Text Box: Here at King Ranch, Inc., benefits are a significant part of every employee’s total compensation package. All full-time employees are eligible for benefits following 61 days from date of hire

Medical

Medical benefits are offered to employees through a Preferred Provider Organization (PPO) Plan. The plan provides network and non-network benefits.

Network benefits include 90% coverage for hospital care, X-rays, maternity care, as well as inpatient/outpatient surgery with a $15 co-pay for office visits. There is a $200 calendar year deductible per person, a $600 calendar year maximum for family coverage and a $75 emergency room visit co-pay. There is a special calendar year allowance of $400 for adult preventive care upon which the deductible is waived.

Non-network benefits provide 70% coverage for office visits, hospital care (with a $250 per confinement deductible), X-rays, maternity care, inpatient/outpatient surgery, and prescription drugs. There is a $500 calendar year deductible for individuals and a $1,200 maximum benefit for family coverage.

The medical benefit provides a prescription drug program. Prescription drug co-pays are $12 for generic and $25 for name brand. Mail order is also available; $12 for generic and a $25 co-pay for name brand for a 90-day supply.

Dental

Full-time employees have the option of purchasing dental coverage. There are tow available plans; the Dental Maintenance Organization (DMO) or the Preferred Dental Organization (PDO) plan.

Under the DMO plan, preventive services are paid at 100%, basic services at 100%, and major services at 50%. There is a $5 co-pay with no deductible or calendar year maximum, when a network provider is used.

The PDO plan includes a $50 deductible ($150 for family coverage), and a calendar year maximum of $2,000 per covered individual, when a network provider is used. Preventive services are paid at 100%, basic services at 80%, and major services at 50%.

Orthodontia is covered under both plans for children up to age 20. Under the DMO plan, there is a $2,000 co-pay with no lifetime maximum. The PDO plan pays 50% with a $50 deductible and a lifetime maximum of $2,000.

Employees may switch between the two plans by calling the King Ranch benefits department at 832-681-5766 by the fifteenth day of the month preceding the month in which they wish to switch.

Vision

Full-time employees may also purchase vision coverage through King Ranch, Inc.

Within the network, the plan pays 100% of the cost of an annual eye exam after a $10 co-pay. Necessary lenses are covered in full. This includes bifocal, trifocal and lenticular lenses at 100% coverage. Frames are included as the plan allowance permits after a $10 co-pay. There is an optional contact lenses benefit, provided other benefits are not utilized.

Non-network coverage includes coverage of exams up to $45 every 12 months and a maximum coverage for materials of $45-$85. Contact lenses are covered up to $105.

401(k) Plan

All full-time employees 21 years and over are eligible to participate in the King Ranch, Inc. 401(k) Employee Retirement Savings Plan on the first day of the quarter following their hire date by making employee contributions to the plan. There is a one year waiting period for employer matching contributions. King Ranch, Inc. will make matching contributions in an amount of $1 for every $1 the employee contributes for a total of up to 4% of the employee’s annual salary (4% employer match).

Retirement Plan

King Ranch, Inc. funds a non-contributory retirement plan that is fully vested after five years of credited service. The plan’s benefits are calculated based upon final salary average and years of credited service up to 35 years.

Section 125 Cafeteria Plan

The 125 Cafeteria Plan allows for the deduction of medical, dental and vision employee premium contributions on a pre-tax basis, therefore, deductions are not subject to federal, state or social security withholding taxes. The plan also includes voluntary dependent care and medical spending accounts, which allow the employee to use pre-tax dollars for out of pocket expenses for dependent care, medical, dental and vision.

Employee Assistance Program (EAP)

The EAP program is a confidential information and counseling service provided to all full-time King Ranch, Inc. employees and family members. King Ranch, Inc. pays 100% of the premium costs. Employees may call the EAP for help dealing with personal problems, family conflicts, emotional strain, job stress, financial/legal concerns or drug/alcohol problems. The plan provides 6 visits per calendar year per unrelated problem.

Sick Leave

Regular full-time employees receive 0.04598 hours of sick leave for each hour worked, each day of paid holiday and each day of paid vacation up to an accumulated maximum of 120 days. This benefit is to be used for the employee’s personal illness or injury.

Short Term Disability

The Company provides all full-time employees with short-term disability benefits in the even an employee is unable to work due to non-work related illness or injury for periods in excess of accumulated unused sick and vacation days. Employees receive 50% of pay for excess periods up to a maximum of 120 days. Employees must meet a 5 consecutive workday waiting period prior to receiving benefits.

Long Term Disability

King Ranch, Inc. pays 100% of the premium for all employees to have long-term disability coverage. The maximum benefit is 66-2/3% of monthly pre-disability earnings to a maximum of $15,000. Benefits commence after 120 days of disability and remain in effect until the employee is able to return to gainful employment or at age 65, whichever occurs first.

Basic Life and Accidental Death and Dismemberment Insurance

King Ranch, Inc. pays for all full-time employees to have life insurance and accidental death & dismemberment insurance of one or tow times base salary depending upon the employee’s salary level.

Voluntary Life Insurance

Additional life insurance may be purchased in increments of $25,000 up to a maximum of $250,000. The cost is based upon age, lifestyle habits and the amount of coverage desired.

Life insurance may also be purchased for your spouse and/or children. Employees may purchase insurance for their spouse in amounts equal to 50% of the employee’s coverage amount up to $50,000. Child coverage is 10% of the employee’s elected coverage amount up to $10,000.

In addition, employees may want to explore various personal insurances (i.e. long term care, life and/or critical illness insurance) by utilizing the market research services of Apogee, a Houston based benefits consulting group in the employment of King Ranch, Inc.

Tuition Reimbursement

College & Technical Training

King Ranch, Inc. encourages employees to improve proficiency in their present jobs and prepare for advancement. The Company reimburses its employees for 100% of the cost of books and tuition up to a maximum of $1,000 per semester for accredited college or technical courses attended when the following criteria are met:

Ø The course is relevant to the Company’s business.

Ø A minimum grade of “B” is received.

In order to qualify, employees must have been employed by the Company of a full-time basis for one year prior to the beginning of the semester, must be working full-time at the end of the semester for which reimbursement is sought and must have all courses pre-approved.

Holidays

Full-time employees are eligible for holiday pay upon hire. King Ranch, Inc. normally has the following nine paid holidays:

New Year’s Day
Good Friday
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
The Day After Thanksgiving
Christmas Eve
Christmas Day

In addition, full-time employees with six (6) months prior continuous service will have one floating holiday which he/she may designate with advance approval of the supervisor.

Vacation

Vacation is provided for all full-time employees as follows:

Vacation Time	Period of Full-Time Employment*
1 Week	6 Months
1 Week	6 to 12 Months
2 Weeks	2 to 5 Years
3 Weeks	6 to 15 Years
4 Weeks	16+ Years

* For the initial calendar year of vacation eligibility, vacation eligibility occurs on the employee’s applicable anniversary dates. For all subsequent years of vacation eligibility, vacation eligibility occurs on January 1 of each year. If an employee terminates employment during the year, he or she will be paid for any accrued, but unused vacation in the year of termination.

This is a summary of benefits for reference purposes only and is not meant to represent a contract or guarantee of continuance. All benefits are subject to change without prior notice.

The King Ranch, Inc. Benefits Handbook gives more details of current programs.