Charles B. Kornmann

General partner, Ivey and Kormmann, a partnership

V. GIFTS

Line 1, Michael and Barbara Evans, long time friends from Aberdeen, SD, invited friends from Aberdeen, S.D. to accompany them on a Baltic cruise (14 people in

all) to celebrate Barb's 50th birhday. The Evans paid all expenses for all guests for airfare, cruiseline expenses, hotels and side trips.

VII. INVESTMENTS AND TRUSTS (Contd.)

Line 1, Red Ribbon, Inc. owns an unimproved parcel of land in Indiana. It is a Subchapter S corporation and the income and losses are passed through to the

stockholders. There have been no distributions and the land continues to produce no income.

Line 2, this corporation operated an indoor tennis facility. We lost our lease and had to vacate. All personal property was left on site. A small distribution was

made to each stockholder and the distribution was given free to the new management. The corporation is inactive and has no value.

Line 3, this land is leased on a cash rent basis.

Lines 4 and 5, this partnership owns 2 apartment houses, one in Brown County, S.D., and one in Spink County, S.D.. Liquid investments of the partnership and

income therefrom are reported in Part VII. All interests in the partnership are owned by J members.

Line 7, this mutual fund is owned by a revocable trust, the trustees being the reporting party and

This is true also of all other mutual funds.

Line 13, this mutual fund is owned by a revocable trust, the trustees being the reporting party and

This is true also of the assets reported on Lines 65

through 73, inclusive. I had previously reported (prior to filing an amended report for 2010) all of these mutual funds simply as held by Wells Fargo on our behalf

without listing the individual funds. The individual funds are now listed. Ihad previously overvalued the asset on Line 13 as including all the Russell funds. It is

rather confusing since all these funds have somewhat similar names. Correct values are being reported. Ido not list the custodian (Wells Fargo Investments) but

rather list each mutual fund individually as held by the custodian.

Line 14, this is acondominium in Playa del Carmen, Mexico, which is owned by Ivey and Kornmann partnership as a leasehold interest since U.S. citizens cannot

"own" real estate in Mexico.

Line 18, this is a limited partnership interest, a rather small interest as a limited partner; the partnership is operating an assisted care living facility in Anderson,

Indiana. The partneship interest is held by Ivey and Kornmann partnership.

Line 19, this is money invested in Healthcare Plus Federal Credit Union of Aberdeen, S.D. by the reporting party and [Jl -

Line 20, this is money invested in Healthcare Plus Federal Credit Union of Aberdeen, S.D. by Ivey and Kornmann partnership.

Line 21, this asset was constructed from scratch by reporting party in 2009 and 2010 and is a real estate investment in Aberdeen, S.D.

Line 23, because of age of reporting party, a partial IRA withdrawal was required by federal law. The distribution came from First Clearing, LLC, acting on

behalf of Wells Fargo

Line 24, because of age of]

, one partial IRA withdrawal was required by federal law. The distribution came from First Clearing, LLC., acting on behalf of

Wells Fargo.

Lines 25 through 64, inclusive are IRA investments of reporting party and

, all managed by Wells Fargo. Wells Fargo has been dirrected to purchase

nothing but mutual funds to avoid any possible conflicts of interest. They have at all times followed that directive. In previous reports (before an amended report

was filed for 2010) , I simply reported the managed account by Wells Fargo without listing the individual mutual funds, all of which are now listed. IRA assets

owned by the reporting party are shown without the "S", the "S" designations showing those IRA assets owned by the

. The required annual withdrawals

from the IRA's are reflected in Lines 23 and 24 above.

Line 74, this is a limited partnership interest in a partnership that owns and will later operate an assisted care living center in Jefferson City, MO. The owner of the

limited partnership interest is Ivey and Kornmann partnership.

Line 75, this is a limited partnership interest in a partnership that owns and will later operate an assisted care living center in Cheyenne WY.