5847 San Felipe, Suite 4100, Houston, Texas (713) (800) (713) (Fax) INVESTING IN RETIREMENT THE GAME HAS CHANGED … OR HAS IT?

Sources of Retirement Income:  19% Social Security  21% Pension  18% Investments  40% Earned Income  2% Other

Source: Annuity 2000 Mortality Table; Society of Actuaries. Figure assumes a person is in good health. 50% chance of one spouse surviving 25% chance of one spouse surviving Male age 65 Female age 65 Couple (both age 65)

All numbers were calculated based on hypothetical rates of inflation of 2%, 3%, and 4% (historical average from 1926 to 2006 was 3%) to show the effects of inflation over time; actual inflation rates may be more or less and will vary. Source: Retirement Income Planning – America’s Lifetime Income Challenge, Fidelity Investments Insight, June Dollars $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Today5 years10 years15 years20 years25 years Years from retirement start date $50,000 $18,756 $23,880 $30,477 2% inflation 3% inflation 4% inflation

For a 65-year-old couple, there is a 94% chance that at least one spouse will need income at age 80. A couple, both age 65, would have run out of money at age 88 if they had withdrawn 5%, adjusted upwards for inflation each year. 4% 5% 6% 7% 8% 9% $100, % at Age 65 99% at Age 70 98% at Age 75 94% at Age at Age 85 63% at Age 90 35% at Age 95 Dollars Remaining $1,000,000 Source: Fidelity Investments. Hypothetical value of assets held in an untaxed account of $500,000 invested in a portfolio of 50% stocks, 40% bonds, and 10% short- term investments with inflation-adjusted withdrawal rates as specified. This chart’s hypothetical illustration uses historical monthly performance from January 1972 through December 2006 from Ibbotson Associates: stocks, bonds, and short-term investments are represented by S&P 500, U.S. Intermediate-Term Government Bonds, and U.S. 30-day T-bills. This chart is for illustrative purposes only and is not indicative of any investment. Past performance is no guarantee of future results. * Probability of a couple surviving to various ages is based on Annuity 2000 Mortality Table from Society of Actuaries. Figures assume you are in good health. See “Methodology and Information” at the end of this presentation for further details about indexes and methodology used to produce the chart. How a couple retiring in 1972 with $500,000 is affected. Hypothetical Couple (Both Age 65)* 10%

The Value Of Diversification

Current Income Portfolio “CIP”

Investment Profile Current Income Portfolio seeks to:  Provide the highest current yields available on investment grade, coupon and dividend- paying, U.S. investments;  Utilize a high degree of issuer diversification and asset allocation strategic management;  Establish a defined investment horizon to safeguard investment principal;  Maintain the highest possible real (inflation adjusted) returns.

Current Income Portfolio invests in:  One to fifteen year corporate issues, predominately rated A/A2 to BBB/BAA2;  U.S. Agencies (with call and step-up provisions);  Corporate inflation protection (floating rate) securities;  Seasoned mortgage-backed securities; and  Listed preferred stocks. Investment Profile

“CIP” Portfolio Characteristics 6/30/09 **Barclay’s Capital Intermediate Government Credit Index CapstoneBCIGC ** Duration4.13 * 3.87 Current Yield6.01%4.14% Yield to Maturity5.26%3.21% Average Quality A Agency * Does not include preferred stocks

“CIP” Portfolio Sector Weightings 6/30/09

“CIP” Yield Advantage 6/30/09 *Barclay’s Capital Intermediate Government/Credit Bond Index **Source: Informa Investment Solutions – PSN using gross calculations Percent Current Yield Advantage **

Theta Growth

This Strategy Offers Investors:  Conservative equity portfolio: The portfolio is composed of large cap stocks.  Price appreciation potential: The portfolio seeks to achieve price appreciation from the stocks held.  The potential for attractive cash flows: Combined option premium income and dividend yield is better than current broad bond market yields and does not have interest rate risk.  Moderation of volatility on equity returns: The portfolio utilizes covered calls and is therefore less volatile than an equity- only strategy. Theta Growth

Projected Average annual cash flow:8 - 10% * Number of stocks held: Number of options sold: % written Average option duration:Market directed (average 6 months) * Combined option premium income and dividend yield estimate. Theta Growth Characteristics 6/30/09

Theta Growth Sector Characteristics 6/30/09

BXM Buy Write Index Capstone Theta Growth S&P 500 Index Annual Return more return less risk Annual Risk (Standard Deviation) Theta Growth 3 Year Risk vs. Return * *Source: Informa Investment Solutions – PSN using gross calculations

Theta Growth Portfolio Cash Flow 6/30/09

Trailing Returns* Percent Theta Growth Performance *Source: Informa Investment Solutions – PSN using gross calculations