Announcements from Benefits Office to Employees

Notice of annual bonus

From Executive Office or Benefits Office to employees

We are pleased to tell you that the December 21 paycheck or direct deposit notification will include this year’s annual bonus.

We are proud of our accomplishments as a company this year, even in the face of a difficult economic environment. In keeping with our established policy that links annual bonuses to projected profits after taxes, we will award all full-time nonexempt salaried and hourly workers a bonus equivalent to 4 percent of gross annual salary (equal to about two weeks pay).

Bonuses are subject to withholding and other tax as ordinary income.

We look forward to the coming year and hope we can meet or exceed this year’s profits. Thank you for all of your good efforts. We wish all employees a joyous holiday season and a healthy and happy new year.

Notification of holiday policy

From Benefits Office, Executive Office, or Human Resources to employees

The company will observe the following holidays in 2009. As always, we will seek volunteers to staff essential positions during holidays; if necessary, department supervisors may require some members of staff to come in to work on these days. (Nonexempt employees are paid double time on holidays.)

Thursday, January 1 New Year's Day
Monday, January 19 Martin Luther King Jr.'s Birthday Observance
Monday, February 16 Presidents' Day
Monday, May 25 Memorial Day
Monday, September 7 Labor Day
Monday, October 12 Columbus Day
Wednesday, November 11 Veterans Day
Thursday, November 26 Thanksgiving Day
Friday, December 25 Christmas Day

Each full-time regular employee with at least one year of service is also permitted four personal days each calendar year. These may be used for any purpose, including observance of religious holidays. Personal days do not carry over from year to year and cannot be cashed in for salary.

Please note that employees need special permission to include a holiday within a vacation period or to take personal days to extend a weekend. Such permission will only be granted if a supervisor determines this will not have an adverse impact on operations, and conflicting requests for such special schedules will be decided on the basis of seniority.

Notification of change to sick leave policy

From Benefits Office or Human Resources to employees

Effective January 1, all full-time regular employees will be permitted to carry over as many as four unused sick days from the previous year.

The policy in the past has been that unused sick days expire at the end of each calendar year.

We are making this change as an additional benefit to qualified employees; we continue to expect that sick days will be used only for legitimate medical reasons including illness and necessary medical appointments.

Full-time regular employees with more than one year of service are entitled to ten sick days per calendar year; new employees accrue sick days at the rate of .83 days for each fully completed month of service.

As always, Human Resources is available to assist employees with serious medical problems with a variety of services, including granting extended unpaid leaves of absence and family leave, and providing assistance in making claims under the company’s short-term disability program.

This change in policy has been added to the online version of the employee manual, viewable at the Human Resources Web site.

Policy statement on benefits for domestic partners

From Benefits Office or Human Resources to employees

(NOTE: Consult with your in-house or outside legal counsel for advice regarding laws in your state and regulations put in place by providers of your benefit programs.)

Consolidated Intergalactic is committed to the welfare of all of our employees and the members of their families.

We fully support all applicable state and federal laws and regulations that extend benefits and legal privileges to spouses and children of CI employees as well as any domestic partners who reside in the same household as employees.

We note that certain benefits and legal privileges may be limited by the provider to persons who are married or otherwise have a relationship that is recognized by a civil authority.

If you have any questions about whether a particular benefit extends to domestic partners, please consult with the Benefits Office.

Optional training seminar on benefits

From Benefits Office or Human Resources to employees

All staffers are invited to attend a special presentation about the changes in the health plan benefit that are scheduled to go into effect July 1.

The one-hour seminar will be presented three times during the week of June 15 to allow employees to choose the presentation that is best for their schedule. Two of the sessions will be offered during the lunch hour, and one will be offered an hour before the standard start of business; Human Resources has arranged for sandwiches, breakfast items, and drinks.

In addition, a transcript of the presentation including PowerPoint slides will be available for download and viewing through the Human Resources Web site beginning June 17.

If you have any questions about the seminar, please contact Human Resources. In addition, a special telephone and e-mail hotline to answer questions about the health plan will begin operations on June 17.

A copy of the schedule of seminars and the hotline information are attached.

Announcement of seminar on new health insurance plan

From Benefits Office or Medical Office to employees

The Benefits Office will present seminars on the changes to the basic health plan and various new options for Consolidated Intergalactic employees during the week of May 5. Please see the attached schedule of seminars and choose one that does not conflict with essential assignments; some department heads may ask staff to spread their choices over the entire week to avoid disruption to operations.

In addition to the seminars, all employees will receive a full packet of information about the available plans, and the Benefits Office help desk will answer questions at extension 3456.

Notice of increase in health insurance costs

From Human Resources or Benefits Office to employees

Due to rapidly rising medical costs, our health insurance provider has raised prices for all policies. As we have in the past, Consolidated Intergalactic will be absorbing a large portion of the increased cost.

Effective July 1, the payroll deduction for company-supported health insurance will increase between 5 and 7 percent, depending on the plan you have selected.

We apologize for the inconvenience.

Employees are encouraged to contact the Benefits Office at extension 2313 to discuss alternative plans that may be less costly. Please note, though, that lower-cost plans may require higher co-pays or deductibles.

Amendment to employee handbook regarding health insurance

From Human Resources or Employment Office to employees

Enclosed please find a revision to the employee handbook to add new information about the changes to the company-provided health insurance plan.

Please review the changes and place them in your copy of the employee handbook. The version of the employee handbook that is posted on the Human Resources Web site has been fully updated to include this new material.

If you have any questions about the changes to the health insurance plan, a special telephone and e-mail hotline to answer questions about the health plan will begin operations on June 17. The phone number and e-mail address is posted on the Human Resources Web site.

Announcement of explanatory session on employee stock purchase plan

From Human Resources, Benefits Office, or Financial Department to employees

(NOTE: Review with your in-house or outside legal counsel)

All full-time regular employees are invited to attend a one-hour seminar on the new Consolidated Intergalactic Employee Stock Purchase Plan.

It is the policy of Consolidated Intergalactic to offer employees the opportunity to participate in the success of our company by purchasing shares of the company at a discounted price from the publicly traded price. Shares can be purchased by direct investment or through payroll deduction.

The session will be held at 4 P.M. on Thursday, June 15, in Conference Room C. After the conclusion of the session, a streaming video and transcript of the session will also be available on the corporate intranet.

Announcement of explanatory session on 401(k) and other retirement programs

From Human Resources, Benefits Office, or Financial Department to employees

(NOTE: Review with your in-house or outside legal counsel)

On Tuesday, March 27, at 1 P.M. and again on Tuesday, April 3, at 4 P.M. the Employee Benefits Department will be offering a one-hour informational meeting about the company-sponsored 401(k) retirement plan.

The Consolidated Intergalactic 401(k) plan is a participant-directed plan which allows employees to choose to deposit pre-tax income in one or more available investment vehicles including several mutual funds, money market funds, and bond funds. The investment can also be made in the form of shares of stock in Consolidated Intergalactic.

At the session, experts from the Employee Benefits Department and our investment advisors will explain how to enroll in the plan, the various options for investment, and how to make changes in the allocation of funds.

Beginning June 16, a streaming video and transcript of one of the sessions will be available on the corporate intranet.

Notice of policy change on vacation day accrual

From Benefits Office or Human Resources to employees

We are pleased to announce an improvement in the company vacation policy for full-time regular employees, effective January 1.

New employees who complete six months of satisfactory service will begin to accrue vacation time at the rate of .5 days per full month of service up to a maximum of three days.

In the second and third year, employees will continue to accrue vacation time at the rate of .5 days per full month of service up to a maximum of six days.

Beginning in the fourth year and continuing in the fifth year, vacation time accrual will be at the rate of .83 days per full month of service up to a maximum of ten days. In the sixth through eighth year of service, vacation time will accrue at the rate of one day per full month of service, up to a maximum of twelve days.

From the eight year onward, employees will receive a bonus of one additional day in the following year in addition to a base of one day per full month of employment. For example, an employee who is in the twelfth year of employment with Consolidated Intergalactic is entitled to twelve days of regular vacation time plus four days of bonus vacation.

The maximum number of vacation days an employee can accrue is twenty.

All vacation days accrued in a calendar year must be used before the end of the following calendar year. If vacation days are not used, they will be paid as bonus days at the hourly or prorated salary rate in effect at the time of payment.

Staffers who leave employment will be entitled to a payment based on unused accrued vacation time in their final paycheck.

If you have any questions, please contact Human Resources.

Announcement of new on-site gym benefit

From Benefits Office to employees

At the request of a number of employees, we have decided to add a small exercise room with treadmills, stairclimbers, and other equipment. The room will be located nearby the employee locker rooms which include changing facilities and showers.

We expect the exercise room to be open on or about June 1. Use of the facility will be limited to regular part-time and full-time employees, and will be open one hour before regular business hours, during lunch breaks, and one hour after the regular close of business.

We are excited about this new benefit and hope it will be used by many of our workers.

Announcement of new childcare benefit

From Benefits Office to employees

We are pleased to announce that Consolidated Intergalactic has contracted with Little Lumbertown to operate an on-site childcare program. The facility, which is scheduled to open on September 1, will be available to regular, full-time employees’ children ages six months to five years.

For more details about the program, which will include a daily rate that is substantially subsidized by the company, please pick up a brochure and application form at the Human Resources Office.

We expect to have space for fifty children in the facility. And we will continue to offer a subsidy of an equivalent amount to employees who choose to make their own arrangements for childcare at a licensed childcare facility.

Announcement of new health club benefit

From Benefits Office to employees

In cooperation with our health insurance provider, we are pleased to offer all regular full-time employees a discount on annual membership at any of twelve selected health clubs in the greater Lum-bertown area.

We encourage all of our employees to take advantage of this opportunity to have a healthier lifestyle.

Information on the program can be found in the attached brochure. If you have any questions, please contact the Employee Benefits Office.

Announcement of tuition reimbursement program

From Benefits Office to employees

We are pleased to announce the establishment of a tuition reimbursement program in cooperation with several area colleges, trade schools, and certification programs.

Effective August 15, all regular full-time employees with at least a year of service are eligible to receive reimbursement for the cost of courses at one of the approved institutions.

Upon completion of the course, we will reimburse the cost of credits and fees up to $5,250 per year, per employee. Employees who receive a grade of B or higher will receive full reimbursement up to the maximum amount; employees who receive a B- through C- will receive 50 percent of the cost up to the maximum amount. Employees who receive a D+ or lower or who do not complete the course will not be reimbursed.

All courses must be related to your current or proposed job description, and all applications must be approved by your supervisor prior to enrollment.

We expect that students will take night or weekend classes. If a particular program conflicts with regular working hours, employees may seek to arrange for a temporary flextime schedule to allow them to attend classes. Please contact your supervisor to discuss schedules and to seek approval.

Tuition reimbursement forms are available through Human Resources.

Recommended courses for tuition reimbursement program

From Benefits Office to employees

The Benefits Office has posted a list of prescreened courses available this fall at Lumbertown Community College.

Consolidated Intergalactic has worked with LCC to request curriculum elements that support the corporate mission. All of the courses on the list—which is posted on the Benefits Office Web site—are considered appropriate for reimbursement by the company.

Employees still require pre-approval from their departmental supervisor in order to apply for tuition reimbursement, and payment will be made on the basis of the grade received. In order to receive 100 percent reimbursement, students must receive a grade of B or higher.

Posting of car pool match list

From Benefits Office or Human Resources to employees

The Employee Benefits Office has posted a car pool match list online. It is our hope that this will assist staffers in finding ways to reduce the cost and save on use of energy in commuting to work.

To use the match list, go to the employee Benefits Office Web site and enter your employee number. The program will automatically fill in the form based on your home address as listed in company records; if you are commuting from a different location, please make adjustments to the form.

The software, developed in conjunction with the state Department of Transportation, displays a map that shows designated car pool parking lots and pick-up areas nearest the address you supply.

Bonus offered to car pool participants

Announcement of bonus to car pool participants:

Consolidated Intergalactic is pleased to announce its participation in a statewide program that encourages workers to use car pools for commuting. The goal is to reduce the amount of traffic on area roads by as much as 20 percent and help save the planet by cutting down on use of energy and the creation of emissions.

All employees who register with the CI car pool plan will receive the following benefits: fully subsidized “toll-free” cards that eliminate tolls on thruways and bridges and a $25 per week car-pool bonus in each paycheck. In addition, cars registered under the program will be permitted to park in the priority car pool spaces at the front of the company parking lot.

Availability of company-owned vehicles for car pools

From Benefits Office to employees

In a pilot program that will begin September 1, Consolidated Intergalactic will offer use of companyowned or company-leased vehicles for car pools of three or more employees.

The vehicles will come from the company’s fleet of vehicles available to the Sales and Marketing Departments for customer calls. They will be available each day after 5 P.M. and will be expected to be back in the company parking lot by 9 A.M.

Consolidated Intergalactic will provide gasoline, insurance, and fully subsidized “toll-free” cards that eliminate tolls on thruways and bridges.

For information about the program or to register to participate, please contact the vehicle desk of the Office Services Department, at extension 3982.

Discounted mass transit passes offered

From Benefits Office to employees

Effective July 1, Consolidated Intergalactic will offer all employees the right to purchase L-RAT (Lumbertown Rapid Transit) monthly passes at a 50 percent discount. This is part of our commitment to assist in the reduction of traffic and help cut down on energy use and automotive emissions.

Monthly passes, valid on all L-RAT trains, trolleys, and buses will be available at the Benefits Office in the last week of each month.

Bus pass regulations

From Benefits Office to employees

Please be advised that effective November 1, the Lumbertown Rapid Transit System will require all users of monthly passes to show a company photo ID each time the pass is used.

According to L-RAT, the purpose of this new regulation is to prevent transfer or other unauthorized use of the transit passes.

Consolidated Intergalactic will continue to encourage the use of mass transit by offering employees the right to purchase L-RAT (Lumbertown Rapid Transit) monthly passes at a 50 percent discount.

Prepaid legal services offered

From Benefits Office or Human Resources to employees

We are pleased to offer a new benefit to all full-time permanent employees: prepaid legal services.

Lumbertown Legal Services, an independent law firm, offers a range of standard civil law services including drafting real estate documents, real estate closings, simple wills and power of attorney, and ten hours of telephone consulting on legal matters. Members can also purchase additional legal services at a discounted rate.

For information about the prepaid legal plan, please contact LLS at (727) 555-0143.

Consolidated Intergalactic is not affiliated in any way with Lumbertown Legal Services and does not benefit from referrals to the service.

Dry cleaning services for employees

From Benefits Office to employees

Save time, dress well, and save a bit of cash: The Benefits Office is pleased to offer a new service in cooperation with several Lumbertown area businesses.

Beginning June 1, representatives of three area dry cleaning, laundry, and tailoring companies will be allowed to park vans in a designated area to the right of the main entrance to our Lumbertown facility every morning between 8 and 9:30 A.M. and again from 4 to 5:30 P.M.

Employees may drop off clothing for cleaning or repairs, and depending on the service option chosen, pick up packages later the same day or several days later. For security reasons, employees will not be allowed to bring packages into the workplace.

Oil change and tune-up service for employees

From Benefits Office to employees

In cooperation with Speedy Grease, we are pleased to offer a new service for CI employees that will save time and money.

Beginning August 1, employees can make arrangements with Speedy Grease—located across the street from our main entrance—to leave their vehicles at the facility for an oil change, lube, filter change, tune-up, and other services. Speedy Grease promises to complete the work before 5 P.M. on any business day and will drive your car into the CI lot; the keys and paperwork will be left with the security guard.

The Benefits Office welcomes suggestions from employees for other services that may be offered during the work day; our goal is make it easier for staff to manage their personal affairs while allowing us to maintain our high level of productivity.

Announcement of new vision care benefit

From Benefits Office or Medical Office to employees

We are pleased to announce that we have added a new vision care benefit to our medical plan. Each employee and covered dependent is entitled to an eye exam from participating opticians and ophthalmologists once each year for a fee of $25; some providers may choose to waive the fee entirely with the purchase of eyeglasses or contact lenses.

A full list of participating providers can be found at the Benefits Office Web site; click on the “Vision Care” icon.

Announcement of hearing assessment benefit

From Benefits Office or Medical Office to employees

Our health care provider has added a new hearing assessment benefit. Employees and covered dependents can obtain one free examination every two years by a qualified audiologist or medical specialist. For further details on this enhancement please consult the attached amendment to your health care plan or call the Benefits Office help desk at extension 3456.

Free on-site hearing test

From Benefits Office or Medical Office to employees

Representatives of our health care provider will offer a free hearing assessment test to any employee on Monday and Tuesday, May 7 and 8.

Lumbertown Blue Star Health will park a specially equipped van in the south parking lot on both days; the vehicle includes a sound booth and equipment to produce an audiogram for analysis by an audiologist.

To register for a fifteen-minute appointment, please call the Medical Office at extension 3424 no later than 4 P.M. on May 4.

Announcement of new dental plan

From Benefits Office or Medical Office to employees

Consolidated Intergalactic is pleased to announce the availability of a dental plan for all of our full-time employees and dependents. Details of the plan, including covered procedures, deductibles, and monthly costs are described in the attached brochure. For further details on this enhancement please call the Benefits Office help desk at extension 3456.

Eligibility for on-campus childcare

From Benefits Office to employees

The success of our on-campus childcare facility has brought some questions about eligibility. It is our intention to be as inclusive as possible; however, the present facility is limited to no more than 120 children.

Therefore, registration for childcare will be made on the following basis:

Full-time employees will have first priority, followed by part-time workers who are employed at least twenty hours per week.

Request for childcare emergency contact information

From Benefits Office to employees

All employees who have registered children with the on-campus childcare program are requested to review and update their emergency contact form on a regular basis. The form includes your office number, personal cell phone number, and a contact number for your spouse or domestic partner. You may also include an authorized caregiver other than a family member.

We also ask that you include the name and phone number for your child’s pediatrician.

Request for childcare medical information form

From Benefits Office to employees

Please review the medical information form for your child, who is currently enrolled in on-campus daycare. This form must be updated every ninety days; your child will not be permitted to continue in the program with an outdated medical form.

Be sure to indicate any allergies and all current medications on the form.

Policy on requirement for pick-up of childcare participants

From Benefits Office to employees

If your child is a participant in the on-campus daycare program, he or she must be picked up by an authorized guardian before 5:30 P.M. daily.

Authorized guardians include the employee, a spouse or domestic partner, or another person whose name, address, and personal identification (driver’s license or other government-issued ID card) is on register with the company. All changes to the list of authorized guardians must be made at least twenty-four hours in advance.

Human Resources offers childcare discounts

From Benefits Office or Human Resources to employees

Consolidated Intergalactic has negotiated a discount for all full-time and part-time employees who make use of one of a group of prescreened daycare facilities in the greater Lumbertown area.

For information on the approved daycare facilities, please consult the Human Resources Web site and click on the “Childcare” icon.

Offer of special discounts on company products for employees

From Benefits Office, Human Resources, or Employment Office to employees

Any full-time employee of Consolidated Intergalactic is eligible to purchase any of the company’s products at a 50 percent discount. All such purchases must be for personal use or gifts, and not for resale.

To obtain information on the program, please contact the Special Sales Department at extension 1592.

Company sponsored day at area museums, benefits

From Human Resources or Benefits Office to employees

As part of our commitment to supporting area cultural institutions, Consolidated Intergalactic is pleased to announce that we will be sponsoring Museum Month in Lumbertown in June.

Just show your CI identification card at any of the listed museums to receive free admission for you and as many as three guests. We’ve got a supply of bright red CI Cares lapel buttons available at the Benefits Office, and we’d love to see our area museums filled with employees wearing their badges with pride.

Discounted admission to local museum

Benefits Office to employees

Consolidated Intergalactic has become a Corporate Circle supporter of the Lumbertown Historical Association. We believe very strongly in the importance of collecting artifacts and researching the history of our hometown as a legacy for generations to come.

Our position in the Corporate Circle brings a benefit for all employees of Consolidated Intergalactic: Show your employee identification card to receive a 50 percent discount on admission for yourself and as many as three members of your family or friends.

Announcement of matching grant program

From Benefits Office to employees

During the week of May 21 through May 28, Lumbertown’s award-winning public radio station KLUM-FM will be conducting its spring fundraising drive.

Here at Consolidated Intergalactic we are deeply appreciative of the contributions made by KLUM to the community, and we encourage our employees to join us in supporting this important cultural institution.

During the fundraising drive, if you call the radio station to make a pledge be sure to identify yourself as a CI employee; we will match all contributions by our staff dollar-for-dollar.

Offering energy-saving light bulbs to employees for home use

From Benefits Office to employees

As part of our commitment to reducing greenhouse emissions and protecting the environment, Consolidated Intergalactic is pleased to offer a new benefit to all employees. Throughout the month of July we will be selling energy-saving compact fluorescent light bulbs at deep discounts (below wholesale prices). Depending on the wattage, bulbs will sell for fifty to ninety cents each.

We encourage all employees to change all appropriate lamps in their homes to this new technology. According to industry estimates, you’ll save about $30 or more in electricity costs over each bulb’s lifetime. The compact fluorescents also produce about 75 percent less heat, so they’re safer to operate and can cut energy costs associated with home cooling.

If every American home replaced just one light bulb with an Energy Star certified bulb of this design, it is estimated that we would save enough energy to light more than 3 million homes for a year, more than $600 million in annual energy costs, and prevent greenhouse gases equivalent to the emissions of more than 800,000 cars.

The bulbs, available at the Benefits Office or at Office Services, will fit into any standard screw-in light socket.

Correspondence from Benefits Office to Departments

Notice of meeting for department heads about benefits program

From Human Resources, Benefits Office, and Executive Office to department heads and employees

Human Resources invites all department heads, or their designated management-level representatives, to attend an open meeting on Tuesday, May 14, at 3 P.M. in the Chairman’s Conference Room to discuss proposed changes to the company’s bonus and incentive award programs.

Consolidated Intergalactic is committed to regularly reviewing all elements of our employee compensation programs to assure that all employees are treated fairly and equitably.

We currently have programs in place that award bonuses to employees in the Sales and Marketing Departments based on meeting certain revenue goals; similar programs give special recognition to staffers in production and shipping jobs for meeting specific performance levels. One of the goals of this meeting is to discuss how to offer incentives to nonsalaried workers whose performance cannot be analyzed quantitatively.

Minutes of meeting, bonus and incentive programs

From Human Resources, Benefits Office, and Executive Office to department heads and employees

Attached please find a copy of the minutes of the May 14 meeting held to discuss proposed changes to the company’s bonus and incentive award programs.

Please review the minutes and submit any proposed corrections or explanations to Mary McPherson, the chairman’s executive secretary, no later than May 21.

This document, which includes discussion of incentive plans that have not yet been accepted by the Board of Directors, is considered company confidential. It is intended only for the use of the person to whom it was sent, and is not to be shared with others without specific permission from the chairman of the Board.

Corrected minutes of meeting, bonus and incentive programs

From Human Resources, Benefits Office, and Executive Office to department heads and employees

Attached please find a copy of the corrected minutes of the May 14 meeting held to discuss proposed changes to the company’s bonus and incentive award programs.

As several attendees noted, the original version of the minutes misstated the company’s proposed guidelines for annual bonuses. Our intention is to provide a bonus in the range of 2 to 4 percent (the equivalent of one to two weeks of base pay) in any year in which the company meets its sales and profitability goals.

The previous minutes incorrectly stated that the bonus range would be 20 to 40 percent.

We apologize for any misunderstanding. Please delete any copies of the previous minutes for the May 14 meeting.

This document, which includes discussion of incentive plans that have not yet been accepted by the Board of Directors, is considered company confidential. It is intended only for the use of the person to whom it was sent, and is not to be shared with others without specific permission from the chairman of the Board.