1. K2 Solutions, Inc. ESOP & 401(k) Plan Julie Isom Swerdlin & Company December 12, 2012

2. Agenda TODAY WE WILL COVER:
Introduce Swerdlin and learn ‘Who Is Swerdlin & Company’?
An overview of K2 Solutions retirement plan.
What is Daypak.net and how do I use it?
Questions?

3. Overview of Swerdlin Trustees Hired Swerdlin Swerdlin selected
Pension Actuaries and Employee Benefits Consultants
Can handle combined recordkeeping for 401(k) deferral and employer stock
32 years in business with 67 employees
Independent of plan assets
Established service standards
Administer 600+ plans in 36 states
Administer over 100 ESOPs

4. Overview of Swerdlin We are the administrator of the new KSOP
Major role as “Recordkeeper”
Records account activity
Performs compliance testing
Produces employee statements
Prepares governmental reporting

5. Overview of Benefits Plans
K2 Solutions had 1 benefit plan
401(k) Plan - funded by you, invested by you.
Effective January 1, 2012, K2 Solutions has added an Employee Stock Ownership Plan – funded by K2 Solutions, invested by Trustees.
Effective December 31, 2012, the two plans will be combined into one, K2 Solutions Employee Stock Ownership and 401(k) Plan.

6. Overview of Benefits Plans
The plan is the responsibility of the Board of Trustees
Acts in the best interest of participants (Fiduciary Duty)
Funds employer company contributions
Approves annual valuation of stock after reviewing valuation company’s opinion

7. Overview of Benefits Plans
401(k) Basics
You elect to contribute a portion of your salary
You direct the investments
Benefit to You
Investment grows tax-free
Traditional 401(k) - You do not pay taxes on your contributions until you elect to receive a payout
Roth 401(k) – You are taxed on the contribution dollars but are not taxed when you receive a payout

8. Overview of Benefits Plans
ESOP Basics
No contribution is required from you in order to share in the ESOP contribution (Company pays 100%)
An ESOP is the only type of qualified retirement plan that gives the employee an opportunity to share in company growth
You do not pay taxes on your ESOP account until you elect to receive a payout
You get cash equal to the current value of your stock when you receive your distribution

9. What is Daypak.net?
Your Participant
Portal

10. What is Daypak.net?
Knowledge
Center

11. What is Daypak.net?

12. Participant Help Your retirement account is easily accessible:
24 Hour access to the DayPak Website
By Internet at
In house Participant Call Center available 8:00 am to 6:00 pm EST, Monday through Friday
Speak to a live representative: Call

13. Participant Help
You have the ability to do the following with both options:
Obtain your current account balance
Change your PIN
Review current investment elections
Change your current investment elections
Transfer existing 401(k) account balances
Model or review plan loans
Review 401(k) fund performance

14. Summary
Questions? 14