Lawrence Holdings, Inc.

1. Lawrence Holdings, Inc. Open Enrollment – Effective January 1, 2012

2. Presentation Agenda • What’s new for 2012 • Your benefit choices • National Data on Employee Medical Benefits • Your employee contributions • What you need to do to enroll • Question & Answer

3. What’s Happening for This YearWhat’s New for 2012…??? • NO BENEFIT CHANGES …!!!

4. 2012 Program Highlights • Two medical plan options through Anthem BCBS • High PPO & Core HRA • Dental plan through Delta Dental • Dental PPO • Vision plan through VSP • Life/AD&D and Short/Long Term Disability through MetLife

5. Plan Design – Medical: Core HRA * Includes deductible; AD = After Deductible

6. Core Plan: HRA – How it works ? • Plan Highlights: • Available for Core Plan enrollees only • LHI will provide enrollees with partial deductible reimbursement based on their enrollment status: • Employee only coverage $1,100 • Employee + Family coverage $2,200 • Participants pay their portion of the deductible first, then are eligible to be reimbursed for the remainder up to the HRA credit maximum • Administered by COBRAsource • Claim forms submitted COBRAsource • Obtain claim forms from HR representative

7. Plan Design – Medical: High PPO * Includes deductible; AD = After Deductible

8. National Benchmark Data:Average In-Network Plan Deductible

9. National Benchmark Data:Average In-Network Plan Coinsurance

10. National Benchmark Data:Average In-Network Out-of-Pocket Max

11. National Benchmark Data:Average In-Network HRA/HSA Deductible

12. National Benchmark Data:Impact of Consumer Driven Healthcare

13. Wellness Options: Anthem BCBS Healthy Programs Available to ALL Medical Plan Participants • Tobacco-Free Program • 100% coverage for telephone counseling and educational materials • Also covers nicotine replacement therapy • Healthy Weight Program • 100% coverage for telephone counseling with a registered dietician & health educator • Includes on-line tools and educational materials • Other Programs • Stress Management • Physical Activity • Core Plan members can earn rewards for activities that contribute to good health & well being

14. Plan Design: Dental Plan SummaryDelta’s Two Networks – The PPO & The Premier * Fees by Premier Network dentists will be discounted & the dentist’s office will not bill patient for more that ‘approved’ fees. No Balance Billing to Patient. www.deltadentalnj.com Or call 1-800-DELTAOK

15. Plan Design: Basic & Voluntary Life/AD&D * You may apply for these coverages by filling out the application form for them along with the simple health statement and submitting for carrier approval.

16. Plan Design: Short & Long Term Disability * Note: California employees are covered under the California State Disability Income (CASDI) program; the MetLife STD benefit will integrate with CASDI for a total benefit up to, and not exceeding, 60%.

17. Plan Design: Vision Plan

18. Employee Contributions: Medical * Note: These are the amounts that you pay each month for these coverages if you elect them. They are not the amounts that are taken out of each of your paychecks. NO CHANGES……!!!

19. Employee Contributions: Dental & Vision * Note: These are the amounts that you pay each month for these coverages if you elect them. They are not the amounts that are taken out of each of your paychecks. NO CHANGES……!!!

20. Employee Contributions: Medical * Note: These benefits are provided by Lawrence Holdings at no cost to you. NO CHANGES……!!!

21. Changing your Coverage Elections • During open enrollment: you can add or delete dependents OR enroll in a plan that you have previously waived coverage for (some waiting periods may apply). • If you have an IRS “qualifying life event” (QLE): Due to IRS regulations the elections you make for January 1st cannot be changed unless you have a qualified status change OR life event. You can add or drop dependents to/from your plans if one of the following status changes occur during the plan year. • The addition of a dependent through marriage, birth, adoption, etc. • The loss of a dependent through divorce, death, or if a dependent looses eligibility (due to age, employment, etc.) • A change in spouses employment or benefit eligibility status • A substantial/material change in your, or your spouse’s, benefits coverage • PLEASE NOTE: changes must be made within 30 days of the qualifying event OR you must wait until the next qualifying event / plan open enrollment.

22. Key Enrollment Dates • You will only need to complete new applications IF you are changing any of your coverage selections from your 2011 elections. • All employees will need to complete and sign the LHI election/waiver form reaffirming selections for 2012, and initial benefit summary page.

23. QUESTIONS ?Thank you for attending ! The purpose of this presentation is to help answer questions and provide a summary of the employee benefits plans offered by Lawrence Holdings, Inc effective 1-1-2012. Please contact your HR representative with any further questions or for clarification instead of assuming anything. Though efforts have been made to ensure the accuracy of this information, it is subject to modification at any time. As always, LHI reserves the right to change or end any of its benefit plans at any time. • Erin Ethier • Lawrence Holdings, Inc • 1.866.949.1699 ext 6606 • / • Charles Andersen • RSC Insurance Brokerage • 1.312.506.8828