Business Viewpoint

An overview of concerns and issues you face as a business owner, manager and employer from your point of view.

Confidential for:
Name: ______________________________ Date: _______________________________
A0CD-0401-05

E C C

EXECUTIVE COMPENSATION CONCEPTS

William Ipema
Employers Resource Group, Inc. 5900 Down Valley Court, Suite 100 Austin, Texas 78731
Jonathan de la Cruz
Ageas Insurance Company Asia Limited Office: 458-1719 Suite 706-8, (512) World Finance Centre South Harbour City Fax: Tower, (512) 458-1769 Tsim Shat Tsui, Kowloon Mobile: (972) 489-6792 Hong Kong

Email: wipema@htk.com

Registered Representative of and securities and investment advisory services offered through Hornor, Townsend & Kent, Inc. (HTK) Registered Investment Advisor Member FINRA/SIPC. HTK is wholly owned subsidiary of Penn Mutual. Employers Resource Group, Inc. is independent of HTK.

Tel: (852) 2172 2700 Mobile: (852) 9039 4149 Email: jonathan.cruz@ageasagents.com

The Business Viewpoint

The Business Viewpoint will accomplish two key objective. One, the nature of the questions will tell you specifically the type of work that I do. And two, your responses will tell us both how we should proceed from here.

Your information is confidential.

Business Data
Full Name: ________________________________ DOB: ____/____/______ Name of Business: _______________________________________________ Business Address: _______________________________________________ City: _______________________ ST: ______ Zip: _____________________ Nature of Business: ______________________________________________ Job Title: _______________________________________________________ Phone (Bus): (_____)______-________ Phone (Res): (_____)_____-_________ No. of Shareholders: ________ Is your spouse active in the business? Do you have children? Yes No Bus Fax: (_____)______-________ Years in Business: ________ No. of Employees: ________ Yes No Yes No

Spouse Name: _____________________________ DOB: ____/____/______ Ages: _________________________

Are any family members active in the business?

Please select the appropriate boxes below. Type of Business The business is: Sole Proprietorship Starting up Partnership Expanding rapidly Corporation (Family) Growing steadily Corporation (Shareholder) Stable Other________________ Currently declining My ownership position is: 100% 75% to 99% 50% to 74% 25% to 49% Less than 25% My property assets include: Personal residence Vacation property Land and buildings Farming property Revenue property My personal income is taken as: Salary Dividends Bonus Shareholder loans Other ________________ Other assets include: Guaranteed certificates Life insurance Tax deferred plans Stocks, bonds, investment funds Other business(s)

My Views
Please check the boxes that reflect your personal views. A = Essential B = Fairly Important C = Of Little Value D = Not Applicable

A B C D
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. For my personal satisfaction, owning a business is... Taking time to plan for the success of my business is... I believe special incentives for key employees are... Helping provide for employee financial security is... To reduce turnover, an employee benefit plan is... Special benefit plans for shareholders are... My spouses involvement in operating my business is... Having family members actively involved in operating my business is... Planning for financial security outside my business is... Having the business provide family income in the event of my disability or retirement is... A strategy to plan for my exit from the business is... Guaranteeing full value of my business to my heirs is... Continued ownership of my business by my heirs is... In the event of my death, having the business provide for my family is... Having my will, estate plans and business continuation agreements fully integrated is... A complete understanding of my current situation and future plans by my legal advisor is... Financial and tax advice from my accountant is... A complete understanding of my current situation and future plans by my accountant is... Business insurance, employee benefits and retirement planning advice from my insurance advisor is...

Issues as a Business Owner

Please check the boxes that reflect your personal views. Y = Yes N = No ? = Not Sure X = Not Applicable
Y 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. I am satisfied with the profitability of my business. I know the current market value of my business. My business is in a saleable condition. Someone else could easily run my business. The business provides adequate compensation for the owners. I could easily find people who would want to buy my business. The business currently provides adequate retirement income for the owners. The full market value of my business will be transferred to my heirs in the event of my death. I understand the consequences of the disability or death of the other owner(s) of the business. There is adequate life insurance on all owners of the business. My spouse would receive an adequate income from the business in the event of my death. My will is current and consistent with my business plans. My business loans and personal debts will be paid off in the event of my death. I have a current buy/sell agreement in place that fully covers death, disability and retirement. I understand how taxes will be applied to my business and estate. I require assistance in reviewing my business ownership issues. N ? X

Issues as a Business Manager

Please check the boxes that reflect your personal views. Y = Yes N = No ? = Not Sure X = Not Applicable
Y N ? X 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. The competitive position of my business is positive in the current marketplace. I have full financial control of my business without the restrictive influence of my banker. Loss of a specific key employee would adversely affect profits or business credit. The business could easily find replacements if key employees become disabled or died. Any business loss would be reimbursed if a key employee became disabled or died. I have plans in place to retain employees who are key to the success of the business. I have adequate life and disability insurance in place on key employees of the business. My spouse plays a critical role in the success of our business. In the event of an extended disability, the business could run effectively without me. If I become disabled, the fixed overhead costs are insured on a tax-favored basis. A written strategy is in place for managing the business in the event of my death or disability. My spouse has a full understanding of my business continuation plans. I have family members that will remain active in the business in the event of my death. In the event of my partners death, I am prepared to continue the business with his/her relatives. I am familiar with the tax-favored status of company-owned insurance programs. I require assistance in reviewing my issues as a business manager. 7

Issues as an Employer
Please check the boxes that reflect your personal views. Y = Yes N = No ? = Not Sure X = Not Applicable
Y N ? X 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. I feel it is important to help my employees plan for their personal financial future. I believe my employees should be encouraged to save for retirement. I have installed a retirement income benefit program for my employees. Our pension plan provides an adequate income for retiring employees. Each qualified employee will receive a continuing income in the event of a disability. Our company benefit plan has supplemental benefits for key employees. Our company benefit plan helps reduce turnover. We have a formal plan in place to share profits with our most productive employees. My employees appreciate the value of the benefits program the company provides. Our company benefit plan is easy to administer. I am happy with the claims service I receive on my company business plan. I am concerned about the overall cost of the employee benefit plan. I know the company benefit plan is competitive from a cost standpoint. I believe the company benefit plan is a good value. I value the advice provided by my employee benefits advisor. I require assistance in reviewing my company benefit plan.

Issues as an Individual
Please check the boxes that reflect your personal views. Y = Yes N = No ? = Not Sure X = Not Applicable
Y N ? X 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. I am satisfied with my rate of personal savings and investment accumulation. My personal loan payments are fully protected by disability insurance. I have an alternative source of personal income in the event of an extended disability. My personal guarantees are documented and insured in the event of my disability or death. My spouse and I are well informed about the benefits of planning our estate. I have appointed a guardian for my dependent children. My executor is familiar with the contents and location of my will and estate plan. My will and my life insurance program are consistent with the requirements of my estate plan. All my beneficiary designations are up to date. I have made specific financial arrangements to provide for my children and/or grandchildren. I am concerned about the taxes applied to my estate. I maximize my tax deferral contributions each year. I have accurately projected my retirement income needs and sources. I have a clear understanding of the impact of inflation on my future retirement income. I have built adequate retirement assets outside of my business. I require assistance in reviewing my personal financial security.

Changes
In the next year I plan to:
Start a new business Buy another business Expand the business Invest more money in the business Take on a new partner Bring a family member into the business Change my role in the company Borrow money Purchase property for the business Buy personal property Find a new legal advisor Find a new accountant Find a new banker Find a new employee benefit advisor Find a new business insurance advisor Pay off a loan Sell business property Sell the business Retire from the business.

Review Status
Last buy/sell agreement review More than 3 years ago 1 to 3 years ago Last will planning review More than 3 years ago 1 to 3 years ago Last insurance review More than 3 years ago 1 to 3 years ago Last company benefit review More than 3 years ago 1 to 3 years ago

Less than a year ago

Less than a year ago

Less than a year ago

Less than a year ago

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Issues for Discussion

Please check your areas of concern with the highest priorities.
As a business owner Shareholder benefit plans Business succession planning Buy/sell agreements Business life insurance Business debt protection Other ________________ As a business manager Business continuation planning Business continuation insurance Key person insurance coverage Disability protection planning Business overhead protection Other ________________ As an employer Executive benefit plans Employee retirement plans Employee disability plans Company benefit (review) Company benefit (proposal) Other ________________ As an individual Estate planning Business insurance planning Estate taxation concerns Retirement income plans Tax deferred plans Other ________________

Other Issues

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Notes