Multiple Employer 401(k) Plan and Multiple Employer 401(k) Plan 2015

Plan Basics Multiple Employer Plan BBSI defines global design BBSI is “Sponsoring Employer” Client employer is “Participating Employer” BBSI defines global design 32 investment selections to choose from, with varying risk Hardship provision allows distribution for “Safe Harbor Events” Client employer defines plan design Eligibility requirements (age, service, entry) Plan type (profit sharing, safe harbor, discretionary match, etc.) Employer contribution Vesting schedule Age eligibility could be 0 (no age requirement), 18, 19, 20 1/2 or 21 years of age that the employee must be to participate. Service eligibility could be 0 (none), 3, 6, 9, or 12 months that the employee must be employed before they may participate. Entry eligibility is the entry date when someone may enroll in the plan. This could be upon hire, the 1st day of any month or the 1st day of any quarter. Vesting schedule could be immediate (required for safe harbor plans), a 3 year cliff, a 5 year graded or a 6 year graded schedule.

Ease of Administration BBSI: coordinates plan compliance and administration provides data and contribution transmittal calculates employer contributions & can EFT client procures annual audit services and files Form 5500 Transamerica provides employee eligibility notification Dynamic employee and client employer Web site Paperless online enrollment and transactions Plan is portable to client companies Client Administration Fee = $250 one-time set up + $300 annually (billed quarterly). Termed Client Fees Apply.

Transamerica Retirement Solutions Daily valued, multi-fund family product 32 fund options accessing 8 fund families Annual Recordkeeping Fee to the participant $33 per participant per year, quarterly on statement Contract charge based on entire BBSI Plan assets currently .32% (as of 01/01/2015) No Distribution Fees Loan Option (see SPD for more information) Minimum amount is $1,000, maximum of 50% of vested account, not to exceed $50,000. Repaid within 5 years. 2 Loans at a time $50 one-time loan fee + $50 annual loan fee + finance charge

Retirement Plan Basics Employee Salary Deferral Limits for 2015: $18,000 for all participants $24,000 for participants born in 1965 or earlier Total annual allowable $ limit to employee’s account (employee + employer contribution) Lesser of $53,000 or 100% of income EE Compensation Limit in 2008 is $230,000.  For Safe Harbor Match the ER contribution would be limited to $9,200 (230,000 x 4%) For Safe Harbor Non Elective would be limited to $6,900 (230,000 x 3%)

401(k) Safe Harbor Options Safe Harbor Plan Designs Matching Non-Elective formula Benefits of Safe Harbor Plan Designs Enables a plan to forego the complicated testing required each year NO ADP/ACP testing required and will enable plan to satisfy Top Heavy Contribution requirements ADP is Average Deferral Percentage ACP is Average Contribution Percentage Top Heavy is when highly compensated employees’ account balances are more than 60% of the non-highly compensated employees.

Safe Harbor Plan Options Safe Harbor Match $1.00/$1.00 match for the first 3% of employee contributions, .50/$1.00 on the next 2% of employee contributions Must be 100% vested and declared at least 30 days prior to beginning of each plan year Cannot estimate cost as it depends on how many employees enroll but maximum cost would be 4% of eligible compensation (if every employee enrolled) Safe Harbor Non Elective 3% of eligible compensation to employee Must be 100% vested and declared 30 days prior to the beginning of each plan year Cost is 3% to all eligible employees For Safe Harbor Match the ER contribution would be limited to $9,800 (245,000 x 4%) For Safe Harbor Non Elective would be limited to $7,3500 (245,000 x 3%)

Safe Harbor Plan May be suitable for: Plans unable to maximize HCE deferrals Companies with lots of HCEs Top heavy plans Groups with low participation or have a history of failing ADP/ACP tests Employer match already close to the Safe Harbor level 100% vesting is not of major concern Highly Compensated Employee is: Employee who is a 5% owner or more, OR Received compensation in excess of $110,000 in 2009, OR Family member (spoue, parent, child)

Profit Sharing Plan May be suitable for: Employers who want to reward employees for their contributions to the success of the company and want the flexibility to change contribution levels annually May be used concurrently with a 401(k) plan Employers who want to vary contributions by employee groups

Sales Process Review Executed contract & account set up with TransAmerica and BBSI. Client interested in 401(k) 401(k) Survey Completed (Forwarded to Branch then to Corp.) Enrollment Kits ordered, Enrollment Workshop Conducted, Participants can Enroll & Begin Deferrals Client receives customized marketing materials Client contacted & signed up by TransAmerica Sales Consultant

Participant Resources Transamerica: Participant website: www.TA-Retirement.com Toll-free Participant Call Center: 1-800-401-8726 Check account balance, fund performance and current asset allocation Change future asset allocation or transfer money between investment options Access Retirement Planning Tools Morgan Stanley Investment Advisors: At no additional charge we offer unlimited access to financial planning services by our prestigious investment advisory partner, Morgan Stanley.