The ABC Company 401(k) Plan Enrollment Meeting

1. The ABC Company 401(k) PlanEnrollment Meeting Reach for the Top Hosted by Mary Jones Trust Officer First National Bank

2. Agenda • Introductions • First National Bank (Trustee) • BPA-Harbridge (Third Party Administrator) • Plan Review (Plan Highlights) • Reach Booklet • How Much Money Do you Need/Save? • Investment Concepts • ABC Retirement Plan Funds • ABC Investment Grid • Completing the Forms

3. Introductions • First National Bank • Trustee • Independent Trust Company • Monitors Investments • Monitors all parties involved • Plan Administrator • TPA • Participants • BPA • Third Party Administrator • Handles all recordkeeping functions • Technology and statements • Contributions Invested, Distributions, Loans, Hardships

4. Plan Review Plan Highlights • Build an excellent source of retirement income. • Lower your current taxable income by contributing a portion of your pay to your 401(k) account, reducing your current state and federal income tax. • Pay no taxes on the earnings until you withdraw the money. • Take advantage of professional fund management as you elect where to invest your money. • Access information about your account through the convenient toll-free Voice Response System at 1-800-530-1272, or by visiting www.bpas.com and logging in as a participant.

5. Plan Review Eligibility You are eligible to participate in the Plan: • At Least Age 21 • Completed 1 year of Service (1000 hrs in 12 months) • January 1 & July 1 Enrollment dates • You enroll in the Plan by completing an Enrollment and Allocation form.

6. Plan Review Retirement Age • The Plan’s normal retirement age is 65. Forms of Benefit • The normal Form of Benefit you will receive is a Lump Sum. • You may choose to roll your account balance into an IRA or another Employer’s Qualified Retirement Plan. • You may leave your money in the Plan if your vested account balance is over $5,000.

7. Plan Review Distributions Upon Termination • If you terminate employment before your retirement age, you may take a distribution of your account balance as soon as administratively feasible, following the date on which a distribution is requested or is otherwise payable. A $50 distribution fee is charged against your account at the time of distribution.

8. DistributionsWith Separation of Service Balance $.01-$999 • Term date on the system • After 90 days • Distribution form sent to AOR • If you don’t respond within 60 days • A distribution is sent to your AOR

9. DistributionsWith Separation of Service Balance $1000-$4999 • Term date on the system • After 90 days • Distribution form sent to AOR • If you don’t respond within 60 days • An IRA is opened on your behalf and your assets are moved out of the plan to the IRA

10. DistributionsWith Separation of Service Balance over $5000 • You can leave your assets in the account • You do not have to move out of the plan • You will have to request a distribution form online to initiate a distribution • The form will not automatically be sent to you • Your Term date must be on the system MAKE SURE YOU COMMUNICATE ANY ADDRESS CHANGES WITH ABC!

11. Plan Review Death & Disability Benefits • In the case of your death, your beneficiary will receive 100% of your account balance. If you are deemed totally disabled by the Company while still employed, your Employer account will become 100% vested.

12. Plan Review Vesting • You are always 100% vested in employee and employer Safe Harbor Contributions. • The vesting for other contributions is as follows:

13. Plan Review Contributions • Employee Contributions • Employer Safe Harbor Contributions • Employer Contributions (Profit Sharing) • Rollover Contributions All contributions are paid into a Trust Fund set up solely for the participants in the Plan. Your money will grow tax-deferred, which means you will not owe income tax on your principal investments or earnings until you actually take a distribution of your benefits from the Plan.

14. Plan Review Employee Contributions • Pre-tax Employee Contributions are made into your account through automatic payroll deduction. • You may elect to contribute based on a dollar amount or whole percentage of Compensation, not to exceed the lesser of: (1) 100% of Compensation, or (2) $16,500 (2011). • Catch-up contributions of up to $5,500 will be allowed for participants who will be at least 50 years of age in 2011. • Contributions are pre-tax • You may change your contribution percentage at the beginning of any calendar quarter. You may discontinue contributions at any time, but may not resume contributions until the beginning of a calendar quarter. Contact the Payroll Office for the necessary forms. • Contributions are 100% vested

15. Plan Review Employer Safe Harbor Contributions • Employer Safe Harbor Matching contributions will be made on behalf of each participant. • $1 for $1 on the first 3% of deferrals • $.50 on the next 2% of deferrals • 100% vested

16. Plan Review Employer Contribution (Profit Sharing) • The Employer may also declare a non-safe harbor contribution that is not associated with deferrals. • Discretionary • Contributions are subject to vesting

17. Plan Review Rollover Contributions • You may roll over assets from any former employer’s qualified plan, or from any conduit IRA rollover account, into this Plan at any time after your employment date. • You may withdraw all or any part of any rollover prior to your termination of employment. • 100% Vested

18. Plan Review Participant Loans • Up to 1 loan per participant can be taken (minimum: $1000, maximum: 50% of vested balance or $50,000, whichever is less) • Repaid through salary deduction; interest goes to your account • If you terminate employment, loan must be repaid within 90 days or a taxable event Hardship Distributions • Hardship withdrawals are permitted for: • Medical expenses of immediate family members • College tuition of immediate family members • Purchasing of principal residence • Preventing foreclosure/eviction from principal residence • Funeral expenses for immediate family members • Repair of primary residence. • The law requires that your pre-tax contributions be suspended for 6 months from the date of the hardship withdrawal • If under age 591/2: 10% Penalty • Ordinary income tax and withholding • Hardship distributions will be limited to employee deferrals

19. Plan Review In-Service Distributions • After attaining age 59 ½ • Limited to One a year • Subject to Taxes

20. Compliance With 404(c) • Investments are Participant-Directed • Details of Investments Available • Prospectuses, fact sheets available online • Performance provided online and in quarterly statements • Risk & return characteristics available • Statements mailed quarterly • And permanently archived to participant website • Expenses • ABC Company • Trustee Fees • Recordkeeping Fees • Participants • Fund Expenses • 35 BPS surcharge for funds without 12b-1s

21. Reach For The Top

22. Reach For The Top • How Much Money Do you need to save? • Investment Concepts • Your Investment Strategy • Risk Tolerance

23. As you get older, other costs may go up Higher expenses for medical and insurance Filling increased leisure hours An upgrade of lifestyle (travel, vacation home, RV) may require more than 70% - 90% When you retire your living costs may go down You may own home free and clear No work-related expenses No family-rearing expenses May pay less income tax How Much Do You Need/Save? Most experts agree you’ll need between 70% and 90% of current income, adjusted for inflation, to live comfortably during retirement.

24. How Much Do You Need/Save? Goods and services will cost more in the future. Since 1926, inflation has averaged just about 3% per year. INFLATION: $.19/.14 $.87/.37 $1.58/.87 $1.91/1.04 ? 1950 1978 1997 2005 2035 Department of Labor Statistics, 2005

25. How Much Do You Need/Save? Worksheets • You can use the three worksheets in the book to help you calculate • How much retirement you will need per month? • What are your sources of retirement income? • How much do you need to save each month? • You can also access this worksheet and many other retirement savings calculators by accessing your account online at www.louisvilltrust.com and clicking on the education tab at the top of the page. Use the Table Card at the back of the book to help complete the worksheets.

26. How Much Do You Need/Save? There is no substitute for starting early! Start saving now. Remember, since returns accumulate over time, time is money! By starting early, you can create surprising results. SAVINGS

27. How Much Do You Need/Save? TAX ADVANTAGES Save dollars that would ordinarily go to Uncle Sam in taxes by using your before-tax contributions, and your returns will grow tax-deferred until you withdraw them.

28. How Much Do You Need to Save? TAX ADVANTAGES Tax-deferred compounding: you don’t pay taxes on your savings or investment earnings while you are saving.

29. Investing

30. Types of Investments • Stocks (Equities) • Ownership • More Risk • More Potential Gains/Losses • Stocks experience volatility, which means that they go up and down in value. Stocks can be an important part of your long-term strategy because they offer some of the highest long-term potential returns.

31. Types of Investments • Bonds (Fixed) • IOU • Fixed Rate • Fixed Maturity • Less Potential Gains/Losses • Bonds are considered a low to moderate risk investment. They have a greater likelihood of preserving capital than stocks, particularly govt. issued bonds.

32. Types of Investments • Money Market • Preservation of Capital • No Market Fluctuation • Low Return • Use the Money Market fund as a “cash” position for your portfolio.

33. Types of Investments • Mutual Funds • Pooled Investment Assets • Stated Objective • Stocks • Large, Med, Small • Value, Blend, Growth • Foreign • Bonds • Corp. or Govt. • Short, Int., Long • Diversified • Your plan uses no-load Mutual Funds as the investment vehicle for your assets

34. INVESTMENT STRATEGIES TIME HORIZON Years to Retirement 15+ 12 9 3 Investing The percentage you use for estimation purposes will depend on your risk tolerance and Investment Time Horizon.

35. Investing Investment Concepts Volatility

36. Investing Investment Concepts • Long-term time horizon – 15 or more years • Intermediate-term time horizon – 5 to 15 years • Short-term time horizon – 5 years or less INVESTMENT TIME HORIZON:

37. Investing Investment Concepts HISTORICAL PERFORMANCE: 1926-2005 Average returns on stocks, bonds and stable investments

38. Investing Investment Concepts DIVERSIFY: • Two kinds of diversification. • Diversification within the fund. • A mutual fund will be diversified among many individual securities. • Diversification between different types of investment options. • Dividing your assets between different asset classes. • For example domestic stocks, international stocks, bonds, cash, etc.

39. Investing Investment Concepts • Other kinds of diversification • Style diversification • Value • Growth • Size • Large cap • Mid cap • Small cap DIVERSIFY:

40. Investing Investment Concepts The Advantage of Dollar Cost Averaging The advantage gained when you invest at regular intervals, whether the market is up or down. When the market is up, you buy fewer shares. When the market is down, you buy more.

41. 5 10 15 20 25 C o n s e r v a t i v e M o d e r a t e A g g r e s s i v e 0 10 20 30 40 50 60 70 80 90 100 Risk Tolerance Use the Risk Tolerance worksheet to help determine what type of investor you are. Complete the “Risk Tolerance” worksheet to determine your score Percentage of savings you might invest with more risk (Stock Funds)

42. U.S. Equity MarketGrid Equities Market (Stock Market) Value Blend Growth Large Funds invested in stocks of established companies with under-valued prices are Value Style funds. The investment managers are bargain hunters anticipating the stock prices will rise toward their perceived market value. Investment managers of Growth Style funds select stocks of companies with faster growing earnings. It is anticipated that the earnings will drive up the stock prices. Portfolio managers of Blend Style funds will hold a mix of both growth and value stocks or stocks that exhibit characteristics of each style. Medium Small

43. ABC Investment Grid ABC Stock Funds Excelsior Value & Restructuring Vanguard 500 Index American Funds Growth R4 Federated Mid Cap Index Columbia Acorn A Goldman Sachs Mid Cap Value A Allianz Small-Cap Value Keeley Small Cap Value Kaufmann Small Cap K

44. ABC International Equity Foreign World American EuroPacific R4 (REREX) American Capital World Growth & Income (CWGIX) (R4) Fixed Short Intermediate Long Balanced Federated Prime Obligation (MM) (PRSXX) (KC) American Bond Fund R4 (RBFEX) Vanguard Long-Term Corp. (VWESX) (VY) Domestic Hybrid American Funds Income Fund A (AMECX) (RJ) ABC Investment Grid

45. 5 10 15 20 25 C o n s e r v a t i v e M o d e r a t e A g g r e s s i v e 0 10 20 30 40 50 60 70 80 90 100 Risk Tolerance Use the Risk Tolerance worksheet to help determine what type of investor you are. Complete the “Risk Tolerance” worksheet to determine your score Percentage of savings you might invest with more risk (Stock Funds)

46. Forms to complete • Enrollment / change form • Your deferral percentage election • Investment elections for new contributions • Beneficiary form • Explanation of rules • Rollover acceptance form (optional)

47. Online Access • Visit www.bpas.com (or call 800-530-1272 if you do not have web access) • Enter your SSN (no dashes) and PIN • If you have not already selected a PIN or if you have lost or misplaced your PIN letter, the last four digits of your SSN will serve as your temporary PIN. • If this is the first time you have accessed your account online, you will be prompted to select a new PIN. • Once you have Access to your account • Account Inquiry tab • Check for accuracy: Name, SSN, Address

48. A few noteson online access • All transactions must be done before 3:00 PM (Eastern) to have transaction processed same day • Get a Confirmation Number! • The site is down from 5:00 AM to 7:00 AM each day for maintenance • The site is down for a few minutes after 3:00 PM to load daily transactions

49. How to Contact First National Bank First National Bank 100 Main Street Utica, NY 13502 315-555-6000 John Smith, extension 210jsmith@fnbbank.com Mary Jones, extesion 212msmith@fnbbank.com Thank you for joining us today!