SIMPLE Solutions for your retirement

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Transamerica. Master Retirement.® power choice freedom

At Transamerica Retirement Services1 (“Transamerica”), we understand that planning for retirement can be challenging, especially with the complexities of life. That’s why we focus on helping you obtain the power, choice, and freedom to take control of your retirement savings strategy and chart an informed course toward your financial future. This enrollment workbook provides tools and information to develop a retirement savings plan quickly and easily. As an established and respected provider of retirement services, our Transamerica team is dedicated to serving your education and investment needs. With over 70 years of experience in the retirement services business, Transamerica creates customized retirement plan solutions to meet the unique needs of small- to mid-size businesses. We are committed to helping companies build a strong retirement plan benefit for their employees by offering a wide range of products, including turn-key 401(k) plans, profit-sharing, defined benefit, and new comparability plans for both clients and third party administrators. Transamerica Retirement Services is ranked among the nation’s top providers,2 with more than 15,0003 retirement plans totaling more than $13.23 billion in plan assets under management. For more information about Transamerica, please visit www.TA-Retirement.com. Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp.

1

Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road, Purchase, New York 10577, and Transamerica Life Insurance Company (“TLIC”), 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499, and other TFLIC and TLIC affiliates, specializes in the promotion of retirement plan products and services. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. TLIC is not authorized in New York and does not do business in New York.

2

The November 2008 PLANSPONSOR ® Magazine Defined Contribution Survey results place Transamerica Retirement Services among the top providers out of 52 for retirement plans with up to $50 million in assets based on total number of cups won. See the November 2008 issue of PLANSPONSOR ® Magazine for complete results.

3

As of December 31, 2008.

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TABLE

SIMPLE Solutions

of contents

for your retirement Forms and Instructions Page 3

This workbook contains the information needed to enroll in TFLIC Custom Corp. 401(k) Plan. We look to provide you with the right tools at the right time to help you secure your financial future.

Begin your journey. Enroll today. The first step in your journey to retirement is enrolling in your retirement savings plan. Simply review the following forms and instructions and submit the completed documents to your plan administrator. You can also access plan and account information online by visiting www.TA-Retirement.com. Our Web site provides up-to-date information, helpful tips, and interactive tools to help you discover, build, and manage your account, including a complete set of investment fact sheets.

1

Our automated telephone system also offers direct access to your plan account information. Call (800) 401-8726 to access the system 24 hours a day, seven days a week. Remember, it’s never too early or too late to save for retirement. We are here to help you start saving today for a more enjoyable tomorrow.

2 3

Determine your savings goal Page 13

Discover your risk profile and investment choices Page 19

Start Today! Page 37

2

Welcome to the TFLIC Custom Corp. 401(k) Plan Enroll today!

Enrollment Form

1. Employee Information (Please Print) Married

Not Married

Social Security No.:

First Name

__ __ __ - __ __ - __ __ __ __ M.I.

Last Name Apt. No.

e

Mailing Address City

State

Date of Birth

Zip Code

Date of Hire

pl

If you would like to select your own contribution percentage and investment choices, SKIP Section 2, Quick Enroll, and go to Section 3, Contribution Amount on the next page. I understand that the plan offers additional investment choices, listed in Section 5, which I may select from. For detailed investment choice information, refer to Investment Choices: Performance Overview and Summaries. If you would like to Quick Enroll, please ONLY complete sections 1, 2, and 6.

2. Quick Enroll

3%

m

I elect to contribute every pay period the following percentage in the Plan’s Default Investment Choice listed below and understand that I can request a change to this election: 6%

10%

Default Investment Choice 1 Transamerica Stable Value Account

Sa

Keep in mind that Quick Enroll is for before-tax contributions only. If you would like to make after-tax contributions please skip Section 2, Quick Enroll and complete Section 3, Contribution Amount. To finish Quick Enroll sign and date the Authorization and Signature area in Section 6.

999999-TFLIC

3

TFLIC Custom Corp. 401(k) Plan Enrollment Form Social Security No.:

__ __ __ - __ __ - __ __ __ __

3. Contribution Amount A. ______.0% Traditional 401(k) Salary Deferral Percentage on a before-tax basis. B. ______.0% Roth 401(k) Salary Deferral Percentage on an after-tax basis. ______.0% Total Salary Deferral Percentage (A + B).

e

The Company may contribute a discretionary Matching Contribution to the plan.

4. Catch-Up Contribution

Consider making a Catch-up Contribition: if you will be at least 50 years of age by year end, and will contribute the maximum permitted by the plan, or will reach the federal limit by year end ($16,500 in 2010). The maximum Catch-up Contribution is $5,500 in 2010.

pl

I elect to contribute: $__________.00 per pay period as a Catch-up Contribution. $__________.00 as a one-time Catch-up Contribution.

I elect to stop making Catch-up Contributions (except as noted below). I do not wish to make Catch-up Contributions at this time.

5. Investment Mix

m

I will not be at least age 50 by the end of the year.

Please invest my future plan contributions as indicated.

Option A: Strategic Allocation Series

The Strategic Allocation Series are designed for you to allocate 100% of your contributions to the one investment choice that most closely matches your investment mix reflective of your selected time horizon. Select only one.

Sa

If you selected Option A, sign and date in Section 6. Otherwise, proceed to Option B.

Check One 63 Diversified Investors Intermediate Horizon Ret Acct (8 - 12 years) 64 Diversified Investors Intermediate/Long Horizon Ret Acct (14 - 20 years) 65 Diversified Investors Long Horizon Ret Acct (20 or more years) 66 Diversified Investors Short Horizon Ret Acct (2 - 7 years) 67 Diversified Investors Short/Intermediate Horizon Ret Acct (5 - 12 years)

100% 100% 100% 100% 100%

Option B: Create Your Own Investment Portfolio

If you prefer to create your own investment portfolio, just select from the following available investment choices. All elections must be in whole percentages and total 100%. If you elect to join the plan and fail to make an investment election, or your elections do not equal 100%, your contribution will be invested in 1 Transamerica Stable Value Account.

Asset Class

Sub Asset Class

Investment Choice

% of Contribution

Cash Equivalents

1

Transamerica Stable Value Account

________.0%

10

Transamerica Bond Ret Acct

________.0%

Bond Long Term

4

999999-TFLIC

TFLIC Custom Corp. 401(k) Plan Enrollment Form Social Security No.:

Asset Class

Sub Asset Class

__ __ __ - __ __ - __ __ __ __

Investment Choice

% of Contribution

High Yield Bond 68

Transamerica Partners High Yield Bond Ret Acct

________.0%

63 64 65 66 67

Diversified Investors Intermediate Horizon Ret Acct Diversified Investors Intermediate/Long Horizon Ret Acct Diversified Investors Long Horizon Ret Acct Diversified Investors Short Horizon Ret Acct Diversified Investors Short/Intermediate Horizon Ret Acct

________.0% ________.0% ________.0% ________.0% ________.0%

Large/Mid Value Equity Large Cap Mid Cap

62 61

Large/Mid Blend Equity Large Cap

60

Large Cap Mid Cap

Small Company Equity Growth

999999-TFLIC

________.0% ________.0%

Transamerica Partners Large Core Ret Acct

________.0%

5 3

Transamerica Equity Ret Acct Transamerica Growth Opportunities Ret Acct

________.0% ________.0%

74

Artisan Small-Cap Growth Ret Acct

________.0%

55

Transamerica Partners International Equity Ret Acct

________.0%

Sa

International Equity

Transamerica Partners Large Value Ret Acct Transamerica Partners Mid Value Ret Acct

m

Large/Mid Growth Equity

pl

Strategic Allocation Series

e

Hybrid

Total for all investment choices must equal 100%:

100 .0%

5

TFLIC Custom Corp. 401(k) Plan Enrollment Form Social Security No.:

__ __ __ - __ __ - __ __ __ __

6. Authorization and Signature

e

I hereby authorize payroll deduction of plan contributions in accordance with the level(s) I have indicated in Sections 2, 3 and 4. I understand this constitutes a “cash or deferred arrangement” under section 401(k) of the Internal Revenue Code and that my contributions are subject to the withdrawal restrictions of the plan. By authorizing a payroll deduction, I understand I am electing to defer a portion of my salary to the TFLIC Custom Corp. 401(k) Plan. I understand that certain limitations are imposed on my contributions by federal law and that my contributions may be refunded to comply with these laws. I further agree that neither TFLIC Custom Corp, the plan trustee, nor their affiliates will be liable for any loss when acting upon my instructions believed to be genuine.

DATE________________

PLAN ADMINISTRATOR SIGNATURE_______________________________________________

DATE________________

Sa

m

pl

EMPLOYEE SIGNATURE_________________________________________________________

6

999999-TFLIC

TFLIC Custom Corp. 401(k) Plan Beneficiary Form Social Security No.:

__ __ __ - __ __ - __ __ __ __

You may name anyone you wish as your beneficiary. However, if you are married and you name someone other than your spouse as beneficiary for all or part of the benefits payable, your spouse must consent to the beneficiary designation and complete Section 8. If your spouse does not complete Section 8, your beneficiary will be your spouse, even if you designate a different beneficiary on this form. Remember that changes in marital status may affect your beneficiary designations, so be sure to keep your designation current. Submit this completed form to your plan administrator.

7. Beneficiary Designation

e

I name the following individual(s) to receive my plan benefits in the event of my death in accordance with the terms of the plan. This beneficiary designation cancels and replaces all prior designations and settlement agreements which I have made under the plan. Benefits will be paid to my primary beneficiary(ies) if living. Benefits will be paid to my contingent beneficiary(ies) only if none of my primary beneficiaries are living. Percentages below must equal 100% for Primary Beneficiary(ies). -and-

pl

Percentages below must also equal 100% for Contingent (Secondary) Beneficiary(ies) - if any.

Primary Plan Beneficiary(ies) - Will receive benefits in the event of your death. Relationship

m

Beneficiary Name(s) and Address(es)

Date of Birth

Social Security Number

Share of Benefits (%)

Contingent Plan Beneficiary(ies) - Will receive benefits if no primary beneficiary is living at the time of your death.

Sa

Beneficiary Name(s) and Address(es)

Relationship

Date of Birth

Social Security Number

Share of Benefits (%)

NOTE: If you do not designate a percentage for your primary beneficiaries, the benefit will be equally divided among your primary beneficiaries who survive you. If no primary beneficiary survives you and you do not designate a percentage for your contingent beneficiaries, the benefit will be equally divided among your contingent beneficiaries who survive you. If no beneficiary survives you, benefits will be paid as provided under the plan.

Participant Signature

Date

Signed at (City and State)

Date

Participant Name

999999-TFLIC

7

TFLIC Custom Corp. 401(k) Plan Beneficiary Form Social Security No.:

__ __ __ - __ __ - __ __ __ __

8. Spousal Consent - This section must be completed if your spouse is not designated (100%) as Primary Beneficiary I, spouse of _______________________________________________, hereby consent to the designation of the beneficiary(ies) named on this form. I understand that my spouse has designated someone other than (or in addition to) myself as a beneficiary to receive benefits under this plan. I understand the financial impact of this designation. I also understand that my consent to this designation is irrevocable. By signing below, I hereby waive all rights to the pre-retirement survivor benefit with respect to that portion of the plan benefits payable to a beneficiary other than myself.

e

Spouse Name Spouse Signature

Date

Subscribed and sworn to me before this Signature

day of

,

County

Sa

m

State

pl

Notary Public or Plan Representative Signature Required:

8

999999-TFLIC

TFLIC Custom Corp. 401(k) Plan Rollover Form Five Simple Steps 1. Contact your plan administrator or refer to your Summary Plan Description to make sure you’re eligible to roll over your plan account balance from a prior qualified retirement plan. 2. Contact your prior company and request a rollover distribution. If you have an IRA, contact your IRA investment manager and request a withdrawal. Be sure to have the distribution check made payable to Transamerica, FBO “Reference Your Name” (e.g., Transamerica, FBO Jane Doe) and have it sent directly to you. 3. Complete the Rollover Form below. 5. Your plan administrator will sign, date and submit the form and check to Transamerica for processing.

e

You must first enroll in the plan and complete a Beneficiary Designation Form.

1. Employee Information (Please Print) Not Married

Social Security No.:

__ __ __ - __ __ - __ __ __ __

pl

Married First Name

M.I.

Last Name

Apt. No.

City Date of Birth

m

Mailing Address

State

Zip Code

Date of Hire

2. Previous Plan/IRA Information Name of Prior Plan abc

™ 401(k)

™

™

™

™

401(a)

403(a)

403(b)

Profit Sharing

Sa

Mark One:* ™

Money Purchase

™

Government 457

™

Conduit IRA

™ Traditional IRA

™

Roth 401(k) - Direct

™

Roth401(k) - Indirect

For Roth 401(k) rollovers, please complete the information below. This information should have been provided by your rollover institution.

Year of first Roth 401(k) Contribution ____________________

Roth Contribution Basis ____________________ (This is the non-taxable portion of your distribution)

*Your plan may not accept rollovers from all plan types listed above. Contact your plan administrator to make sure your rollover qualifies.

999999-TFLIC

Continued on next page

9

TFLIC Custom Corp. 401(k) Plan Rollover Form Social Security No.:

__ __ __ - __ __ - __ __ __ __

Person to Contact: First Name

M.I.

Last Name Mailing Address

Apt. No. State

Phone Number

3. Tax Information

pl

All of this distribution amount would be taxable to me if I did not roll it over.

Zip Code

e

City

This rollover includes after-tax contributions in the amount of $_____________ . The remainder will be taxable income to me if I did not roll it over. No part of this rollover is a minimum required distribution. No part of this rollover is a hardship withdrawal.

m

All of this distribution is a Roth 401(k) rollover.

4. Employee Authorization

I wish to contribute a single sum rollover in the amount of $_____________, which represents a distribution from another qualified retirement plan. A check made payable to Transamerica, FBO “Reference Your Name” (e.g., Transamerica, FBO Jane Doe) is attached. I understand the withdrawal restrictions that apply to these contributions. Employee Signature

Date

Sa

5. Plan Administrator Authorization

I authorize these rollover funds to be deposited into the participant’s account. Plan Administrator Signature

Date

6. Investment Mix

Please invest my rollover contribution of approximately $_____________ as indicated on the following % of Contribution column in whole percentage increments. If you do not make an investment election or your elections do not equal 100%, your rollover contribution will be invested in Transamerica Stable Value Account.

Asset Class

Sub Asset Class

Investment Choice

% of Contribution

Cash Equivalents 1

10

Transamerica Stable Value Account

________.0% 999999-TFLIC

TFLIC Custom Corp. 401(k) Plan Rollover Form Social Security No.:

Asset Class

Sub Asset Class

__ __ __ - __ __ - __ __ __ __

Investment Choice

% of Contribution

Bond Long Term

10

Transamerica Bond Ret Acct

________.0%

68

Transamerica Partners High Yield Bond Ret Acct

________.0%

63 64 65 66 67

Diversified Investors Intermediate Horizon Ret Acct Diversified Investors Intermediate/Long Horizon Ret Acct Diversified Investors Long Horizon Ret Acct Diversified Investors Short Horizon Ret Acct Diversified Investors Short/Intermediate Horizon Ret Acct

________.0% ________.0% ________.0% ________.0% ________.0%

Transamerica Partners Large Value Ret Acct Transamerica Partners Mid Value Ret Acct

________.0% ________.0%

e

High Yield Bond

Strategic Allocation Series

Large/Mid Value Equity Large Cap Mid Cap

62 61

Large Cap

Large/Mid Growth Equity Large Cap Mid Cap

Small Company Equity

60

Transamerica Partners Large Core Ret Acct

________.0%

5 3

Transamerica Equity Ret Acct Transamerica Growth Opportunities Ret Acct

________.0% ________.0%

74

Artisan Small-Cap Growth Ret Acct

________.0%

55

Transamerica Partners International Equity Ret Acct

________.0%

Sa

Growth

m

Large/Mid Blend Equity

pl

Hybrid

International Equity

999999-TFLIC

Total for all investment choices must equal 100%:

100 .0%

11

12

abc

1

Step One

• S  ources of retirement income • Contribution rate table • T he power of tax deferral

Determine your savings goal

13

1

Step One: Determine your savings goal Most of your retirement income will come from you.

start planning today

Social Security covers only about 37% of the average retiree’s income, and fewer employers offer traditional pension plans. In reality, the majority of your retirement income will likely come from either your own savings or from parttime employment after retirement. If your goal is to live comfortably and work less in retirement, you need to start saving today.

To find out what you can expect to receive from Social Security when you retire, go to

sources of retirement income

w w w.ssa.gov or call (800) 772-1213 to request

18% Pensions

an estimate.

15% Savings and investments 37% Social Security 3% Other 28% Earnings from work Fast Facts & Figures About Social Security, September 2008.

You may need more retirement income than you think. The income you will need in retirement depends greatly on your individual circumstances, including factors such as your age, health, income, investments, and savings. Retirement experts estimate that retirees may need from 77% to over 94% of their preretirement income due to increased life expectancy and growing health care expenses.1 Based on today’s average life expectancy, you may need retirement income for 20 years or more after your regular paychecks stop. As a result, you need to take steps now to ensure you have enough money to live comfortably in your retirement years.

Make a commitment to save. The table on the following page is designed to help you target a total retirement savings goal of 80% of your projected final preretirement salary for each year in retirement.

14

1

Aon Consulting, 2008 Replacement Ratio Study.™

contribution rate table This table provides guidelines for determining the percentage of your salary you should be saving. For example, if you were 10 years from retirement, had $50,000 in current retirement savings, and an annual salary of $40,000 your target contribution rate would be 15%.

Time horizon

Current retirement savings

Current annual salary (in thousands)

Years to retirement Age $20 $30 $40 $50

$75

$100

$125

$150

5 60

$0 $50,000 $100,000 $150,000 $250,000

18% 8% 8% 8% 8%

26% 16% 8% 8% 8%

30% 23% 17% 11% 8%

30% 24% 19% 14% 8%

40% 36% 32% 29% 22%

46% 43% 41% 38% 33%

51% 48% 46% 44% 40%

54% 52% 51% 49% 46%

10 55

$0 $50,000 $100,000 $150,000 $200,000 $250,000

15% 8% 8% 8% 8% 8%

20% 12% 8% 8% 8% 8%

21% 15% 10% 8% 8% 8%

23% 18% 14% 9% 8% 8%

31% 27% 24% 21% 18% 15%

35% 32% 30% 28% 26% 24%

39% 37% 35% 33% 31% 30%

43% 41% 40% 39% 37% 36%

15 50

$0 $50,000 $100,000 $150,000 $200,000

14% 6% 6% 6% 6%

18% 10% 6% 6% 6%

18% 13% 8% 6% 6%

20% 15% 11% 7% 6%

26% 23% 20% 17% 14%

29% 27% 25% 23% 21%

32% 30% 28% 27% 25%

35% 33% 32% 31% 30%

20 45

$0 $50,000 $100,000 $150,000

11% 6% 6% 6%

14% 7% 6% 6%

15% 10% 6% 6%

17% 13% 9% 5%

21% 18% 15% 13%

23% 21% 19% 17%

26% 24% 22% 21%

27% 25% 24% 23%

25 40

$0 $50,000 $100,000 $150,000

9% 4% 4% 4%

11% 4% 4% 4%

12% 7% 4% 4%

14% 10% 6% 4%

16% 13% 11% 8%

18% 16% 14% 12%

21% 19% 18% 16%

22% 20% 19% 18%

30 35

$0 $25,000 $50,000 $100,000

7% 4% 4% 4%

9% 5% 4% 4%

9% 6% 4% 4%

11% 9% 7% 4%

13% 11% 10% 8%

15% 14% 13% 11%

16% 15% 14% 13%

18% 17% 17% 16%

35 30

$0 $10,000 $25,000 $50,000 $100,000

6% 4% 3% 3% 3%

7% 5% 3% 3% 3%

8% 7% 6% 4% 3%

9% 8% 7% 5% 3%

11% 10% 9% 8% 6%

12% 11% 11% 10% 8%

13% 12% 12% 11% 10%

14% 13% 13% 13% 12%

40 25

$0 $10,000 $25,000 $50,000

4% 3% 3% 3%

6% 4% 3% 3%

6% 5% 4% 3%

7% 6% 5% 3%

8% 7% 6% 5%

9% 8% 8% 7%

10% 9% 9% 8%

11% 10% 10% 10%

The contribution rates are based on National Savings Guidelines for Individuals, developed by Ibbotson Associates, and are meant to be guidelines only. They assume: an unmarried investor with a retirement age of 65, Social Security income is included; annual inflation of 2.5% and replacement income is targeted 15 at 80% of final preretirement salary for each year in retirement. Some percentages may exceed plan and/or IRS limits.

1 Plan today for a more secure tomorrow. For some people, retirement may seem a lifetime away. But, if you postpone your savings plan, it will be extremely difficult to make up for lost time. Saving for your future in a tax-deferred retirement savings plan reduces your taxable income and accelerates your savings. Every dollar you contribute to your retirement savings plan account is deducted from your salary before taxes are taken out. In addition, the money in your plan has the potential to grow tax-free until you withdraw it.

The power of tax deferral $2,500 annual contribution $300,000

$227,822

$240,000

$180,000

$120,000

$117,476

$60,000

0

After 30 years After-tax Before-tax Assumes 6.8% annual return. The after-tax example includes a 28% tax on deposits and gains. Assumptions do not include wage increases or inflation. See disclosures at the end of the workbook.

16

The importance of starting early. The need to start saving as early as possible is demonstrated by the following example: At age 21, Anne and Tracy were hired for similar jobs at the same salary. Anne immediately began investing $30 per week. After 14 years, Anne stopped contributing, but left the money in her plan to grow for the next 30 years. By contrast, Tracy did not begin investing $30 per week until age 35, but did so for the next 30 years. Although Tracy invested twice as much overall, Anne accumulated nearly twice as much as Tracy at retirement because she started saving early.

the importance of starting early $30 contribution per week $300,000 $249,614

$200,000 $142,161

$100,000 $46,800 $21,840 0

Total contributions

Balance at age 65

Anne (age 21) contributed for 14 years Tracy (age 35) contributed for 30 years Assumes 6.8% annual return. Assumptions do not include wage increases or inflation. See disclosures at the end of the workbook.

Ima

17

18

abc abc

2

Step Two

• Discovering your risk tolerance • Understanding asset allocation and diversification • Choosing your investments

Discover your risk profile and investment choices

19

2

Step Two: Discover your risk profile and investment choices Understanding asset classes. The investment choices available through your retirement savings plan fall into a combination of three broad asset classes. Asset classes are categories of investments that exhibit similar characteristics and may behave similarly in the marketplace. In general, different types of investments react differently to the same market conditions. Understanding how stocks, bonds, and cash equivalents work will help you form the basis for developing a long-term investment strategy that corresponds to your risk tolerance. As shown in the following chart, different types of investments have different rates of return over time. Here are the three main types of asset classes: Stocks are shares of ownership in a company. Over the past 25 years, stocks have returned an average annual return of about 9.8%.2 Bonds represent the loan of money to a company or government. Bonds have returned an average annual return of about 8.4% over the past 25 years.3 Cash equivalents seek to maintain the value of your investments. Over the past 25 years, cash equivalents have returned an average annual return of 5.0%.4

historical asset class performance Growth of $1,000* $20,000.00 $15,000.00 $10,281.79

$10,000.00

$7,532.64 $5,000.00 $3,348.02 * This chart is for illustrative purposes only, and your circumstances may differ from this example. Chart assumes $1,000 invested in December 1983–December 2008. It does not reflect the actual return of any specific investment and is not intended to imply or guarantee future results. One cannot invest directly in an index. An index is unmanaged and does not take into account the fees and expenses associated with an actively managed fund, so performance may differ. There is no guarantee that any asset class will achieve a certain rate of return or outperform another asset class. Past performance is not a guarantee of future performance. Calculated by Transamerica Retirement Services using data from Morningstar, Inc.

20

$0.00 1983

1988

1993

1998

2003

2008

Stocks: S&P 500 Index Bonds: Barclays Capital Aggregate Bond Index Cash: Citigroup 3-month U.S. Treasury Bill Index

2

Based on average annual total returns of the S&P 500 ® Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.

3

Based on average annual total returns of the Barclays Capital Aggregate Bond Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.

4

Based on average annual total returns of Citigroup 3-month U.S. Treasury Bill Index over 25 years from December 1983-December 2008. Source: Morningstar, Inc.

Asset allocation and diversification. In addition to understanding the asset classes, learning about some basic investment strategies is also vital to creating an investment plan that meets your needs. Asset allocation is how you divide your money among the different types of investments according to your individual goals, risk tolerance, and investment horizon. Each of the three main asset classes—stocks, bonds, and cash equivalents—have different levels of risk and return, so each will behave differently over time. A portfolio is a grouping of financial assets that are held directly by investors or managed by professionals. 20%

50%

20%

60%

Beginning portfolio

20%

Year-end portfolio

50%

Rebalanced portfolio

20% 30%

30%

Stocks

Bonds

Cash equivalents

Rebalancing your portfolio. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio so that the positive performance of some investments will neutralize the negative performance of others. For example, when stock prices rise, bond prices often decline. A portfolio with different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment within a portfolio. Despite a constantly changing economic climate, consider largely staying the course with your retirement investments. However, you need to monitor your portfolio on a regular basis to ensure you have the right investment mix based on your age, number of years to retirement, and life events, such as marriage, children, or income changes. While some adjustments to your portfolio may be necessary, try to avoid selling your assets because you are disappointed in their short-term performance. Financial markets are cyclical, and selling your assets in a downturn could prevent you from reaping positive gains during a market recovery, while hindering your long-term savings goals.

21

2 Your risk profile.

are you close to retirement? Typically, employees who are close to retirement gradually shift their portfolios to safer, more conservative investments that are better protected during volatile times. For someone who is farther from retirement, the good news during difficult economic times is that most of their portfolio growth will come from future contributions and earnings.

The next step to meeting your retirement savings goal is to consider the level of risk and rate of return that’s right for you. Your overall background—including your age, income, family situation, current financial picture, and overall investment disposition—will guide what level of risk you will be comfortable with in pursuit of your investment goals. Investing is a way to make your money work for you so that you can take calculated risks for the promise of a better reward. The more you know about risk and how it can affect you, the more peace of mind you will have about your investment decisions.

Consider the following questions. What is your risk tolerance? Typically, the higher the rate of return you target, the more heavily you will need to invest in stocks. This is because, historically, stocks have delivered higher long-term returns than any other investment type. Stocks have also historically been the most volatile investment type, which means they fluctuate in value the most rapidly. Your ability to stay the course during fluctuations in the stock market and benefit from its long-term growth is called your “risk tolerance.” How many years do you have to invest? Before investing, determine the amount of time you have until you plan to retire. If your investment time horizon is short, consider limiting your exposure to the volatility of the stock market. Investing in the stock market typically works better when you have a longer time horizon to recover from economic downturns. How much have you saved already? If you’ve already started saving for retirement, you’re a step ahead. It’s important to factor those existing savings into your plan for the future.

22

Complete the risk tolerance questionnaire. Your risk tolerance refers to how comfortable you are with fluctuations in the market and the short- and long-term effects they may have on your investments. Read the following questions and circle the point(s) that correspond to your answers. After you’ve completed the questionnaire, total all your points. 1 Do you agree or disagree with the following statement? “I am a long-term investor who expects to do well over the next five to ten years or longer. The final result is more important to me than daily, monthly, or annual fluctuations in the value of my account.” A Totally disagree

1 point

B Willing to accept a small amount of fluctuation, but not much loss of principal

2 points

C Can accept a moderate amount of annual volatility, but no significant loss of principal

3 points

D Would accept an occasional annual loss if the final results were good

4 points

E Totally agree

5 points

2 Assume you have $10,000 in your retirement account, primarily invested in equity (stock) investments. Over the next 12 months, your account drops to $8,000. What would you do with the remaining assets? A Transfer all assets to money market or cash investments—low risk/lower return

0 points

B Transfer the assets to bond investments— moderate risk/moderate returns

1 point

C Consider transferring a small portion of your assets to bond investments

3 points

D Make no changes to your account

5 points

4 What is your age? A 60 years or more

1 point

B 50–59 years

2 points

C 40–49 years

3 points

D 30–39 years

4 points

E Less than 30 years

5 points

5 How many years before you plan on accessing your retirement savings? A Less than 3 years

0 points

B 3–5 years

1 point

C 6–10 years

2 points

D 11–15 years

3 points

E More than 15 years

4 points

Total points. Locate your risk profile in the table.

Take your total points from the Risk Tolerance Questionnaire and check the risk profile that best describes you. RISK PROFILE TOTAL POINTS

c Conservative

7 or less

c Moderate/Conservative

8–11

c Moderate

12–16

c Moderate/Aggressive

17–21

c Aggressive

22 or more

3 While inflation (the rise in the cost of goods and services) can reduce the buying power of money over time, equity investments have historically outpaced inflation as the result of taking higher amounts of risk. Which of the following describes your views? A I am comfortable if my investments only keep pace with inflation

0 points

B I am comfortable taking a small amount of risk to outpace inflation

1 point

C I am comfortable taking a moderate amount of risk to significantly outpace inflation

3 points

D I want to fully capitalize on my investments despite the potential risk

5 points

23

2 Match your risk profile to a sample investment allocation. Now that you have a better understanding of how much you need to save to reach your retirement goal and the amount of investment risk you’re willing to take to get there, it’s time to select the investments that are best suited for you.

Risk and Return Risk and return go hand-in-hand. The higher your risk tolerance, the more you may wish to invest in stocks because they offer the most potential for growth over the long term. If you’re comfortable with the performance risk, you should expect to experience volatility in the short term.

Review the following pie charts to find the chart that corresponds to your risk profile. Each chart identifies the “mix” to consider and the percentages you may choose to allocate to each of the eight asset classes.5 In addition to the average rate of return, each sample investment allocation shows the highest and lowest annual rate of return over 50 years.6 As you can see, the more aggressive the investment mix, the higher the average rate of return. However, you can expect greater fluctuation or volatility as illustrated by the higher highs and the lower lows. If your investment’s allocation produces a higher or lower rate of return, you may need to adjust the amount you save to reach your retirement goal. Using the pie charts provided, select the investment mix that’s right for you and check the box next to your suggested investment allocation.

Choose your investments. Now that you’ve identified an investment allocation mix that will help achieve your retirement goals, you must select the specific investments within each asset class that is identified in your asset mix by following these steps: • Review your investment choices in the Forms and instructions section along with the performance overview and summaries that follow. • Select the investment choice(s) you’d like to include in your portfolio. • Assign a percentage of your contribution to your investment choice(s).

24

5

See disclosures at the end of the workbook. Sample investment allocations do not include the following asset classes: Global Equity, Hybrid, and Specialty. Your plan may not offer all asset classes.

6

The rates of return shown are annual rates based on historical rates of return over the past 50 years (1959–2008) and are adjusted for an assumed management fee of 1.25%. These risk and return expectations may not be realized over future time periods or future economic or business cycles; therefore, they are not intended to be predictions of risk or return. The historical and expected rates of return are based on historical performance and do not reflect the performance of any specific investment choice. The rates of return are not guaranteed. Past performance is not necessarily representative of future results.

Sample investment allocations 18% Pensions 18% Savings and investments 15% Pensions Pensions Conservative18% Savings and investments 15% Social Security 37% Pensions 18% Savings and investments 15% Average return: 6.1% 37% Other Security 3% Social Pensions 18% Savings and investments 15% Social Security 37% High: 25.3% 3% Other Earnings from work 28% Savings and investments 15% 37% Social Security 3% Other Low: -3.7% Earnings from work 28% 37% Other Security 3% Social Earnings from work 28% Suggested investment period: Fast Facts & Figures About Social Security, September 2008. Other 3% Earnings from work 28% 2-7 years Fast Facts & Figures About Social Security, September 2008. 28% Earnings from work

c

Fast Facts & Figures About Social Security, September 2008. Fast Facts & Figures About Social Security, September 2008. Fast Facts & Figures About Social Security, September 2008.

c

Moderate/Conservative

Average return: 6.8% High: 25.3% Low: -13.5% Suggested investment period: 5-12 years

c

Moderate

Average return: 7.4% High: 25.8% Low: -20.5% Suggested investment period: 8-15 years

c

Moderate/Aggressive

Average return: 7.9% High: 30.1% Low: -28.4% Suggested investment period: 14-20 years

c

Aggressive

Average return: 8.7% High: 43.4% Low: -38.8% Suggested investment period: 20 plus years

10% Large/Mid Value Equity 10% 10% Large/Mid High Yield Value Bond Equity 10% Large/Mid Value Equity 10% High Yield Bond 70% Large/Mid Bond 10% Value Equity 10% High Yield Bond 70% Bond Cash Yield Equivalents 10% Value 10% Large/Mid High Bond Equity 70% Bond 10% Cash Equivalents 10% 70% High BondYield Bond 10% Cash Equivalents 70% 10% Bond Cash Equivalents 10% Cash Equivalents 6% Small Company Equity 6% Company Equity 4% Small International Equity 6% Small Company Equity 4% Equity 6% International Large/Mid Growth Equity 6% Small Company Equity 4% International EquityEquity 6% Large/Mid Growth 5% Small Large/Mid Blend Equity 6% Company Equity 4% International Equity 6% Large/Mid Growth Equity 5% Large/Mid Blend Equity 9% International Large/Mid Growth Value Equity 4% Equity 6% Large/Mid Equity 5% Blend Equity 9% Large/Mid Large/Mid Value Equity 15% High Yield Bond 6% Large/Mid Growth Equity 5% Large/Mid Blend Equity 9% Large/Mid Value Equity 15% High Yield Bond 55% Bond 5% Large/Mid Blend Equity Equity 9% Large/Mid Value 15% High Yield Bond 55% Bond 9% High Large/Mid 15% Yield Value Bond Equity 55% Bond 15% High Yield Bond 55% Bond 10% Small Company Equity 55% Bond Company Equity 10% 7% Small International Equity 10% Small Company Equity 7% International Equity 10% Small Large/Mid Growth Equity 10% Company Equity 7% International EquityEquity 10% Large/Mid Growth 8% Small Large/Mid Blend Equity 10% Company Equity 7% International Equity 10% Large/Mid Growth Equity 8% Large/Mid Blend Equity 15% Large/Mid Growth Value Equity 7% International Equity 10% Large/Mid Equity 8% Large/Mid Blend Equity 15% Large/Mid Value Equity High Yield Bond 10% Large/Mid Growth Equity 8% Large/Mid Blend Equity 15% Large/Mid Value Equity 10% High Yield Bond 40% Bond 8% Large/Mid Blend Equity 15% Large/Mid Value Equity 10% High Yield Bond 40% Bond 15% High Large/Mid 10% Yield Value Bond Equity 40% Bond 10% Bond High Yield Bond 40% 14% Small Company Equity 40% Bond 14% Company Equity 10% Small International Equity 14% Small Company Equity 10% Equity 14% International Large/Mid Growth Equity 14% Small Company Equity 10% International EquityEquity 14% Large/Mid Growth 11% International Large/Mid Blend Equity 14% Small Company Equity 10% Equity 14% Large/Mid Growth Equity 11% Large/Mid Blend Equity 21% Large/Mid Value Equity 10% Large/Mid International EquityEquity 14% Growth 11% Large/Mid Blend Equity 21% 8% Large/Mid High Yield Value Bond Equity 14% Large/Mid Growth Equity 11% Large/Mid Blend Equity 21% Large/Mid Value Equity 8% High Yield Blend Bond Equity 22% Bond 11% Large/Mid 21% Large/Mid Value Equity 8% High Bond 22% BondYield Value 21% 8% Large/Mid High Yield Bond Equity 22% Bond 8% High 22% BondYield Bond 22% Bond 20% Small Company Equity Company Equity 20% International Equity 15% Small Small Company Equity 20% International EquityEquity 15% Large/Mid Growth 20% Small Company Equity 20% International Equity 15% Large/Mid Growth Equity 20% Large/Mid Blend Equity 15% Small Company Equity 20% 15% International Equity Large/Mid Growth Equity 20% Large/Mid Blend Equity 15% Large/Mid Growth Value Equity 30% Large/Mid International Equity 15% Equity 20% Large/Mid Blend Equity 15% Large/Mid Value Equity 30% Large/Mid Blend GrowthEquity Equity 20% Large/Mid 15% 30% Large/Mid Value Equity Large/Mid Value Blend Equity Equity 15% Large/Mid 30% 30% Large/Mid Value Equity

See disclosures at the end of the workbook. The rates of return shown are annual rates based on historical rates of return over the past 50 years (1959–2008) and are adjusted for an assumed management fee of 1.25%. These risk and return expectations may not be realized over future time periods or future economic or business cycles; therefore, they are not intended to be predictions of risk or return. The historical and expected rates of return are based on historical performance and do not reflect the performance of any specific investment choice. The rates of return are not 25 guaranteed. Past performance is not necessarily representative of future results.

2

Investment Choices: Performance Overview and Summaries TFLIC Custom Corp. 401(k) Plan

The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. Please go to www.TA-Retirement.com to obtain performance current to the most recent month-end. In addition, comprehensive information on all investment choices is available on the investment fact sheet. Please refer to the disclosure page for additional information. Transamerica Financial Life Insurance Company and Transamerica Life Insurance Company are affiliates of Diversified Investors Securities Corp. Performance shown in percentages as of December 31, 2009

Expense Ratio

Average Annual Total

Year to Date

Last Quarter

1 Year

3 Years

5 Years

10 Years

3.16

2.83

3.16

3.52

3.54

3.40*

0.00

14.84

1.93

14.84

5.04

4.04

4.03

0.97

56.18

5.89

56.18

3.89

5.14

6.01

1.10

Diversified Investors Intermediate Horizon Ret Acct

21.08

3.69

21.08

-1.62

1.54

1.80

1.21

Diversified Investors Intermediate/Long Horizon Ret Acct

23.51

4.45

23.51

-4.42

0.33

0.56

1.28

Diversified Investors Long Horizon Ret Acct

25.18

5.11

25.18

-7.32

-0.97

-1.50

1.34

Diversified Investors Short Horizon Ret Acct

16.44

2.14

16.44

3.53

3.57

4.35

1.10

Diversified Investors Short/Intermediate Horizon Ret Acct

19.17

3.08

19.17

0.91

2.54

3.02

1.15

15.82

4.70

15.82

-13.77

-3.93

0.36

1.00

32.18

5.54

32.18

-5.82

1.42

11.30

1.25

Net

Cash Equivalents† Transamerica Stable Value Account (*Performance Inception: 11/01/2002)

Bond Long Term

Transamerica Bond Ret Acct High Yield Bond Transamerica Partners High Yield Bond Ret Acct Hybrid Strategic Allocation Series

Large/Mid Value Equity Large Cap

Transamerica Partners Large Value Ret Acct Mid Cap

Transamerica Partners Mid Value Ret Acct

†

See description of this asset class in the investment choices summary section. Not FDIC Insured

26

May Lose Value

No Bank Guarantee 999999-TFLIC

Performance shown in percentages as of December 31, 2009

Average Annual Total

Expense Ratio

Year to Date

Last Quarter

1 Year

3 Years

5 Years

10 Years

Net

22.66

5.62

22.66

-7.77

-1.45

-4.69

1.15

29.25

7.76

29.25

-6.25

0.59

-1.41

1.10

33.06

3.28

33.06

-2.65

1.60

-1.55

1.10

44.81

6.08

44.81

-5.59

-0.82

-7.85

1.38

26.05

3.70

26.05

-11.36

-0.48

-1.78

1.40

Large/Mid Blend Equity Large Cap

Transamerica Partners Large Core Ret Acct Large/Mid Growth Equity Large Cap

Transamerica Equity Ret Acct Mid Cap

Transamerica Growth Opportunities Ret Acct Small Company Equity Growth

Artisan Small-Cap Growth Ret Acct International Equity Transamerica Partners International Equity Ret Acct

* Performance shown since inception is from the performance inception date of the separate account or underlying investment as shown on the Investment Choices Performance Overview.

Investment Choices: Summaries Cash Equivalents - Investment choices whose objectives are to maximize current income, consistent with liquidity and preservation of principal. Investment Risk: This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk.

Transamerica Stable Value Account

As of 12/31/2009

Inception Date: 11/01/2002 Investment Strategy: Best suited for investors seeking a stable return and safety of principal. The investment seeks to protect against any loss of principal while providing returns in excess of money market funds and one-year treasury bills. The investment has a portfolio investment rate design in which all deposits are credited with the same interest rate, credited on a daily basis, and there is no set maturity. The effective credited interest rate is set monthly and effective on the first day of the month. Contract charges may reduce this return. Financial Strength Ratings: A.M. Best Fitch Standard & Poor's Moody's

A (Excellent) AA (Very Strong) AA- (Very Strong) A1 (Good)

3rd of 16 3rd of 19 4th of 21 5th of 21

TFLIC is awarded the above high claims paying ability ratings from the top four financial rating agencies.

27

2

Investment information: Not available

AAA

Bond - Investment choices that pursue their objectives primarily through the investment in investment grade bonds, issued by domestic companies and government agencies. Investment choices may also invest a portion of their assets in below investment grade securities. Investment Risk: The values of bonds change in response to changes in economic conditions, interest rates and the creditworthiness of individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can lose principal.

Long Term Transamerica Bond Ret Acct

As of 12/31/2009

Inception Date: 07/01/2001 Investment Strategy: The investment seeks high total return, consistent with capital preservation. It is best suited for investors who wish to invest in a diversified portfolio of bonds and who have the ability to accept above-average bond price volatility in pursuit of a high total return. Assets are invested primarily in a diversified selection of longer term, investment grade corporate and government bonds and mortgage-backed securities. No more than 7% of assets may be invested in below-investment grade-bonds. The manager seeks to identify bonds whose potential to outperform other similar bonds, by virtue of underlying credit strength and market mispricing, is not fully reflected in the current valuations. Expense Ratio: Type 3*: 0.97% of fund assets Redemption Fee/Term: -Trading Restrictions: Type A*

Management Company: Transamerica Insurance Company Subadvisor: Transamerica Investment Mgmt, LLC

*See Disclosure Page for more details. Investment information: The Transamerica Bond Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Bond Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account is sub-advised by Transamerica Investment Management, LLC.

AAA

High Yield Bond - Investment choices that invest primarily in bonds which are considered riskier and have a higher yield. Investing in high yield, lower quality securities generally offer higher yield but also involve heightened risk. Investment Risk: The investor should note that investment choices that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.

Transamerica Partners High Yield Bond Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks to provide a high level of current income. The fund invests primarily in high-yielding, income producing debt securities and preferred stocks. Under normal circumstances it invests at least 80% of net assets in high-yield bonds and related investments. High-yield securities usually are lower-rated debt securities, commonly referred to as "junk bonds." Investing in junk bonds is an aggressive approach to income investing. Expense Ratio: Type 4*: 1.10% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: Eaton Vance Management

*See Disclosure Page for more details. Investment information: The Transamerica Partners High Yield Bond Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Partners High Yield Bond Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners High Yield Bond Fund (Investor Class), a mutual fund (Fund).

AAA

28

Hybrid - Investment choices that invest in a combination of domestic stocks, bonds, treasuries and money market securities. Investment Risk: The values of stocks change in response to general market and economic conditions and the circumstances of individual issuers. The values of bonds change in response to changes in economic conditions, interest rates and the creditworthiness of individual issuers.

Strategic Allocation Series Diversified Investors Intermediate Horizon Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks total return. The fund invests in other mutual funds rather than investing directly in securities; it normally invests substantially all assets in underlying funds and the money market fund. It generally allocates assets within the following parameters: 25% to 75% of assets in fixed-income funds, 25% to 75% in equity funds, and 0% to 25% in a money-market fund. The fund is nondiversified. Expense Ratio: Type 4*: 1.21% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: --

*See Disclosure Page for more details. Investment information: The Diversified Investors Intermediate Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Diversified Investors Intermediate Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Intermediate Horizon Fund (Investor Class), a mutual fund (Fund).

Diversified Investors Intermediate/Long Horizon Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks long-term growth of capital and growth of income. The fund invests in other mutual funds rather than investing directly in securities; it normally invests at least 65% of assets in underlying funds that hold equity securities. It generally allocates assets within the following parameters: 0 to 50% of assets in fixed-income funds, 50% to 100% in equity funds, and 0% to 20% in a money-market fund. The fund is nondiversified. Expense Ratio: Type 4*: 1.28% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: --

*See Disclosure Page for more details. Investment information: The Diversified Investors Intermediate/Long Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Diversified Investors Intermediate/Long Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Intermediate/Long Horizon Fund (Investor Class), a mutual fund (Fund).

Diversified Investors Long Horizon Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks long-term returns from growth of capital and growth of income. The fund is an asset allocation fund. It normally invests all of its assets in Stock funds. Under severe market conditions the fund may invests all of its assets in the Money Market Fund. Expense Ratio: Type 4*: 1.34% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: --

*See Disclosure Page for more details. Investment information: The Diversified Investors Long Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Diversified Investors Long Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Long Horizon Fund (Investor Class), a mutual fund (Fund).

29

2

Diversified Investors Short Horizon Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks income and preservation of capital. The fund normally invests at least 65% of assets in a combination of fixed-income underlying funds and the money-market fund. It generally allocates assets within the following parameters: 50% to 100% assets in fixed-income funds, 0% to 20% in equity funds, and 0% to 50% in a money-market fund. The fund is nondiversified. Expense Ratio: Type 4*: 1.10% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: --

*See Disclosure Page for more details. Investment information: The Diversified Investors Short Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Diversified Investors Short Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Short Horizon Fund (Investor Class), a mutual fund (Fund).

Diversified Investors Short/Intermediate Horizon Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks to achieve reasonable returns with considerably less than average volatility as compared to other balance funds. The fund is an asset allocation fund and invests in a combination of the funds. It invests approximately 70% of assets in Bond funds and about 30% of assets in Stock funds. Under severe market conditions the fund may invests all of its assets in the Money Market Fund. The fund is nondiversified. Expense Ratio: Type 4*: 1.15% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: --

*See Disclosure Page for more details. Investment information: The Diversified Investors Short/Intermediate Horizon Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Diversified Investors Short/Intermediate Horizon Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Asset Allocation - Short/Intermediate Horizon Fund (Investor Class), a mutual fund (Fund).

AAA

Large/Mid Value Equity - Investment choices that invest primarily in stocks issued by larger companies that are considered to be undervalued or have low P/E ratios. Investment Risk: Historically, stocks have provided greater long-term returns and have entailed greater short-term risks than other investments. The securities issued by mid-cap companies may be more susceptible to market downturns, and their prices could be more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the management company’s opinion.

Large Cap Transamerica Partners Large Value Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks long-term capital appreciation. Current income is a secondary goal. The Fund invests primarily in issues listed on U.S. exchanges that the sub-adviser believes are seasoned, liquid and low priced, with effective management and positive momentum. the It normally invests at least 80% of net assets in securities of large-cap companies and related investments. The fund considers large cap companies to be companies with market capitalizations that, at the time of initial purchase exceed the minimum capitalization of companies that are included in the Russell 1000® Index. Expense Ratio: Type 4*: 1.00% of fund assets Redemption Fee/Term: -Trading Restrictions: -*See Disclosure Page for more details.

30

Management Company: Transamerica Asset Management, Inc Subadvisor: ARONSON+JOHNSON+ORTIZ, LP

Investment information: The Transamerica Partners Large Value Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Partners Large Value Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners Large Value Fund (Investor Class), a mutual fund (Fund).

Mid Cap Transamerica Partners Mid Value Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks a high total investment return. The fund normally invests at least 80% of net assets in securities of medium sized companies. It primarily invests in companies which the fund's advisers believe have valuations below their intrinsic value and present an opportunity for earnings improvement. The fund may also invest in foreign securities. Expense Ratio: Type 4*: 1.25% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: J.P. Morgan Investment Management Inc. Cramer Rosenthal McGlynn, LLC

*See Disclosure Page for more details. Investment information: The Transamerica Partners Mid Value Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Partners Mid Value Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners Mid Value Fund (Investor Class), a mutual fund (Fund).

AAA

Large/Mid Blend Equity - Investment choices that pursue their objectives primarily through the investment in both growth and value common stocks of large- to medium-sized domestic issuers. Investment Risk: Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.

Large Cap Transamerica Partners Large Core Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks current income and capital appreciation. The fund invests primarily in common and preferred stocks, focusing on growing, financially stable, and undervalued companies. It may also invest in debt securities. It may invest up to 25% of assets in foreign securities, including sponsored American depositary receipts. Expense Ratio: Type 4*: 1.15% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: ARONSON+JOHNSON+ORTIZ, LP

*See Disclosure Page for more details. Investment information: The Transamerica Partners Large Core Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Partners Large Core Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners Large Core Fund (Investor Class), a mutual fund (Fund).

AAA

Large/Mid Growth Equity - Investment choices that invest primarily in stocks issued by larger companies that are expected to grow faster than the overall economy. Investment Risk: Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers.

31

2

Large Cap Transamerica Equity Ret Acct

As of 12/31/2009

Inception Date: 07/01/2001 Investment Strategy: The investment seeks to maximize long-term growth and is best suited for investors who seek long-term equity appreciation and have the ability to accept above-average volatility in pursuit of it. The separate account invests primarily in common stocks of growth companies that are perceived by the manager to be undervalued in the stock market. It will generally invest at least 80% of assets in the common stocks of a narrowly defined selection of growth-oriented companies - generally fewer than 60. The investment managers focus on the potential for each prospective holding and look for companies with strong management, well-defined plans for the future, low-cost proprietary products, dominance in market share or niche, and strong earnings and cash flows. Expense Ratio: Type 3*: 1.10% of fund assets Redemption Fee/Term: -Trading Restrictions: Type A*

Management Company: Transamerica Insurance Company Subadvisor: Transamerica Investment Mgmt, LLC

*See Disclosure Page for more details. Investment information: The Transamerica Equity Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Equity Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account is sub-advised by Transamerica Investment Management, LLC.

Mid Cap Transamerica Growth Opportunities Ret Acct

As of 12/31/2009

Inception Date: 07/01/2001 Investment Strategy: The investment seeks to maximize long-term growth and is best suited for investors who have the ability to accept above average volatility. This is done through investing primarily in a diversified portfolio of domestic equity securities including common stocks, rights, warrants and convertible securities of companies with small to mid market capitalization (normally under $10 billion). The managers seek to identify stocks which have potential for long-term capital appreciation. These are primarily domestic common stocks of small and medium size companies selected for their growth potential, resulting from growing franchises protected by high barriers to competition. Expense Ratio: Type 3*: 1.10% of fund assets Redemption Fee/Term: -Trading Restrictions: Type A*

Management Company: Transamerica Insurance Company Subadvisor: Transamerica Investment Mgmt, LLC

*See Disclosure Page for more details. Investment information: The Transamerica Growth Opportunities Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Growth Opportunities Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account is sub-advised by Transamerica Investment Management, LLC.

AAA

Small Company Equity - Investment choices that invest primarily in stocks issued by smaller companies. Investing in small company stock involves heightened risk and may be more volatile than larger company stock. Investment Risk: The investor should note that investment choices that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.

Growth Artisan Small-Cap Growth Ret Acct

As of 12/31/2009

Inception Date: 09/16/2002 Investment Strategy: The investment seeks to maximize long-term growth of capital. It is best suited for long-term investors who seek a diversified portfolio of small growth companies and are comfortable with the additional risks these companies may present. The investment typically holds between 60 and 80 stocks that are broadly diversified across industries and sectors. The managers strive to identify companies with between $200M and $1.5B in market cap, which have the greatest prospects for growth and purchase stocks that are at a discount to their intrinsic value as perceived by the manager.

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Expense Ratio: Type 3*: 1.38% of fund assets Redemption Fee/Term: -Trading Restrictions: Type A*

Management Company: Transamerica Insurance Company Subadvisor: Artisan Partners Holdings LP

*See Disclosure Page for more details. Investment information: The Artisan Small-Cap Growth Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Artisan Small-Cap Growth Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account (SA). The TLIC SA is sub-advised by Artisan Partners Limited Partnership. Prior to 09-16-02, the TLIC SA invested exclusively in the PBHG Emerging Growth Fund, a mutual fund.

AAA

International Equity - Investment choices that invest primarily in stocks issued by foreign companies, or that invest globally. Foreign investing involves special risks including political unrest, economic instability and currency fluctuation. Investment Risk: The investor should note that investment choices that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks.

Transamerica Partners International Equity Ret Acct

As of 12/31/2009

Inception Date: 04/01/2002 Investment Strategy: The investment seeks long-term capital appreciation. The fund normally invests at least 80% of assets in foreign equities. It maintains investments in a minimum of three foreign countries, and it may invest up to 10% of assets in emerging markets. The fund currently invests most assets in Canada, the Far East, Australia, and Europe. Expense Ratio: Type 4*: 1.40% of fund assets Redemption Fee/Term: -Trading Restrictions: --

Management Company: Transamerica Asset Management, Inc Subadvisor: Thornburg Investment Management, Inc.

*See Disclosure Page for more details. Investment information: The Transamerica Partners International Equity Ret Acct is a Separate Account Sub-Account maintained by TFLIC and invests exclusively in the Transamerica Partners International Equity Ret Opt, a Transamerica Life Insurance Company (TLIC) Separate Account. The TLIC Separate Account invests exclusively in the Transamerica Partners International Equity Fund (Investor Class), a mutual fund (Fund).

AAA Disclosure The performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than the original investment. Current performance may be lower or higher than the performance quoted herein. Separate account investment choice statistics change over time. The investment choice is not FDIC insured, may lose value and is not guaranteed by a bank or other financial institution. The separate account investment choices offered are exempt from registration with the SEC; therefore, no prospectuses are filed for them. However, certain of the separate account investment choices, other than the Stable Value investment choice(s), invest in mutual funds which are subject to SEC registration. Prospectuses for these mutual funds can be ordered directly from the fund company or obtained upon request from Transamerica Retirement Services at www.TA-Retirement.com. Investors should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. The prospectus for each fund contains this and other information about that fund. Read each prospectus carefully before investing. In addition, comprehensive information on all the investment choices is available on the investment fact sheets. Performance Performance shown is average annual total separate account investment choice returns (except last quarter and year-to-date) for the period indicated, net of the total operating expenses of the separate account or underlying investment as listed on the Investment Choices Performance Overview. Performance returns reflect reinvestment of dividends and capital gains distributions. Application of the contract asset charge and any discontinuance charges or service fees deducted from the account would reduce this return. For separate account investment choices invested in mutual fund shares, except as otherwise indicated, historical performance prior to the separate account investment choice inception is calculated utilizing past performance for the underlying mutual fund. Performance shown since inception is from the performance inception date of the separate account or underlying investment as shown on the Investment Choices Performance Overview. Past performance is not a guarantee of future performance. An investment in these investment choices, other than for the Stable Value investment choice(s), is subject to market risk and an investor may experience loss of principal.

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Asset Classes The investment choices have been assigned to various asset classes based solely on Transamerica Retirement Services’ assessment of their investment policies; additionally, they may not be representative of that particular asset class in the future. Charges, Fees and Expenses Deposits made by plan participants are not subject to any front-end loads/sales fees of the underlying mutual fund. Therefore, such fees are not reflected in the performance reported. Type 1: The expense ratio quoted reflects the maximum total operating expenses, which consist of Investment Management and Investment Account Class I Administrative Charges, if applicable. The actual expense ratio experienced may be less than the expense ratio quoted. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract. Type 2: The expense ratio quoted reflects the maximum total operating expenses, which consist of the total operating expenses (expense ratio) of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract. Type 3: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account Investment Management and Investment Account Class VIII Administrative Charges, if applicable. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract. Type 4: The expense ratio quoted reflects the maximum total operating expenses, which consist of the total operating expenses (expense ratio) of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract. Type 5: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account Investment Account Class VII Administrative Charge and the expense of the underlying mutual fund. Type 6: The expense ratio quoted reflects the maximum total operating expenses, which consist of the Investment Management and Investment Account Class VII Administrative Charges for the underlying TLIC separate account. Type 7: The expense ratio quoted reflects the maximum total operating expenses, which consist of Investment Management Charge, Administrative Charges (if applicable), and the expenses of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges, discontinuance charges or service fees, as applicable under your contract. Type 8: The expense ratio quoted reflects the maximum total operating expenses, which consist of the underlying TLIC Separate Account Investment Management and Investment Account Class VIII Administrative Charges (if applicable), and expenses of the underlying investment. There may also be charges to your balance in the separate accounts for contract asset charges or service fees, as applicable under your contract. Contract Asset Charges (CAC) Contract Asset Charges (CAC) are assessed each Month according to the terms of the plan’s investment contract and vary based upon the amount of assets held under the contract on the 15th of each month. Based on the plan asset information provided to Transamerica, the initial monthly CAC rate assessed to the plan is estimated to be 0.0542%. Plan sponsors should consult their investment contract and participants should consult their enrollment kit for the CAC charges applicable to their plan. Note, the commission option selected by your broker will affect the contract asset charges payable under the group variable annuity contract. Contract Termination Charges Depending on the features elected by your plan a surrender charge may apply at the time the investment contract is terminated. Trading Restrictions The ability to exchange units of the separate account may be restricted in the event that a sponsor or participant engages in trading patterns which are detrimental to the separate account or the underlying investment. Investment choices may be subject to certain transfer restrictions. Participant-directed transfers into this contract account may be limited. Additionally, plan-level restrictions may apply. Automatic scheduled transactions such as payroll contributions, loan repayment, etc. may not be subject to these restrictions. However, you may transfer funds out of this contract account at any time. These restrictions may be changed at any time to comply with any restrictions on trading imposed by the underlying mutual fund. Type A: Transfers “in” to the investment choice are restricted to once in any rolling 30-day period. Depending on the recordkeeping platform, certain plans may be subject to a revised restriction where transfers “in” to the investment choice are restricted for a rolling 30-day period once a round trip transfer (“in” and “out”) has been made. Additional Notes — The information contained in the investment choice performance overview and the attached investment profiles is date-sensitive and only valid for the current quarter. This information is generally updated quarterly. You should obtain updated information from your plan administrator to ensure you have the most current information.

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— Transamerica Retirement Services (“Transamerica”), a marketing unit of Transamerica Financial Life Insurance Company (“TFLIC”), 4 Manhattanville Road, Purchase, New York 10577, and other of its affiliates, specializes in the promotion of retirement plan products and services. Investment choices are available from Transamerica Retirement Services under contract form number TA-AP-2001-CONT, a group variable annuity contract underwritten by TFLIC. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. Fees and charges may apply. For complete information, contact your Transamerica representative. — Transamerica Stable Value Account - Effective 01-29-07, the TR Transamerica Stable Value Fund changed its name to the Transamerica Stable Value Account. Performance shown for the Transamerica Stable Value Account is the annual effective credited rate for the period shown. Application of the contract asset charge and any discontinuance charges or service fees deducted from the account would reduce this return. The Transamerica Stable Value Account is available under contract form number TA-AP-2001-CONT, a group variable annuity contract issued by Transamerica Financial Life Insurance Company ("TFLIC"), 4 Manhattanville Road, Purchase, New York 10577, and Transamerica Retirement Services, a marketing unit of TFLIC and other of its affiliates, which specializes in the promotion of retirement plan products and services. TFLIC is not authorized and does not do business in the following jurisdictions: Guam, Puerto Rico, and the U.S. Virgin Islands. The Transamerica Stable Value Account is an investment choice backed by the general account of TFLIC. The assets in the general account are supported by the financial stability of TFLIC. While TFLIC declares interest rates periodically, and backs the principal and interest of this investment choice, any guarantees are subject to the claims paying ability of the insurance company. This account is not guaranteed by the FDIC or any other government agency. Although plan participants generally may withdraw assets from the Stable Value investment choice without restrictions, TFLIC may impose a hold period at the contract level in the event of a full contract discontinuance or partial contract discontinuance. AAA

— Transamerica Bond Ret Acct - Effective 01-29-07, the TR Transamerica Bond Fund changed its name to the Transamerica Bond Ret Acct. AAA

— Transamerica Partners High Yield Bond Ret Acct - This Separate Account was named Diversified Investors High Yield Opportunities Ret Acct before 06-30-08 and TR Transamerica High Yield Opportunities Fund before 01-29-07. This Separate Account invests in the Transamerica Partners High Yield Bond Ret Opt, a TLIC Separate Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners Funds Group and, under a Core Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a registered investment management company established on 08-31-95. AAA

— Diversified Investors Intermediate Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Intermediate Horizon Fund changed its name to the Diversified Investors Intermediate Horizon Ret Acct. — Diversified Investors Intermediate/Long Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Intermediate/Long Horizon Fund changed its name to the Diversified Investors Intermediate/Long Horizon Ret Acct. — Diversified Investors Long Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Long Horizon Fund changed its name to the Diversified Investors Long Horizon Ret Acct. — Diversified Investors Short Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Short Horizon Fund changed its name to the Diversified Investors Short Horizon Ret Acct. — Diversified Investors Short/Intermediate Horizon Ret Acct - Effective 01-29-07, the TR Transamerica Short/Intermediate Horizon Fund changed its name to the Diversified Investors Short/Intermediate Horizon Ret Acct. AAA

— Transamerica Partners Large Value Ret Acct - This Separate Account was named Diversified Investors Value & Income Ret Acct before 06-30-08 and TR Transamerica Value & Income Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Large Value Ret Opt, a TLIC Separate Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners Funds Group and, under a Core Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a registered investment management company established on 01-03-94. — Transamerica Partners Mid Value Ret Acct - This Separate Account was named Diversified Investors Mid-Cap Value Ret Acct before 06-30-08 and TR Transamerica Mid-Cap Value Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Mid Value Ret Opt, a TLIC Separate Account. The TLIC Separate Account historical return prior to 09-30-01 is calculated based on the gross composite performance of the initial sub-adviser (Cramer, Rosenthal, McGlynn, LLC), but is adjusted to reflect the 1.25% total operating expenses of the underlying mutual fund. AAA

— Transamerica Partners Large Core Ret Acct - This Separate Account was named Diversified Investors Growth & Income Ret Acct before 06-30-08 and TR Transamerica Growth & Income Fund before 01-29-07. This Separate Account invests in the Transamerica Partners Large Core Ret Opt, a TLIC Separate Account. The TLIC Separate Account, for which the underlying mutual fund is a fund within the Transamerica Partners Funds Group and, under a Core Fund and Feeder structure, invests its assets in a "Core Fund" with a similar investment objective. The Core Fund is a registered investment management company established on 01-03-94. AAA

— Transamerica Equity Ret Acct - Effective 01-29-07, the TR Transamerica Equity Fund changed its name to the Transamerica Equity Ret Acct. — Transamerica Growth Opportunities Ret Acct - Effective 01-29-07, the TR Transamerica Growth Opportunities Fund changed its name to the Transamerica Growth Opportunities Ret Acct. Effective 02-11-02, the Transamerica Small Company Fund was renamed the Transamerica Growth Opportunities Fund to be consistent with its expanded investment criteria. As a result, the TR Transamerica Small Company Fund was renamed the TR Transamerica Growth Opportunities Fund. AAA

— Artisan Small-Cap Growth Ret Acct - This Separate Account (SA) was named Small-Cap Growth Ret Acct before 06-30-08 and TR Transamerica Small-Cap Growth Fund before 01-29-07. This SA invests in the Artisan Small-Cap Growth Ret Opt, a TLIC SA. Effective 09-16-02, the TLIC SA is sub-advised by Artisan Partners Limited Partnership and is subject to TLIC SA Investment Management (IM) and Administrative (Admin) Charges. Prior to 09-16-02, the TLIC SA invested in the PBHG Emerging Growth Fund (PBHG Class) and was subject to different TLIC SA IM Charges, Admin Charges and underlying mutual fund expenses. No adjustments have been made to performance prior to 09-16-02 to reflect the difference between the charges and expenses for the TLIC SA invested in the mutual fund from the charges for the sub-advised TLIC SA. AAA

— Transamerica Partners International Equity Ret Acct - This Separate Account was named Diversified Investors International Equity Ret Acct before 06-30-08 and TR Transamerica International Equity Fund before 01-29-07. AAA

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3

Step Three

• Your future starts today • Plan highlights

Start today!

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3

Step Three: Start today!

Your future starts today.

Company Contributions

Planning and saving well are the keys to living well when you reach retirement. By reviewing this workbook and completing the exercises provided, you have taken a major step forward in achieving a personalized retirement savings strategy for a more enjoyable future.

MATCHING CONTRIBUTIONS

If you are not yet enrolled in your plan, simply complete the forms and instructions found at the front of this workbook. If you already participate in your employer-sponsored retirement savings plan, take this opportunity to review your current investment portfolio allocation and consider increasing your contributions.

• The Company may contribute a discretionary Matching Contribution to the plan. • To be eligible to receive Matching Contributions, you must complete 1,000 hours of service during the plan year and you must be employed on the last day of the plan year.

Eligibility You must complete 1 year(s) of service. You must be at least 18 years of age.

Plan Highlights

Entry Date(s)

Your Contributions

January 1, April 1, July 1 and October 1.

• You can save from 1% to 100% of your eligible compensation. • You can choose to make contributions before paying taxes and/or you can choose to make after-tax contributions through your plan’s Roth 401(k) account option.

Vesting

• Federal Tax law limits the total combined before- and after-tax contributions to $16,500 in 2010.

Eligibility You must complete 1 year(s) of service. You must be at least 18 years of age.

Entry Date(s) January 1, April 1, July 1 and October 1.

Catch-up Contributions If you are 50 or older, you may qualify to make additional before- and after-tax “Catch-up” Contributions. Federal Catch-up Contribution limit is $5,500 for 2010, for total combined before- and after-tax contributions.

You are immediately 100% vested in the Company’s contributions to the plan.

NON-MATCHING CONTRIBUTIONS • The Company may make a discretionary Non-Matching Contribution to the plan on behalf of all eligible employees. • To be eligible to receive Non-Matching Contributions, you must complete 1,000 hours of service during the plan year and you must be employed on the last day of the plan year.

Eligibility You must complete 1 year(s) of service. You must be at least 18 years of age.

Entry Date(s) January 1, April 1, July 1 and October 1.

Vesting

Frequency of Contribution Changes

You are immediately 100% vested in the Company’s contributions to the plan.

You may increase or decrease your contribution to the plan on the first day of each plan quarter, in January, April, July, and October.

Your years of service with a predecessor of the Company will count toward your eligibility.

You may also stop making contributions at any time.

Rollovers You may roll over your plan account balance from a prior qualified retirement plan at any time.

Vesting Your contributions are automatically 100% vested. Your rollover contributions are 100% vested.

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999999-TFLIC

Learn About Your Plan’s Roth 401(k) Account Option The Roth 401(k) option allows you to contribute after-tax dollars to your plan in a separate account that in most cases will not be subject to future federal income taxes, regardless of your income level. So let’s compare some basic features of the traditional 401(k) and the Roth 401(k): Feature

Traditional 401(k)

Roth 401(k)

Contributions IN

Before-tax

After-tax

Distributions PAID

Taxed

Free from Federal tax if distributions occur five taxable years after first Roth Contribution AND after participant either: - Attains age 59½ - Dies - Becomes Disabled

Required Minimum Distributions (RMDs)

(Some plans provide for RMDs to begin at the later of age 70½ or separation from service, provided participant is not a 5% owner.)

Contribution Limit Income Restriction

Required

Required, but prior to RMD may be rolled over to a Roth IRA, which has no RMD requirement.

Total limit in 2010 is $16,500 ($22,000 if age 50 or older) None

How Do I Decide If A Roth 401(k) Contribution Is Right For Me? As a general rule, if you believe you will be paying higher taxes in retirement than you are now, consider making contributions to your Roth 401(k). However, if you believe your tax rate will be lower when you take distributions, consider keeping your contributions in the traditional 401(k). Another strategy to consider is diversifying your future tax risk by contributing to both. Keep in mind that you may want to consult with your attorney, accountant, or tax professional in helping you decide what balance is right for you. You will need to decide what percentage of your total contribution will go to traditional 401(k) and Roth 401(k): A. Your Traditional 401(k) Salary Deferral Percentage

Loans • Your plan offers a loan feature. Please check with your plan administrator and/or refer to your Summary Plan Description for details.

In Service Withdrawals EARLY WITHDRAWALS • You may make a withdrawal from the plan upon attaining age 59½. Certain restrictions may apply. Refer to your Summary Plan Description for details.

HARDSHIP • If you meet the definition of hardship you may make a withdrawal from the plan. For more information about the strict rules governing hardship withdrawals, refer to your Summary Plan Description.

When You Retire Or Leave The Company Subject to plan provisions, upon retirement, termination, disability or death, you—or in some cases your beneficiary—can: • Keep your money in the plan, subject to certain restrictions. • Directly roll over your plan account balance into another eligible savings plan or IRA. — You can request a Rollover IRA kit online at www.TA-Retirement.com. — By choosing to keep your money in the plan or by electing a direct rollover of your retirement savings rather than cashing out, you will avoid the 20% mandatory federal income tax withholding as well as the 10% early withdrawal penalty that’s assessed if you have not reached age 59 ½. • Receive your plan account balance in cash. • Receive your plan account balance as an annuity or in installments. Contact your plan administrator or refer to your Summary Plan Description for additional information. Some of these options can have significant tax consequences. Your tax advisor can help you make the decision that is best for you. For more information, refer to your Summary Plan Description. For additional plan information, please contact your plan administrator or refer to your Summary Plan Description.

_____________% B. Your Roth 401(k) Salary Deferral Percentage _____________% Total Salary Deferral may not exceed the plan’s limit. Total Salary Deferral Percentage (A + B) = _____________%

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Investment Choices

Account Rebalancing

The plan offers 15 investment choices.

Account Rebalancing allows you to maintain the investment percentage you originally established, taking into consideration market earnings and losses.

• Refer to “Investment Choices” located in this enrollment workbook for a description of your investment choices. • Some of the investment choices offered by the plan contain trading restrictions. Prior to finalizing your investment choices under the plan, please refer to your “Investment Choices” for more information on these restrictions. • To obtain a complete set of Investment Fact Sheets containing detailed, up-to-date information on each of the investment choices, contact your plan administrator or log on to www.TA-Retirement.com.

Enrollment Instructions

• Automatically rebalance your account by redistributing the percentage of your total portfolio held in each investment choice. — A one-time account rebalance will initiate one rebalance as of the close of the business day. — A periodic rebalance will establish a future schedule for rebalancing based on the period selected (Monthly, Quarterly, Semi-Annually, Annually).

You will need to complete an enrollment form and designate a beneficiary.

• There is no minimum balance required and no minimum amount to transfer.

• If you do not designate a beneficiary the default provisions of your plan will apply. Submit your completed beneficiary form to your plan administrator.

Automated Periodic Transfers

That’s all there is to it! Remember - it’s never too early or too late to save for retirement. Transamerica Retirement Services is here to simplify your journey on the road to a secure retirement.

Manage Your Account Via Web Site www.TA-Retirement.com • In addition to providing access to your plan account information, the Web site is loaded with useful information, helpful tips and interactive tools, all designed to help you discover, build and manage your plan.

Automated Periodic Transfer allows you to transfer portions of your plan account balance from one investment choice to another in regular increments. • Use Automated Periodic Transfer to gradually transfer assets from a conservative investment choice to a more aggressive investment choice or vice versa. • You must transfer at least $100 from the holding investment choice for each periodic transfer. • Once established, Automated Periodic Transfer will continue until you request that it be stopped. • If there is not enough money in the holding investment choice, the system will ignore the transfer request and check again the next period.

Manage Your Account Via Telephone

• Some restrictions may apply. Contact your plan administrator.

1 (800) 401-8726

Statement Of Account

• The automated telephone system offers you direct access to your plan account information. You can access the system 24 hours a day — seven days a week.

• You will receive a personalized statement of your account on a regular basis.

Investment Choice Information Via Web Site To access your Performance Overview and Investment Fact Sheets, follow the simple steps outlined below: Step 1: Go to www.TA-Retirement.com Step 2: Click on “Fund Performance” above the navigation bar on the right hand side of the page Step 3: Enter your Contract ID and click “Submit” Step 4: Your Performance Overview will appear Step 5: Click on the investment choice’s name to view the Investment Fact Sheet

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• Set up Account Rebalancing via the Web site or by telephone.

• You may also request your plan account statement any time.

Disclosures The information in this enrollment workbook is intended to be educational and to provide you with information that may help you make better use of retirement savings opportunities in realizing your retirement goals. Different assumptions concerning earnings, taxes, investment rates of return, and retirement age will generally yield different results. All information in this enrollment workbook is provided for illustrative purposes only and should not be considered legal or investment advice.

General Assumptions All calculations in this enrollment workbook are for illustrative purposes only. Your circumstances will differ from these examples. Calculations in this enrollment workbook display the future value of investments. All deposits are assumed made at the end of each year. Your own deposit schedule will depend on your plan specifics. Unless otherwise specified, the annual rate of return is 6.8%, net of fees. This return is for illustrative purposes only, does not reflect the performance of any specific investment choice, and is not intended to imply or guarantee future returns. No taxes are applied to plan balances. Plan balances are fully taxable upon withdrawal. Withdrawals before age 59½ may trigger an additional 10% early withdrawal penalty tax. Returns are assumed to be the same each year. Actual values may increase or decrease in any given year. To estimate Social Security benefits, we’ve assumed that you have enough participation in the Social Security system to be fully and currently insured and eligible for Social Security benefits and that you have been participating in Social Security since you were first eligible. Several assumptions about your pay history and future pay levels have been made in order to consider Social Security benefits in determining your retirement savings goal.

Asset Class Disclosures Investment Mixes Each investment mix is comprised of four or more asset classes: cash equivalents, bond, high yield bond, large/mid value equity, large/mid blend equity, large/mid growth equity, small company equity, or international equity. Cash Equivalents This category seeks to protect against loss of principal while providing returns comparable to money market funds and short-term Treasury instruments. An investment in a cash equivalent investment choice is not insured or guaranteed by the FDIC or any other government agency. Although the investment seeks to preserve the value of your principal, it is possible to lose money by investing in the investment choice. These investment choices have generally provided a dependable level of stability and liquidity; nevertheless, the investment is still subject to credit risk and to liquidity risk. Bond The values of bonds change in response to changes in economic conditions, interest rates, and the creditworthiness of individual issuers. Investment choices that invest in bonds can lose their value as interest rates rise and an investor can lose principal. High Yield Bond The investor should note that investment choices that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default. Large/Mid Value Equity Historically, stocks have provided greater long-term returns and have entailed greater short-term risks than other investments. The securities issued by mid-cap

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companies may be more susceptible to market downturns, and their prices could be more volatile than those of larger companies. Value stocks may be subject to special risks that have caused the stocks to be out of favor and undervalued in the management company’s opinion. Large/Mid Blend Equity Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers. Large/Mid Growth Equity Historically, common stocks have provided greater long-term returns and have entailed greater short-term risks than other investment choices. Smaller or newer issuers carry more risk than larger, more established issuers. Small Company Equity The investor should note that investment choices that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average. International Equity The investor should note that investment choices that invest in foreign securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Risk tolerance and how to invest is a personal decision. We assume that once you reach age 65, you will, where possible, reduce the risk/return of your portfolio.

Weighting of Asset Classes and Rates of Return For the period 1959–1985, all data with respect to the investment types included within the weighting of asset classes was obtained from Stocks, Bonds, Bills and Inflation® 2001 Yearbook, Ibbotson Associates (“Ibbotson Yearbook”) and Russell/Mellon Analytical Services: “Cash Equivalents” 100% 30-Day Treasury Bills; “Bond:” 100% Intermediate-Term Government Bonds; “High Yield Bond:” 100% Merrill Lynch High Yield Master Cash Pay Index; “Large/Mid Value Equity” 100% S&P 500 ® Value Index; “Large/Mid Blend Equity” 100% S&P 500® Index; “Large/Mid Growth Equity” 100% S&P 500® Growth Index; “International Equity” 100% Morgan Stanley Capital International Ex-US Index; “Small Company Equity” 100% Small Company Stocks. Where index data was not available, hypothetical returns were computed by adjusting the actual performance of IntermediateTerm Government Bonds, S&P 500 ® Index and Small Company Stocks to reflect historical performance differences between the investment types. Past performance does not indicate future results. For the period 1986–2008, all data with respect to the investment types included within the weighting of asset classes was obtained from Morningstar,® Inc: “Cash Equivalents” Citigroup 3-Month T-Bill Index; “Bond” Barclays Capital Aggregate Bond Index; “High Yield Bond” Credit Suisse High Yield Index; “Large/Mid Value Equity” Russell 1000 Value Index;® “Large/Mid Blend Equity” S&P 500® Index; “Large/ Mid Growth Equity” Russell 1000 Growth Index;® “International Equity” Morgan Stanley Capital International World ex-US Index; “Small Company Equity” Russell 2000 Index.®

Sample Investment Allocation Returns An assumed annual management fee of 1.25% has been applied to sample investment returns. Actual management fees may be higher or lower. Other charges may also apply that would reduce the return.

TRS 1814-0909 (1)

www.TA-Retirement.com (800) 401-8726 999999-TFLIC