Groesbeck Investment Management Corporation Our Growth

Groesbeck Investment Management CorporationOur Growth of Income Investment Management ProcessGroesbeck Investment Management Corp.12 Route 17 North, Paramus, New Jersey 07652201-291-7888

Growth of Income Investment Philosophy“We seek to achieve four objectives: A superior dividend yield A rapid growth of the income stream A total return in excess of appropriate benchmarks A low level of volatility of performanceOur process nott onlyOl tendst d tot achievehitheth statedt t d goals,l butb t alsol offersff anattractive risk-adjusted return.At Groesbeck Investment Management, you will find us highly clientfriendly, flexible, and devoted to our investment process.”- Robert P. Groesbeck, CFAGroesbeck Investment Management2

Corporate ProfileProfessional Experiencep¾ Robert P. Groesbeck, CFA, has over 35 years of experience managing assets fortaxable and tax-exempt clients. Bob started the firm in 1993.¾ Robert P. Dainesi has 22 years of portfolio management and security analysisexperience. Bob joined the firm in 1993.¾ Theodore M. Groesbeck, CFA, has 15 years investment experience. Ted joined thefirm in 1999.pJohn jjoined the firm¾ John D. Mattesich,, CFA,, has 13 yyears research experience.in 2006.Consistency of Approach and Results¾ Research driven stock selection disciplines¾¾¾¾¾Philosophy implemented over the long termAbove-market risk-adjusted resultsMinimal dependence on market and street forecastsF dFundamentallyt ll drivendistockt k selectionl ti andd sellll methodologiesth d l iContinuity of philosophy and strategy over many market cyclesCorporatepStructure¾ An employee owned corporation managing approximately 1.0 billion¾ A client base including pension plans, endowments, foundations, Taft Hartley, and high networth individuals.Groesbeck Investment Management3

Benefits of a Dividend-Paying Stock Selection Strategy¾ REDUCED RISKDividend-paying stocks are less volatile than the stock market in general. The high-quality stocks that we purchase mustincrease their dividend on an annual basis. These stocks tend to hold their value much better in a declining market and thushelp to preserve wealth.wealth Historically,Historically our portfolios have outperformed during down markets.markets¾ DIVIDENDS, AND THEIR RE-INVESTMENT, HISTORICALLY COMPRISE OVER 40% OF THE TOTALRETURN OF THE STOCK MARKETAlthough capital appreciation is the primary objective of our strategy,strategy we can count on a significant portion of our return fromdividends, thus increasing the reliability of our approach. Dividends are paid in cash; they cannot be faked.¾ A DIVIDEND POLICY LEADS TO A STRONG FINANCIAL DISCIPLINE FOR CORPORATIONSA dividend ppolicyy sets a ppriorityy for a companyp y to ppayy its shareholders,, alongg with meetingg capitalpexpenditureprequirements,q,from its cash flow. We believe it’s the ideal method of returning capital to shareholders and is the definition of a shareholderfriendly company. It tends to prevent corporations from wasting money on poor acquisitions and deviating from their businessplan.¾ A DIVIDEND INCREASE IS A POSITIVE SIGNAL OF FUTURE FINANCIAL STRENGTHWhen a company raises its dividend, it sends a positive signal to the stock market that its prospects for earnings growth in thefuture are strong. Companies with strong dividend increase histories are generally financially superior businesses and tend tomake good long-term investments.¾ A DIVIDEND-DRIVEN STRATEGY EXCLUDES MANY HIGH RISK COMPANIESOur criteria exclude companies with poor earnings histories, and/or weak balance sheets, allowing our analysts to focus on asmaller universe of very high-quality companies.Groesbeck Investment Management4

The First Step: Quantitative AnalysisGroesbeck Investment Management’sManagement s investment process begins with the search for:¾ Superior Sustainable Earnings Growth - Growing companies, based on trailingoperating earnings, producing earnings growth superior to the S&P 500. Our target isportfolio earnings growth of 10% or more.¾ Attractive Growth of Dividends - Compared with industry and market benchmarks.We buy companies which have increased their dividends each and every year.¾ Superior Dividend Yield - Dividends must be attractive relative to the S&P 500 andother alternatives.¾ Superior Revenue Growth - Positive growth of revenues from sustainable ongoingbusiness operations.¾ Strong Financials - Ensuring companies purchased have strong balance sheets.¾ Low Dividend Payout Ratio - Ensuring that management is not paying out individends an excessive portion of earnings.¾ High Return on Equity - Investing in only companies having high return on equity,an important measure of overall corporate profitability.¾ Liquidity - We actively monitor the trading volume of all qualified stocks in anattempt to reduce market price impact.Groesbeck Investment Management5

The Next Step: Fundamental AnalysisFor those companies possibly qualifying for our portfolio, we perform in-depth fundamental analysis:Dividend Criteria¾ Consistent growth of dividends in the future¾ Dividend growth exceeding industry and market averages¾ Potential for significant growthValidate Fundamentals¾ Underlying sales, earnings, margin trends¾ Operating & free cash flows¾ Balance sheet strengthEvaluate Business¾ Market leadership and market shareOur process avoids deep cyclical companiessuch as the ppaper,p , auto,, chemicals,, metals,,and transportation companies¾ Industryy outlook¾ Factors affecting sustainability of sales and earningsValuation Analysis¾ P/E multiple on trailing operating earnings,earnings relative to the S&P,S&P its industry,industryand its history¾ P/E relative to growth rate (PEG Ratio); the current PEG Ratio is 1.2x¾ Attractiveness of dividend yieldGroesbeck Investment Management6

Growth of Income: Relative Earnings and Dividend Growth (3/31/08)Earnings per Share Growth(5 Year Annualized)13 0%13.0%Dividend Growth(5 Year Annualized)14 5%11.5%12.0%11 8%11.8%11.0%11.5%10.5%11 0%11.0%10.5%10.0%GroesbeckS&P 500GroesbeckGroesbeck Investment ManagementS&P 5007

Average Dividend Yield (1993-2007)GroesbeckS&P eck Investment Management8

Portfolio Statistics as of 3/31/08GroesbeckS&P 500EPS growth - 5 year annualized12 6%12.6%12 4%12.4%Dividend Growth - 5 year annualized14.1%11.8%Dividend Yield3.7%2.2%Trailing P/E (1 yearweighted average)15.4x16.0xAverage Return on Equity - 1 year22.7%19.8%Weighted AverageMarket CapitalizationAverage S&P Quality Rank 79.9 Billion 92.8 BillionAB Groesbeck Investment Management9

Portfolio Construction: Growth of Income Process ConstructionCt ti off a DiversifiedDiifi d PortfolioP tf liFully Invested At All Times30-40 companiesOver 15 industriesPortfolio Sector Weights (3/31/08)GroesbeckS&P alServicesHealth trialsTechnologyGroesbeck Investment ManagementMaterialsEnergy10

Representative Holdings (3/31/08)The GrowthThGh off IncomeIportfoliof li holdsh ld companiesi withi h strong balanceb lsheetshthath achievehiabove-average earnings and dividend growth and high profitability.Current YieldBankk off AmericaBAiGeneral Electric CompanyJohnson & JohnsonUnited TechnologiesSherwinhi WilliamsilliPraxairUS BancorpWeingarten RealtyPepsi Co., Inc.Chevron66.8%8%3.42.61.92.71.85.36.12.13.45 Year Annualized 6S&P RankAA A A AAAAA A-*For REITs FFO GrowthGroesbeck Investment Management11

Sell DisciplinesOur reasons for selling:¾ Weakening Revenues and Earnings Trendsppproducingg ggrowingg revenues and earnings.gWe want to own companies¾ Declining MarginsA reduction in profit margins is often a warning for not only one stock but possiblyseveral members of a sector.¾ Failure to Increase the DividendThis would cause an automatic sale of the holding.¾ Reduced Growth Rate of DividendThis triggers a review and possible sale.¾ Positions Sold When Fully Valued¾ Superior AlternativesWe monitor other candidates closely, and make portfolio changes which increase theincome stream.¾ Positions Trimmed as Prices AdvanceStocks exceeding 7% of the portfolio will be trimmed back to 5% or less.Groesbeck Investment Management12

MANAGED ACCOUNTS GROWTH OF INCOME COMPOSITEGROSS OF FEESYear%Q1%Q2%Q3%Q4%YEAR%S & P 803.161.054.9120064.440.847.465.1318.9815.7920070 300.300 290.293 263.26-7.217 21-3.573 575 495.492008-2.67-2.67-9.451 Year (3/31/08)-6.48%5.08%3 Year Annualized (3/31/08)5.12%5.85%5 Year Annualized (3/31/08)10.42%11.31%10 Year Annualized (3/31/08)6.92%3.50%This composite (created 4/1/03) represents the total return for all portfolios managed by Groesbeck Investment Management (GIM) in a managed accounts program using our growth of income style. GIM is anSEC registered investment advisor that invests primarily in U.S.-based securities and is not affiliated with any parent organization. Performance includes reinvestment of dividends and is calculated in U.S. dollars.SiSinceJ 1 1994,Jan.1,1994 compositesit havehbbeenvaluedl d monthlythl andd portfoliotf li returnsthhavebbeenweightedi ht d byb usingi beginning-of-monthb i ifth marketk t values.lP i toPriort AprilA il 1,1 2003,2003 theth compositeit consistedi t d off a non-manageddaccounts growth of income composite, valued at 122 million (3/31/03), and included all accounts of 500,000 or greater with a Growth of Income investment objective. This composite is still managed by GIMseparate from the Managed Accounts Composite. It has assets of 160.4 million (3/31/08) representing 20.2% of total firm assets. The performance calculations do not reflect the deduction of advisory and otherfees, which could reduce reported returns in a managed accounts composite by up to 3% per year. GIM claims compliance with the US and Canadian version of the Global Investment Performance Standards(GIPS). The composite includes the following: # of portfolios; annual standard deviation; composite market value at year end; % of total firm assets represented by the composite. Note: dispersion is notstatistically meaningful (NMF) when there are fewer than 5 portfolios in a composite for the entire year. (#,s, M,%) 1998: #2, NMF, 141.7, 39.2%; 1999: #2, NMF, 123.9, 32.7%; 2000: #2, NMF, 143.1, 35.6%;2001: #2, NMF, 136.9, 50.8%; 2002: #3, NMF, 126.1, 58.8%; 2003: #147, NMF, 46.5, 17.2%, 2004: #547, 0.33s, 192.5, 45.9%; 2005: #1563, 0.50s, 558.1, 67.4%; 2006: #2134, 0.61s, 784.7, 72.3%;2007: #2484, 0.62s, 705.3, 73.0%; 3/31/08: #2047, 0.58s, 569.7, 71.6%. If applicable, the annual standard deviation presented is an asset - weighted calculation of performance dispersion for accounts in thecomposite for the entire year.year Past performance is no indication of future results.results A complete list and description of firm composites will be made available upon request.request Additional information regarding policiesfor calculating and reporting returns is available upon request.Groesbeck Investment Management13

Growth of Income Returns as of 3/31/08Groesbeck Investment Management14

Growth of Income ReturnsReturn vs. RiskGroesbeck Mgmt.Mgmt Wrap Growth-Inc.Growth-IncStandard & PoorPoor’ss 500Groesbeck Investment Management15

Growth of Income ReturnsU /DUp/DownMMarketk tCCapturetRRatioti10 Years Trailing Ending 3/31/0868%70%60%50%36%40%30%20%10%0%Up-Market RatioDown-Market RatioGroesbeck Investment Management16