Small Business Protection Strategies

1. Small Business Protection Strategies Securities are offered through AXA Advisors, LLC, member FINRA and SPIC. Life insurance and annuity products are distributed through AXA Network, LLC, and its subsidiaries. AXA Advisors and AXA Network do not provide tax or legal advice. Please be advised that this document is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independ4ent tax advisor.

2. The Small Business Environment Four Main Areas of Risk for Small Businesses Protection Strategies for the Four Main Areas of Risk Benefits of Business Planning and Five Tips on Getting Started AXA Advisors & Small Businesses Q & A Today’s Discussion

3. The 26.8 Million Small Businesses in the United States: Employ about half of all private sector employees Account for more than half of non-farm private gross domestic product (GDP) Have generated 60-80% of net new jobs annually over the last decade Produce 13 times more patents per employee than large patenting firms The impact of small business is growing, but… The Big Business of Small Business Source: U.S. Small Business Administration, Office of Advocacy “Frequently Asked Questions”, August 2007

4. 1/3 of new employer establishments close within the first two years.1 The annual Small Business Optimism Index has declined every year since 2004.2 Risky Business? …small businesses can also be more vulnerable to demographic and economic change. 1 U.S. Small Business Administration, Office of Advocacy “Frequently Asked Questions”, August 2007 2 “NFIB Small Business Economic Trends”, July 2007

5. Creating Small Business Protection Strategies How can you increase your chances of business success? By managing risk in four different areas 1.Provide for your employees and executives 2. Protect your business from unexpected circumstances 3. Prepare for business transfer or succession 4. Plan for your personal financial independence

6. 1. Provide for Employees & Executives Assessing the Risk: • Retirement is the second biggest benefit concern for employees, after health insurance 1 • There is a 46% chance that an employee aged 30 will be disabled for 90 days or more; 40% if aged 45 2 1 Transamerica Center for Retirement Studies “The 9th Annual Transamerica Retirement Survey -- workforce survey”, 2007 2 National Underwriter ”Field Guide to Estate, Employee & Business Planning”, 2008

7. 1. Provide for Employees & Executives Key Considerations: Which retirement plan best suits your business? • Simplified Employee Pension plan (SEP) • Defined Benefit Plan (traditional pension) • Savings Incentive Match plan (SIMPLE) • Deferred Profit Sharing plan • 401(k)

8. 2. Protect Your Business Assessing the Risk: • If your current business partner passes away, their spouse could legally become your new business partner • The loss or departure of a key employee can mean the loss of profit, clients, proprietary knowledge and specialized skills

9. 2. Protect Your Business Goal Protect your business against the loss of a partner or key employee Protection Strategy: Business continuation programs protect against the loss of an owner, partner or key person

10. 2. Protect Your Business Key Considerations: • How can these services protect my business? • Buy-Sell Agreement • Key Person Coverage • Business Overhead Expense • Disability Buyout • Employee Stock Ownership Plans (ESOPs)

11. 3. Transfer Your Business Assessing the Risk: Only one-third of family owned businesses survive the transition to the second generation. A primary reason for this dismal survival rate lies in poor succession planning. Source: New York State Society of CPAs “Money Management”, July 10, 2006

12. 3. Transfer Your Business GoalSuccessfully transfer your business when you are ready to move on Protection Strategy: Written succession plans outline legal, financial and managerial considerations for transferring a business from one generation to the next.

13. 4. Plan for Your Personal Independence Assessing the Risk: • The primary source of capital for most new businesses comes from savings and other personal resources.1 • Study shows that 47% of small-business owners are not at all confident that they're saving enough for retirement. And more than half indicate that they plan to retire after age 65 or never.2 1 *www.sba.gov, “Starting Your Business – Finance Start-up”, 2008. 2 Harris Interactive “ShareBuilder Small Business Annual Retirement Trend survey”, 2006.

14. 4. Plan for Your Personal Independence Goal:Plan for your non-business financial needs Protection Strategy: Maintaining separation between business and personal planning can help mitigate risks and is a good practice. Examples: GOAL BUSINESS PERSONAL Pass on assets Succession Plan Estate Plan Retire comfortably Business Continuation Plan Retirement Plan

15. 4. Plan for Your Personal Independence Key Considerations: How can I plan for each of these needs, regardless of the state of my business? • Asset protection • College planning • Family protection (income replacement) • Retirement savings • Retirement income distribution • Elder care

16. Additional Benefits to Business Planning • Save time • Improve tax efficiency • Compete effectively • Handle change • Manage growth

17. AXA Advisors & Small Businesses AXA Advisors can offer: • Approximately 6,000 financial professionals across the continental U.S., Hawaii, Puerto Rico and the Virgin Islands • A wide array of small business products and services from hundreds of affiliated and un-affiliated companies • Retirement plans customized for small businesses • Planning coordination with business owners’ other advisors (legal, tax) • Planning services through each business stage — start-up, growth, maturity, transference