CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS Restrictive Executive Bonus Arrangements Just The Basics [ Presented by: [Joe Sample], [Designations per field stationery guidelines] [Company Approved Title] [Firm Name] [The Prudential Insurance Company of America] [1234 Main Street, Suite 1, Floor 10] [Anywhere], [ST] [12345] [in required states] [ Insurance License Number ] [Phone] [ ] Fax [ ] © 2015 Prudential Financial, Inc. and its related entities. NOT FOR CONSUMER USE ED. 10/2015 EXP. 04/05/2017

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS Important Information 2 This material has been prepared by The Prudential Insurance Company of America to assist financial professionals. It is designed to provide general information in regard to the subject matter covered. It should be used with the understanding that it does not constitute legal, accounting or tax advice. Such services should be provided by the client’s own legal, accounting or tax advisors. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. Policy guarantees and benefits are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations nor guarantees regarding the claims-paying ability of the issuing insurance company. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. All are Prudential financial companies located in Newark, NJ. The availability of other products and services varies by carrier and state Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities. NOT FOR CONSUMER USE.

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS The Problem: Business Owner Concerns NOT FOR CONSUMER USE. 3 May lose key executive through recruitment by another company or early retirement Wants a selective incentive arrangement for recruiting, retaining and rewarding key executives Desires a current income tax deduction

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS “Traditional” Executive Bonus Plan NOT FOR CONSUMER USE. 4 Tax Deductible Premiums Insurance Company Cash Value Access* Death Benefit Business pays premiums on an insurance policy owned by the key executive Key Executive Beneficiary Taxable Compensation * Withdrawals and loans from a life insurance policy reduce policy cash values and death benefit, may affect any policy guarantees against lapse, and may have tax consequences.

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS Solution: REBA NOT FOR CONSUMER USE. 5 Provides employee incentives while maintaining some employer control Restrictive endorsement limits an executive’s rights in the policy Employment agreement contains the “golden handcuffs” May be tax deductible to the business

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS REBA Prospects NOT FOR CONSUMER USE. 6 Small to medium sized businesses Businesses that desire a current income tax deduction Employers who are reliant on the talents of a handful of key executives –Normally not owners Employers that are looking for an arrangement that is simple and straightforward to implement and administer

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS Additional Benefits NOT FOR CONSUMER USE. 7 Life Insurance Protection Flexible Design Selective Participation Creditor Protection Simplicity

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS Thank You !! NOT FOR CONSUMER USE. 8 Need more information? Click on the ATTACHMENTS tab for more material Click the Tools & Help icon? Contact Your Prudential Life Wholesaler or Your Life Sales Desk: - or – Visit our website: [THANK YOU FOR JOINING US! ]

CREATED EXCLUSIVELY FOR FINANCIAL PROFESSIONALS NOT FOR CONSUMER USE 9 QUESTIONS?