Pension Plan Proposal

Pension Plan Proposal Issued March 2002

Content • Alternatives and legal requirements • Your company‘s requirements • Our recommendation • Facts and figures • Benefits for you and your employees • For further information

1. Alternatives and legal requirements Pension Pool„Pensionskasse“(under legal control) Relief Fund„Unterstützungs-kasse“ Pension promises Pension Fund„Pensionsfond“ Direct Insurance Employee claims ... to pension pool to agency handling the „Pensionsfond“ via relief fund to employer direct to employer to insurance employer: reserve for pending claims or reinsurance necessary employeror employee employer and/or employee employer and/or employee employer and/or employee Payed by ... claim up to 256.000 € or 25.800 € annual pension max. 1.752 € p.a.or 2.150 € ifbased on average max. 1.752 € p.a.or 2.150 € ifbased on average to 4% of base salary Limit ... unlimited tax deductible operatingexpenses if payed by employer,flat-rate tax if payedby employee neutral if reinsured,otherwise tax reduction Taxationemployer ... tax deductible operating expenses tax deductibleoperating expenses tax deductible operating expenses flat-rate tax during saving period,payment free of tax if payoff all at once,partly free of tax if paid as annuity free of tax but only according to „ Riesterrente“ Taxationemployee ... only subject to taxduring pension period only subject to taxduring pension period • huge amount of work concerning balance • full responsibility • complicated for HR • tax savings possible • risk transfer • very easy to handle • flexible investment Issues for employer ... • risk transfer • very easy to handle • risk transfer • easy to handle • risk transfer • very easy to handle • low flat-rate tax • saving of social insurence contribution • tax reduction by shifting salary to pension period • high yields possible • tax reduction by shifting salary to pension period • only annuity possible • low yield Issues for employee ... • higher yield possible

2. Your company‘s requirements • Both employer and employee should be allowed to contributeto the Pension Plan • Employer‘s payments should be tax deductible • The risk/return ratio needs to be well balanced • „Provider“ should offer a variety of appropriate solutions in order to attract all employees • Easy handling for HR – avoid additional workload • Service for the employees should be covered by external financial advisor • What else is important for you? Just let us know...

3. Our recommendation: The Relief Fund „Unterstützungskasse“ • Pro‘s for the you as an employer: • Very flexible • Almost unlimited • Different options within this system possible • Easy handling for HR • Meets all needs • Pro‘s for your employees: • High yield • Well balanced risk/return ratio • No limit • Tax saving

Employer Employee Contributions Supply Insurance Company How does the Relief Fund „Unterstützungskasse“ work? Employee defines individual pension plan within a givenframework

and employee Employer financed Employee financed • different partners possible • different options possible • high flexibility: - annuity / payoff • - live / rent insurance, investment • employer provides determined pension plan • employee can enlarge it by own contributions Very attractive Pension Plan Direct insurance employee financed Relief Fund – financed by employer Relief Fund

The two pillars – Why should they be combined Direct Insurance Relief Fund „Unterstützungskasse“ • 20 % flat tax rate • Only subject to tax during pension period Taxation • No contributions in case of disability • Disability annuity • Payment in case of death • Widower insurance • No contribution in case of disability • Payment in case of death Supplements • High profits possible, yield on gross salary • Tax reduction by shifting salary to pension period • Tax free even during pension period • Flat tax rate during contribution period • Good profits Advantages • As supplement to direct insurance • For tax saving reasons • For employees with high salaries • As basic insurance • To add supplements Suitable ...

Benefits of combining Relief fund with Direct Insurance Direct insurance Relief Fund • mainly responsible for: • old age pension • tax saving • high profits • mainly responsible for: • disability insurance (stand alone or in combination with life / pension insurance) • risk life insurance Attractive Pension Plan • Advantage of the combination: • annuity / payoff for disability insurance is partly or fully tax free via direct insurance • higher contributions possible in total • high flexibility concerning benefits (payment in case of death, disability, early retirement)

„Konzepttarif“ Portfolio Life / Pension insurance Investment Pension • Portfolio • 70% REX • 30% stocks (managed) Combination of life / pensioninsurence and investment Regular life / pension insurance • stability of return oninvestment • good diversity based ondifferent fonds or asset management • low risk • high yield based on efficientasset management • best fonds / shares of leading fond companies • payment in case ofdeath possible • disability insurance can be integrated • no risk • high reliability • stable return on investment • appropriate profit • payment in case ofdeath possible • disability insurance includingannuity can be integrated • stability of return on invest-ment due to mixture of REX and shares • low risk through REX • high yield based on pro-fessional stock manage-ment • very high profits possible • disability insurance can be integrated Select from our „menue“ What is it? What´s the benefit?

4. Facts and figures: annual contribution 2.250 € Male; age 35 years; duration 30 years Equivalent to an employer‘s contribution of 4% and annual gross salary of 45.000 € Life / Pension insurance Investment Pension Konzepttarif guaranteed payment 107.000 € 105.000 € 83.000 € total payment (incl. profit) 251.000 € 230.000 € to 310.000 € 277.000 € paymentin case of death 90.000 € + profit available balance available balance guaranteed annuity 579 € 536 € 435 € total annuity 1.964 € 1.780 € to 2.120 € 2.235 € contribution 67.500 € contribution 67.500 € contribution 67.500 € payment 251.000 € payment 278.000 € payment 285.000 € all total payments are calculated and not guaranteed

Advantages for youas an employee Advantages for your employees • No additional cost for the pension plan(our commission is paid by theinsurance) • We make your life easier by • handling the pension plan • advising your employees • monitoring the legal requirements • We support your HR department(proactive information about legalchanges, know-how transfer how toput it into practice) • We help you increase your attractive-ness for your employees by offeringa special pension plan • Every employee will find an optionfitting him perfectly • Individual information about pensionplan • We are the direct contact person –every day • Full-service regarding all questionsconcerning the pension plan 5. Benefits for you and your employees

6. For further information ...or visit our website http://www.moneyoptimal.de/ Please contact... Richard Aigner and/orJürgen Held moneyoptimal GmbHBajuwarenstrasse 4381825 München Tel: 089 / 427 207 - 00 Fax - 01 service@moneyoptimal.de

Pension Plan Proposal