BENEFITS SUMMARY GUIDE JULY 2017 HOBBY LOBBY Mardel - Hemispheres   WELCOME  HOBBY LOBBY BENEFITS SUMMARY GUIDE  Hobby  Lobby  offers  many  favorable  benefits  to  its  valued  employees.  These  benefits  are  part  of  the  valuable  resources  the  Company  allocates  to  help  you  save  for  your  future,  protect  your  family  and  build  a  productive,  rewarding  career.    Eligible  employees  with  Hobby  Lobby  and  affiliate  companies  have a wide array of benefit options available.  The chart below reflects the general eligibility for each  employment  classification,  subject  to  other  eligibility  requirements.    This  Benefits  Summary  Guide  provides summaries of all benefit options for review and consideration.  This document does not replace or supersede the legal plan documents, which contain full details that govern each respective benefit plan. Summary Plan Descriptions for each of the benefit plans can be viewed and downloaded from the Benefits Forms and Documents section of Bentelligence, the online enrollment system. Refer to the Table of Contents in this guide to locate the online enrollment section for information on enrollment and how to access Bentelligence. .  Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   1      BENEFITS DEPARTMENT MISSION STATEMENT  WELCOME  To serve our employees by establishing, administering and effectively communicating Company‐ provided benefits with sound practices that treat employees with dignity and respect while maintaining compliance with benefits laws, Company policies and fulfilling Hobby Lobby’s statement of purpose. Benefits Commitment of Purpose:     Properly balance offering the best available benefits for the lowest cost possible to help employees save for their future, protect their family and build a productive, rewarding career. Continually strive to deliver prompt, current and accurate information to enable employees to make informed benefits choices and empower employees to be good stewards and smart consumers of our health care plan. Provide quality assistance and professional expertise in enrollment, communication and administration of employee benefits. Foster a passionate team‐work philosophy that is inspired through effective organizational skills, proactive efforts and character traits of integrity, care and compassion. Follow these easy steps to take advantage of the benefits offered by Hobby Lobby: TABLE OF CONTENTS  REVIEW options available based upon your employment classification. Some benefits require enrollment and others do not. WELCOME  1  ONLINE ENROLLMENT  3  DECIDE which benefit options you want to elect. MEDICAL/DENTAL PLAN  4  CHANGE IN STATUS  6  ENROLL FLEXIBLE SPENDING PLAN  7  LIFE INSURANCE  8  LONG‐TERM DISABILITY  9  PAID TIME‐OFF BENEFITS  10  401(K) SAVINGS PLAN  12  GLOBALFIT  13  SPECIAL NOTICES  14  BENEFITS CONTACTS  15  via the online enrollment application Bentelligence. Please refer to the next page of this brochure for instructions on how to sign on to Bentelligence. CONFIRM your elections. After the enrollment has been approved a Benefits Confirmation Statement will be mailed to the home mailing address on file. Review the statement carefully and notify the Benefits Department immediately if anything needs to be changed. Changes to coverage elections must be submitted prior to the enrollment deadline. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   2    ONLINE ENROLLMENT  To successfully begin participation in the Medical/Dental, Life, LTD and Flexible Spending Benefit Plans, you must submit benefit elections on or before the first (1st) day of the month following sixty (60) calendar days of continuous full-time employment. Unfinished or incomplete enrollment elections cannot be accepted beyond your eligible enrollment period. Upon completion of your online enrollment you should print your enrollment document packet, which will provide instructions for required documentation to verify dependent(s) eligibility, if applicable, and confirm elections were submitted by the deadline. Information Necessary to Sign on to Bentelligence In order to sign on to Bentelligence, you will need: FROM THE KIOSK  Bentelligence Electronic Sign-on from Store/Work Location Computer Kiosk A computer kiosk is available at each store/work location to use as directed by the manager or supervisor. Please see your manager or supervisor if you have questions regarding the location and available times to use the computer kiosk.   FROM THE OFFICE  Bentelligence Electronic Sign-on from a Hobby Lobby Office Computer If you are signing on to Bentelligence from your office computer at Hobby Lobby’s corporate campus, typing employee/ in the Internet URL address bar will automatically open the webpage.   FROM HOME     Your Employee ID number (from your pay stub)    Last 4 digits of your Social Security Number    Date of Birth If you are having difficulty completing the Bentelligence electronic sign-on, please contact your manager to confirm your personal information is accurate in Hobby Lobby’s payroll system. Bentelligence Electronic Sign-on from Employee’s Personal Computer If you are signing on to Bentelligence from your personal computer, the web addresses are listed below. You must go through the User Registration process the first time you use a different computer, even if you have previously set-up a password. Note: Do not type www in front of the web addresses listed below. Employees working for affiliate companies not listed below should use the Hobby Lobby web address.   Information Necessary to Enroll You may need the following items to complete the enrollment process:      Your spouse and children’s Social Security Numbers and Dates of Birth Hobby Lobby Employees go to:  employee.hobbylobby.com Mardel Employees go to: Bank Account information if enrolling in Direct  employee.mardel.com Deposit for Flexible Spending Reimbursement Hemispheres Employees go to:  employee.hemispheres-us.com About 15 minutes to complete the process  Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   3      PREMIUMS  MEDICAL/DENTAL PREMIUM SCHEDULE* Classification WEEKLY DEDUCTION BI-WEEKLY DEDUCTION Employee Only $29.91 $59.82 Employee/Dependent $50.47 $100.93 Employee/Spouse $74.02 $148.04 Employee/Family $95.49 $190.97 *Premium costs and plan benefits are subject to change at any time, and may not be reflected herein. When you enroll in the Medical/Dental Plan, the portion of the premium you pay is a tax-free deduction from your paycheck. Paying with pre-tax dollars means your payroll deductions for coverage are deducted from your paycheck before federal, and in most cases, state taxes are withheld. Medical/Dental Plan benefits are funded with pre-tax dollars; therefore the plans must comply with certain IRS regulations. IRS regulations allow participants to cancel or change participation in pre-tax funded benefits only at the end of a calendar year, unless there is a Change in Status Event. Review the Table of Contents in this guide for more information on Change in Status Events. DEPENDENT CHILDREN MEDICAL /DENTAL PLAN  The Medical/Dental Plan offers affordable coverage to full-time employees and their eligible dependents. We recommend that you follow up with the Benefits Department via phone or email prior to your deadline to ensure your documentation was received. Your child(ren) can be covered until the end of the month in which he/she attains age 26, unless otherwise noted in the Summary Plan Description. Your child(ren) may be eligible for coverage past the age of 26 if they are enrolled in the plan before reaching age 26 and they are incapacitated and unable to be self- supporting by reason of mental or physical handicap. A photocopy of an official state-issued birth certificate is required for each dependent child enrolled. Legal guardianship or verification of incapacitation is required when applicable. SPOUSE Your spouse, as defined by the plan, is eligible for coverage. A photocopy of an official recorded state-issued marriage certificate is required. Employees who choose to have their spouse covered under the Hobby Lobby Medical/Dental Plan will be subject to an additional charge (spouse surcharge fee) if their spouse has employer-sponsored medical coverage available DEPENDENTS  through their employer. The bi-weekly $50 spouse surcharge fee will be deducted Employees can enroll eligible dependents. automatically from your paycheck if you have a Enrollment of eligible dependents will require spouse covered under your medical plan, unless documentation (i.e., marriage certificate, birth you apply and are approved for a surcharge certificate, etc.) to verify eligibility before coverage waiver. The Spouse Surcharge Waiver Form can be approved. All dependent eligibility will be available during the enrollment process documentation must be postmarked or received and must also be completed every year during by the Benefits Department no later than 60 Open Enrollment. You must complete and calendar days after the coverage effective date. return the form to determine if the surcharge for your spouse is subject to the waiver. If you are EXAMPLE: If effective date of coverage approved for the waiver, any surcharge is 1/1/2017 documents must be postmarked payments already deducted from your paycheck or received no later than 3/2/2017. will be refunded up to 90 days. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   4    MEDICAL /DENTAL PLAN  MEDICAL SUMMARY OF BENEFITS  For information regarding medical plan coverage and costs please refer to the Summary of Benefits and Coverage (SBC) or Summary Plan Description (SPD) located in the Benefit Forms and Documents section of Bentelligence, the online enrollment system. Be sure to review the two columns on the SBC representing your cost for using a Participating and Non-Participating Provider. Hobby Lobby’s Medical/Dental Plan is administered by Meritain Health.   NETWORK INFORMATION  The Medical/Dental Plan offers a Participating Provider Organization (PPO) Network to covered employees. The network offers significant discounts for covered employees who utilize network physicians, labs and hospitals. Please note that it is your responsibility to use physicians and hospitals in the PPO Network in order for your benefits to be paid at the Participating Provider rate. For Employees in Oklahoma  Employees residing in Oklahoma will use the Healthcare Highways Plus Network to locate in-network medical providers in the state of Oklahoma. To locate an in-network medical provider, call (866) 945-2292 or visit http://www.healthcarehighways.com For All Other Employees Employees residing in all other states will use the Aetna Choice POS II Network for all in-network medical and dental coverage. To locate an innetwork Medical or Dental provider, visit www.Meritain.com or call (888) 306-9215. DENTAL SUMMARY OF BENEFITS  Dental benefits are included in the Summary Plan Description (SPD). Dental benefits are available for both Participating Providers and Non-Participating Providers. Utilizing Participating Providers can save you money because they charge discounted rates. If you utilize a Non-Participating Provider you will be responsible for any charges that may be in excess of usual and customary fees. PRESCRIPTION DRUGS  The prescription drug benefit is administered by EnvisionRxOptions. Additional information about EnvisionRxOptions and your prescription benefits can be found at www.envisionrx.com. The EnvisionRxOptions site offers a pharmacy locator and a preferred drug list. You may also call the EnvisionRxOptions Help Desk at (800) 361-4542. Diabetic Supplies   Employees residing in Oklahoma will use the Aetna Dental Administrators through the Aetna Choice POS II Network. To locate an innetwork dental provider, visit www.Meritain.com, or call (888) 306-9215. Employees residing in Oklahoma who receive services outside the state of Oklahoma will continue to have access to the Aetna Choice POS II Network for medical and dental care received in all other states. EnvisionRxOptions has a free glucometer program available to members. Diabetic testing supplies, including syringes, lancets, and testing strips that are generic or preferred on the formulary are covered with NO COPAY when purchased through mail order. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   5    CHANGE IN STATUS – LIFE EVENTS  Due to the time sensitive nature of events and the different deadlines that may apply, if you experience a Change in Status Event you should immediately access Bentelligence to view the information and deadline that applies to your event. For most Change in Status Events, you have 30 days to enroll; for some, there is a 60-day timeframe. The following family status changes are some examples of Change in Status Events that may allow enrollment changes. Please refer to the Medical/Dental Summary Plan Description booklet found online in the Benefits Forms and Documents section of Bentelligence, the online enrollment system for a complete list of events. To Elect /Add Dependents To Your Coverage:  Marriage  Birth, adoption or placement for adoption  Involuntary loss of other coverage including Medicare  Involuntary loss of Medicaid or State Children’s Health Insurance Plan (SCHIP) To Remove/Decline Dependents From Your Current Coverage:  Death of a spouse or dependent  Dependent reaching age maximum limit of age 26, or 18 for legal guardian  Divorce  Gain of other coverage including Medicare  Gain of Medicaid or State Children’s Health Insurance Plan (SCHIP) CHANGE IN STATUS  Certain life events entitle you to add or drop yourself and/or your dependents to/from coverage. If you experience a Change in Status Event, such as marriage, birth of a child or loss of other coverage, you may be able to enroll in coverage for you or your dependents even though you previously had declined coverage. Enrollment due to a Change in Status Event must be timely - within 30 days after the event in most cases - under IRS regulations; late applications cannot be considered. All requests to change elections for a qualified family status change or special enrollment right must be submitted within 30 days after the event date. Exception: birth, adoption, placement for adoption, involuntary loss of Medicaid or a State Children’s Health Insurance Plan, and death of a spouse or dependent each allows for a 60-day enrollment/change period. You are also required to provide proper documentation to support your Change in Status Event. All required supporting documentation must be postmarked or received by the Benefits Department no later than 60 calendar days after the Change in Status Event date. We recommend that you follow up with the Benefits Department via phone or email to ensure your documentation was received before your eligibility date expires. CHANGING EMPLOYMENT STATUS  If an employee’s status changes from part-time to full-time, even if the employee’s status was previously full-time before changing to part-time, the employee will have a new full-time date of hire. Please see the Welcome page in this guide for benefits eligibility. Benefits eligibility will be based on the employee’s new full-time date of hire. If an employee’s status change from full-time to part-time results in a loss of benefits, such benefits shall cease on the employee’s last day of full-time employment, unless otherwise required by law. Please see the Welcome page in this guide for benefits eligibility. If an employee loses eligibility for paid time off benefits, the employee may use any accrued but unused paid time off benefits subject to the paid time-off policies found in the Benefits Summary Guide and Employee Handbook. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   6    FLEXIBLE SPENDING PLANS  FLEXIBLE SPENDING PLANS  The Flexible Spending Plans offer a taxefficient way to pay for out-of-pocket health and dependent care expenses through the Health Care Spending Account benefit and the Dependent Care Spending Account benefit. All full-time employees are eligible to participate in the Flexible Spending Plans regardless of their participation in the Medical/Dental Plan. You can enroll in the Flexible Spending Plan(s) on or before the first day of the month following sixty (60) calendar days of continuous full-time employment. In addition, the Flexible Spending Plan(s) require an annual enrollment period to participate each year. Please refer to the Flexible Spending Plan Summary Plan Description in the Benefits Forms and Documents section of Bentelligence, the online enrollment system for complete plan provisions and exclusions. Before deciding how much to contribute in each account, look carefully at your expected healthcare and/or dependent care expenses for the upcoming year and contribute only the amount of money you expect to use by the end of the calendar year. Any unused funds not timely submitted for reimbursement will be forfeited, so it is critical to accurately estimate your expenses. Health Care Spending Account You can realize significant tax savings by contributing to a health care expense reimbursement account up to the IRS annual maximum ($2,550 per year for 2016). You can use these funds to reimburse yourself for eligible healthcare expenses incurred by you and your dependents. Participants have until March 15 of each plan year to incur expenses for the prior year’s account balance. Reimbursement requests must be submitted by April 30 of each plan year for the prior year’s account balance. PLEASE NOTE: Any unused funds not submitted for reimbursement by the deadline will be forfeited. Eligible Healthcare expenses include but are not limited to:  Deductibles, co-payments and your share of eligible covered medical expenses.  Vision care, glasses, contacts, and laser-eye surgery.  Prescription drug co-pays.  Unreimbursed dental or orthodontic care. Dependent Care Spending Account Childcare expenses can add up quickly. Contributing to a dependent care account allows you to use taxfree dollars up to the IRS annual maximum ($5,000 per year for 2016) to reimburse yourself for workrelated dependent care expenses for dependent children up to age 13 or children physically or mentally incapable of self-support. This benefit is available only if it is necessary for you to pay for dependent care to be able to work. Participants have until December 31 of each plan year to incur expenses for the account balance. Reimbursement requests must be submitted by April 30 of each plan year for the prior year’s account balance. PLEASE NOTE: Any unused funds not submitted for reimbursement by the deadline will be forfeited. Eligible Dependent Care expenses include but are not limited to:  Fees of a licensed dependent care center that cares for your dependent child.  Before- or after-school care expenses.  Day care in your home.  Pre-school or nursery school tuition. Spending Account Reimbursement Reimbursements for your spending account(s) are sent by check or can be directly deposited into your bank account. As you incur health care and/or dependent care expenses, you can submit a claim for reimbursement by submitting a paper reimbursement request form or choosing the Auto-Reimbursement option during the enrollment process. The AutoReimbursement feature automatically reimburses you for qualified expenses. This feature is only available for medical, dental, and prescription claims for participants of the Hobby Lobby Medical/Dental Plan. A claim must be submitted for any other eligible expenses. If you terminate employment with Hobby Lobby during the year, only charges incurred while you are an active employee are eligible for reimbursement and all claims must be submitted within 120 days after you cease to participate in the plan. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   7    LIFE INSURANCE  Optional Life Insurance benefits are also available to full-time employees, their spouses, and their dependent child(ren) enrolled in the Medical/Dental Plan. Your spouse and/or dependents are not eligible for Optional Life if you do not elect Employee Optional Life insurance. Please refer to the Sun Life Assurance Company of Canada (U.S.) group policy certificate booklet online in the Benefits Forms and Documents section of Bentelligence, the online enrollment system for complete plan provisions and exclusions. To be eligible for the Life Insurance coverage, you must be actively at work on the effective date. For additional information of “Actively at Work”, refer to the Sun Life Assurance Company of Canada Summary Plan Description. You may apply for up to 50% of your elected Employee Optional Life insurance coverage for your spouse, to the maximum benefit of $100,000. Approval is guaranteed for coverage to $40,000 during the initial eligibility period. Sun Life will require evidence of insurability for enrollment elections more than $40,000, late applications, or applications to increase the coverage amount. Dependent Optional Life You may apply for up to 50% of your elected Employee Optional Life insurance coverage for your child(ren), to the maximum benefit of $25,000. The premium is the same regardless of the number of child(ren) covered. Sun Life will require evidence of insurability for late applications or applications to increase the coverage amount. LIFE INSURANCE  Hobby Lobby provides $50,000 Basic Group Life Insurance and Personal Accidental Death & Dismemberment Insurance to full-time employees who enroll in the Medical/Dental Plan. Your spouse and/or dependents are not eligible for Basic Life. Spouse Optional Life When your spouse and/or dependent is also a Hobby Lobby Employee Employee Optional Life You may enroll in life coverage of 1, 2 or 3 times your basic annual earnings to a maximum benefit of $500,000 in Employee Optional Life insurance on or before the first day of the month following sixty (60) calendar days of continuous full-time employment. You also have the option to elect 4 times your basic annual earnings for a maximum benefit of coverage between $500,000 to $1,000,000 however you must submit an evidence of insurability questionnaire for approval through Sun Life. Sun Life will also require an evidence of insurability questionnaire for any late enrollments or increases to coverage elections made after the initial eligibility. This form can be found in your enrollment document packet or in the Benefits Forms and Documents section of Bentelligence, the online enrollment system. A spouse or dependent child covered under your Medical/Dental Plan who also works as a full-time employee at Hobby Lobby or one of its affiliates will be eligible for the Company provided Basic and voluntary Optional Life Insurance Plan. A full-time employee cannot be covered under another employee’s Spouse Optional Life or Dependent Optional Life policy. Each employee must elect their own Employee Optional Life policy. Only one employee can cover their child(ren) on the Dependent Optional Life policy. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   8    LONG TERM DISABILITY  LONG TERM DISABILITY  It is the EMPLOYEE'S responsibility to enroll in the Long Term Disability (LTD) plan on or before the first day of the month following sixty (60) calendar days of continuous full-time employment in order to eliminate the need for Evidence of Insurability questionnaire. All full-time employees are eligible to participate. You are not required to participate in the Medical/Dental Plan to participate in the LTD Plan. Please refer to the Sun Life Assurance Company of Canada (U.S.) group policy certificate booklet online in the Benefits Forms and Documents section of Bentelligence, the online enrollment system, for complete plan provisions and exclusions. Class II Core (optional election):  Employee paid  Benefit is 67% of pre-disability monthly salary  $7,500 maximum monthly benefit (Non-Taxable)  Waiting Period: 90 calendar days of continuous disability Salaried employees have the option to purchase the Class II Core LTD Plan. The Class II Core LTD Plan has a higher benefit and the premiums are paid by the employee so if a claim is filed at a later date the benefit will not be taxable. To be eligible for the LTD coverage, you must be actively at work on the effective date. For additional information of “Actively at Work”, refer to the Sun Life Assurance Company of Canada Summary Plan Description. Hourly Employees     Employee paid Benefit is 60% of pre-disability monthly salary $5,000 maximum monthly benefit (Non-taxable) Waiting Period: 180 calendar days of continuous disability Salaried Employees Class I Core (default):  Employer or Employee paid (see below)  Benefit is 40% of pre-disability monthly salary  $7,500 maximum monthly benefit (Taxable)  Waiting Period: 90 calendar days of continuous disability All salaried employees will automatically be enrolled in the Employer paid Class I Core LTD Plan. The premiums for the Class I Core LTD Plan are paid by Hobby Lobby and if a claim is filed at a later date the benefit will be taxable. However, employees have the option to pay the premiums through payroll deduction. Choosing this option will result in the benefit being non-taxable if a claim is filed at a later date. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   9    PAID TIME OFF  Employees on any unpaid leave are not eligible to earn paid time off during the unpaid leave. The amount of paid time off earned will be reduced in an amount proportionate to the amount of unpaid time/hours off work when applicable. Employees will resume earning paid time off again after returning to a paid status. Holiday Pay All Full-Time Employees are eligible to receive the below paid holidays after completing 30 days of fulltime employment.*       New Year’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day *Full-Time Employees on an unpaid leave of absence will not receive Holiday Pay during the unpaid leave of absence. Such employees will resume earning Holiday Pay again after returning to work or in some circumstances, returning to a paid status. Vacation Pay Full-Time employees become eligible and will earn Vacation Pay based on a 40-hour work week, and upon the completion of the time schedule listed below. All full-time employees will accrue vacation pay based upon paid hours. Annual accruals each anniversary year are based upon the prior 12 months of full-time employment, and the first six (6) months is based upon 182 days of full-time employment. Anniversary is defined as your annual full-time hire date. 6 months 1 year 4 years 10 years 20 years 1 week 2 weeks 3 weeks 4 weeks 5 weeks Any unused Vacation Pay will be forfeited upon the next full-time anniversary date unless prohibited by law. The Company provides two separate PPTO policies. The policy that applies is determined by the employee’s work location at the time the PPTO is accrued. Only PPTO hours available for use will apply in the event of a store/location transfer or PPTO Buy-Back as outlined below. The Primary PPTO policy applies to all hourly Full-Time Employees that work for the company in all other locations not listed in the Secondary PPTO Policy. Primary PPTO Policy Eligible employees will earn PPTO based upon paid hours at the rate of up to 4.5 hours maximum per month, with a maximum annual accrual of 48 hours, based upon a calendar year. Eligible employees will begin earning PPTO on the first day of the month following the first 90 days of continuous, full-time employment. Secondary PPTO Policy The Secondary PPTO Policy applies to all hourly, Part-time and Seasonal/Temporary employees working for the company in Arizona, California, Connecticut, Massachusetts, Oregon, Vermont, Seattle, Washington, Spokane, Washington, Tacoma, Washington and Deerfield, IL, and other locations as determined by law. Eligible employees will earn PPTO based upon worked hours at the rate of one (1) hour per 30 hours worked, with a maximum annual use of 80 hours, based upon a calendar year. Employees will be eligible to begin earning PPTO on the first day of employment but will not be eligible to use the earned time until the 90th day of employment. PAID TIME OFF  The Company offers paid time-off benefits to eligible employees. If an employee has questions regarding the paid time-off benefits policy they should refer to the Employee Handbook or contact the Benefits Department at (855) 452-3638. Personal Paid Time Off (“PPTO”) Hourly Employees PPTO Buy-Back Each January, the Company will automatically buy back up to 48 hours of earned PPTO in excess of 80 hours. Employees will receive compensation for the PPTO buy-back at the employee’s then-current hourly rate of pay. PPTO hours may not be “cashed in” for any reason prior to the Company’s January buy-back date, which will be determined at the Company’s sole discretion. A maximum of 80 hours of PPTO can be carried over to the following calendar year. All earned PPTO is forfeited upon termination of employment (voluntary or involuntary). Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   10    PAID TIME OFF  Personal/Sick Pay Salaried Employees The Company provides two separate Personal/Sick Pay (i.e., paid time off) policies. The policy that applies is determined by the employee’s work location at the time the Personal/Sick Pay is accrued. Only Personal/Sick Pay hours available for use will apply in the event of a store/location transfer. The Primary Personal/Sick Pay policy applies to all Salaried Full-Time Employees that work for the Company in all other locations not listed in the Secondary Personal/Sick Policy. Primary Personal/Sick Pay Policy Eligible employees will earn Personal/Sick Pay based upon paid hours at the rate of up to 4.5 hours maximum per month, with a maximum annual accrual of 48 hours, based upon a calendar year. Eligible employees will begin earning Personal/Sick Pay on the first day of the month following the first 90 days of continuous, full-time employment. Eligible employees may earn up to a maximum of 80 hours of Personal/Sick Pay. Paid Maternity Leave Policy The Company provides Paid Maternity Leave to Salaried Female Employees only who have completed one (1) year of Full-Time employment. Hourly Full-Time Employees taking a leave of absence for maternity will be compensated through any accrued but unused PPTO and Vacation Pay. Paid Maternity Leave will be provided for a total of six (6) weeks following the natural birth of a baby. Paid Maternity Leave will be provided for a total of eight (8) weeks following the cesarean birth of a baby. The six (6) or eight (8) weeks of Paid Maternity Leave will include the employee’s current accrued but unused paid time off benefits (i.e., Vacation Pay, Personal/Sick Pay). In order to be eligible for Paid Maternity Leave a Salaried employee must certify that she is medically unable to work as a result of the birth of a baby. Paid Maternity Leave will run concurrent with the Family Medical Leave Act (FMLA) and any applicable state family leave laws. The length of Paid Maternity Leave does not prevent an eligible employee from taking the remainder of her certified FMLA entitlement unpaid. Secondary Personal/Sick Pay Policy The secondary Personal/Sick Pay Policy applies to all salaried employees working for the Company in Arizona, California, Connecticut, Massachusetts, Oregon, Vermont, Seattle, Washington, Spokane, Washington, Tacoma, Washington and Deerfield, IL, and other locations as determined by law. Eligible employees will earn Personal/Sick Pay based upon worked hours at the rate of (1) hour per 30 hours worked, with an assumption that salaried employees work 40 hours per week, with a maximum annual use of 80 hours, based upon a calendar year. Employees will be eligible to begin earning Personal/Sick Pay on the first day of employment, but will not be eligible to use the earned time until the 90th day of employment. A maximum of 80 hours of Secondary Personal/Sick Pay can be carried over to the following calendar year. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   11    401(k) SAVINGS PLAN  Eligibility Requirements Employees must meet all of the following requirements:  Complete 1 year of service  Complete 1,000 hours of service  Be 21 years of age and older Employee Contributions     100% vested in participant contributions 100% vested in Hobby Lobby Group Safe Harbor matching contributions Employees become fully vested in all funds upon death, disability, or normal retirement Hobby Lobby Group matching contributions prior to 2014, including earnings, are subject to the following vesting schedule: Years of Service Vested Less than 3 years 0% At least 3 years 100% You choose how to invest your contributions among several investment options described in the materials provided by the company’s 401(k) Savings Plan administrator, AGH. Allen Staples, Certified Financial Planner, and his team at LPL Financial Services are available at no cost to answer your questions about investment and retirement options. Please contact them directly at (877) 794-1010. Participants have the option to contribute from 1% to 80% of pre-tax compensation Employee deferral elections may be changed each quarter Matching Contributions Hobby Lobby will make Safe matching contributions at 100% of 3% of participant contributions and participant contributions greater than not to exceed 5%. 401(k) SAVINGS PLAN  All employees regardless of job classification are eligible to participate in the 401(k) plan subject to meeting the eligibility requirements stated below. The Hobby Lobby 401(k) plan provides an opportunity for you to build a financial reserve to use when you retire. You receive company contributions and tax advantages when you participate, and you have choices about how much to contribute and how you invest. Rollovers are accepted from previous employer plans at time of hire, or thereafter. Once you meet the Eligibility Requirements, you may enroll on quarterly entry dates of January 1, April 1, July 1 and October 1. The 401(k) Savings Plan’s Third Party Administrator is Allen, Gibbs and Houlik, L.C. (“AGH”). For more information, please contact AGH directly by calling (877) 638-2203. Vesting Harbor the first 50% of 3%, but The Corporate Board of Directors may choose to increase matching contributions at their discretion. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   12    GLOBALFIT  GLOBALFIT  GlobalFit is a fitness benefit that allows all Hobby Lobby and affiliate company employees and their families to join the area's top-rated health clubs at substantially discounted rates. Please Note: GlobalFit fitness benefit is subject to facility availability and participation. GlobalFit Program Highlights  Up to 60% off of regular membership dues  Month-to-month memberships, no long term contracts  Over 1,100 fitness centers to choose from nationwide  Guest passes available to check out any participating club  Ability to freeze your membership - up to 6 months per year  Capability to transfer your membership to any other participating club nationwide  Additional discounts for family members GlobalFit Enrollment Procedures 1. Log on to www.globalfit.com/clients360 or call (800) 294-1500 to speak with one of GlobalFit's representatives.  2. Choose the health club that is best for you. GlobalFit can help you with information about club locations, amenities and hours. 3. Arrange your convenient monthly billing plan through your checking, savings, MasterCard, Visa, American Express or Discover account. 4. A one-time affiliation fee is broken into two easy payments and is added to your first two monthly bills. You may obtain a Fitness Club Directory from www.globalfit.com/clients360. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   13          COBRA  HIPAA PRIVACY NOTICE  A federal law, The Health Insurance Portability and Accountability Act of 1996 (HIPAA), requires health plans (medical and dental) to protect the confidentiality of your private health information. More detailed information is given in the health plan’s Notice of Privacy Practices that is mailed to your home address upon enrollment in the benefit plan(s). You may request a copy of the notice by contacting the Benefits Department at (855) 452-3638. WOMEN’S HEALTH AND CANCER  RIGHTS ACT  Hobby Lobby’s Medical/Dental Plan, as required by the Women’s Health and Cancer Rights Act of 1998, provides benefits for mastectomy-related services including all stages of reconstruction and surgery to achieve symmetry between the breasts, prostheses, and complications resulting from a mastectomy, including lymphedema. Call the Benefits Department at (855) 4523638 for additional information. If you are declining enrollment in the Hobby Lobby Medical/Dental Plan for yourself or your dependents (including your spouse) because of other health insurance or group health plan coverage, you may be able to enroll yourself and your dependents in this Plan if you or your dependents lose eligibility for the other coverage. However, you must request enrollment within 30 days after your or your dependents other coverage ends (or after the employer stops contributing toward the other coverage). SPECIAL NOTICES  A federal law, The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) includes a continuation provision which, under certain circumstances, may enable you and your enrolled dependents to continue coverage under the Medical/Dental Plan and the Health Care Flexible Spending Plan beyond the time coverage would have ordinarily ended. You may elect continuation of coverage for yourself and your dependents if you lose coverage under the plan due to one of the following qualifying events:  Your employment ends (for reasons other than gross misconduct)  Your hours of employment are reduced (FullTime to Part-Time) In addition, continuation of coverage may be available to your eligible dependents if:  You are deceased  You and your spouse divorce or separate  A covered child ceases to be an eligible dependent (reaches max age of 26)  You become entitled to Medicare When a COBRA event occurs an information/enrollment election packet will be mailed to your home address with additional details regarding COBRA. HIPAA SPECIAL   ENROLLMENT RIGHTS  In addition, if you have a new dependent as a result of marriage, birth, adoption, or placement for adoption, you may be able to enroll yourself and your dependents. However, you must request enrollment within 30 days after the marriage or 60 days after the birth, adoption or placement for adoption. If coverage is lost under the state Medicaid or Child Health Insurance Plan (CHIP) or you become eligible for premium assistance under the state Medicaid or CHIP plan, you may be able to enroll yourself and your eligible dependents. You must request enrollment within 60 days of the date of the event. For more information please contact the Benefits Department at (855) 452-3638. NEWBORNS’ AND MOTHERS’ HEALTH  PROTECTION ACT  Group health plans and health insurance insurers offering group insurance coverage generally may not, under federal law, restrict benefits for any hospital length of stay in connection with childbirth, for the mother or newborn child, to less than 48 hours following a normal vaginal delivery, or less than 96 hours following a Cesarean section. However, federal law generally does not prohibit the mother’s or newborn’s attending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours as applicable). In any case, plans and insurers may not, under federal law, require that a provider obtain authorization from the plan or the insurance carrier for prescribing a length of stay not in excess of the above periods. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   14    BENEFIT CONTACTS   IF YOU HAVE QUESTIONS ABOUT CONTACT TELEPHONE WEBSITE/EMAIL   Hobby Lobby/Hemispheres Employees:  benefits@hobbylobby.com General Benefits questions such as:  When you’re eligible for benefits  How and when to enroll  Paid Time Off benefits Benefits representatives are available Monday through Friday, 8 a.m. to 5 p.m., Central time Medical & Dental Claims Meritain (888) 306-9215 www.Meritain.com Finding a network provider Meritain (888) 306-9215 www.Meritain.com Prescription Drug benefits EnvisionRx Options (800) 361-4542 www.envisionrx.com Flexible Spending Plans Meritain (888) 306-9215 www.Meritain.com Life or Long Term Disability Insurance Sun Life (800) 247-6875 http://www.sunlife.com/us 401(k) Savings Plan AGH (877) 638-2203 www.benefitwebaccess.net/AGH GlobalFit Fitness Program GlobalFit (800) 294-1500 www.globalfit.com/clients360 (855) 452-3638 Mardel Employees: benefits@mardel.com ABOUT THIS INFORMATION The information in this brochure offers only a general overview of benefit plan options. Some important details (including definitions, limitations and exceptions) are not included. Do not use this Benefits Summary Guide as your only source of information while making enrollment decisions, obtaining services or claiming benefits. For more details, visit the Benefits Forms and Documents section of Bentelligence, the online enrollment system to see your Summary Plan Description (SPD) for the Medical/Dental and Flexible Spending Plans, as well as other benefits documents. The official plan documents are used to determine how the plans work, what benefits are paid and who is eligible to receive them. Because you voluntarily choose to participate in the Hobby Lobby 401(k) plan, the Company does not guarantee the performance of any investments or make up any losses should they occur. Because these account options offer some tax advantages, you may wish to contact the IRS or a tax professional for advice. Hobby Lobby cannot advise you on tax issues. The Company reserves the right to change or end all or any part of the overall program at any time subject to required notification. The plans in this brochure are not an employment contract and do not guarantee continued employment. Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   15      Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   16    Need Assistance?  Contact a Benefits Representative  (855) 452‐3638  /  benefits@hobbylobby.com   17