Investment Securities Inc

Item 5 Fees and Compensation
                        INVESTMENT SUPERVISORY SERVICES ("ISS")
                        INDIVIDUAL PORTFOLIO MANAGEMENT FEES
Our annual fees for Investment Supervisory Services are based upon a percentage of assets under
management and generally range from 1.00% to 2.25%.
Our fees are billed monthly, at the end of each month based upon the value (market value or fair market
value in the absence of market value), of the client's account at the end of billing period. Fees will be
debited from the account in accordance with the client authorization in the Client Services Agreement.
For the SEI accounts, fees are billed quarterly based upon the value of the client's account on the last
day of the quarter. The annual management fees are typically 1%. The fee may be negotiable at
management discretion. For variable annuity accounts, the underlying insurance companies most often
bill accounts for riders on an annual basis. Fees and expenses in variable annuities are disclosed in their
prospectus which should be reviewed before investing. MIS views assets which generate ongoing
compensation fees provided by insurance companies for investment into their variable annuities as
advisory assets when clients enter into an advisory agreement with MIS.
The preferred minimum of $100,000 of assets under management is generally necessary for this service.
A minimum of $100,000 may be necessary for several of the managers in our Money Managers Plus
program. These account sizes may be negotiable at management discretion.

Money Manager Plus Program (MMP) Annual Management Fee 1.25% - 2.25% per year (0.1042% -
0.1875% per month)

Transaction Costs for MMP Program: MIS covers the transaction costs in some third-party adviser
programs and not in others.

Client's portfolio transactions may be executed with or without a commission charge. In cases without
a commission charge in a fee arrangement, an SEC execution fee will still be assessed. In evaluating
such an arrangement, the client should also consider that, depending upon the level of the fee charged
by the broker-dealer, the amount of portfolio activity in the client's account, and other factors, the fee
may or may not exceed the aggregate cost of such services if they were to be provided separately. We
will review with clients any separate program fees that may be charged to clients.

Generally, there are higher transaction costs associated with individual equity securities purchased by
third party money managers. As a result of this higher transaction costs, there are higher costs associated
with liquidating or re-allocating that portion of a client's account at a later date if a client decides not to
have their account managed by such subadvisor. Clients utilizing subadvisors who invest in individual
securities agree that, upon termination of such subadvisor, the client shall incur transaction fees to
liquidate the account, the cost of which shall be debited by MIS directly from the client's account (see
additional disclosure below). If, however, a client agrees to have their accounts liquidated in connection
with the next series of transactions changing the composition of the accounts of MIS for several selected
subadvisor(s), no additional stock trading costs will be assessed. Unless clients specify in writing how
they want their account to be liquidated, MIS will assume that the clients desire to have the portion of
their account for which the selected subadvisor has purchased individual securities liquidated with the
next series of transactions changing the composition of the accounts for which the selected money
manager is the subadvisor.
Limited Negotiability of Advisory Fees: Although MIS has established the aforementioned fee
schedule(s), we retain the discretion to negotiate alternative fees on a client-by-client basis. Client facts,
circumstances and needs are considered in determining the fee schedule.
These include the complexity of the client, assets to be placed under management, anticipated future
additional assets; related accounts; portfolio style, account composition, reports, among other factors.
The annual fee schedule is identified in the contract between the adviser and each client.
MIS's management fee for the Money Manager Plus Program is payable at the end of each calendar
month, based on the value of the assets in the account on the last trading day of the month. Such fees
will be calculated according to the above percentage applied to the amount in the account. No proration
is made to reflect deposits into client accounts, withdrawals from client accounts and changes in market
value of client accounts during the month. The lack of pro-ration during the advisory relationship may
result in clients paying fees that are effectively higher or lower than the amounts stated above. With the
fees collected from its clients, MIS pays the fees of the subadvisors. Management fees, if the client
consents, are deducted automatically from client accounts on a monthly basis. Clients receive
notification of fee deductions from their custodian's consolidated monthly statement. As a result of a
client engaging MIS to select and supervise the subadvisors managing the client's account, a client may
pay a higher investment management fee than a client would have paid had the client directly engaged
the subadvisors managing the client's account. MIS may be subject to certain conflicts of interest in its
selection of subadvisors because certain subadvisors may cost MIS less than other subadvisors or incur
lower transaction costs which are presently assumed by MIS. Additionally, MIS may be subject to a
conflict of interest because certain subadvisors may charge MIS a lesser fee after certain amounts of
MIS client assets are under management of such subadvisor. Notwithstanding such a reduction in a

subadvisor's fee, the fee paid by a client to MIS will remain the same percentage of assets under
management.
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Item 7 Types of Clients
MIS provides advisory services to the following types of clients:
• Individuals (other than high net worth individuals)
• High net worth individuals
• Pension and profit-sharing plans (other than plan participants)
• Pension and profit-sharing plan participants
• Corporations or other businesses not listed above
• Others including custodian accounts

As previously disclosed in Item 5, our firm has established certain initial minimum account
requirements, based on the nature of the service(s) being provided. For a more detailed understanding
of those requirements, please review the disclosures provided in each applicable service.