Retirement Income Assurance Policy

1. Retirement Income Assurance Policy Summary for Employers Prepared by: Pension Advisory Group, Inc. and Diversified Growth Solutions, LLC RIAP Program Underwritten on Behalf of Lloyd’s of London by Pro Financial Services, LLC

2. The Problem:If you become disabled, you can no longer participate in your qualified retirement plan. • Contributions to a 401(k) plan cannot be made by an employee unless the employee is currently receiving pay, such as disability compensation from the employer. • The employee must make the election to contribute to the plan from that pay before the pay has been made to and received by the employee. • Under IRC Section 415(c)(3)(C) and Regulation sections 1.415-2(e)(3) and 1.415-4(g), compensation to a disabled employee may be imputed at pre-disability levels if the employee is actually receiving some pay, a very rare occurrence. “If You become disabled, so does Your Retirement Plan!”

3. Pension Disability Insurance is Important! • We insure our Homes, our Cars, our Lives and our Income. • So, why don’t we insure our Retirement Income? • From a statistical perspective, we should!! • According to “Injury Facts”: [National Safety Council,2006 Edition] • In the home: a fatal injury occurs every 14 minutes; a disability injury occurs in the home every 4 seconds. • In the car: there is a death caused by a motor vehicle crash every 11 minutes; there is an auto-related disability injury every 13 seconds. • In the overall population: in the last 10 minutes, 441 Americans became disabled. • Frequency and Severity of Disability: • 43% of all people age 40 will have a long-term disability event prior to age 65. [JHA Disability FactBook, 2006 Edition] • A 35 year-old, white-collar male who suffers a disability lasting 90 days or longer will be out of work an average of about six years. [LIFE Foundation, May 2007]

4. Example #1 – Current Problem if Employed Executive becomes Disabled Female, Age 50 $200,000 Salary, Max 401(k), No Catch-Up Provision, 15% Profit Sharing Plan Actively at WorkOn Disability Current Salary / 70% LTD Plan $200,000 $140,000 Annual 401(k) Elective Deferral 15,500 -0- Taxable Income $184,500 $140,000 Tax from “Schedule X-Single” Table 46,953(25.4%) 33,311(23.8%) Disposable Income: $137,547 $106,689 Annual Employer Contribution: $ 30,000 Total Annual Retirement Contribution: $ 45,500 Risk for Employee Participant: If disabled, missed contributions reduce the expected Accumulated Value in 401(k) at Age 65 (assuming 5.0% net investment yield): Disabled at start of year 6, on disability for 1 year: $ 70,585 Disabled at start of year 6, on disability for 3 years: $ 201,833 Disabled at start of year 6, on disability for 5 years: $ 320,878 Disabled at start of year 6, on disability thru Age 65: $ 549,544

5. Example #2 – Current Problem if Employed Manager becomes Disabled Male, Age 44 $100,000 Salary, Max 401(k) 6% Employer Contribution Profit Sharing Plan Actively at WorkOn Disability Current Salary / 60% LTD Plan $100,000 $60,000 401(k) Elective Deferral 12,000 -0- Taxable Income $ 88,000 $60,000 Tax from “Schedule X-Single” Table 18,751 (21.3%) 11,424(19.0%) Disposable Income: $ 69,249 $48,576 Annual Employer Contribution: $ 6,000 Total Annual Retirement Contribution: $ 18,000 Risk for Employee Participant: If disabled, missed contributions reduce the expected Accumulated Value in 401(k) at Age 65 (assuming 5.0% investment yield): Disabled at start of year 6, on disability for 1 year: $ 37,421 Disabled at start of year 6, on disability for 3 years: $ 107,001 Disabled at start of year 6, on disability for 5 years: $ 170,113 Disabled at start of year 6, on disability thru Age 65: $ 416,835

6. Example #3 – Current Problem if Rank and File Worker becomes Disabled Female, Age 30 $40,000 Salary 5% Profit Sharing Plan / 5% 401(k) Plan Actively at WorkOn Disability Current Salary / 50% LTD Plan $ 40,000 $ 20,000 401(k) Elective Deferral 2,000 -0- Taxable Income $ 38,000 $ 20,000 Tax from “Schedule X-Single” Table 5,924(15.6%) $ 2,609 (13.0%) Disposable Income $ 32,076 $ 17,391 Annual Employer Contribution: $ 2,000 Total Annual Retirement Contribution: $ 4,000 Risk for Employee Participant: If disabled, missed contributions reduce the expected Accumulated Value in 401(k) at Age 65 (assuming 5.0% investment yield): Disabled at start of year 6, on disability for 1 year: $ 16,465 Disabled at start of year 6, on disability for 3 years: $ 47,079 Disabled at start of year 6, on disability for 5 years: $ 74,847 Disabled at start of year 6, on disability thru Age 65: $ 263,755

7. Our Solution for American Workers: The Retirement Income Assurance Policy • For life insurance, waiver of premium is a well-established benefit • If an insured becomes disabled, the likelihood is that he/she will no longer be able to pay the premium for the life policy. • Developed more than 50 years ago, WP is prevalent today • A similar “waiver of contributions” benefit is needed in qualified retirement programs to ensure that participant elective deferrals (and contributions by the employer) will continue if the participant should become disabled before reaching normal retirement age. • The time has come for American employers to implement the Retirement Income Assurance Policy (“RIAP”) for the benefit of the workforce covered by their defined contribution retirement plan!

8. RIAP Product Overview Premiums are paid by the Employer (based on unisex rates) and are Tax Deductible to the Employer Assets held in Bank Trust Department (outside the Retirement Plan) on behalf of the disabled participant Guaranteed Issue (no individual underwriting for insurability) The Retirement Income Assurance Policy ------------------------------------------- CyArch Patent: 6235171 B1 PAG published patent application: US-2011/0218829 A1 Benefit based on actual contributions, up to Qualified Plan limits (currently $4,708 / month for ages 50+ and $4,250 / month for ages under 50 for 2013) Benefits deferred until Normal Retirement Age; Payable at Retirement in Units of Income Other Highlights of the Retirement Income Assurance Policy - Standard occupation classes for LTD policy - Optional compound 3% COLA rider available - Benefit Elimination Periods of 6 or 12 months - Claims in first 12 months = 3% of current salary - Guaranteed Renewable (right to raise rates) - Standard underwriting exclusions apply

9. The Market for Qualified Retirement Plans • The 401(k) plan is the predominant vehicle for most American workers to save for retirement. • There are currently more than 74.4 million* individual participants in 401(k) plans in the United States. These plans contain over $4 trillion and exceed the amount of assets in all other types of plans combined. • For those workers in education, law enforcement and other sectors excluded under the 401(k) regulations, the 403(b) plan is the retirement funding vehicle of choice. • In aggregate, 43% of all American workers participate in a defined contribution plan. * Form 5500 series reports for 2006 plan year

10. RIAP Product Differentiators • RIAP is sold to the employer, so contributions are • deductible on the employer’s tax return • Disability insurance premiums are not reported as • income to the participants; therefore, benefits are • taxable to participants at retirement • Retirement account accumulations are tax-deferred • RIAP defers paying disability benefits until retirement • After satisfying the Elimination Period, benefits are paid by Lloyd’s into an Annuity, with the Annuity held in trust. • After 5 years of disability status, Lloyd’s will pay a lump sum into the Annuity [PV @ 6.0% of future deferrals to NRA] • At retirement, a stream of income is payable directly by the Annuity carrier to the participant to “complete” his/her retirement plan.

11. Who is Pro Financial Services? • PFS is a Managing General Underwriter with full • binding authority on behalf of Lloyd’s of London • PFS is nationally known as the leader in high-limit • disability insurance for professional athletes. • PFS has taken its 25+ years of underwriting expertise • and experience from the sports arena and created • new disability programs for broader markets • White-collar professionals • Entertainers • Surgeons, etc • Lloyd’s of London is the world’s leading specialist • insurance market, with ratings of A from A.M. Best • and A+ from Standard & Poor’s and Fitch Ratings

12. RIAP: Summary of Participants Lloyd’s of London via Pro Financial Services Retirement Income Assurance Policy -------------------------------------- CyArch: Patent No. 6,235,171 B1 PAG patent application, published 9/8/11: US-2011/0218829 A1 RIAP Distributors: Pension Advisory Group, Inc. (as Master General Agent) National Marketing Firms (IMOs, Brokerage groups, trust departments and Plan Administrators) Brokerage General Agents Retirement Professionals Employee Benefit Specialists • The Market: • - All 401(k) Plans • All 403(b) Plans • - All 457 Plans RIAP Distribution Growing Rapidly Patent Protected Retirement Security for Retirement Plan Participants To Learn More About This Unique Opportunity, Please Contact: Paul D. Hinson, President or Dan Burns, President or Eric Storey, Senior VP Larry Walters, ASA, MAAA Claude Gibson, VP of Sales Pension Advisory Group, Inc. Diversified Growth Solutions, LLC Pro Financial Services, LLC 212 Morton Street 3101 N. 60th Street 500 W Madison Street, Suite 2660 Richmond, TX 77469 Phoenix, AZ 85018 Chicago, IL 60661 Phone: 281-232-5800Phone: 203-979-1216 Phone: 800-832-8000 Email: phinson@pensionadvisorygrp.comEmail: DGSolutionsLLC@gmail.comEmail: DiBurns@pfsins.com Email: estorey@pensionadvisorygrp.comEmail: CGibson@pfsins.com