1. James W. Herrig, J.D. Vice President, Counsel & Compliance Officer & Russ Pixler Senior Financial Advisor

2.  Direct investments are generally income investments, providing a regular stream of dividend payments based on real estate rentals, mortgage payments, equipment leases, and oil or natural gas sales. *  *Guide to Understanding Direct Investments, Morris and Morris, © 2005 Lightbulb Press, Inc. All rights reserved. 2

3.  “... the illiquidity of a direct investment can help insulate you against the volatility of the market because it’s not subject to daily fluctuations in price. As a result, a direct investment can have a stabilizing effect on your portfolio.”*  *Guide to Understanding Direct Investments, Morris and Morris, © 2005 Lightbulb Press, Inc. All rights reserved. 3

4.  Non-traded (unlisted) REITS [real estate investment trusts]  Industrial (single tenant)  Office Single tenant Multi-tenant programs  Retail ( and items to consider for this and other segments) Big box Strip mall Single/multi-tenant Quality of the credit Lease duration Bunched or staggered lease maturities Fixed or adjustable Triple net leases Use of leverage Refinancing schedule Recourse or non-recourse debt  Mixed  Multi-family  Storage facilities  Other areas are less likely as an income choice 4

5.  Equipment leasing programs (a residual value opportunity that may provide an inflation hedge)  Energy Development  Energy Exploration  Real estate Limited Partnerships  Energy royalty programs 5

6. [NOT AVAILABLE FOR CLIENT USE]  The HKFS Direct Investment Matrix  The HKFS Direct participation fact sheets  Log into Affiliate Access at www.hkfs.comwww.hkfs.com Click on “+” sign beside Brokerage Click on Direct Investments 6

7.  Examples of Fact Cards 7

8. [NOT AVAILABLE FOR CLIENT USE] Reinvestment terms: $9.50 Tax form: 1099 Proposed Liquidation Date: 12/31/11 Tax features: Some sheltering Investment features: 88% of investment goes into investment; 7% preferred annual return & returns of investment 15% of excess to advisor, 85% to investor *IN, IA, MO, KS: not to exceed 10% Liq NW *Chris.ziebrow@cnl.com Ann.evans@cnl.comAnn.evans@cnl.com at 866.809.1237 See also ProEquities Due Diligence Report at www.proequities.com. (Login to Advisor Portal, Choose Due Diligence under the Sales Tab. Click on this product under Direct Investment)www.proequities.com 8

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11.  Create a “ladder” based on anticipated “liquidity events”  Propose an evolving portfolio of direct investments  Diversified  by type of vehicle  by sponsor  during the buy cycle  Combine with traditional taxable income sources  Combine with traditional tax-deferred income sources  Combine with traditional tax-free income sources 11

12.  We have talked about meeting income goals  Potential to meet goals related to asset growth 12

13.  Opportunistic REITS  Exploratory oil and gas (consider using a series of investments)  Limited Partnership Programs (example: Walton) 13

14.  ProEquities Internal Due Diligence  ProEquities Due Diligence  ProEquities Product Committee  HKFS Due Diligence 14

15.  Public versus private  Income versus growth  Traded versus non-traded  Reg. D programs  Limited number of investors  $1MM net worth excluding primary residence  State specific requirements 15

16.  Oil and gas  Intangible Drilling Expense (more w/ developmental, less with exploratory)  Depletion Allowance  Potential Tax Law Changes  Land Development  No current income  Seeking capital gains  Equipment Leasing – a residual value play  Unlisted REITS  sheltered income from depreciation followed by potential capital gains treatment  potential for increasing income and valuation  LACK OF LIQUIDITY and the risk of loss for distressed sellers in distressed markets  EXTENDED HOLDING PERIODS 16

17.  Non-listed REIT  Initial offering 2 to 4 years  Income check as soon as 1 month or up to 6 months for partial check (and may be from investor capital during initial stages)  Extended second initial offering period 1 – 4 years  Offering closed  Continuing operation 1 – 3 years  Liquidity event  Developmental OIL or Gas / Royalties  Capital raise 2 to 6 months  Deployment of capital up to 8 months  Initial check about 3 – 6 months following completion or partial completion of one or more wells  Checks may continue for a number of months or up to 30 or 40 years with revenues declining more or less depending on commodity pricing/hedging  Leasing program  Initial offering of 6 months or less  Deployment of capital 6 to 18 months  Initial check 3 to 6 months from subscription (may come from subscriptions)  May continue 3 – 8 years depending on program design  May continue longer if necessary to dispose of specialty equipment 17

18. THANK YOU Now for questions… 18