1. Fiduciary Responsibility Frye Financial Center Creating, Protecting and Preserving Wealth www.fryefinancial.com

2. Your Fiduciary Responsibility… As a retirement plan sponsor and fiduciary, you are obligated to manage risk in compliance with the law, while providing a cost-effective, financially sound retirement plan. As qualified retirement plan & ERISA specialists, Frye Financial Center can guide you in the fulfillment of these responsibilities. The Employee Retirement Security Act of 1974 (ERISA) defines four basic duties that a fiduciary must carry out to be in compliance:  Exclusive benefit rule  Prudent man/expert rule  Investment diversification  Compliance of the plan document In addition to these basic duties, a fiduciary has other responsibilities relating to participant communication, document retention and destruction, prohibited transactions, employer security and real property and bonding. At Frye Financial Center, we specialize in assisting clients manage the burden of understanding these complicated requirements. You can rely on us, as your retirement plan consultants, to provide the expertise, programs and services you need to meet all of your fiduciary responsibilities. How we can help.

3. Employee Education PROVIDER REVIEW/ PLAN AUDIT Investment Consulting Our Role As Advisors We help you weigh and prioritize retirement program features and benchmark your provider. We assist in reviewing your current plan design and can offer suggestions that seek maximization of your plan features. We offer qualitative and quantitative reviews of investments using a documented process to reduce fiduciary liability. We develop a customized strategic education program for your employees that includes providing investment advice to plan participants.* PLAN DESIGN INVESTMENT CONSULTING EMPLOYEE EDUCATION At Frye Financial Center… *Advisory services offered through Linsco/Private Ledger

4. Who’s an Investment Fiduciary? Internal External A person who…  Has discretionary authority over plan investments  Exercises any control over plan assets  Gives investment advise for compensation Trustee Plan Committee Board of Directors Officers Responsible For Investments RIA’s/Investment Advisors Brokers if they offer Investment Advice

5. Uniform Fiduciary Standards of Care TEXT 1.Know standards, laws and trust provisions 2.Prepare investment policy statement 3.Diversify portfolio assets 4.Use professional money managers (“prudent experts”) 5.Control and account for investment expenses 6.Monitor the activities of service providers 7.Avoid conflicts of interest and prohibited transactions

6. Frye Financial Center Consulting Process Analyze current situation Step 1 Design Optimal Program Step 2 Formalize Investment Policy Step 3 Implement Policy Step 4 Rebalance Monitor & Supervise Step 5 Copyright 2000. Foundation for Fiduciary Studies

7. STEP 1-Analyze current situation Review current plan structure Analyze current investment and menu options Compare investment management fees to industry averages Plan design consultation Review current education program

8. TEXT STEP 2-Design Optimal Program Establish Goals & Objectives –Principal Purpose of the Plan –ERISA & 404 (c) Asset Allocation –Current & Model Asset Allocation –Efficient Frontier & Optimal Asset Allocation –Asset Allocation Methodology Investment Criteria for Hiring/Firing Manager –Create Methodology –Implement

9. STEP 3-Develop Investment Policy Statement Fact Sheet-Investment Committee Members, Consultant, Trustee and Provider Map out goals of the program Role of Investment Committee, Consultant and other providers Criteria for including/excluding asset classes Criteria for including/excluding investment options Becomes a living document that can be passed onto new committee members An Investment Policy Statement should contain:

10. STEP 4-Implement Solution Determine which asset classes will be available to participants. –Can Model Portfolios add value? Conservative Moderate Aggressive Select investments in compliance with the Investment Policy Statement.

11. STEP 4-Implement Solution Strategic Education Plan incorporating: –Enrollment Meetings –Targeted Education Campaigns –Ongoing Education/Communication Messages –Financial Planning, 529 Plans, Roth IRA’s –Advanced Investment Consulting Services

12. STEP 5-Monitor and Supervise Frye Financial Center will provide detailed quarterly performance reports… –Adherence to Investment Policy Statements –Performance versus appropriate style and universe –Risk-return measures –Ongoing review to ensure all risk points along efficient frontier are covered –Review of investment fees

13. The Frye Financial Advantage While other financial planners, brokers or insurance agents sell qualified retirement plans, most do not have the expertise or support in place to offer the comprehensive servicing Frye Financial Center has been providing our corporate and non profit pension plan clients for over 25 years. Our team has the skills, experience and ERISA knowledge to make your plan successful and to help you avoid any plan-related risk.

14. FRYE FINANCIAL CENTER 20900 West Dixie Highway Aventura, FL 33180 305-931-3200 office 305-931-9383 fax www.fryefinancial.com Creating, Protecting & Preserving Wealth Call us today for a complimentary consultation