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Dear Portfolio Company -

(Name of Angel Group) is a member of the Angel Capital Association (ACA), the professional association of angel groups in North America. We recently learned of a new ACA benefit that is aimed at the portfolio companies of ACA member angel groups, and wanted to pass along this opportunity to you.

ACA has partnered with Transamerica Retirement Services1 and Venture Advisors to provide our portfolio companies a world-class retirement benefit for a cost that any start-up company can afford. By enrolling your company in the ACA 401(k) plan, you will now be able to offer your employees a benefit they desire second only to healthcare. This will help you toremain competitive in the talent marketplace by implementing a program that is flexible enough to grow with your business whether you have 2, 20, 200 or 2,000+ employees.

There are many potential cost savings and benefits of enrolling in the ACA Multiple Employer Plan 401(k) program. All will benefit from the reduction of hard costs to the company and greatly reduced soft costs through access to Transamerica’s Plan Administration Service Support2(PASS) program, which offers an easy-to-use Web platform for your part of the administration. Some of the highlights of the ACA’s Multiple Employer Plan 401(k) Program are:

  • Minimal Plan Maintenance and Zero Annual Employer Fees3

Typically fees vary depending on where your company is located, but it is not uncommon for administration fees to cost thousands per year. By taking advantage of this opportunity with ACA, you can greatly reduce these costs.

  • Low Annual Participant Charge

With this MEP, your employees are typically charged $38 per year,deducted directly from employee contributions. This fee is competitive with the feescommonto retirement programs frequently proposed to small businesses (SIMPLE IRAand 401(k) plans).

  • Aggregated Asset-based Charges and Fund Expenses

Retirement providersmay conduct business by charging a percentage of the total dollars under management for each participating employee, and the ACA program does this. The advantage for you in this program is that it aggregates many companies and employees, lowering the percentage charged. You not only enjoy lower pricing, which typically starts at(0.53%) but also as new companies enroll, the percentage may decrease further.

  • Better Benefits than more Common Small Business Retirement Programs

Many smaller businesses choose not to participate in traditional 401(k) programs because they are too costly and hard to manage. Instead they use SIMPLE IRA or SIMPLE 401(k) programs. The ACA 401(k) plan is different than these traditional programs in both cost and administration – and is also more flexible than SIMPLE IRAs. For instance, the ACA program allows you to apply a vesting schedule to certain contributions made on your employees’ behalf, provide Roth IRA options, make changes to plans, make higher contributions, and stay with the program if you grow larger than 100 employees.

  • Reduced Administrative Burden. With this Transamerica ACA program, the majority of the paperwork is handled by Transamerica and ACA, making it workable for start-upand small companies. You don’t need a Human Resources department to participate. Your company receives a turnkey kit to set up the program and enroll your employees. All you need to do is complete original enrollment, elect eligibility for employees, and input payroll information (as you hire new employees) or payroll changes on the PASS2 platform. The program works with most types of payroll systems, from QuickBooks to outside payroll providers.

ACA and Transamerica take care of most of the other administrative issues that are legally required for 401(k) programs in providing master coverage for your company. Examples include nondiscrimination testing, investment reviews, compliance and legislative supervision, and audit filing.

I hope you will consider this program for you and your employees. ACA has provided us with considerably more details about the program, with pricing documents, investment choices, administrative details, and sample agreements. Please let me know if you would like to see those. You are also welcome to contact Brant Garda, the Venture Advisors expert who is helping ACA manage the program. Brand may be reached at (724) 825-4916during normal business hours (Eastern time zone) or .

If you would like more information or would like to complete an inquiry form online, visit today.

Best wishes for a wonderful 2011.

Regards,

Transamerica Retirement Services Corporation is an affiliate of Diversified Investors Securities Corporation (DISC). Securities are offered by DISC, 440 Mamaroneck Avenue, Harrison, NY 10528.

Transamerica Retirement Services Corporation is not affiliated with Angel Capital and Venture Advisors.

1Transamerica or Transamerica Retirement Services refers to Transamerica Retirement Services Corporation, which is headquartered in Los Angeles, CA. Transamerica is not affiliated with Angel Capital Association or Venture Advisors.

2Plan Administration Service Support (PASS) is an optional menu of varying services that the plan sponsor (and the plan's third party administrator) can select. PASS allows Transamerica to perform non-discretionary administrative services for the plan at the direction of the Plan Administrator under guidelines established by the Plan Administrator in its sole discretion, and is available depending upon the plan's assets. Additional fees will apply for the PASS services that you choose. The plan's third party administrator may determine availability of these services.

3Participant and investment fees apply. Employer costs may occur if employer chooses to make matching or profit sharing contributions.