Dynamic Capital Management, Inc.(DCM), is a Registered Investment Advisor (RIA) that specializes in the conservative management of Separate Account Taxable, IRA, Roth, SEP, Trust, Corporate, Pension, College and other stock and bond portfolios. DCM enjoys an enviable portfolio performance track record, as our overall performance of both taxable and non-taxable accounts has outperformed the S&P500 over the last five years, gross and net of all advisory, mutual-fund, brokerage and other fees. Past performance is no guarantee of future performance, but we have a long-term track record of being able to provide excess returns, net of fees, through the most turbulent of investment times.

By harnessing powerful proprietary valuation and tax optimization models, DCM’s investment team is able to consistently identify excess return potential investment candidates among our 600 plus universe of primarily U.S. companies that are routinely reviewed within our research base. We are also experts on assessing the appropriate time to sell so that assets are more continuously deployed at their highest and best use all year long. While being considerate of the tax consequences when appropriate.

Taxable investors, particularly those in higher tax brackets, benefit dramatically as a result of Efficient Tax, our rigorous discipline of the rational realizing of gains and losses to their long-term after-tax wealth accumulation impact. We minimize taxes, but not at the expense of long-term after-tax wealth accumulation.

DCM develops customized stock and balanced portfolios that are designed to meet the unique needs of each client. We work with clients to determine an asset allocation that hopefully allows them to take the least amount of risk necessary in order for them to achieve their investment objectives. Thereby increasing the likelihood of getting there. Our delivery of consistent value-added performance, along with good customer communications, leads to successful long-term relationships. Portfolios are structured from larger capitalization stocks selected through a rigorous screening process designed to maximize reward and minimize risk. A fixed income portfolio is made up of high grade bonds, mutual funds, and ETF’s where appropriate. We avoid credit risk, and interest rate risk when the risk for inflation and or rising interest rates warrants a less than normal bond portfolio maturity or duration.

Presentation forAsset Management Services

As of December 31, 2012

Introduction

Dynamic Capital Management, Inc.1007 West 3rd, Avenue, Suite 203, Anchorage, Alaska, 99501 • 800-280-3962 • 907-562-6374

Fax 907-563-9502 • www.dynamiccapitalmanagement.com

Dynamic Capital Management, Inc.

In order to reduce equity risk, we invest primarily in the safest market in the world; the U.S. market. We invest in the safest group of stocks in the safest market; principally the larger capitalization universe. And we execute the safest of disciplines; value investing, or rather growth at a reasonable price if you will. This allows us to deliver superior returns while absorbing less than average risk. In the end, we attempt to absorb the least amount of risk necessary to achieve equity returns. We are not looking for home runs. Although of course we do get them from time to time. Our risk management has us focus on singles and doubles instead. As people move up the ladder of risk from U.S. Treasuries, to agency paper, to corporate and municipal bonds, our equity investment profile then fits the next rung. After-which you have the broad S&P500 market risk, foreign stocks, high yield bonds, mid-cap stocks, small cap stocks, and then the more speculative arenas. We tip-toe into stocks for those needing to achieve higher than bond returns, while not wanting full market risk, but who wish equity level market returns.

INVESTMENT UNIVERSE

Dynamic Capital Management concentrates its fundamental equity research on a selected investment grade universe of 600 or so larger capitalization U.S. domestic equities. This research base includes almost all of the members of the S&P500 and Nasdaq100 group of stocks. We also do research on a small number of large multi-national stocks that are global industry leaders. We add to that a selection of higher quality Real Estate Investment Trust issues, as they add an important element of yield with growth potential. This is particularly important in tax-exempt portfolios.

In addition, in order to balance portfolios we might add U.S. Treasury bills, notes and

bonds, along with a selection of high-grade corporate commercial paper,

and municipal bonds.

In order to properly diversify a portfolio, and provide liquidity, we invest, in addition to individual stocks and bonds, in bond mutual funds, international stock mutual funds, ETF’s, and other instruments, as authorized by the client.

INVESTMENT PHILOSOPHY

Dynamic Capital Management is valuation driven. We believe in investing in undervalued companies, and we focus primarily on the individual company in our investment process. Our analysis is enhanced through intra-day modeling of current pricing and economic conditions, and the related investment climate. Strategically we may consider thematic investing concepts, but in the final analysis, our philosophy is driven by the concept of valuation. Risk versus reward is always the final measure of investment merit. By concentrating on lower relative Price to Earnings Multiple(PE), and other relative valuation measures, we are able to, on a systematic basis, mitigate a good portion of the individual stock risk component, while not giving up on much, if any, of the reward side. PE is a relative thing. It is relative to a company itself, its industry, and the universe of stocks all together. We measure year over year, fully diluted operating earnings growth rates, compound growth rates, and four year moving average growth rates over a ten-year period. All 600 companies earning’s quality are measured for growth, sustainability and volatility. Higher, more predictable growth rates, with less volatility, demand and deserve higher PE’s from the marketplace. We like growth, but only at reasonable prices. It provides for more upside, and less downside more often than not.

Because of the extra risks investors face today, with the domestic budget deficit and government grid-lock, along with other global economic risks, for the first time in our investment career, over the last couple of years, we have not been trying to out-perform the S&P500, but rather have secured a modest return for our clients through largely dividend paying stocks, as opposed to growth stocks that rely on a healthy economy. We are more the tortoise rather than the hare.

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INVESTMENT PROCESS

Central to DCM’s investment approach is a constantly reviewed time horizon of 3-5 years, which is consistent with our long-term investment philosophy. We have unique experience in the ability to forecast reasonable earnings bases, growth rates and price earnings multiples over a three to five year time horizon, on the 600 companies we do research on. We harvest the fact that our three to five year price target forecasts are prone to less error than the normal volatility in the stock market. If we purchase a stock at $10 thinking it will go to $20, and it only goes to $16, we aren’t doing so poorly. Our analysts spend most of their time evaluating each company’s earnings potential, a reasonable growth rate to apply to each company’s earnings base, and then they generate a forecasted target price earnings multiple out to the end of a three to five year investment horizon. This allows us to generate reasonable price targets for each of the stocks included in our investment universe, at all times, with the help of our comprehensive computer modeling. As a result, we are able to calculate expected rates of return across all 600 stocks, including dividends, all the time. Before and after-tax.

We purchase individual positions when the return potential from a stock’s current price relative to a 3-5 year price target, including dividends, indicates the potential for material excess compound returns, relative to bonds, and stocks in general, while taking into account each stock’s own risk profile.

We sell non-taxable positions when current prices relative to forecasted prices no longer offer forecasted enhanced relative market returns, either due to a higher price, lowered expectations, or a combination of the two. We then baby-sit each

taxable tax-lot. We only then sell when there exists the likelihood that by selling and reinvesting, an alternative investment will more than make up for any taxes paid, and will provide additional after-tax return. The proper timing of the realization of gains and losses, and the allocation of losses to their optimal impact, is a critical component of an after-tax performance driven investment discipline.

Dynamic Capital Management realizes that world events and markets never stop. Our state of the art proprietary software provides us with the ability to quickly compare each stock to every other stock in our universe for investment merit, on a continuous risk adjusted basis. Our rigorous research approach on over six hundred of the most important domestic stocks that largely reflect the overall economy, allows us to understand each stock we follow with a high degree of valuation granularity.

DCM, through its subsidiary Efficient Tax LLC, also enjoys the use of our patented and trademarked Efficient Tax. A proprietary tool used to maximize wealth for taxable portfolios. The goal of taxable investing should be to maximize after-tax wealth, not to just minimize taxes. Efficient Tax helps us assess when it is appropriate to sell a position either at a profit or at a loss, and how to allocate losses, in order to maximize after-tax wealth. This tool is of course only utilized for taxable portfolios.

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DAVID R. GOTTSTEIN President/Chief Investment Officer

David R. Gottstein is the founder and chief architect of Dynamic Capital Management

and Efficient Tax. He has a B.S. in economics and finance from the University of Pennsylvania’s Wharton School. After completing postgraduate work in Food Marketing Management at the University of Southern California,, Mr. Gottstein became active in Carr-Gottstein Co., Inc., a family owned grocery operation headquartered in Anchorage, Alaska. For the next ten years, he worked in various management capacities for the company. Positions held include Sales Manager, Senior Grocery Buyer, and Director of Distribution for a 250,000 square foot distribution center with 150 employees. For six months in 1981 Mr. Gottstein was a legislative aide to the Alaska State Senate President. In late 1984, he arranged

two internships at leading financial firms, including Furman Selz of New York, New York, and the Frank Russell Company of Tacoma, Washington. Mr. Gottstein has spent the last twenty years developing, refining, and utilizing proprietary advanced portfolio management tools that act as a foundation in the execution of portfolio management at Dynamic Capital Management. In 1998 he invented Efficient Tax, and in 2000 achieved the issuance of a patent on it by the U.S. Patent & Trademark Office.

STEVEN J. SIMPSON Senior Research Analyst

Steven J Simpson, a third generation Alaska, graduated from the University of Alaska Anchorage with a B.B.A. in management. Professional experience includes working in aviation insurance in London, England, with the prestigious insurance firm of Chandler Hargreaves Whittal Aviation. He then returned to Anchorage and worked in the insurance industry as a surplus line broker with Great Land General Agency from 1979-1984. Mr. Simpson then worked as a banking professional at National Bank of Alaska ending in the mid nineties. Moving on to Dynamic Capital Management in 1998, where he is now a tenured senior research analyst, and is in his fifteenth year with the firm.

KEY MANAGEMENT AND RESEARCH PROFESSIONALS

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Dynamic Capital Management places the highest priority on strong, client-centered relationships. We work closely with clients to develop customized investment goals. We are accessible to our clients. Our Anchorage office is open Monday through Friday from 8:00 A.M. until 5:00 P.M. Calls and visits are always welcomed. Our business is based on trust, and we work closely with our clients to ensure that we have a clear understanding of their objectives.

Assets are held in custody by the bank, or brokerage company designated by the client. We work with the client to make sure that brokerage expenses are minimized, consistent with quality client servicing. Almost all of our clients broker at online discount firms, granting us authority to make purchases and sales on their behalf, where we utilize the brokerage firm’s investment advisory platform. We are fee based only and don’t profit from transactions.

At DCM, we understand our clients have occasional and/or unexpected cash needs, and we will accommodate these in the most efficient and timely way possible.

All DCM clients receive a quarterly account summary of all holdings and transactions. Reports in each quarterly mailing include an account appraisal, realized gains and losses, income and expenses, and a portfolio performance evaluation. Along with a detailing of advisory billings in the prior quarter. Client meetings are offered always at the client’s discretion, to review portfolio management and performance.

DCM uses Advent Software’s “AXYS” portfolio management software to track client portfolios and generate reports. “AXYS” is in compliance with AIMR presentation standards.

DCM CLIENT SERVICES AND REPORTING

DCM FEE SCHEDULE

Annual fees are based upon the average quarterly market value of the account under management.

FEE SCHEDULE

There are no other fees charged by Dynamic Capital Management, Inc.

PAYMENT SCHEDULE

Fees are calculated for each preceding calendar quarter based on the average monthly market value of the assets under management. They are, with authorization from the client, billed directly to the custodian for payment. This avoids requiring the client to write checks frequently. As a result it includes fees as an expense to the account, and the client can then easily track the growth of the account over time after fees and expenses.

Minimum Account Size: $100,000

Unlike a Stock Broker/Financial Advisor, who, as a salesperson, has no fiduciary duty to protect the client’s interests in terms of performance and fees, and who often acts with investment prejudice, a Registered Investment Advisor(RIA) is a fiduciary with the authorized discretion to make investment decisions on behalf of the client. And as such, has a legal, moral and ethical duty to always act in the client’s best interests.

What an investor purchases from their investment management program is after-fee performance, relative to the risk they are taking. One doesn’t want bond performance from an equity portfolio. Beyond that, in the end, it is really one’s after-tax, after-inflation and after-fee performance that determines your wealth generation success. Our fee is 1% of an account value per year. Stock Broker/Financial

Advisors typically cost 2-3% once all their fees, sales commissions, and third party management fees are taken into account. These high costs siphon off a costly and disproportionate share of an investor’s wealth generating potential.

Our bond portfolios contain only high quality investment grade securities, and our stock selections, as a Large Cap Value Manager, are designed to take the least amount of risk necessary in order to achieve equity returns. As a result, DCM enjoys the enviable track record of having outperformed the S&P500 after fees and commissions, over the last five years.

Market Value Annual Fee

$100,000 - $3,000,000 1.00%

$3,000,000 - $10,000,000 0.80%

$10,000,000 and over 0.65%

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We don’t take risk because we want to, but because without the potential of the added returns available if one invests wisely in equities, investors aren’t likely to reach their investment goals. The chart below identifies the likely wealth generating impacts across different asset allocations and fee assumptions, so you can see how important they are to investors in accumulating after tax, inflation and fee purchasing power.

If you aren’t already retired, the question often becomes how much money do you need at retirement in order to live the life you want, and

what do you have to do between now and then to get there? That is why the asset allocation and investment decisions are so important. The chart on the next page shows you how we help clients understand their financial future under various assumptions. We help investors arrive at the right asset allocation for them. This is important for them by itself, and it helps us manage the account in a complimentary fashion considerate of any other investments they may have. Let us show you how we can help you reach your retirement and financial goals. Call us at 800-280-3962 to get the conversation going.

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Wealth & Purchasing Power (PP) Accumulation Analysis

Debt Gross Returns 4.0% Equity Gross Returns 9.0% Inflation 2.5%

Debt Tax Rate 35.0% Equity Tax Rate 15.0%

INPUTS

OUTPUTSDebt Asset Allocation 100% 80% 60% 40% 20% 0.0%Combined Gross Return 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%Effective Tax Rate 35.0% 31.0% 27.0% 23.0% 19.0% 15.0%After-Tax Return 2.60% 3.45% 4.38% 5.39% 6.48% 7.65%After-Tax & Inflation Return 0.10% 0.95% 1.88% 2.89% 3.98% 5.15%

Fees & Expenses 1.0% 2.0% 3.0%

$100,000 Purchasing Power in 10 Yrs. 100% Debt - 0% Equity Allocation $91,356 $82,545 $74,50680% Debt - 20% Equity Allocation $99,501 $89,982 $81,29160% Debt - 40% Equity Allocation $109,157 $98,806 $89,34840% Debt - 60% Equity Allocation $120,591 $109,265 $98,90520% Debt - 80% Equity Allocation $134,131 $121,661 $110,2440% Debt - 100% Equity Allocation $150,173 $136,362 $123,704

$100,000 Purchasing Power in 20 Yrs. 100% Debt - 0% Equity Allocation $83,459 $68,137 $55,51280% Debt - 20% Equity Allocation $99,005 $80,968 $66,08360% Debt - 40% Equity Allocation $119,152 $97,627 $79,83140% Debt - 60% Equity Allocation $145,422 $119,388 $97,82320% Debt - 80% Equity Allocation $179,911 $148,013 $121,5370% Debt - 100% Equity Allocation $225,520 $185,945 $153,027

After Tax & Inflation & Fee Return 100% Debt - 0% Equity Allocation -0.90% -1.90% -2.90%80% Debt - 20% Equity Allocation -0.05% -1.05% -2.05%60% Debt - 40% Equity Allocation 0.88% -0.12% -1.12%40% Debt - 60% Equity Allocation 1.89% 0.89% -0.11%20% Debt - 80% Equity Allocation 2.98% 1.98% 0.98%0% Debt - 100% Equity Allocation 4.15% 3.15% 2.15%

Years to Double Purchasing Power 100% Debt - 0% Equity Allocation PP DECAY PP DECAY PP DECAY80% Debt - 20% Equity Allocation PP DECAY PP DECAY PP DECAY60% Debt - 40% Equity Allocation 80 PP DECAY PP DECAY40% Debt - 60% Equity Allocation 38 79 PP DECAY20% Debt - 80% Equity Allocation 24 36 720% Debt - 100% Equity Allocation 18 23 33

0.88%

0.98%0.89%

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PRIMARY INPUTS

Current Year 2010

Husband Current Age 45

Wife Current Age 42

Husband Retirement Age 65

Wife Retirement Age 62

Annual Taxable Savings While Working/Husband $0

Annual Taxable Savings While Working/Wife $0

Age Husband to Start Withdrawing from IRA’s, etc. 70

Age Husband to Start Withdrawing Social Security 65

Age Husband to Start Withdrawing Defined Benefit 65

Age Wife to Start Withdrawing from IRA’s, etc 70

Age Wife to Start Withdrawing Social Security 65

Age Wife to Start Withdrawing Defined Benefit 65

Target After-Tax Retirement Spending

at Current Purchasing Power $65,000

Husband Social Security Annual Income $20,000

Wife Social Security Annual Income $15,000

Husband Defined Benefit Annual Income $0

Wife Defined Benefit Annual Income $0

Life Insurance Proceeds $0

Maximum Likely Year of Insurance Proceeds 2050

Inflation Assumption 2.5%

S.T. & Marginal Tax Rate 30.0%

L.T. Tax Rate 15.0%

Target Fixed Income Allocation 35.0%

Target Equity Allocation 65.0%

DCM- Retirement Program

PRIMARY OUTPUTS Total Portfolio Value Over Time Year Nominal Real Inf. Husb. Adj. Age

2010 $500,000 $500,000 45 42

2012 $560,583 $533,571 47 44

2014 $628,581 $569,464 49 46

2016 $704,911 $607,842 51 48

2018 $790,604 $648,885 53 50

2020 $886,822 $692,784 55 52

2022 $994,872 $739,743 57 54

2024 $1,116,224 $789,982 59 56

2026 $1,252,537 $843,740 61 58

2028 $1,405,675 $901,271 63 60

2030 $1,577,737 $962,847 65 62

2032 $1,562,968 $907,873 67 64

2034 $1,560,326 $862,666 69 66

2036 $1,550,986 $816,183 71 68

2038 $1,522,119 $762,396 73 70

2040 $1,475,181 $703,282 75 72

2042 $1,408,514 $639,142 77 74

2044 $1,318,989 $569,678 79 76

2046 $1,203,052 $494,567 81 78

2048 $1,056,675 $413,461 83 80

2050 $875,290 $325,985 85 82

2052 $918,843 $325,716 87 84

2054 $684,275 $230,877 89 86

2056 $401,161 $128,831 91 88

2058 $362,518 $109,110 93 90

WifeAge

P E R F O R M A N C E

Non-Taxable Equity Portfolios Gross of Fees

Year DCM Equity Return* S&P500 Return Diff. DCM Total Return* Diff.

2008 -38.09% -37.00% -1.09% -26.74% +10.26%

2009 +48.28% +26.46% +21.82% +33.09% +6.63%

2010 +15.40% +15.06% +0.34% +11.98% -3.08%

2011 -2.84% +2.11% -4.95% -2.31% -4.42%

2012 +10.47% +16.00% -5.53% +7.49% +8.51%

2008 to Date +13.71% +8.58% +5.13% +14.65% +6.07%

DCM Average Annual Equity Holdings Vs. S&P500 Enhanced Performance for 5 years = +1.03% per yrDCM Average Annual Total Equity Vs. S&P500 Enhanced Performance for 5 years = +1.21% per yr

Taxable Equity Portfolios Gross of Fees

Year DCM Equity Return* S&P500 Return Diff. DCM Total Return* Diff.

2008 -39.55% -37.00% -2.55% -27.49% +9.51%

2009 +45.81% +26.46% +19.35% +29.9% +3.44%

2010 +16.18% +15.06% +1.12% +12.99% -2.07%

2011 -1.39% +2.11% -3.5% -1.69% -3.80%

2012 +11.26% +16.00% -4.74% +8.6% -7.42%

2008 to Date +12.4% +8.58% +3.77% +13.6% +5.03%

DCM Average Annual Equity Holdings Vs. S&P500 Enhanced Performance for 5 years = +.075% per yrDCM Average Annual Total Equity Vs. S&P500 Enhanced Performance for 5 years = +1.01% per yr

OVERALL 5 YR OUTPERFORMANCE PER YR GROSS OF FEES: Equities=1.2% Total Portfolio=2.2%

Non-Taxable Equity Portfolios Net of Fees

Year DCM Equity Return* S&P500 Return Diff. DCM Total Return* Diff.

2008 -38.67% -37.00% -1.67% -27.40% +9.60%

2009 +46.92% +26.46% +20.46% +31.83% +5.37%

2010 +14.30% +15.06% -0.76% +10.9% -4.16%

2011 -3.74% +2.11% -5.85% -3.21% -5.32%

2012 +9.49% +16.00% -6.51% +6.85% -9.47%

2008 to Date +8.55% +8.58% -0.03% +9.4% +0.86%

DCM Average Annual Equity Holdings Vs. S&P500 Enhanced Performance for 5 years = -0.01% per yrDCM Average Annual Total Equity Vs. S&P500 Enhanced Performance for 5 years = +0.17% per yr

Taxable Equity Portfolios Net of Fees

Year DCM Equity Return* S&P500 Return Diff. DCM Total Return* Diff.

2008 -40.15% -37.00% -3.15% -28.18% +8.82%

2009 +43.71% +26.46% +17.25% +28.62% +2.16%

2010 +15.08% +15.06% +0.2% +11.91% -3.15%

2011 -2.21% +2.11% -4.32% -2.5% -4.61%

2012 +10.36% +16.00% -5.64% +7.68% -8.32%

2008 to Date +6.80% +8.58% -1.76% +8.50% -0.05%

DCM Average Annual Equity Holdings Vs. S&P500 Enhanced Performance for 5 years = -0.35% per yrDCM Average Annual Total Equity Vs. S&P500 Enhanced Performance for 5 years = -0.01% per yr

OVERALL 5 YR OUTPERFORMANCE PER YR NET OF FEES: Equities=0.1% Total Portfolio=1.1%

Dynamic Capital Management, Inc. 1007 West 3rd, Avenue, Suite 203, Anchorage, Alaska, 99501 • 800-280-3962 • 907-562-6374

Fax 907-563-9502 • www.dynamiccapitalmanagement.com