BENEFITS

Fringe Benefit Program Summary—Effective June, 2009
DR Technologies, Inc.

The Company makes contributions during the year for the benefit of the employees in a number of fringe benefit categories. The following Fringe Benefit Program benefits are available to qualified employees:

1.0 Absence Pay  

All full-time employees are eligible to accrue absence time and receive Absence Pay for selected holidays, vacation, sick leave, or personal days. Absence time will accrue to each employee at the rate of 0.1 hours of absence time for each hour of work up to a maximum of 2,080 hours of work during each fiscal (calendar) year. This absence time accrual rate will increase to 0.125 for employees with more than 4 years of service, and 0.15 for employees with more than 8 years of service. Employees may use their accrued absence time interchangeably for holidays, vacation, personal leave, or sick leave. Part-time employees are also eligible with absence time accrued each year based on the total hours worked. Employees are encouraged to fully use their annual accrued absence time. However, employees may carry forward unused absence time, and all accrued/unused absence time will be paid to the employee upon termination.

Absence time is accrued hourly for each hour worked up to 40 hours per week, according to the following schedule:

Years of Employment Accrual Rate Maximum Accrued hours per year
0 – 4 years 0.1 hours / hours worked 208 hours
4 – 8 years 0.125 hours / hours worked 260 hours
8 years or more 0.15 hours / hours worked 312 hours

1.1 Jury Duty

THE COMPANY recognizes each employee’s civil duty to serve on a jury when called and will pay up to 5 days regular pay to this end. Following the 5th day, employees may use accrued absence time to cover additional time needed. \Employee must provide the Human Resources department a copy of the jury duty summon and record of time spent for jury duty. Only jury duty hours spent during a normal shift schedule will be paid. Employees must return to their scheduled shift upon completing their duty hours for the day.


1.2 Bereavement Leave

All regular full-time and part-time employees are eligible for paid bereavement leave up to three (3) consecutive work days because of a death in immediate family or domestic partner’s immediate family. Immediate family includes current spouse, mother, stepmother, father, stepfather, sister, brother, child, stepchild, current mother-in-law, current father-in-law, grandparents and grandchildren. Additional time off with pay may be approved by the President as circumstances warrant.


2.0 Insurance Plans

All full-time employees working more than 30 hours per week are eligible, subject to qualifying for underwriting, for an Insurance Plan that includes health insurance, dental insurance, life insurance, and long-term disability insurance.

2.1 Health Insurance

Under the Group Health Insurance Plan, all full-time employees (those who work more than 30 hours per week) are covered, subject to qualifying for underwriting on the first day of the month following employment. The Company pays for the major part of this benefit premium through payroll deductions. Employees also can purchase increased benefits voluntarily through payroll deductions, although coverage may be extended under COBRA at the employee’s expense. We offer Aetna (HMO, PPO, HDHP), and Kaiser (HMO). If the employee has other health insurance, such as a spouse's policy, then the employee may decline the Company's coverage by providing evidence of the other insurance coverage to the Company and execute a waiver of group medical coverage.

2.2 Vision

Under the VSP vision plan, all full-time employees (those who work more than 30 hours per week) are covered, subject to filing the appropriate enrollment forms on the first day of the month following employment. The Company pays for the major part of this benefit premium through payroll deductions. Employees also can purchase increased benefits voluntarily through payroll deductions. The vision plan terminates the 1st of the month following employment termination.


2.3 Dental Insurance

Under the dental insurance plan, all full-time employees (those who work more than 30 hours per week) are covered, subject to filing the appropriate enrollment forms on the first day of the month following employment. The Company pays for the major part of this benefit premium through payroll deductions. Employees also can purchase increased benefits voluntarily through payroll deductions. The Group Health Plan terminates the 1st of the month following employment termination. We offer Aetna (DMO & PPO dental coverage).

If the employee has other dental insurance, such as a spouse's policy, then the employee may decline the Company's coverage by providing evidence of the other insurance coverage to the Company and execute a waiver of group dental coverage.

2.4 Life Insurance

Company paid life insurance is provided up to a maximum of $50,000 at Company expense. The employee may elect to increase the basic life insurance by opting to purchase additional (supplemental) coverage at the employee’s expense. Life insurance coverage will go into effect on the first day of the month following 30 days of employment.

2.5 Supplemental Life Insurance

Employees have the option of purchasing additional life insurance in increments of 1x, 2x or 3x their earnings to a maximum of $500,000. The rates are based on the participant's age. Supplemental life is a voluntary benefit, 100% paid by participant. Supplemental Life coverage elections over $50,000 require an Evidence of Insurability form.

In addition to Supplemental Life Insurance, Employees have the option of purchasing Dependent Life Insurance. Spouse coverage is up to 50% of the employee amounts, child coverage may be purchased in $2,500 increments up to $10,000. This is also a voluntary benefit paid 100% by participant.


2.6 Short & Long Term Disability

Short term disability benefits are 60% of your weekly pre-disability earnings to a maximum benefit of $1,155 per week, minus other income paid to you because of your disability. Benefits begin on the later of 60 days after the date the disability occurs due to an injury or sickness. Maximum period of payment is 17 weeks.

Long term disability benefits are 60% of monthly pre-disability earnings to a maximum benefit of $5,000 per month. Benefits begin on the later of 180 days after the date disability occurs or the date your insured group short term disability ends.

3.0 Flexible Spending Accounts

The company offers two types of Flexible Savings Accounts. You can specify the amount of pre-tax salary, from a minimum annual election amount of $100 to a maximum of $4,000 for Health Care expenses and $5,000 for Dependent Day Care expenses, which you would like to set aside in your FSA through payroll deductions.


4.0 Employee Assistance Plan (EAP)

Another benefit that is provided to all Employees is the Employee Assistance Program (EAP) through Aetna Behavioral Health. This is a company paid benefit that offers completely confidential assistance available 24 hours a day, 365 days a year. Access is available to all household members for up to 3 free face-to-face consultations per type of service, per person, per year (1 800 854-1446).

5.0 Retirement 40l(k) Plan

Employees are eligible to participate in the Company’s 401(k) plan on the first day of the month following 6 months of employment. Contributions are subject to annual IRS limitations (currently $16,500 for 2009 plus an additional $5,500 for participants age 50 and older). The company currently makes a matching contribution of 50% of the employee’s contribution, up to a maximum of 5% of salary. The employee may select from 35 mutual funds offered by Fidelity Investments. Matching contributions vest in annual installments over three years. The company pays an overall administration fee. Each participant account has $30/year ($7.50 quarterly) fee for the plan’s self service online benefits.


6.0 Incentive Compensation Plans

6.0.1 Equity Appreciation Rights (EARs) Plan

This Plan offers the opportunity to earn equity in the Company by employees who contribute to the growth in value of Company over next 5-7 years. There are three tier EAR plans which are tied to growth in the value of Company based on EBITDA (Earnings Before Interest Taxes Depreciation and Amortization-a key performance measurement parameter for future incentive compensation system plans).

  • Tier 1: 10% of Company ownership for growth in 2009 EBITDA and awarded to key performers after close of 2009.
  • Tier 2: 10% of Company ownership for growth in Company value over next 5 years awarded to key performers over 5 years.
  • Tier 3: 5% of Company ownership for exceptional growth in Company value over next 5-7 years awarded to key performers prior to future liquidity event in 5-7 years.

6.0.2 Cash Bonus Plan

Employees are eligible for cash bonuses, including spot bonuses for special accomplishments and end of year cash bonuses. Bonuses are based on the overall performance of the employee during the year, compared to other employees, based on quantitative and qualitative criteria established annually by the Company. The annual bonus pool depends upon the Company's financial performance each year with a targeted goal of attaining a bonus pool equal to ten percent of the annual payroll.


7.0 Government Mandated Insurance Coverage

The Company contributes for the employee's benefit to government-mandated insurance coverage including Social Security, Workers' Compensation, State Disability insurance and Unemployment insurance.

 

An Equal Opportunity Employer M/F/H/V

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