William Mack & Associates Inc

Fees and Compensation
The compensation for Investment Management Services is based on a percentage of the assets
being supervised. When entering into a new client relationship, WM&A typically requires a
minimum portfolio size of $250,000 in order to offer the client with the full range of services that
WM&A provides. However, since there are many variables associated with an individual's
financial situation, including the future potential and ability to accumulate assets, as well as
relationships with existing clients, WM&A at its discretion, may reduce the minimum portfolio
size requirement. WM&A’s fee may be higher or lower than may otherwise be available through
other types of advisory firms for similar services.

As such, portfolio minimums and the annual Retainer Fee schedule can vary depending on client-
specific circumstances. The annual Retainer Fee schedule is as follows:

       1.00% of the first $1,000,000
       0.80% of the next $500,000
       0.60% on assets over $1,500,000

The Retainer Fee is payable in advance on a quarterly basis and calculated using the market value
of the portfolio, as set by the custodian, as of the last market day of the relevant calendar month.
The Adviser’s quarterly fee is determined by multiplying the portfolio balance on the last trading
day of the preceding calendar quarter by 0.25% of the Adviser’s annual fee. If a client deposits
assets or withdraws funds from a managed account after the inception of a calendar quarter, the
management fee with respect to such assets may be adjusted or prorated based on the number of
days remaining in the quarter. However, if the change to the fee is nominal (under $10), it will be
disregarded. The annual fee is negotiable based on the size of the account and the particular
circumstances of the client. A pro-rata fee is calculated for services initiated at any time other than
at the beginning of a calendar quarter. In the rare case where there is an absence of an asset value
(via the custodian), the Adviser will utilize at least one independent third-party to assess the
holding’s value.

The client may terminate services at any time without penalty. If termination occurs prior to the
end of a full quarter, the client will receive a pro-rated refund for the balance of the quarter. The
client does not have to request this refund, as the Adviser calculates the amount to be refunded on
the day we receive notice and typically refunds it to the client within one week. The refund is
calculated as follows: (Total fee for the quarter/number of days in the quarter) multiplied by the
days remaining in the quarter.

Covered Call Options Strategies: As discussed in this Brochure under Other Financial Activities
and Affiliations, WM&A recommends SpiderRock Advisors, LLC, (SRA) for covered call
strategies. The annual investment management fee for the SRA covered call options strategy is
.75% annually and charged as follows: SRA retains .50% for its implementation and management
services and .25% is received by WM&A, as the client’s primary adviser for its ongoing
monitoring of SRA’s services and performance. The annual fee is invoiced quarterly in advance
or arrears of services, as agreed in the SRA client agreement. The quarterly fee is determined by
multiplying the portfolio balance on the last trading day of the billable quarter by 0.25% of the
annual fee.

WM&A does not receive any portion of fees charged by the clients’ other service providers.
Examples of these fees may include but are not limited to: If the client sells certain mutual funds
before a 90-day holding period has expired, the client may incur a short-term redemption fee of up
to $199 from the custodian (i.e., Charles Schwab or TD Ameritrade). In addition to the custodian’s
fee, the client may incur a short-term redemption fee from the mutual fund company of 1% to 2%
of the amount sold if the fund is sold before the specified holding period expires (normally from
30 days to 180 days). The redemption fee will reduce the proceeds from the sale of the mutual
fund.

Clients are responsible for the payment of all third-party fees associated with investing. Clients
may pay transaction and brokerage commission to their broker/dealer or other service providers
(Financial Institution[s]) as well as any fees associated with their particular accounts (e.g., account
opening, maintenance, transfer, termination, wire transfer, retirement plan, trust fees, and all such
applicable third-party fees, deferred sales charges, oddlot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities
transactions). All fees paid to the Adviser for Advisory services are separate from the fees and
expenses charged to shareholders of ETF’s or mutual fund shares offered by mutual fund
companies. If a mutual fund previously purchased by or selected by a client should impose a sales
charge, a client may pay an initial or deferred sales charge. WM&A does not receive any portion
of these investment-related fees. Such charges, fees and commissions are exclusive of and in
addition to the Adviser’s fees. A complete explanation of the expenses charged by a mutual fund
or ETF is contained in the respective mutual fund prospectus. Clients are encouraged to read each
prospectus and securities offering documents.

Payment of Investment Management fees may be made directly to the Adviser or through a debit
to the client’s account via the qualified custodian holding the client’s funds and securities. The
Adviser adheres to the following criteria when payment is made via a qualified custodian as
required by the SEC:

(1) The client provides written authorization permitting the fees to be paid directly from the client’s
account held by the independent qualified custodian and the authorization is limited to
withdrawing contractually agreed upon Investment Adviser fees; (2) The client will directly
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Types of Clients
Types of clients include individuals, pension plans, profit sharing plans, trusts, estates, charitable
organizations, corporations and other business entities. Our minimum portfolio size is typically
$250,000 but may be negotiable depending on the circumstances of the particular client (i.e.,
potential to save), or as a courtesy to an existing client. WM&A reserves the right, in its sole
discretion, to decline any new account.

           Methods of Analysis, Investment Strategies and Risk of Loss