KayPENTAX Benefits Summary

The following, is a general description of the benefits offered to full-time and regular part-time employees of KayPENTAX. This description does not explain all of the details of the benefits offered. Any references to a specific plan should be made through the Human Resources Department. The benefits listed are those of greatest interest to employees. KayPENTAX reserves the right to modify, add, and/or delete benefits at any time with or without notice. KayPENTAX recognizes that you retain the option, as does KayPENTAX, of ending your employment with the Company at any time, with or without notice and with or without cause. As such, your employment with KayPENTAX is at-will and neither this summary nor any other oral or written representations may be considered a contract for any specific period of time.

Insurance Benefits:

These benefits are available to all full-time employees of the company and their legal dependents and domestic partners (provided, all criteria required by the Insurance provider is met), on the first of the month following date of hire.

Medical Coverage: A comprehensive healthcare plan including hospitalization, major medical, and prescription drug coverage is provided.

Dental Coverage: A comprehensive dental plan including preventative, basic and major services are provided.

Vision Coverage: A comprehensive vision plan including annual exams and either glasses or contact lenses are provided.

Short and Long Term Disability: Short-term and long-term disability benefits are available to all full-time employees of the company. All full-time employees are eligible on the first of the month following date of hire. These benefits are currently offered at no cost to the employee. The STD plan covers 60%) of current weekly salary if you suffer a disabling accident or illness that is not work related. Benefit payments will begin after you have been unable to work for 7 days. Benefits are paid up to 13 weeks. The LTD plan covers 60% of your salary up to $10,000 per month. Benefit payments will begin after you have been unable to work for 90 days (elimination period) due to disability. Benefits are paid up to age 67, which is the current Social Security Normal Retirement Age.

Life Insurance: A policy equal to two (2) times an employee's annual salary up to a maximum of $500,000.00. All full-time employees are eligible on the first of the month following date of hire. These benefits are currently offered at no cost to the employee.

Optional Life Insurance: This is an employee paid option for purchasing additional life insurance coverage. Employees can select life insurance coverage up to a maximum of $500,000 for themselves, $250,000 spousal insurance and $10,000 for dependent children. The guaranteed amount is $300,000 for employees and $20,000 for spousal, without providing evidence of good health. The guarantee amount is only available within 31 days of hire. During the first 31 days of employment at KayPENTAX, the employee can waive evidence of insurability and purchase an amount of up to $500,000.

Workers Compensation: Plan provided by Mitsui Sumitomo. The plan pays 100% of medical claims associated with an accident or illness that is work related. The plan pays for NJ & NY State 70% of current weekly salary up to a maximum of $711. The WC benefit rate varies by states.

Paid Leave:

Holidays: Company Holidays are provided each year. If a part-time employee is scheduled to work on a Holiday (a day when the office is closed) the day will be paid to the part-time employee.

Vacation Policy: Regular full-time employees begin accruing vacation time from their date of hire. Regular part-time employees earn paid vacation days in increments which are proportional to the employee's regular work schedule and proportional to the benefit level of a full-time employee. The vacation benefit does not apply to seasonal, temporary, or intern workers. Employees must submit a request for vacation usage to their immediate supervisor, at least one month prior to the vacation request date. Vacation will be granted according to the business needs of the employee's department. Vacation time may be used before the actual earned accrual each year; if an employee leaves the employment of KayPENTAX with a negative vacation accrual balance, the advanced vacation pay will be deducted from the employee's final pay check or as mandated by state law. The amount of vacation days accrued are earned according to the length of service with the company.

The schedule below explains the benefit level that corresponds with the years of service:

Years of Service                 Annual Vacation                  

0-5                                                    10 days

6-10                                                  15 days           

11                                                     16 days

12                                                     17 days

13                                                     18 days

14                                                     19 days

          15 +                                                  20 days

Accrued vacation benefits must be used in the calendar year they are earned. If an employee does not use their vacation time by the calendar year end, the vacation time will be forfeited. Therefore, all vacation balances return to zero on December 3lst each year unless otherwise restricted by state law.

Sick Leave:

Full-time employees are eligible to use up to 8 paid sick days per year, for use only in the calendar year of accrual; unused time does not carry over into the next calendar year. Regular part-time employees receive paid sick days in increments which are proportional to the employee's regular work schedule and with a maximum that is proportional to the benefit level of a full-time employee.  New employees must complete three months of employment before they are eligible to use paid sick time. The sick benefit does not apply to seasonal, temporary, or intern workers.

Personal Time:

Full-time employees may use up to 4 personal days each calendar year.  Personal Leave does not apply to part-time, seasonal, temporary, or intern workers.

Bereavement Leave: Full-time employees will be granted up to a maximum of three days paid leave when a death occurs in the immediate family. The immediate family is defined as spouse, domestic partner, children, children or parent of domestic partner, parent, in-law, grandmother, grandfather, legal guardian, brother, sister, step-mother, step-father, step-brother, step-sister. For a death not related to an immediate family member, one (1) day will be paid.

Other Benefits:

Direct Deposit: All employees are offered Direct Deposit checking in up to three (3) accounts, at the banking institution(s) of their choice.

Payroll Deductions: All employees may have the following benefits deducted automatically through the payroll process: Flexible Spending Account, 401K Contributions and Optional Life Insurance Plan.

Profit Sharing Profit Sharing: All Employees with 24 months of continuous service to KayPENTAX at fiscal year end (March 31) and who are active employees at the time the bonus is distributed are eligible to an amount of the company's annual profit, provided there is an after tax profit. Distribution of funds will be in June or July.

401(K) Retirement Plan All KayPENTAX employees will be automatically enrolled in the 401K Plan at 4% of their salary.   Employees may contribute up to 100% of their salary up to the IRS maximum, currently $15,500.  Employees 50 years of age and over may contribute an additional Catch-up contribution each year according to the IRS guidelines, currently an additional $5,000.

The company has an employer match of 100% of the first 4% of the employees deferred contribution. Employees not only build a retirement fund, but the money contributed each paycheck is tax deferred until withdrawn at the time of retirement.

Flexible Spending Account: Employees are eligible to enroll in the Flexible Spending Account Plan, which offers two types of pre-tax spending accounts. This is an employer sponsored benefit that allows employees to pay for certain non-covered medical expenses or dependent care expenses with pre-tax income. Employees may enroll in one or both of the spending accounts; the maximum allowable contribution in each account is $5,000.00.

Service Award Program: Full-time employees are eligible to receive Service Awards on the following anniversaries:

Fifth Year

Tenth Year

Fifteenth Year

Twentieth Year

Twenty-FifthYear

Holiday Bonus: Active employees that have been with the company for six months or more may be eligible to receive a discretionary holiday bonus each December.

Employee Referral: Active employees of the company are encouraged to refer qualified candidates from outside the company for available positions. If a referral is hired and remains employed past the 90 day probationary period, a $ 500.00 bonus will be paid to the KayPENTAX employee that made the referral. Referral Forms are available through Human Resources.