2001 Benefits Program

Employee Information Packet Benefits Program Employee Information Packet

Eligibility...... 3 Plan Year...... 3 About Your Benefits...... 4 Changes in Eligibility...... 5 Medical Plan Options...... 6 Lifeguard HMO and Kaiser HMO...... 7 Lifeguard PPO...... 12 Dental Plan...... 17 Vision Plan...... 18 Core Benefits...... 19 Life Insurance and AD&D Coverage...... 19 Long Term Disability (LTD)...... 20 Voluntary Benefits...... 21 Supplemental Life Insurance...... 21 Employee Supplemental Life Insurance Rate Table...... 22 Spousal Supplemental Life Insurance Rate Table...... 23 Flexible Spending Accounts - Section 125 Plans...... 24 Health Care Reimbursement Account Plan...... 24 Dependent Care Reimbursement Account Plan...... 24 401(k) Salary Deferral Plan...... 25 Fitness Program...... 25

Hello Direct 2001 Benefits Program 6／27／2018 Page 2 Benefits Program Employee Information Packet

Benefits Mission

 Hello Direct is committed to provide an employee benefits package that is competitive, comprehensive and fiscally responsible.

Eligibility

 Eligible to participate on the 30th day of employment  Must be a regular, full-time employee, or part-time employee working at least 20 hours to participate

Plan Year

 June 1 to December 31, 2001

About Your Benefits

At Hello Direct we strive for excellence in the employees we hire. That’s why we’re a leader in our field. It’s also why we place such emphasis on attracting and retaining the best talent we can find, not only through the employment opportunities we offer, but through the work environment and employee benefits we provide.

This package summarizes the benefits offered to regular, full-time and part-time employees. These benefits can literally add thousands of dollars worth of security, protection, and quality of life for you and your family.

Please take a moment to review this information and share it with your family. Keep in mind, though, that this is only an overview of your benefits, not a detailed or complete description. While the information presented in this package is current at this time, it can change. If there ever is a discrepancy between the information presented here and the official plan documents or Company policies involved, the official documents/policies will govern how your benefits are determined and administered. If you have a question or need more information, refer to your benefits booklets or contact the Human Resources Department.

Changes in Eligibility

Specific qualifying events allow you to make changes in the plan(s) impacted by the event. The following are considered qualifying events:

 marriage  divorce  birth or adoption of a child  death or permanent disability of a spouse  change in employment status of a spouse

Should you experience a qualifying event, you have 30 days to change any impacted plan. Once a qualifying event occurs, notify the HR department immediately for assistance.

Unless a qualifying event occurs, no changes are allowed to existing plans until open enrollment for the following year.

Contributory Benefits

All employees working 20+ hours per week will be provided the following benefits on a contributory basis (employees contribute to the cost of these benefits).

 Medical  Dental  Vision

Medical Plan Options

HMO and PPO plans Hello Direct offers you three Company Sponsored medical plans: the Kaiser HMO Plan, the Lifeguard HMO Plan, and the Lifeguard PPO Plan.

The Kaiser HMO Plan uses exclusive doctors and Kaiser facilities located throughout California as well as nationwide. You will receive a high level of benefits and low out-of- pocket cost when you access care from Kaiser physicians and facilities.

The Lifeguard HMO Plan is designed to meet all your health care needs within its provider network. In the HMO Plan you pick a primary care physician who manages all of your health care needs. When you need medical care, your primary care physician must authorize all referrals and services.

The Lifeguard PPO Plan has a nationwide network of doctors and hospitals called PPO providers who have agreed to discount their fees. This plan offers you the flexibility to have services provided from the provider of your choice. Each time you seek medical care: (1) you choose a Network (PPO) doctor, or (2) you choose a Non-Network provider (a doctor who is outside of the PPO). When you use network providers, you receive a higher level of benefits and have lower out of pocket costs. If you choose providers outside of the network, your claims will be paid at the lower, out-of-network level. Due to the greater freedom and flexibility available to you, the PPO plan has the highest out of pocket cost to employees.

Medical Plan Options:

Lifeguard HMO and Kaiser HMO LIFEGUARD KAISER INPATIENT Room/Supplies No charge No charge Surgery Services No charge No charge Hospice Care No charge – must be No charge – must be diagnosed as having 6 diagnosed as having 6 months or less to live months or less to live Skilled Nursing Facility $10 copay per day up to No charge for up to 100 60 days per year days per calendar year Professional Fees No charge No charge

OUTPATIENT Surgery No charge (for services of $10 copay (for services of outpatient hospital outpatient hospital operating and recovery operating and recovery room, physician services, room and physician laboratory and x-ray) services) No charge (laboratory and x-ray) Second Opinion $10 copay $10 copay MD Office Visit $10 copay $10 copay Laboratory No charge No charge X-ray No charge No charge Short-Term Rehabilitation $25 copay $10 copay-Covered if (Physical, prescribed by a Plan Occupational & Speech Physician in a Plan or Therapy) Skilled Nursing Facility or as part of home health care - initial and subsequent courses of physical, occupational, and speech therapy for up to 60 days per prescribed course of treatment Home Health $10 copay No charge – no limit on number of visits

Lifeguard HMO and Kaiser HMO

LIFEGUARD KAISER TRANSPLANTS Donor No charge No charge

Recipient must be health Recipient must be health plan member plan member Kidney, Heart, Lung, No charge No charge Heart/Lung, Liver, Pancreas, Bone Marrow

PREVENTION—ADULT Routine Physical Exams $10 copay $10 copay

Routine physicals must be performed by PCP Immunizations No charge No charge Prenatal $10 copay per visit $5 copay per visit

Health Education Health education material Health education material available to all enrollees; available to all members; health education classes health education classes also available through also available. medical groups FAMILY PLANNING Family Planning Services $10 copay $10 copay

Includes contraceptive Includes contraceptive counseling, disease counseling, Norplant, IUD testing insertion or removal when medically indicated, disease testing

LIFEGUARD KAISER Sterilization Services Vasectomy -- $75 copay Surgical Sterilization – Tubal Ligation – $150 $10 copay if performed in copay, physician’s office Infertility Services 50% 50% Coverage limited to Coverage limited to diagnosis & treatment of diagnosis & treatment of cause of infertility cause of infertility Elective Abortions $10 copay $10 copay PREVENTION--CHILD Well Baby/Well Child Care $10 copay per visit No charge to age 23 Certain limits apply to months., then $5 copay number of visits – per visit coverage extends to age 18 Immunizations No charge No charge

OTHER Prescription Drugs at $5 for generic drugs/$10 $5 for drugs covered Participating Pharmacies for brand name/$20 for under formulary (up to an (including oral Non-formulary Brand 100-day supply) / cost contraceptives) Drugs (30 day supply) differential for non- formulary drugs (up to an 100-day supply) Mail Service $10 for generic drugs/$20 $5 for drugs covered Prescription Drugs for brand drugs/$40 for under formulary (up to an (including oral Non-formulary brand drugs 100-day supply) / cost contraceptives) (90 day supply) differential for non- formulary drugs (up to an 100-day supply) Durable Medical 50% of negotiated rate No charge as covered Equipment (pre-authorization under formulary (pre- required) authorization required) Ambulance No charge with prior No charge with prior authorization or in medical authorization or in medical emergency situations emergency situations

LIFEGUARD KAISER Emergencies (unexpected $50 copay per visit -- $35 copay per visit -- medical conditions that, copay is waived if copay is waived if without medical treatment, hospitalized hospitalized could seriously impair a patient’s health, bodily functions, or organs) Urgent Care Urgent Office Visit – Urgent Office Visit – $15 copay per visit $10 copay per visit

Prosthesis No charge – pre- No charge as covered authorization required (no under formulary, pre- benefit limit) authorization required (no benefit limit) Outpatient Chemotherapy No charge No charge Allergy tests $10 copay $3 copay Allergy treatments $10 copay per visit $3 copay per visit MENTAL HEALTH/ SUBSTANCE ABUSE Inpatient Mental Health: Mental Health: No Charge No charge – up to 30 days per calendar year Substance Abuse: No Charge – coverage for Substance Abuse: detoxification only. No charge - coverage for detoxification only. $100 per admission for Residential Care (60 days max/year, 120 days max 5/yrs)

Day and visit limits do not apply to the diagnosis and treatment of certain Mental Health conditions as specified under AB-88.

LIFEGUARD KAISER Outpatient Mental Health: Mental Health: Severe - $10 Individual or group visit: maximum of 20 visits per $10 copay. Maximum of calendar year 20 visits per calendar year

Substance Abuse: Substance Abuse: Not covered Individual therapy: $10 copay

Day and visit limits do not apply to the diagnosis and treatment of certain Mental Health conditions as specified under AB-88. Lifetime Maximum No lifetime maximum No lifetime maximum Maximum Annual $1,500/$3,000 $1,500/$3,000 Copayments

Medical Plan Options: Lifeguard PPO

Lifeguard Benefit In-Network Out of Network DEDUCTIBLE $250/$750 $250/$750 INPATIENT Room/Supplies 90% after deductible 70% after deductible Surgery Services 90% after deductible 70% after deductible Hospice Care 90% after deductible 70% after deductible Prior Authorization Must be diagnosed as Required, Must be having 6 months or less to diagnosed as having 6 live months or less to live

180 Day Max per calendar 180 Day Max per calendar year (In & Out of network year (In & Out of network combined) & combined combined) & combined with HHC with HHC Skilled Nursing Facility 90% after deductible 70% after deductible

Limited to 60 days per Limited to 60 days per calendar year (combined calendar year (combined in-network and out-of- in-network and out-of- network maximum) network maximum) Professional Fees 90% after deductible 70% after deductible OUTPATIENT Surgery 90% after deductible 70% after deductible Second Opinion $10 copay 70% after deductible MD Office Visit $10 copay 70% after deductible Laboratory 90% after deductible 70% after deductible X-ray 90% after deductible 70% after deductible Short-Term Rehabilitation 90% after deductible 70% after deductible (Physical, Occupational & 20 visits per calendar year 20 visits per calendar year Speech Therapy) (combined in-network and (combined in-network and out-of-network maximum) out-of-network maximum )

Lifeguard PPO

Lifeguard Benefit In-Network Out of Network Home Health 90% after deductible 90% after deductible Prior Authorization Maximum of 100 visits per Required, Maximum of calendar year (in- and out- 100 visits per calendar of-network combined) and year (in- and out-of- combined with Hospice. network combined) and combined with Hospice TRANSPLANTS Donor 90% after deductible Not covered Recipient must be a health plan member – must be medically necessary and non-experimental Kidney, Heart, Lung, 90% after deductible Not covered Heart/Lung, Liver, Pancreas, Bone Marrow Must be medically necessary and non- experimental PREVENTION--ADULT Routine Physical Exams $10 copay 70% after deductible

Frequency limits apply Immunizations $10 copay 70% after deductible

Prenatal $10 copay 70% after deductible

Lifeguard PPO

Lifeguard Benefit In-Network Out of Network FAMILY PLANNING Family Planning Services $10 copay 70% after deductible

Includes contraceptive Counseling services counseling and disease subject to mental health testing benefit provisions

Includes contraceptive counseling and disease testing Sterilization Services Vasectomy - $75 copay 50% after deductible Tubal Ligation - $150 copay Infertility Services Diagnosis and medical Diagnosis and medical treatment: treatment: 50% after deductible 50% after deductible

Coverage limited to Coverage limited to procedures for correction procedures for correction of infertility (excludes in- of infertility (excludes in- vitro fertilization, artificial vitro fertilization, artificial insemination, GIFT, ZIFT) insemination, GIFT, ZIFT) Elective Abortions 90% after deductible 70% after deductible

PREVENTION--CHILD Well Baby/Well Child Care $10 copay 70% after deductible

Certain limits apply to Certain limits apply to number of visits -coverage number of visits -- extends to age 18 coverage extends to age 18 Immunizations $10 copay 70% after deductible

Lifeguard PPO

Lifeguard Benefit In-Network Out of Network OTHER Prescription Drugs at $5 copay for generic N/A Participating Pharmacies drugs/$10 copay for brand (including oral name (if no generic avail.)/ contraceptives) $20 copay for non- formulary drugs (30 day supply) – incentive formulary Mail Service Prescription Drugs $10 copay for generic N/A (including oral contraceptives) drugs/$20 copay for brand name drugs (if no generic available) /$40 copay for non-formulary drugs (90 day supply) – incentive formulary – Express Scripts (Vendor) Durable Medical Equipment 50% after deductible 50% after deductible Ambulance 90% after deductible 70% after deductible Emergencies (unexpected $50 copay then 90% $50 copay then 70% medical conditions that, without medical treatment, could seriously impair a patient’s health, bodily functions, or organs) Urgent Care Urgent E/R Visit: Urgent E/R Visit: $25 copay then 90% $25 copay then 70% Hearing Screening Not covered Not covered Prosthesis 50% after deductible 50% after deductible Subject to pre- Subject to pre- authorization; no dollar authorization; no dollar limit limit Outpatient Chemotherapy 90% after deductible 70% after deductible Allergy tests 90% after deductible 70% after deductible Allergy treatments 90% after deductible 70% after deductible Lifeguard PPO Hello Direct 2001 Benefits Program 6／27／2018 Page 15 Benefits Program Employee Information Packet

Lifeguard Benefit In-Network Out of Network MENTAL HEALTH /SUBSTANCE ABUSE Inpatient Mental Health: MHSA - 70% after 90% after deductible with deductible with authorization from Merit authorization from Merit Behavioral Health (MBH) Behavioral Health (MBH) Substance Abuse: Substance Abuse: 90% after deductible- 70% after deductible- acute detox only acute detox only Outpatient Mental Health: Mental Health: Severe Conditions - Severe Conditions – 70% $10/visit after deductible. Non-severe conditions- $10/visit to 20 visit max Non-severe conditions- (combined with Substance Not Covered Abuse visits) through UBH network.

Substance Abuse: Substance Abuse: $10/visit with a 20 visit Not covered max per calendar year combined with Mental Health Visits) through the UBH Network. Substance Abuse No lifetime maximum Lifetime Maximum

Dental Plan Hello Direct offers the Metlife Dental plan for your dental care. On the MetLife Dental Plan you may receive dental care from the provider of your choice. When you use a network provider, you receive a higher level of benefits. If you choose a provider outside of the network, your claims will be paid at the lower, out-of-network level of benefits. When using an out-of –network provider for basic and major services, the plan will cover the usual and customary charges after your deductible. The plan provides these treatment categories: diagnostic/preventative, basic restorative, and major restorative.

SC HE DU LE OF BE NE FIT S METLIFE DENTAL DEDUCTIBLE Metlife PPO Dentist Non-PPO Dentist Individual $50 (Basic and Major $50 (Basic and Major Services) Services)

Family $150 $150 (You are responsible for the difference if your dentist charges more than Metlife’s pre-approved fees.) Deductible Waived For Yes Preventive CO-INSURANCE Preventive 100% 100% Basic 90% 80% Major 60% 50% Calendar Year Maximum $1,500 $1,000 (per individual) Orthodontia (Child Only) 50% $2,000 Lifetime Maximum

The benefits outlined above are intended as a benefit comparison only. They do not include all of the benefit provisions, limitations and qualifications. Plan participants should refer to the Summary Plan Description and contract for coverage details.

Vision Plan The Hello Direct vision plan is offered to all individuals who are covered by one of Hello Direct’s medical plans. The vision plan covers expenses such as routine eye exams, lenses, and frames. The level of payment will be determined if you access a VSP member doctor or a non-VSP member doctor. To use your benefits, call a VSP member physician to make an appointment. Be certain to identify yourself as a VSP member. The doctor will contact VSP to obtain a VSP benefit form to verify your eligibility and plan coverage. Vision Service Plan Covered Benefits VSP Member Doctor Non-VSP Member Doctor

Exams Every 12 months Every 12 months

Lenses Every 24 months Every 24 months

Frames Every 24 months Every 24 months

Copayment $10.00 Exam/$25 Materials $10.00 Exam/$25 Materials

Examinations Paid-in-Full after $10 Co-pay $40.00

Single Vision Lenses Paid-in-Full after $25 Co-pay $40.00

Bifocal Lenses Paid-in-Full after $25 Co-pay $60.00

Trifocal Lenses Paid-in-Full after $25 Co-pay $80.00

Lenticular Lenses Paid-in-Full after $25 Co-pay $125.00

Frame Paid-in-Full after $25 Co-pay $45.00

Contact Lenses (In lieu of spectacle lenses and frame)

Necessary Paid-in-Full $210.00

Elective $105.00 $105.00 *This is only a summary. Please refer to Plan documents for complete details of the plan Exclusions: Hello Direct 2001 Benefits Program 6／27／2018 Page 18 Benefits Program Employee Information Packet

 Medical or surgical treatment of disease or disorders of the eye.  The laboratory cost of frames above the allowance.  Optional cosmetic lens “extras” (such as oversized lenses, coatings, special fabrication)

Core Benefits All employees working 30+ hours per week will be provided the following core benefits on a non-contributory (100% employer paid) basis:

 Life Insurance and Accidental Death & Dismemberment (AD&D)  Long Term Disability (LTD)

Life Insurance and AD&D Coverage Hello Direct offers you Life Insurance and Accidental Death and Dismemberment (AD&D) Insurance coverage.

Every employee is offered the choice of either a flat $50,000 or 1 times salary to a maximum of $250,000, with a guarantee issue of $250,000. All employees will be subject to taxation on the cost of their employer-provided coverage in excess of $50,000. The cost is determined under the Uniform Premium Table contained in the Internal Revenue Code, commonly referred to as “Table I”.

You are also provided with basic Company-paid accidental death and dismemberment (AD&D) insurance in the amount equal to your basic life coverage.

Long Term Disability (LTD) Long Term Disability (LTD) is designed to protect your income if you are totally or partially disabled and not able to work for Hello Direct for an extended period of time. Long Term Disability Insurance pays a cash benefit to replace a portion of the earnings you lose as a result of your disability.

The amount you are entitled to is an amount equal to 66 2/3 of your basic monthly earnings to a maximum of $10,000 per month. Your benefit would begin after 90 days of disability. Benefits for total disability from your occupation are payable for up to age 65.

Disability Time Line - Coordination of SDI, STD & LTD plans

1 to 8 days Sick Leave

8 to 89 days California Short-term Disability Insurance (SDI) pays 56% of your monthly salary up to a maximum of $490 per week.

90 days to age 65 Hello Direct LTD 66 2/3 to a maximum of $10,000 a month. Benefits will be paid as long as you are disabled and will continue, if approved, to be coordinated with Social Security Disability.

Voluntary Benefits

All regular, full-time employees may choose from this voluntary plan. It includes:

Supplemental Life Insurance

Supplemental Life Insurance can be purchased by employees in $10,000 increments to a maximum of $500,000 (combined with basic life) with a guarantee issue of $270,000 or 3x your annual salary, whichever is less. Additional Life Insurance can be purchased for the employee’s spouse in $10,000 increments up to a maximum of $100,000 with a guarantee issue of $20,000.

For dependent children, additional life insurance in the amount of $10,000 can be purchased for children ages 14 days to 19 years (23 if a full time student).

Employees must choose the additional life insurance coverage for themselves if they wish to purchase spouse or dependent child coverage for their family members.

Please note: employees can choose to enroll in the additional life insurance program at any time; however if you choose to enroll after your initial open enrollment period, you will be subject to completion of a Full Statement of Health Questionnaire.

Employee Supplemental Life Insurance Rate Table All rates shown below are per month and are paid by payroll deductions.

AGE Per $10,000

0-30 $.80

30-34 $1.10

35-39 $1.40

40-44 $1.70

45-49 $2.60

50-54 $4.40

55-59 $8.10

60-64 $10.20

65-69 $17.20

EXAMPLE:

Age Life Volume Unit Volume Unit Rate Cost

Employee 35 $ 120,000 12(10,000 x $ 1.40 = $ 16.80 units) (above)

If you wish to purchase Supplemental Life Insurance, deductions will be made on an after- tax basis.

Spousal Supplemental Life Insurance Rate Table

All rates shown below are per month and are paid by payroll deductions.

AGE Per $10,000

15-19 $0.80

20-24 $0.70

25-29 $0.70

30-34 $0.90

35-39 $1.11

40-44 $1.40

45-49 $2.10

50-54 $3.40

55-59 $5.50

60-64 $9.30

65-69 $16.30

70-74 $27.80

EXAMPLE:

Age Life Volume Unit Volume Unit Rate Cost

Spouse 35 $ 120,000 12(10,000 x $ 0.11 = $ 13.20 units) (above)

If you wish to purchase Supplemental Life Insurance, deductions will be made on an after-tax basis

Flexible Spending Accounts - Section 125 Plans A flexible spending account is an employer sponsored benefit under IRS section 125. FSAs utilize employee salary reductions for pre-taxed reimbursement of qualified incurred expenses. There are two types of plans:

Health Care Reimbursement Account Plan

The health care reimbursement account plan is a way for employees to pay for health care expenses not reimbursed by other benefits plans. These include:  co-payments and deductibles

 non-reimbursed medical, dental, vision and hearing expenses

Dependent Care Reimbursement Account Plan The dependent care reimbursement account plan is an easy and affordable way for employees to pay for some of their dependent care expenses with pre-tax dollars including:  day care centers  nursery school  private kindergarten  sick care  summer day care  elder care  home care  child care The Flex Plan has set certain minimum and maximum amounts that can be contributed to the Flexible Spending accounts. They are as follows:  Health Care Minimum $120.00 Health Care Maximum $1,200  Dependent Care Minimum $300.00 Dependent Care Maximum $5,000

Use It or Lose It Provision

Employees must submit claims for expenses incurred in the plan year. IRS regulations stipulate that any unused or unclaimed balances remaining in your account are forfeited to your employer.

401(k) Salary Deferral Plan Planning and saving for a financially secure future is something we all need to do. Hello Direct provides several plans to help. Simply put, the Salary Deferral Plan is a very good deal. It enables employees to save for retirement, reduce current taxes, and generate tax- deferred earnings all at the same time. Briefly, here’s how the plan works:

 Employees become eligible to enroll at the first of each month following 30 days of employment.

 Contribution levels can be changed prior to the beginning of each quarter but contributions can be stopped at any time with written notification.

 Each year, employees can contribute from 1% to 20% of their pay on a before-tax basis subject to an annual maximum established by the IRS ($10,500 for 2001).

 Contributions to the 401(k) savings plan lowers an employee’s taxable income which reduces the current tax liability on employee’s earnings.

 PLUS, an employee’s money is free to grow tax-deferred. An employee doesn’t pay any taxes on that money (or earnings) until it is withdrawn from the plan, such as at retirement, when s/he may be in a lower tax bracket.

 An EMPLOYEE determines how his/her money is invested and may choose any one or combination of fourteen professionally managed investment funds.

 Hello Direct matches 50 cents on the dollar up to the first 6% of total compensation each pay period (up to the IRS annual employee contribution limit of $10, 500). After 12 consecutive months of service, the company match is 100% vested.

Fitness Program Hello Direct encourages employees to stay healthy and keep fit. Hello Direct will reimburse up to $15 a month for the cost of a fitness membership. Each quarter employees will need to provide documentation of their continued membership. Employees will receive the reimbursement the first pay period after the end of the quarter.

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