PREMIER FINANCIAL ALLIANCE, INC



PREMIER FINANCIAL ALLIANCE, INC.

DEFERRED COMPENSATION PLAN FOR PLAN YEAR 2014

I. PLAN REQUIREMENTS FOR AWARD OF PARTICIPATION POINTS

A. AGENT ELIGIBILITY

1. INSURANCE LICENSED IN EVERY STATE THAT REQUIRES AGENT TO BE LICENSED TO SELL INSURANCE OR ANNUITIES AND/OR TO BE PAID COMMISSIONS OR OVERRIDES ON SAID BUSINESS.

2. APPOINTED AND CODED ONLY UNDER PFA WITH PFA PREFERRED PROVIDERS.

3. CURRENT E & O INSURANCE UNDER PFA’S UMBRELLA POLICY.

4. 24 MONTH ROLLING LIFE INSURANCE PERSISTENCY NOT LESS THAN 78%.

5. SALES ASSOCIATES MUST BE IN GOOD STANDING WITH PFA UNDER THE TERMS AND CONDITIONS OF PFA’S MARKETING ASSOCIATE AGREEMENT AND THE POLICIES AND PROCEDURES ISSUED THEREUNDER.

B. PRODUCTION REQUIREMENTS FOR ANNUAL PLAN QUALIFICATION FOR PLAN YEAR 2014

1. INFINITY PRODUCTION- MINIMUM REQUIREMENT SHALL BE $ 2 MILLION DOLLARS

2. SUPER BASE SHOP PRODUCTION MINIMUM REQUIREMENT SHALL BE $ 1 MILLION DOLLARS

3. BASE SHOP PRODUCTION- MINIMUM REQUIREMENT SHALL BE $600 THOUSAND DOLLARS

4. PERSONAL PRODUCTION-MINIMUM YEARLY REQUIREMENT SHALL BE $100 THOUSAND DOLLARS

5. QUALIFYING PRODUCTION-

-PERSONAL AND BASE SHOP SHALL BE BASED ON GROSS PAID TARGET LIFE COMMISSIONS

-SUPER BASE AND INFINITY SHALL BE ON PAID AV TARGET LIFE COMMISSIONS

6. QUALIFYING PRODUCTION FOR EACH PLAN YEAR (August 1st though July 31st) WILL BE PUBLISHED ON PTRAC

C. AWARD OF PARTICIPATION POINTS

1. PARTICIPATING POINTS SHALL BE AWARDED TO ELIGIBLE AGENTS ON THE BASIS OF ONE PARTICIPATION POINT FOR EVERY 2.5% IN QUALIFYING PRODUCTION UNDER PARAGRAPH B ABOVE.

2. AWARDS OF POINTS SHALL BE MADE FOR EACH CATEGORY LISTED UNDER SUBPARAGRAPHS OF PARAGRAPH B FOR WHICH REQUIREMENTS ARE MET.

3. AWARDS OF PARTICIPATION POINTS SHALL BE CUMULATIVE FOR EACH CATEGORY LISTED UNDER SUBPARAGRAPHS OF PARAGRAPH B FOR WHICH REQUIREMENTS ARE MET.

D. ANNUAL STATEMENT OF AGENT’S QUALIFICATION FOR PARTICIPATION IN THE DEFERRED COMPENSATION PLAN AND ACCOUNT OF CUMULATIVE PARTICIPATION POINTS AWARDED.

1. QUALIFYING AGENTS SHALL BE GIVEN A WRITTEN CERTIFICATE SHOWING THE AWARD OF PARTICIPATION POINTS EACH YEAR.

2. QUALIFYING AGENTS SHALL BE PROVIDED WITH A STATEMENT OF CUMULATIVE POINTS AWARDED FOR EACH YEAR THE AGENT HAS QUALIFIED TO PARTICIPATE IN THE DEFERRED COMPENSATION PLAN.

II. PLAN REQUIREMENTS FOR CASHING IN PARTICIPATION POINTS

A. AGENT ELIGIBILITY AT TIME OF PLAN DISTRIBUTION

1. INSURANCE LICENSED IN EVERY STATE THAT REQUIRES AGENT TO BE LICENSED TO SELL INSURANCE OR ANNUITIES AND/OR TO BE PAID COMMISSIONS OR OVERRIDES ON SAID BUSINESS.

2. APPOINTED AND CODED ONLY UNDER PFA WITH PFA PREFERRED PROVIDERS FOR 24 MONTHS PRIOR TO DISTRIBUTION

3. CURRENT E & O INSURANCE COVERAGE UNDER PFA’S UMBRELLA POLICY.

4. PFA CONTRACT LEVEL QFD OR ABOVE.

5. 24 MONTH ROLLING LIFE INSURANCE PERSISTENCY NOT LESS THAN 78%.

6. SALES ASSOCIATES MUST BE IN GOOD STANDING WITH PFA UNDER THE TERMS AND CONDITIONS OF PFA’S

MARKETING ASSOCIATE AGREEMENT AND THE POLICIES AND PROCEDURES ISSUED THEREUNDER

B. CONDITIONS FOR CASHING IN PARTICIPATION POINTS AWARDS

1. CLOSING OF A SALE OF A CONTROLLING INTEREST IN PREMIER FINANCIAL ALLIANCE, INC TO A THIRD PARTY OR PARTIES DIRECTLY OR THROUGH A PUBLIC STOCK OFFERING SHALL INITIATE THE CASH OUT OF PARTICIPATION POINTS.

2. TWENTY FIVE PERCENT (25%) THE NET SALES PROCEEDS FROM SAID SALE SHALL BE DISTRIBUTED TO ELIGIBLE PARTICIPANTS WHEN SAID PROCEEDS ARE ACTUALLY PAID TO SELLER.

3. ELIGIBLE PLAN PARTICIPANTS SHALL BE CASHED OUT OF THE PLAN ACCORDING TO THE FOLLOWING PARTICIPATION FORMULA:

a. TWENTY FIVE PERCENT (25%) OF THE NET SALE PROCEEDS PAID TO SELLER OF PREMIER FINANCIAL ALLIANCE, INC.

MULTIPLIED BY:

b. EACH AGENT’S PLAN PARTICIPATION PERCENTAGE.

c. EACH AGENT’S PLAN PARTICIPATION PERCENTAGE SHALL BE CALCULATED BY DIVIDING EACH PLAN PARTICIPANT’S ACCUMULATED TOTAL PARTICIPATION POINTS AWARDED BY THE TOTAL ACCUMULATED PLAN PARTICIPATION POINTS AWARDED TO ALL PREMIER FINANCIAL ALLIANCE, INC. AGENTS ELIGIBLE TO PARTICIPATE IN THE PLAN.

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