Lovett Investment Consulting, LLC began business in May 2007 to provide investment advisory services to the family office clients of D. Clay Lovett, CPA. Daniel Clay Lovett is the Managing Member, 99% owner and sole employee of Lovett Investment Consulting, LLC. He is also the sole proprietor and sole employee of D. Clay Lovett, CPA. Lovett Investment's clients are all members of four families who were owners of the business where the principal of Lovett Investment, Daniel Clay Lovett, was employed from 1987 until the business was sold in 1998. When the business was sold, Daniel Clay Lovett began to provide tax and accounting services to the principal owners of the business through a sole proprietorship, D. Clay Lovett, CPA. As part of these services, D. Clay Lovett, CPA assisted its clients in interviewing, selecting, and monitoring the performance of investment managers. Lovett Investment began business in May 2007 to be able to directly provide investment advisory services to these clients of D. Clay Lovett, CPA. The clients include not only individual family members, but also entities (partnerships, trusts, charitable foundations) owned or controlled by these four families. Lovett Investment is not accepting new clients and has no plans to do so. In addition to these clients, Lovett Investment provides investment advice without charge to family members and a childhood friend of Daniel Clay Lovett. Lovett Investment works with each client to develop an investment asset allocation plan that is specific to that client. The core of Lovett Investment's service to its clients is it to help the client decide how to allocate their portfolio among the investment asset classes (domestic equities, international equities, fixed income, cash, etc). The next step is to select the securities to implement the asset allocation plan. Lovett Investment does not have the experience or the time to evaluate and recommend individual securities. Consequently, Lovett Investment will recommend a combination of mutual funds, exchange traded funds (ETF) and Independent Manager(s) (see following paragraph). The only individual securities Lovett Investment will recommend and purchase on behalf of clients are U.S. Treasury Bills and Notes, including inflation adjusted notes, and FDIC insured certificates of deposit. Clients are allowed to include individual securities in their portfolios, and Lovett Investment will purchase them on the client's behalf if directed to do so and will include the securities in the portfolio reports for the client. Clients may impose restrictions on investing in certain securities or types of securities. For clients that require an enhanced and/or specialized level of asset management services, Lovett Investment may recommend the clients authorize the active discretionary management of a portion of their assets

by independent investment manager(s) and/or investment programs (the "Independent Manager(s)"), based upon the stated investment objectives of the client. The terms and conditions under which the client shall engage the Independent Manager(s) shall be set forth in a separate written agreement between the client and the designated Independent Manager(s). Independent Manager(s) shall also provide the client with a copy of the written disclosure statement of the Independent Manager(s). Lovett Investment shall continue to render investment supervisory services to the client relative to the ongoing monitoring and review of account performance, asset allocation and client investment objectives. Factors which Lovett Investment shall consider in recommending Independent Manager(s) include the client's designated investment objective(s), management style, performance, reputation, financial strength, reporting, pricing, and research. Once the target asset allocation has been agreed upon and the mutual funds, money managers, etc. are selected to implement the target allocation, Lovett Investment will implement the plan by purchasing the mutual funds, ETFs, Treasury Notes etc. in client accounts where it has trading authority, and by assisting the client in transferring money to accounts managed by Independent Manager(s). Lovett Investment will then monitor the client accounts and make periodic recommendations to rebalance to the target allocation, change funds or managers, or change the target allocation. Recommendations to change funds or managers or to change the target allocation are not expected to occur frequently. A Client may decide to give Lovett Investment the authority to make these changes without first discussing it with the client. Lovett Investment will periodically (usually quarterly) provide reports to its clients showing the portfolio allocation and performance. Clients will also receive statements directly from custodians (brokerages, banks, etc.), and reports from Independent Manager(s) if they are used. Clients should always compare reports received directly from Lovett Investment to these statements from independent custodians and Independent Manager(s). ASSETS UNDER MANAGEMENT. Lovett Investment manages or provides advice on a regular and continuous basis for approximately $181,000,000 of client investments: $98,000,000 on a discretionary basis; and $83,000,000 on a non-discretionary basis. In addition, Lovett Investment provides advice on approximately $45,000,000 of other client investments that are not on a continuous and regular basis. Such other assets include client investment in private equity and real estate partnerships and Independent Manager(s) that Lovett Investment does not have the discretionary authority to hire or fire.