Disclaimers

Hardesty Capital Management (HCM) is a registered investment advisor (RIA) regulated by the Securities & Exchange Commission (SEC) under the Investment Advisors Act of 1940. HCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®) as adopted by the CFA Institute. CFA Institute has not been involved in the preparation or review of this report. This composite was created on 12/28/1999.

This composite is comprised of 158 tax-advantaged accounts with a balanced asset allocation and similar investment objectives totaling $122,432,003. This represents 13.2% of the firm’s total assets under management. New accounts that fit the composite characteristics are added no more than 90 days after the initial funding and determination of investment objectives. Terminated accounts are included in the composite history up to the month end prior to termination. A complete list of firm composites and performance results is available upon request.

Past investment performance may not be indicative of future results. This performance report should not be construed as a recommendation to purchase or sell any particular securities held in the composite. Market conditions can vary widely over time and can result in a loss of portfolio value.

Returns are calculated in U.S. dollars. Performance results are time-weighted. Trade date accounting is used. Accruals for fixed income and equity securities are used in performance calculations. Results are calculated on a total return basis. Performance includes the reinvestment of dividends, capital gains and other earnings. The “Gross of Fee” calculations are made before HCM management fees, custodial fees, withholding taxes on foreign dividends and after transaction costs. The “Net of Fee” calculations are made after HCM management fees, custodial fees, and withholding taxes on foreign dividends. Client’s returns will be reduced by the advisory fees and any other expenses which may be incurred in the management of the investment advisory account. HCM’s investment management fee schedule is available upon request and is outlined in Part II of Form ADV. Additional information regarding policies for calculating and reporting returns is available upon request.

We compare the domestic equity returns with the S&P 500. As of 12/31/2006, the domestic equity returns include a foreign security. The holding is British Petroleum and comprises 2.02% of the market value of equities. BP was sold in 2010.

The dispersion measure used is standard deviation. Dispersion is calculated as the asset-weighted standard deviation of all accounts included in the composite for the entire year around the annual composite return.

The “One Year,” “Three Year,” “Five Year,” “Seven Year,” and “Ten Year” numbers are based on full calendar year calculations. No partial-year numbers are included.

Representative example showing the effect an investment advisory fee, compounded over a period of years, could have on the total value of a portfolio:

Hardesty Capital Management (HCM) is a registered investment advisor (RIA) regulated by the Securities & Exchange Commission (SEC) under the Investment Advisors Act of 1940. HCM has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®) as adopted by the CFA Institute. CFA Institute has not been involved in the preparation or review of this report. This composite was created on 7/31/2006.

This composite is comprised of 44 accounts with a balanced asset allocation and similar investment objectives totaling $33,246,570. This represents 3.6% of the firm’s total assets under management. New accounts that fit the composite characteristics are added no more than 90 days after the initial funding and determination of investment objectives. Terminated accounts are included in the composite history up to the month end prior to termination. A complete list of firm composites and performance results is available upon request.

Past investment performance may not be indicative of future results. This performance report should not be construed as a recommendation to purchase or sell any particular securities held in the composite. Market conditions can vary widely over time and can result in a loss of portfolio value.

Returns are calculated in U.S. dollars. Performance results are time-weighted. Trade date accounting is used. Accruals for fixed income and equity securities are used in performance calculations. Results are calculated on a total return basis. Performance includes the reinvestment of dividends, capital gains and other earnings. The “Gross of Fee” calculations are made before HCM management fees, custodial fees, withholding taxes on foreign dividends and after transaction costs. The “Net of Fee” calculations are made after HCM management fees, custodial fees, and withholding taxes on foreign dividends. Client’s returns will be reduced by the advisory fees and any other expenses which may be incurred in the management of the investment advisory account. HCM’s investment management fee schedule is available upon request and is outlined in Part II of Form ADV. Additional information regarding policies for calculating and reporting returns is available upon request.

We compare the domestic equity returns with the S&P High Yield Dividend Aristocrats.

The dispersion measure used is standard deviation. Dispersion is calculated as the asset-weighted standard deviation of all accounts included in the composite for the entire year around the annual composite return.

The “One Year,” “Three Year,” “Five Year,” “Seven Year,” and “Ten Year” numbers are based on full calendar year calculations. No partial-year numbers are included.

Representative example showing the effect an investment advisory fee, compounded over a period of years, could have on the total value of a portfolio: