Velcro USA Inc. 95 Sundial Avenue Manchester, NH 03103 USA Tel: (+1) 603 669 4880 42. What services do you offer clients in the preparation of their Form 5500s and Summary Annual Reports? Susan Sonkin assists with Form 5500 document prep, summary annual report prep, and plan document prep. COMPENSATION 43. Describe the options of compensation for your services. EBS has no preferred method of compensation and will work under a commission and/or consulting fee arrangement of your choice. Typically, for a group of similar size to Northeast Arc, we are compensated through the regular commission scale of the carriers but are open to discussion if you would prefer a consulting fee arrangement. The only fees that would be charged to Northeast Arc would be the following: - Any printing and mailing charges. • Certain travel expenses outside New England if required (negotiable). • Pass-through fees for vendors mutually agreed to that are outside the scope of our standard consulting agreement (e.g. Guidespark Communication Services, Jellyvision, etc.). • Claim auditing services if requested. 44. Has your firm been subject to any lawsuits or settlements specific to compensation disclosure or practices within the last five years? No, we have not been the subject of any lawsuits or settlements specific to compensation disclosure or practices within the last five years. 45. What is your firm’s philosophy and practice in making available documentation of the commissions received from insurers? At EBS we pride ourselves on our objective and professional advice. Compensation never impacts the way that we conduct business for our clients. We have always followed a policy of full disclosure of fees and commissions. All EBS clients know the following policies: • EBS will gladly accommodate any request for a detailed accounting of fees, commissions and/or bonuses received. • EBS will continue to maintain and update all standard commission schedules for the insurance companies with whom we have mutual clients. • EBS will continue to seek consistent and fair commission rates so that clients may be better able to compare competitive proposals. • EBS will continue to provide clarity for clients in all negotiations with insurers. • EBS will meet annually with each client to discuss compensation. 46. What is your company’s philosophy and practice on accepting contingency/override compensation from insurers relative to the placement of insurance programs? At EBS we pride ourselves on our objective and professional advice. Compensation never impacts the way that we conduct business for our clients, and we have always followed a policy of full disclosure of fees and commissions. We do accept contingency/override compensation, but we do not let potential contingent commissions impact client decisions. Revenue from contingent commissions makes up less than 10% of total firm revenue. 23