GREED IS NOT GOOD! Presented by Richard G. Stone Founder & President, Stone & Co. Limited

1. GREED IS NOT GOOD! Presented by Richard G. Stone Founder & President, Stone & Co. Limited

2. The point is, ladies and gentleman, is that greed -- for lack of a better word -- is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms -- greed for life, for money, for love, knowledge -- has marked the upward surge of mankind. And greed -- you mark my words -- will not only save Teldar Paper, but that other malfunctioning corporation called the USA. Michael Douglas as Gordon Gekko in Wall Street

3. In The News Over 15 Years Later …

10. What Went Wrong?

11. Executive compensation grossly disproportionate to corporate results • Stock promotion (IPOs) that has gone to an extreme in the creation of very questionable or unproven business concepts *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

12. Misuse of corporate funds • Trading on insider information, particularly by managers exercising stock options that have rewarded short-term thinking *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

13. Misrepresentation of the true earnings and financial condition of too many companies • Obstruction of justice by concealing activities or destroying evidence *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

14. Who Were the Transgressors?

15. Passive, non-independent and rubber-stamping boards of directors • Non-accountable CEOs and senior management involved in serious conflicts of interest *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

16. Transaction-driven investment bankers and market makers, and biased and non-independent analysts • Non-independent public accounting firms *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

17. Regulators paying more attention to the manifestations of the problem than to the systemic conflicts of interest that are at the core of poor governance practices *Source: “Corporate Governance” (McGraw-Hill Executive MBA Series 2003, p. 229, authors John L. Colley, Jr. et al.)

18. Result: • Shoot the messenger • Media always dodges bullet • Investor questions trustworthiness of Advisor • Advisor feels little control

19. Canadian Reality: • Canada is ahead of the U.S. • NI 81-102 • FundSERV

20. Solution: Take control! • Not a game of statistics • Simple due diligence • Educate your clients that there is a Due Diligence Process

21. 6 Questions to Ask to Ensure Good Corporate Governance

22.  What is your company’s policy on the responsibilities you have toward unitholders?

23.  What is your company’s policy on their role as representing unitholders with respect to the voting of shares, and other shareholder issues?

24.  Do you publicly disclose how your company has voted their shares in all holdings? If so, where do I find this information? If not, Why?

25.  What is your company’s viewpoint toward executive and management option plans?

26.  What initiatives is your company taking to deal with the shareholder issues we face?

27.  In general, please explain what you see as the issues facing your unitholders and shareholders today? Can you define your policies and attitudes toward these issues?

28. “…a man with a briefcase can steal more money than any man with a gun …” - Don Henley