Deferred Compensation

Advantages to the Company:

• Provide a mechanism for higher retirement benefits to key employees
• Recognize and reward key people
• Simple to communicate and understand
• Flexible
• Recruit top management talent
• No formal government approval
• Retirement age is flexible and can have more than one age within group
• Vesting schedule designed to protect employer
• Cash surrender value (csv) of life insurance is higher than normal products (averages 95% to 100% of first year premiums)
• Guaranteed insurability available for groups of 20 or more

Advantages to the Key Employee:

• Not subject to government imposed limits
• Federal and state income taxes are reduced
• Survivor benefits may be improved
• Accumulate earning on a pre-tax basis
• Protected against future uninsurability
• Evidence of Company's interest in key person
• Deferral of income taxes
• In service distributions available