OppenheimerFunds Retirement Services Plans That Work Single DB PlusSM

OppenheimerFunds Retirement Services Plans That Work Single DB PlusSM A Guide for Small Business Owners 1234

Plans That Work OppenheimerFunds Retirement Services is committed to helping you meet the challenge of having enough money to fund the retirement of your dreams. Your retirement plan includes a wide array of high quality investments, such as time-tested mutual funds and asset allocation solutions from OppenheimerFunds an industry leader dedicated to providing investment excellence. The investments offered are one part of your comprehensive retirement program that comes complete with education, planning tools, communication and support. From enrollment to retirement income planning, we provide the solutions you need. In short, we create Plans That Work. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

OppenheimerFunds The Right Way to Invest Since its founding in 1960, OppenheimerFunds, Inc., together with its controlled affiliates, has become one of the nation s leading financial services companies. Working with a trusted network of financial advisors, we offer investors comprehensive solutions that utilize our mutual funds and a wide range of other investment vehicles. Can You Make Up for Lost Time? Mortgage, college tuition, your business for years, they likely ate up the extra cash that could have gone into your retirement. Now the house is paid for, the kids have graduated and your venture is going well. You re ready to make up for lost time. How can you do so? High income small business owners, independent contractors, dual-earner households and others like you may be able to invest significant amounts of new dollars tax deferred until retirement. OppenheimerFunds Single DB Plus SM retirement plan can help you take full advantage of this opportunity. Single DB Plus can potentially help you make up for lost time in your retirement savings and reduce a significant current tax burden in the process. The financial future you ve always wanted still may be within reach even at this stage of the game. A Defined Benefit Plan May Be the Answer Millions of Baby Boomers are still struggling with low balances in their savings and retirement accounts. A traditional defined benefit pension plan may be the best way for older, high income business owners to shelter unprecedented amounts in retirement accounts in a relatively short period of time to help build and fortify their nest eggs.

2 Single DB Plus Guide Letting Uncle Sam Foot More of the Bill Remember, for every dollar you set aside in a qualified retirement plan, the government funds up to 38% of the tab through tax savings. 1 Why not use Single DB Plus to transfer thousands more from your business into your retirement plan and enjoy the biggest possible tax break? 1. Assumes a combined federal/state marginal income tax rate of 38%. 2. 2008 Index. The maximum annual benefit payable from a Single DB Plus SM is generally $185,000. Contribution limits for Single DB Plus SM are determined by an actuary and will vary according to an individual s income, age and circumstances. This contribution amount assumes a business owner age 52 earning $230,000 annually and making maximum contributions for a period of 10 years. 3. The maximum annual contribution in a Profit-sharing and SEP plan is $46,000. The maximum annual contribution in a Single K SM plan is $51,000 including $5,000 in catch-up contributions. The maximum annual contribution in a SIMPLE IRA is $22,400 including $2,500 in catch-up contributions and $2,500 additional match. A Faster Track Toward Your Retirement Goals Do you have a successful small business or professional practice? Or a secondary source of significant income? A spouse whose earnings you can afford to sock away? If you re a Baby Boomer who fits any of these descriptions, you may already be contributing the maximum allowable amount to a 401(k) or some other type of tax-advantaged retirement plan. But are those savings really enough to build the wealth you want for your later years or to make a significant dent in your current tax burden? OppenheimerFunds Single DB Plus could be a far better way to accomplish both objectives. The plan features: The highest maximum savings limit of any qualified plan, increasing the annual amount you can invest for retirement by thousands of dollars. The maximum annual retirement benefit in a Single DB Plus is $185,000 in 2008. For older individuals, the annual cost of funding that benefit can be as much as $100,000 or more. Much more than you can contribute to other plan types! Contributions made to a Single DB Plus are determined by an actuary and will vary according to an individual s income, age and circumstances Substantially higher tax savings. Since employer contributions are a taxdeductible business expense, the more you save for retirement, the more you save in taxes on your current income Access to a wide variety of time-tested investments. Choose from a full array of OppenheimerFunds investments Potentially faster growth through tax-deferred investment income. With your large base of contribution dollars, this plan s tax deferral of investment gains may help you grow your retirement nest egg significantly Plenty of built-in flexibility. How much you contribute, where you put your money, what you do with your savings when you retire Single DB Plus gives you flexible choices in all of these important areas Set your own retirement goals. The money you save and invest through Single DB Plus is aimed at producing a specific level of income at retirement, the same way a corporate pension plan does. In this case, however, you can control how much that target benefit will be Single DB Plus: Higher Saving Limits and Bigger Tax Advantages (Assumes compensation of $230,000) $150,000 $133,600 2008 Annual Defined Benefit Contribution 2 (Estimate) 2008 Retirement Plan Contribution Limits 3 100,000 Potential Tax Savings 1 50,000 0 $50,768 $46,000 Single DB Plus $17,480 Profit-sharing $51,000 $19,380 Single K SEP (Also known as an Individual 401(k)) $46,000 $17,480 $22,400 $8,512 SIMPLE

How Does Single DB Plus Work? Single DB Plus is a defined benefit (DB) plan, which means it works somewhat differently than the defined contribution (DC) plans with which you may be more familiar. Unlike a DC plan, a DB plan provides for a specific benefit at retirement. The formula used to achieve this benefit, which focuses on age, income and years to retirement, normally favors the older owners of a business who typically make significantly more money than their employees and have fewer years to build their retirement assets. Setting a Retirement Goal Your financial advisor, working with Dedicated Defined Benefit Services, LLC, 1 a leading provider of actuarial services, will assist you in figuring out the percentage of your annual income you ll need to set aside in order to produce the standard of living you envision for your retirement. The annual contribution you ll need to achieve your objectives can then be determined using actuarial calculations based on: Your current age The average of three consecutive years of your highest income The age at which you plan to retire Assumptions about investment performance Investing Your Savings Single DB Plus investment options are brought to you by OppenheimerFunds, one of the most respected names in the mutual fund industry. Your choices include over 60 Oppenheimer mutual funds. Taking Your Money Single DB Plus gives you the option of extending your tax advantages at retirement time by receiving monthly installments from the plan or rolling your plan assets into an IRA. Defined Contribution, Defined Benefit. What s the Difference? Defined contribution plans (like a profit-sharing or 401(k) plan) specify the funding formula used to determine a plan s annual contribution, but don t stipulate a specific benefit at retirement. The savings an employee ends up with at retirement depends on how the plan s investments performed over time. Defined benefit plans (like a traditional corporate pension) promise a certain benefit based on a formula that generally takes into account an employee s salary and years of service. The risk of investing plan funds to produce the guaranteed benefit is borne by the employer. Does This Plan Have Your Name on It? If you fit the following profile, Single DB Plus may allow you to build your retirement assets more rapidly than with other plan types. Age: 45 years or older Income: High, stable annual income of $100,000 or more; the ability/desire to save over $46,000 a year for at least three years. 3 Single DB Plus Guide Status: Self-employed individuals; business owners with one to five employees; employees who have income from a side business; self-employed spouses of high income earners. 1. Dedicated Defined Benefit Services, LLC is not affiliated with OppenheimerFunds.

4 Single DB Plus Guide Comparing 412(i) Plans to Single DB Plus You may have heard about another popular type of defined benefit program for small businesses known as a 412(i) plan. While similar in some ways to Single DB Plus, there are some key differences you should be aware of when considering a 412(i) plan. 412(i) plans are funded solely through insurance and/or annuity contracts The underlying expenses of a 412(i) plan are not transparent and contribute to higher contribution requirements 412(i) plans don t require actuarial certification of plan contribution, which may lower their direct service fees Loans are not permitted in 412(i) plans Keep in Mind... For many individuals, OppenheimerFunds Single DB Plus may prove to be a singular opportunity to achieve what might be your last and most important fiscal goal. However, the plan isn t right for every investor. As you and your advisor decide whether this plan is a good fit for you, here are some of the major points you ll want to consider: Single DB Plus contributions are not optional, and must be made every year. That means you need a substantial, stable source of cash flow for the period during which you are an active participant If you have eligible employees, they must be covered by the plan. Your financial advisor will discuss eligibility requirements and project your related costs to determine whether your advantages outweigh the expenses Although you ll receive expert investment assistance from your advisor, the plan s investment risk lies with you. This consideration is especially critical if you have employees who will be covered by the plan Accruals can t be stopped retroactively. In other words, plan liabilities continue until participants have been notified of the stoppage and the decision is formally implemented If you terminate the plan, you can waive your own benefits, but you ll be obligated to fully fund those of your workers There are IRS penalties for over- or under-funding the plan. Your advisor will keep you informed on the status of your plan s funding so you can avoid these penalties Your required contributions can vary significantly from year to year based on the investment performance of your existing plan assets Expert Guidance, Professional Support Your financial advisor will work closely with you to help ensure your benefit target and plan contributions are positioned to meet your current and future financial needs. He or she will also assist you in selecting the most appropriate investments for the plan and monitoring their performance. As a defined benefit plan, Single DB Plus also requires certain document preparation, annual actuarial services and government reporting. All of these are included in the plan s inclusive turnkey package and are handled by Dedicated Defined Benefit Services, LLC.

Next Steps To find out whether Single DB Plus is a suitable retirement plan option for you, please contact your financial advisor today. This Single DB Plus Guide is not intended as tax advice. Before establishing a Single DB Plus or any retirement program, you should consult with your attorney and/or tax advisor. For more information about OppenheimerFunds Single DB Plus or any of the Oppenheimer funds, please call a Retirement Plan Specialist at 1.800.835.7305. OppenheimerFunds: For All Your Retirement Plan Needs Single DB Plus may help you make up for lost time and save the amount you ll need for your golden years. What s more, the strength and diversity of OppenheimerFunds investments combined with the administrative expertise of Dedicated Defined Benefit Services, LLC make Single DB Plus an exceptional value-added proposition. In addition, its competitive fees are lower than those you might pay in a traditional defined benefit program. In fact, if you re currently contributing to a retirement savings plan or letting assets grow in a rollover IRA, consolidating all of your retirement resources with OppenheimerFunds could be one of the smartest moves you ll ever make. You ll likely reduce your administrative fees and paperwork while simplifying the entire retirement planning process. And you ll be working with an organization known for the quality and range of its small business retirement solutions. Single DB Plus Fee Schedule Plan Set Up: Annual Administration: Additional Fees: Conversion, if applicable $650 Participant termination packages $175 Participant loans IRS submission (if required) Additional calculations $175 $1,100 plus $50 per eligible employee $1,600 plus $100 per participant $100 plus $60/year $375 plus IRS user fee Setting Up Your Plan Working with your financial advisor, Step 1: Complete the Single DB Plus SM Plan Set-up Questionnaire in the back of this booklet. Step 2: Send a copy of the proposal your financial advisor prepared for you, the plan set-up questionnaire, and a check to cover the set-up fee and mail to: Dedicated Defined Benefit Services, LLC Attn: Single DB Services 2555 Flores Street Suite 555 San Mateo, CA 94403 Questions, please call 1.866.333.4631. Step 3: Once Dedicated Defined Benefit Services, LLC has developed the plan design for you and completed the paperwork, you will sign the adoption agreement; provide notice to participating employees (if applicable) and complete beneficiary forms. Step 4: Lastly, you will need to work with your financial advisor to choose appropriate investments for funding the Single DB Plus. To establish a mutual fund account, please complete the Single DB Plus Plan Account Application and send it to: OppenheimerFunds Distributor, Inc. P.O. Box 5390 Denver, CO 80217-5390 Questions, please call 1.800.835.7305. 5 Single DB Plus Guide

Case Studies Catching Up in a Hurry Paul is a 52-year old attorney who has a solo practice. He d like to retire in 10 years, but doesn t know whether his $46,000 annual SEP contributions will grow fast enough. 1 6 Single DB Plus Guide 1. The persons portrayed in the examples are fictional. This material does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. This hypothetical example is not intended to show the performance of any Oppenheimer fund for any period of time or fluctuations in principal value or investment return. 2. Contributions. This calculation assumes the business owner is earning $230,000 annually and that annual contributions will be made for 10 years, until age 62. Eligibility to open a defined benefit plan and the determination of the amount a business owner is allowed to contribute will be calculated precisely using additional information gathered from the business owner. Contributions to a Single DB Plus are a deductible business expense and are subject to income taxes upon withdrawal. When a business owner opens a Single DB Plus, a commitment must be made to make contributions each year. The annual contribution amount may vary, particularly as investments increase or decrease in value. 3. Tax Savings. This estimate is based on the business owner s contribution and assumes a marginal rate of 38% for combined federal and state income taxes. 4. Benefit Commitment. Based on a 5.5% annual rate of return. The Benefit Commitment is the amount necessary to fund the business owner s retirement based upon income, age, years to retirement and actuarial assumptions. To reach the Benefit Commitment an annual contribution is made with pretax dollars at the end of each plan year. Generally, the Benefit Commitment is fixed and the contribution amount required to reach the Benefit Commitment is adjusted each year, depending upon investment performance during the year. 5. Contributions. This calculation assumes that annual contributions will be made for five years, until age 65. Eligibility to open a defined benefit plan and the determination of the amount a business owner is allowed to contribute will be calculated precisely using additional information gathered from the business owner. Contributions to a Single DB Plus are a deductible business expense and are subject to income taxes upon withdrawal. When a business owner opens a Single DB Plus, a commitment must be made to make contributions each year. The annual contribution amount may vary, particularly as investments increase or decrease in value. The Difference a Single DB Plus Could Make for Paul $2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 SEP Single DB Plus $46,000 $133,600 $17,480 Estimated Maximum 2008 Contribution 2 $50,768 Estimated Annual Tax Savings 3 How Single DB Plus Could Help Teresa $500,000 400,000 300,000 200,000 100,000 0 $70,000 Estimated Maximum 2008 Contribution 5 $26,600 Amount of Contribution Funded by Tax Savings 3 $592,266 $440,500 Benefit Commitment by Age 65 4 $2,242,600 Benefit Commitment by Age 62 4 Spouse s Income Builds Retirement Wealth Teresa is 60 years old and is a sole proprietor earning $70,000 each year after payment of self-employment taxes. She s married to a high income executive and they don t need Teresa s income to maintain their lifestyle. They both plan to retire in five years. They want to deduct as much as they can this year and add to their retirement wealth. Teresa can set up a Single DB Plus plan and make a tax deductible contribution of $70,000 saving 100% of her earnings for retirement. 1

Single DB Plus SM Plan Set-up Questionnaire setting up your plan Work with your financial advisor to complete the following steps: Step 1: Carefully complete this Set-up Questionnaire Step 2: Send it along with a check to cover the set-up fee and mail directly to: Dedicated Defined Benefit Services LLC Attn: Single DB Plus Services 2555 Flores Street Suite 555 San Mateo, CA 94403 Step 3: Once Dedicated Defined Benefit Services LLC has developed the plan design and completed the paperwork, you will receive and sign the adoption agreement; provide notice to participating employees (if applicable) and complete beneficiary forms. Please call Dedicated Defined Benefit Services LLC at 1.866.333.4631 with any questions. Step 4: Once you have executed the plan s adoption agreement, you will need to complete the Single DB Plus Account Application to set up your mutual fund account and choose appropriate investments to fund your Single DB Plus plan. Employer Information 1 Legal Name of Employer DBA Name (If applicable) Owner(s) Name(s) Mailing Address of Employer City State Zip Phone 2 Employer ID # 3 Entity Type M C-corp M S-corp M Partnership M Sole Proprietor M LLC M Other Fax Email If LLC, how is it taxed? M C-corp M S-corp M Partnership M Sole Proprietor 4 Employer s Fiscal Year End Date of Incorporation or Date Business Began If business entity type has changed, please explain under Notes (Item 20). 5 Principal Business Activity Six-digit Business Code 6 Enter Estimated Defined Benefit Contribution You Wish to Make $ All contribution amounts are ESTIMATES ONLY until we receive your final year-end data and the contribution is approved by our actuary. 7 Contact Person Name (If other than the owner) Company Email Mailing Address 8 Financial Name Representative Company Email 9 Accountant Name Mailing Address Company Email Mailing Address Phone Fax Phone Fax Phone Fax Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Plan Information 10 Effective Date of Plan (Usually the first day of the current fiscal year) 11 Trustee(s) (Usually the owner) 12 Eligibility Requirements Union employees and nonresident aliens earning no U.S. income are not eligible to participate in the plan. Eligible employees will enter the plan on the semiannual date after completing the following requirements: Age Requirement M Age 21 M Other (not greater than 21) Service Requirement M None (Allows part-time employees to enter the plan) M 1 Year of Service M 2 Years of Service (Requires 100% vesting) 13 Vesting Schedule for Employer Contributions M 100% Vested Immediately M 6-Year Graded 0/20/40/60/80/100 M 3-Year Cliff 0/0/100 14 Other Plans (Contributions to other plans may limit or prohibit contributions to the defined benefit plan in the same year.) Does the employer sponsor any other plans? M No M Yes; Description If Yes, amount already contributed, if any, to other plans for 2008 $ Has the employer sponsored any plans that have been terminated? M No M Yes; Description 15 Related Employers If your business is part of a controlled group or affiliated service group, employees of all members of the group must be covered by this plan. Please review the items below and check any that apply to you. Do any owners (or their spouse) of the employer own interests in other businesses? Is the employer part of a controlled group of businesses? Is the employer part of an affiliated service group? Does the employer have any leased employees? Census Information 16 Owner s Name Date of Birth Date of Hire Please list any additional owners and compensation history under Notes (Item 20). 17 Compensation (See explanation on page 4) Owner s 2008 Expected Compensation Compensation History: Please list the last three years of compensation, plus any previous years, if higher: Year Compensation 1/2 Self-employment Tax (If applicable) Plan Contributions (If applicable) 18 If You Have Employees, Please Complete the Following Name Date of Birth Date of Hire Compensation Over 1,000 Hours? Officer? _19 What Is the First Plan Year of Administration that Dedicated Defined Benefit Services, LLC Is Responsible for? M 2008 M Other

20 Notes/Other Information Please sign and date below. By signing this form the employer agrees to establish the plan based on the information provided in this questionnaire. Please retain a copy of this questionnaire for your files. Signature Date This questionnaire must be mailed with your proposal and check to: Dedicated Defined Benefit Services LLC Attn.: Single DB Services 2555 Flores Street, Suite #555 San Mateo, CA 94403 Questions, please call 1.866.333.4631. General Information Compensation The following table illustrates compensation for owner(s) depending on entity type: Type of Entity Source of Income Plan Compensation Corporation W-2 Income W-2 Income S-Corporation W-2 Income + Schedule K-1 (IRS Form 1120-S) W-2 Income only Sole Proprietorship Schedule C, line 31 Earned Income (calculate) Partnership Schedule K-1 (IRS Form 1065), line 14 Earned Income (calculate) Notes Limited Liability Company see table above depending on how the LLC is taxed. By default, LLCs are taxed as sole proprietorships or partnerships, but the LLC can make a special election to be taxed as a corporate entity. Plan compensation is limited to $230,000 for plan years beginning in 2008. Employees, other than owners, are paid W-2 income for all entity types. Earned Income = Net Profit 1/2 self employment tax plan contribution. The retirement plan deduction for a sole proprietor/partner is limited to Net Profit 1/2 SE tax. Other Notes About Compensation 1. When entering Compensation History do not list compensation paid from an unrelated business. For example, if your business began in 2008 and before that you worked for ABC Inc., do not list compensation paid by ABC Inc. Please make your check payable to Dedicated Defined Benefit Services, LLC 2. For S-corporations, Schedule K-1 dividend distributions cannot be used as Compensation. 3. In general, Compensation does not include passive income such as income from investments or property. 4. Compensation must be received only from the employer (plan sponsor) establishing the plan. 5. Please refer to your accountant or tax advisor to determine how deductions are taken on the appropriate tax return. Fidelity Bond If your plan has participants other than owners and their spouses, it is required by ERISA that plan fiduciaries be bonded for plan assets. A Fidelity Bond is necessary to protect the plan against loss through fraud or dishonesty on the part of the plan officials. Plan fiduciaries should be insured for a minimum of 10% of the plan assets, but not less than $1,000. The maximum amount required is $500,000. A Fidelity Bond may be obtained through your business property and casualty insurance carrier. PBGC Coverage Defined Benefit plans are required to be covered by the Pension Benefit Guaranty Corporation (PBGC) insurance program with the following exceptions: Professional Service Employer with less than 25 participants Owners only/with spouse A professional service individual includes, but is not limited to, physicians, dentists, chiropractors, osteopaths, optometrists, other licensed practitioners of the healing arts, attorneys at law, public accountants, engineers, architects, draftsmen, actuaries, psychologists, scientists and performing artists. If required to be covered by the program, premiums will need to be paid to the PBGC. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting our website at www.oppenheimerfunds.com or calling us at 1.800.525.7048. Read prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008 Copyright 2008 OppenheimerFunds Distributor, Inc. All rights reserved. RE0000.956.0808 August 25, 2008 qwer

OppenheimerFunds Single DB Plus SM can help high income small business owners, independent contractors, dual-earner households and others invest substantial amounts of money to help save more for the retirement of their dreams. Single DB Plus offers the ability to: n Save more money faster than other qualified retirement plans n Benefit from significant tax advantages n Access a wide variety of investments from a time-tested market leader n Build a plan that works for you and your goals Speak to your financial advisor about establishing a plan today. Get Started Visit www.oppenheimerfunds.com Call your financial advisor Call us, 1.800.835.7305 This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation. Before investing in any of the Oppenheimer funds, investors should carefully consider a fund s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting our website at www.oppenheimerfunds.com or calling us at 1.800.525.7048. Read prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008 Copyright 2008 OppenheimerFunds Distributor, Inc. All rights reserved. RB0000.944.0608 August 25, 2008 qwer