The time is now to start thinking about your future

1. The time is now to start thinking about your future ABC Company 401(k) Plan

2. Introduction First National Bank Your Plan Trustee BPA Your Plan Recordkeeper

3. Transition details • Blackout period starts • Transfer of existing assets (mapover process) • Begin investing new contributions • Blackout period ends • PINs mailed to participants / blackout ends

4. Agenda 1. Why join your plan? 2. How does the plan work? 3. How do I decide where to invest? 4. How do I sign up?

5. Why Join Your Plan?

6. Why join your plan Will social security be enough? Ask the Social Security Administration….. “Social Security was never meant to be the sole source of income in retirement….American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans” Source: FAQ, www.ssa.gov/ga.htm: July 2003

7. Why join your plan Your retirement income Your Retirement Plan Social Security Personal Savings

8. Why join your plan • It’s convenient You elect to contribute a percentage of your pay to the plan each time you are paid. Sign up once and it all happens for you! • Two tax advantages Tax Deferred Savings Tax Deferred Compounding

9. Why join your plan Savings are tax deferred You do not pay current federal income tax on the contributions that you put in the plan – which means your paycheck is reduced by less than you think….. Assumption: 28% federal tax rate on taxable income. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation.

10. Why join your plan You enjoy tax deferred compounding Assumptions: $2,000 after-tax contributions at the beginning of each year, hypothetical 8% annual return, 28% federal tax rate on the taxable income. Earnings are taxed at 28% federal tax rate at time of withdrawal. Anticipated value of tax-deferred account, if balance is withdrawn as lump sum and taxes paid at 10 years: $28,130; 20 years: $82,369; 30 years: $192,978. Chart is for illustration purposes only and does not represent the performance of any investment security. Does not reflect any account fees. Dividends and interest reinvested each year until withdrawal. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation.

11. Traditional vs. Roth 401(k) Traditional • Your traditional 401(k) contributions are tax-deferred. This means that you do NOT pay federal taxes on your contribution when you deposit them into the plan. However, when you retire and withdraw your money from the 401(k) plan, you must pay taxes, unless you roll over your account into an IRA to maintain the tax-deferred status. Roth 401(k) • Your Roth 401(k) contributions are INCLUDED in your taxable income at the time they are deposited to the plan. However, they are tax-free at the time of withdrawal.

12. Traditional Contributions are made through payroll deduction. Tax-deferred Contributions Tax-deferred Earnings Taxable Withdrawals Roth Contributions are made through payroll deduction. After-Tax Contributions Tax-free Earnings * Tax-free Withdrawals * Tax-free earnings if your first Roth 401(k) contribution was made at least 5 years before the withdrawal and you are past age 59 ½. Traditional vs. Roth 401(k)

13. Traditional vs. Roth 401(k) Salary available to save 1,000 1,000 1,333 Less taxes (25% tax bracket) - 250 - 0- 333 Plan contribution 750 1,000 1,000 Investment return (10 yrs @ 7%)+ 750 +1,000 +1,000 Value at retirement 1,500 2,000 2,000 Less taxes - 0- 500- 0 After-tax value1,5001,500 2,000 Roth Salary Available the Same Traditional Roth Contribution the Same

14. Why join your plan • Company matching contribution of 50% on the first 6% of pay that you save • Don’t leave money on the table! • You’ll get an immediate 50% return on your investment! • Try to save at least 6% to take full advantage of the company match.

15. How does the plan work?

16. How does the plan work? How much should you save? ….generally, 10% for 30 years

17. How does the plan work? Only put as much in as you want • $5.48/Day equals $2,000/Year • $16.43/Day equals $6,000/Year • $32.88/Day equals $12,000/Year The Critical Point Start small if you need to, but just start! Increase contributions as your income rises.

18. How does the plan work? • Eligibility • Vesting • Participant directed investments • Daily access to your account • Reporting

19. How do I decide where to invest?

20. What is your plan? Develop A Plan Implement Determine Investor Profile Review Review Investments Assess Your Needs

21. Three types of investors Motivated Willing Reluctant Understand the available options, asset allocation and how to manage risk Typically have other accounts that they are monitoring Just need some information to help make decisions Interested in learning general investing principles Will take the time to read about available investments Will monitor portfolio Would like a few general suggestions Don’t have the time or interest to learn about investing Don’t trust themselves to make sound investment decisions Not interested in monitoring Want someone to take over

22. Three types of investors If you are Motivated or Willing, Consider the Do-It-Yourself Approach • Enrollment kits • Fund fact sheets, prospectuses • Participant website • Sample Portfolios • Target Retirement Funds • Lifestyle Funds • Investment Programs

23. Three types of investors If you are Reluctant, then delegate! • Investment Programs • Provide an “Autopilot” approach • Targeted maturity or lifecycle funds • Automatically rebalanced to maintain stated risk/return profile over time • As you approach retirement, you can transfer funds to a more conservative model

24. Three types of investors If you are Reluctant then delegate! • Lifestyle Funds • Provide an “Autopilot” approach • An Investment Professional makes investment decisions for you • Automatically rebalanced to maintain stated risk/return profile • As you approach retirement you can transfer funds to a more conservative “model”

25. Three types of investors If you are Reluctant then delegate! • Target Retirement Funds • Provide an “Autopilot” approach • An Investment Professional makes investment decisions for you • Automatically rebalanced to maintain stated risk/return profile • As you approach retirement you can transfer funds to a more conservative “model”

26. Target Retirement Funds

27. Investment basics • What are the different types of investments? Equities Fixed Income Stable Value/Money Market

28. Investment basics Stable Value/Money Market investments are designed to seek safety of principal with little or no fluctuation in investment value. Ex. Certificates of deposit (cds) Treasury bills (t-bills) Money market mutual funds Stable value funds

29. Investment basics Fixed Income investments are also called bonds. Bonds are issued by a borrower, such as a public entity or corporation that seeks to raise funds. Ex. U.S. Government bonds Municipal bonds Corporate bonds Bond mutual funds

30. Investment basics Equities, or stock investments, represent individual shares of ownership in a company. Ex. Large capitalization International stocks Specialty -- Healthcare

31. Investment basics Stable Value/Money Market - inflation risk? Fixed Income - interest rate risk? - credit risk? Equities - market risk?

32. Equity Style Box Growth - The fund manager believes the stocks have the potential to grow faster than the rest of the market Flex- The investment philosophy incorporates both Value and Growth oriented companies Value- The fund manager believes the stocks are undervalued and will eventually be recognized Large Value Large Flex Large Growth Large- Above $10 billion Medium - Between $1 - $10 billion Med Value Med Flex Med Growth Small Value Small Flex Small Growth Small- Below $1 billion

33. Investment basics Annual Average Total Return December 31, 1920 - December 31, 2007 Stocks (S&P 500 Index) 10.3% Long Term US Gov’t Bonds 5.7% US Treasury Bills 3.8% Past performance does not guarantee future results. Current and future results may be lower or higher than those shown.

34. Investment basics What can a higher return do for you? Assuming you save $2,000 per year: RATE OF RETURN 10 YEARS 20 YEARS 30 YEARS 10.3% $36,000 $131,000 $384,000 5.7% $27,000 $75,000 $158,000 3.8% $25,000 $61,000 $113,000

35. Small Cap Equities Potential Reward Mid Cap Equities Fixed Income Stable Value/ MoneyMkt Potential Risk Investment basics Risk versus reward Large Cap Equities

36. Investment basics How do you minimize your risk? Diversification

37. Investment basics

38. Asset Allocation How important is asset allocation to your investment success? More than 90% of Overall Portfolio performance is Influenced by asset allocation Source: Brinson Hood Beebower Study. Based on 10 years of quarterly data 1977-1987.

39. Investment basics • Your enrollment guide includes an individual investor profile. • Your time horizon. • Your risk tolerance. • Select an investment strategy.

40. Moderate Investment Strategy Sample Allocation

41. Fund line up Equities Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Enter the names of the funds Fixed Income Enter the names of the funds Stable Value/Money Market Enter the names of the funds A copy of the prospectus for any fund may be obtained from the Plan Administrator.

42. Access your account • 24 hours / 7 days a week • 800 or website • No cost trading

43. How do I sign up?

44. Sign up 1. Decide how much to save 2. Decide which investments 3. Complete Enrollment Forms 4. Review, rebalance & increase!

45. Visit www.bpas.com

47. Thank you for your time today. • We hope you take this opportunity to make the most out of your retirement journey. • We will be available to help you with any questions you may have.