investment philosophy monthly performance*

Brad is a founding member of Watts Gwilliam & Co. and oversees the day-to-day investment management of the IPOM strategy. He is a key contributor to the �rm's success in developing sophisticated investment strategies. Brad has nearly two decades of option trading experience. Prior to the formation of Watts Gwilliam & Co., Brad spent 5 years working for Merrill Lynch. While at Merrill Lynch he developed sophisticated option strategies for clients with concentrated

stock positions. Before working at Merrill Lynch, Brad worked on the trading desk for a national mutual fund company. Brad received his education from Arizona State University's School of Finance. When he’s not working, he volunteers as a local Boy Scout leader and coaches his kids baseball and football teams. He enjoys gol�ng, working out, camping, hiking, and he’ll never turn down an opportunity to go skiing. Brad and his wife, Jo, are third generation Arizona Natives and have six children.

brad gwilliam: portfolio manager

the relative performance of $1,000 invested over time

S&P IPOM$3.05K

S&P 500$2.85K

BXM$2.04K

Periods Ending 05/2017

investment philosophyinvestment philosophy

risk and return statistics (ending 05/31/2017)

5 Year 10 Year IPOM S&P 500 BXM IPOM S&P 500 BXMMean Return 13.30 15.42 8.43 7.34 6.94 4.75Standard Deviation 8.09 9.64 6.02 12.83 15.23 11.43Sharpe Ratio 1.57 1.52 1.35 .58 .48 .40Alpha vs. S&P 500 1.16 - - 1.56 - -Alpha vs. BXM 3.79 - - 2.77 - -

other information Address: 2730 S. Val Vista Dr., #124, Gilbert, AZ 85295 Phone: 480.889.8998 Pro�le Manager: Brad Gwilliam Mgr. Eperience: 1999 Product Contact: Mark Vest Incentive Fee: No Min. Account Size: $100,000 Min. Annual Fee: $1,000 Website: www.ipominfo.com

IPOM (Income Producing Options Model) is a sophisticated covered call writing strategy that uses our proprietary options modeling software which helps us continually identify opportunities to enhance income and capitalize from the volatility of the markets. �e Watts Gwilliam S&P IPOM strategy acts as an overlay to owning the S&P 500 by generating income thru the selling of covered calls. IPOM seeks to provide more upside appreciation than a traditional covered call strategy while still generating income from covered call selling. A secondary goal of IPOM is to reduce the risk of owning the S&P 500 on its own. IPOM is also run on client’s individual holdings.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD SP 500 BXM***

2005 -0.75 0.64 0.19 -2.06 3.98 0.07 3.53 0.75 1.24 -1.98 4.71 -0.67 9.80 4.91 1.25

2006 2.50 1.70 2.56 1.03 -0.57 0.85 2.12 1.60 1.85 2.76 0.84 1.83 20.78 15.79 13.33

2007 1.51 -0.88 2.28 2.13 -0.01 0.42 -4.82 1.58 4.04 -0.26 -1.42 1.07 5.50 5.49 6.59

2008 -5.95 -1.20 -1.55 5.87 0.00 -6.20 -0.68 1.47 -7.78 -14.92 -9.14 2.78 -32.91 -37.00 -28.65

2009 -3.83 -9.48 8.21 9.80 3.53 4.72 4.48 4.20 1.79 -0.87 4.63 0.71 29.80 26.46 25.91

2010 0.09 2.17 1.20 0.14 -3.99 -3.73 6.38 -3.74 7.05 4.27 0.64 4.66 15.32 15.06 5.86

2011 1.56 0.84 0.63 2.47 0.51 -0.65 -1.16 -5.00 -5.97 9.72 0.71 1.52 4.45 2.11 5.72

2012 4.37 1.57 0.21 1.52 -4.17 3.35 1.67 1.84 2.29 -0.89 0.89 -0.17 12.92 16.00 5.2

2013 5.58 1.62 1.89 2.32 -0.26 -1.68 4.96 -2.57 3.07 3.51 1.61 1.13 22.97 32.39 13.26

2014 -0.58 4.51 0.80 1.08 2.28 0.83 -0.39 3.54 -1.32 1.99 1.92 .08 15.60 13.69 5.64

2015 -2.17 5.27 -1.14 1.56 1.90 -1.94 2.18 5.73 -3.01 6.77 1.34 -1.38 3.00 1.38 5.24

2016 -4.45 -.35 4.63 1.42 2.40 -0.08 2.29 0.41 0.98 -0.94 2.86 0.78 10.10 11.96 7.07

2017 2.08 0.38 0.28 1.60 1.51 5.98 8.66 6.83

* Performance net of fees** �e CBOE S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 index. BXM is a service mark of the Chicago Board Options Exchange (CBOE). �e CBOE calculates and disseminates the BXM Index.

A professionally managed covered call strategyoverlaying the S&P 500 index.

S&P IPOM STRATEGYA professionally managed covered call strategy

overlaying the S&P 500 index.

SPY IPOM STRATEGY

�e performance presentation shown above represents the performance of the Watts Gwilliam & Company IPOM (Income Producing Options Model) Strategy. �e performance shown prior to August of 2009 was calculated using a hypothetical model portfolio. �e results for periods before August 2009 do not represent the results of actual trading by Watts Gwilliam & Company (WGC) using client assets but were achieved by means of retroactive application of a back-tested model that was designed with the benefit of hindsight. For periods before August 2009, assumptions were made and used to calculate the performance shown including historical interest rates, implied volatilities, dividends, option expirations, and option strike prices. Had actual historical information been used the performance might have been materially di�erent. �e data used to calculate hypothetical backtested performace and benchmark performance was obtained from sources we believe to be reliable. Sources of data include Bloomberg, Morningstar, the CBOE (Chicago Board of Options Exchange)and the iVolatilty website.

Future securities market conditions may be a�ected by factors that cannot be accounted for using historical modeling techniques. While it is WGC’s goal that the IPOM Strategy adds value to investment portfolios, especially in flat or down markets, portfolios might underperform in rising markets. �e performance presentation shown above does not reflect the e�ect of paying taxes which may be a significant consideration for taxable accounts. �e performance of the Watts Gwilliam IPOM Strategy shown for periods prior to August 2009 does not include the reinvestment of interest, dividends and other earnings. Returns for the Watts Gwilliam & Company Income Producing Options Model were calculated using the time-weighted rate of return method by geometrically linking daily/weekly/monthly/quarterly returns. For periods shown after August 2009 the results achieved by individual clients did and will vary from the actual performance of the performance composite and will depend on a number of factors including the particular underlying stock and its dividend yield, option market liquidity, interest rate levels, implied volatilities, and the client’s expressed return and risk parameters at the time the service is initiated and during the term.

�e results shown reflect the deduction of all investment management fees, commissions, and other expenses actually paid by clients for periods after August 2009. For periods shown before August 2009 the highest investment advisory fee, and highest commission rates charged by the custodian for this strategy were applied when calculating the model portfolio results. �e results shown for periods after August 2009 reflect the addition of dividends and interest if any to the account. �e Watts Gwilliam IPOM Strategy results shown for periods after August 2009 include only actual client portfolios greater than $150,000 in value, invested for the full calendar quarter and managed on a fully discretionary basis with no investment restrictions imposed by the client. Past performance is no guarantee of future results and there is the potential for loss of capital.

�e results shown above are compared with a benchmark index. Indices are unmanaged, hypothetical portfolios of securities that are often used as a benchmark in evaluating the relative performance of a particular investment. An index should only be compared with a mandate that has a similar investment objective. An Index is not available for direct investment, and does not reflect any of the costs associated with buying and selling individual securities or management fees. �e benchmark indicies’ performance includes dividends and interest. �e benchmark index used in this presentation is the S&P 500 Index and/or the CBOE Buywrite Monthly Index (BXM), as noted. �e S&P 500 measures the performance of the 500 largest US companies based on total market capitalization. S&P ranks the US common stocks from largest to smallest market capitalization at each annual reconstitution period. BXM is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 index. For more information on the Buywrite Monthly Index please see www.cboe.com.