After Many Years of Successful Growth 2010 Year to Shore Up Company Foundation March Employees March Employees March Employees Created several new key positions Re-aligned responsibilities of current employees

Vine Connections Organization Chart March 2010

Company Paid Benefits Based on Sample $50,000. Salary Medical, Blue Cross of California Average Premium$2, Health Savings Account Cash – Tax Deferred 3, K Safe Harbor (Plan Mandated 3%) 1, Discretionary (historically 3%) 1, ANNUAL BENEFITS COMPENSATION$8,904.00

Blue Cross Medical Plan* Use With Your Health Savings Account (HSA) Calendar Year Deductible/$3,000 per Individual Maximum Out of Pocket $6,000 per Family Employee Co-Pay$-0- After Deductible Met Insurance Pays100% Preventive Care, Well Baby Care$-0- (Annual, routine physical Exam) Physician Services, Hospitalization,Subject To Deductible Prescriptions, Lab/X-Rays *Using Preferred Providers

Your Health Savings Account (HSA) Use With Your Blue Cross Health Plan

What is a Health Savings Account (HSA)? Works in conjunction with your Blue Cross Medical Plan so you can manage your own health care using company provided dollars Allows you to also set aside tax-free dollars to pay for qualified health care expenses* Vine Connections contributes $250./month ($3,000./yr) cash to your account Unused dollars roll over into the next year Your account balance earns interest tax-free* *contributions & earned interest to an HSA are taxable income in California, not Federal

How Much Can You Contribute? Up to the IRS annual limits: $3,050 Employee Only $6,150 Family Individuals 55 or older may increase contributions by: An additional $1,000.

Tax Savings: Pre-tax contributions can be made via payroll* Withdrawals for qualified health care expenses are tax free HSA may transfer to the surviving spouse tax free After turning 65, HSA dollars may be withdrawn for any purpose, paying only normal income taxes with no penalties *contributions & earned interest to an HSA are taxable income in California

Long-Term Savings: Save for future medical needs Your unused balance rolls over tax-free from year to year Ownership: You control how you spend the money in your account –Use it for eligible expenses today –Save it for the future

Paying for Services: Your insurance provider will process your claim and send you the Explanation of Benefits (EOB) Your EOB will reflect the provider’s discounted rates with your insurance provider (the savings you receive for having insurance) You may pay your bill by using your: –HSA debit card –HSA checkbook –Other personal accounts – after registration, simple 3-click process for self reimbursement into your personal bank account from Sterling’s website

EEv2008 Examples of Qualified HSA Expenses (not limited to): AcupunctureGuide dog Alcoholism treatmentGum Treatment AmbulanceHearing aids/batteries AnesthetistInsulin Treatment Artificial limbsLab Tests Birth controlLead Paint Removal Blood testsLegal Fees Blood transfusionsLodging/Transportation BracesOphthalmologist CardiographsOptician/Optometrist ChiropractorOral Surgery Contact LensesOrgan Transplant Convalescent homeOrthopedic Shoes CrutchesOxygen/Oxygen Equipment Dental treatmentPrescription Medicines Dental x-raysPsychiatrist/Psychoanalyst DenturesPsychologist/Psychotherapy DermatologistSterilization Diagnostic feesTherapy Equipment Drug addiction therapyVaccines EyeglassesVasectomy Hearing aids/batteriesWheelchair

HSA QUALIFIED EXPENSES (Cont’d) Any Over The Counter Item That Treats a Condition: – Advil, Tylenol, Cough Syrup, Antacid, First-Aid, Band- Aids Not Qualified: – Vitamins, Other Supplements

FUTURE COMPANY FUNDING OF YOUR HSA Company reviews funding for next year in October Looks at dollar amount left in the fund as a whole It Benefits You To: Reimburse expenses as you acquire them If not using debit card, simple 3-click steps on website

401k PLAN Eligibility -All Full-Time Employees, 6-months following hire date Open Enrollment -First month following end of each quarter Vine Connections Plan Benefits -No employee contribution required to receive company funds -100% vested in Company contributions after 3 years

Company Contributes – Plan Mandated Safe Harbor – 3% of your salary – Discretionary (historically) - 3% of your salary Employee Contributions – Can change at any time – No plan imposed limits – IRS Limit for 2010 is $16,500.

Example of Tax Advantage For Employee Contribution 401(k) Plan Tax-DeferredAfter-TaxSavings Gross Wages$20,000$20, (k) Deposit (5%) 1, Taxable Wages$19,000.$20,000. Estimated Taxes (25%) 4,750. 5,000. After-Tax Investment N/A 1,000. Net Take-Home Pay $14,250. $14,000.

Q & A Regarding Benefits