Outline of today’s discussion Who is Peachtree? What is LBP? Case Studies Action Steps

Who is Peachtree? Peachtree LBP Administrator for LBP Program Finance company providing premium loan origination and loan servicing Independent SSO

Who is Peachtree? The Peachtree Family of Companies Established in Employees Over $4 Billion in Committed Financing Administer Over $2 Billion in Originated Assets IPO March LSE: PSF Private November 2006 – DLJ/Credit Suisse

What is LBP? “Leveraged Bonus Program” Individually Owned Retirement Plan 3 Key Ingredients After-Tax Dollars from EE Tax Replacement Loan Interest Paid by ER Emulation of Retirement Arrangements Focus on 401(k) Plans

Why a 401(k) Plan? Large, Untapped Market 90% of Companies Have a 401(k) 401(k) Challenges 70% Have Testing Issues Top-Heavy Compliance (HCEs) Limited Solutions for Employers

Traditional Options Remain Top-Heavy Continuous Testing Concerns Refund Contributions to HCEs Spend in other ways for HCEs Create a “Safe Harbor” Plan Permanently Ends Testing Concerns Non-elective contribution (3%)

Traditional Options Is there a better choice? LBP 401(k) Plus

$9000 $6000 (IRS) Age 59½ Taxable Age 70½ RMDs Taxable $9000 ANY AGE Tax-Free (if done properly) Grows Tax Deferred % 401(k) $15,000 Grows Tax Deferred % $6000 LBP ® $6000 (IRS) $15,000 LBP 401(k) Plus SM

401(k) $15,000 $9000 $6000 (IRS) Grows Tax Deferred Age 59½ Taxable Age 70½ RMDs Taxable LBP ® $15,000 $9000 $6000 LBP ® Grows Tax Deferred ANY AGE - Tax-Free (done properly) % % Permanently Eliminate 401(k) Top Heavy Testing Issues

Payroll: $5.0M $150K 10 HCEs $60,000 $144K 401(k) $15,000 $9000 $6000 (IRS) Grows Tax Deferred Age 59½ Taxable Age 70½ RMDs Taxable LBP ® $15,000 $9000 $6000 LBP ® Grows Tax Deferred ANY AGE - Tax-Free (done properly) % % x 10% $6,000 3% Non-elective

For the Company: Existing 401(k) Plan stays in place Selective Participation Permits maximum contributions for key executives Deductible Permanently eliminates testing issues at a fraction of the cost LBP 401(k) Plus SM

For the Participant : Unlimited contributions Tax deferred growth for retirement Tax-favored income at retirement Pre- and post-retirement death benefits LBP 401(k) Plus SM

Case Studies

Case Study: LBP ® vs. Safe Harbor Business received 2006 Testing from the TPA Plan failed HCE/NHCE Testing $5.4 Million Payroll 17 HCE’s Company had used Safe Harbor to resolve testing issues (3% non-elective match)

Case Study: LBP ® vs. Safe Harbor 8.79% 2.18% 2006 Highly Comp Group Avg Nonhighly Comp Group Avg. “corrective action is needed”

Case Study: LBP ® vs. Safe Harbor Current Safe Harbor Plan: $164,490 (3% non-elective) Instead … utilize LBP 401(k) Plus SM : $24,475 (year one)

LBP 401(k) Plus SM vs. “Safe Harbor” Hurdle Rate: This figure is a corporation’s incremental cost of capital or required rate of return. LBP Indirect Savings: This reflects the incremental earnings for the particular year on the cumulative LBP Direct Savings (including prior incremental earnings), based on the company’s Hurdle Rate. LBP 401(k) Plus Cost: Bonus to executives for annual loan interest. In years 1and 6, this figure also includes the bonus to cover the LBP loan commitment fee. Loan interest rate: 12 Month LIBOR plus a fixed 1.95%. LBP Loan Commitment Fee: 2% charged in year 1 and 6 of the total loan amount expected over 5 years.

LBP 401(k) Plus SM vs. “Safe Harbor”

Case Study: 401(k) Enhancement Peachtree LBP SM was approached by a company with a voluntary 401(k) plan. Payroll of $62,000, Employees not able to participate at the maximum deferral amounts Deferrals have been refunded the last 3 years because the plan failed the ADP test “Safe Harbor” was not an option because of cost

Case Study: 401(k) Enhancement Original recommendation: create a “safe harbor” plan minimum cost: $1,860,000 (3% of payroll) per year Instead … provide LBP ® : Cost: $212,640 year one

LBP 401(k) Plus SM vs. “Safe Harbor” Hurdle Rate: This figure is a corporation’s incremental cost of capital or required rate of return. LBP Indirect Savings: This reflects the incremental earnings for the particular year on the cumulative LBP Direct Savings (including prior incremental earnings), based on the company’s Hurdle Rate. LBP 401(k) Plus Cost: Bonus to executives for annual loan interest. In years 1and 6, this figure also includes the bonus to cover the LBP loan commitment fee. Loan interest rate: 12 Month LIBOR plus a fixed 1.95%. LBP Loan Commitment Fee: 2% charged in year 1 and 6 of the total loan amount expected over 5 years.

LBP 401(k) Plus SM vs. “Safe Harbor”

The LBP SM “30-Day Plan” Day 1: Introduction to LBP Day 15: LBP Mechanics Sales Process Enrollment & Implementation Administration Day 30: Onsite Meetings Client Presentations Enrollment

Day 15: LBP Mechanics

Sales Process Prospecting with LBP Company Decision Cycle Company Cost Analysis Presumptive Closing Steps

Day 15: LBP Mechanics

Sales Process Prospecting with LBP Company Decision Cycle Company Cost Analysis Presumptive Closing Steps Enrollment & Implementation Steps in Process Timeline Peachtree’s Roll

Day 15: LBP Mechanics Sales Process Prospecting with LBP Company Decision Cycle Company Cost Analysis Presumptive Closing Steps Enrollment & Implementation Steps in Process Timeline Peachtree’s Roll Administration Technical Structure of LBP How to work with Peachtree

Action Steps Identify 5 prospective businesses Company has a 401k plan Utilize Prospecting Call Script Have you had Top-Heavy issues in the past or currently? Have you refunded 401k contributions back to HCEs? Utilizing or considering a “safe harbor” plan Would you be interested in permanently eliminating Top-Heavy testing issues? Utilize Napkin Pitch and Script Call LBP for Support