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10. The Demographics Are In Your Favor Nearly 60% of Federal employees are over age 45. 550,000, 1/3 of the federal workforce will retire in the next five years. - Office of Personnel Management, 2007 “ Dual compensation restriction” bars retirees from drawing a full annuity while employed with the Federal Government even on a time-limited or part time basis. – Partnership for Public Service, 2007

11. Competition for Talent is Heating Up Throughout the United States 5/29/2008 OURPUBLICSERVICE.ORG

27. Comparing the Alternatives What % of billing rate is kept? 100% 40% - 70% 92-96% Level of reclassification risk? High None (if W-2) None Find projects yourself? Yes No Yes Deduct business expenses? Yes No Yes Deduct medical expenses?* No No Yes Who handles financial admin? Self Staff/Cons Company PER Who carries business liability? Self/Corp Staff/Cons Company PER When do I get paid? Upon client payment Bi-weekly Upon client payment** Overall benefits quality? Varies Low to medium High Benefits cost? Very high Low to medium Medium Who absorbs employer payroll tax? Self/Corp Staff/Cons Company Self/PER Personal audit risk? High Low Low Credit profile? Weak Weak to Good Excellent Staffing/Cons. 1099/Self-Incorp. PER Who handles client billings and collections? Self Staff/Cons Company PER *Assumes under 7.5% of annual AGI in medical expenses ** May qualify for advanced financing

30. MBO Partners 13454 Sunrise Valley Drive, Suite 550 Herndon, Virginia 20171 1-800-220-0469 www.mbopartners.com