Herrs Employee Benefit Guide

Take Control

of Your Healthcare Costs!

YOUR FY2018 HEALTHCARE BENEFITS GUIDE

To Our Employees: Herr Foods is proud to offer you comprehensive benefits, including medical, dental and vision insurance, retirement savings programs and many other benefits designed to help you and your family stay healthier and live better.

Our company-wide focus on managing healthcare costs is paying off. This year, we were able to hold the line on employee contribution rates for our medical insurance plans, despite nationwide increases in healthcare costs. We have also introduced a second high-deductible plan option, the HDHP2 $1,500/$3,000 plan, which provides the benefits of an HDHP plan but with a lower out-of-pocket maximum than either our HDHP1 $2,000/$4,000 plan or our PPO plan.

As you know, we are committed to your well-being and have offered various incentives to encourage all members of the Herr’s family to adopt healthy lifestyles. We have also provided you with tools and information to help you maximize your benefits while managing your healthcare costs.

We have provided you with many options to ensure you have access to the benefits that best meet your needs. I encourage you to carefully review this guide, as the decisions you make now will affect your healthcare and other costs throughout the upcoming year. We have changed the guide format this year to give you more tips and worksheets to help you save money and make better-informed choices.

Herr’s to your health!

Ed Herr CEO/President

IMPORTANT: Sept.

1

2017

to

Aug.

Current Employees: You must enroll by July 14, 2017.

2018

New Employees: You must enroll within 30 days of the date of benefits eligibility.

31

The FY2018 plan year is from Sept. 1, 2017, to Aug. 31, 2018. Your Open Enrollment decisions will be reflected in your September 7th pay. For new benefits-eligible employees, your benefits decisions will be reflected in the first pay of the month after you have completed one month of continuous employment. If anything in this guide conflicts with the official plan documents, the plan documents will govern.

If you do not complete your enrollment within the designated period, you will not be eligible for any elective benefits for the FY2018 plan year.

Your FY2018 Benefits MEDICAL INSURANCE • Medical Plans • Prescription Drug Plan • Comparing Your Plan Options

COMPANY-PAID BENEFITS • Life Insurance • Short-Term Disability • Profit-Sharing • Employee Assistance (EAP) • Chaplaincy

DENTAL AND VISION • Dental Plans

VOLUNTARY BENEFITS

• Vision Plan

• Long-Term Disability • Supplemental Life Insurance • Prepaid Legal • Critical Illness • Accident Guard • Hospital Indemnity • Identity Theft

MEDICAL INSURANCE

DENTAL AND VISION

Overview. . . . . . . . . . . . . . . . . . 4 HDHP1 $2,000/$4,000 . . . . . . . 5 HDHP2 $1,500/$3,000 . . . . . . . 5 HSA. . . . . . . . . . . . . . . . . . . . . . 6 PPO. . . . . . . . . . . . . . . . . . . . . . 8 FSA . . . . . . . . . . . . . . . . . . . . . . 9 What Is Covered? . . . . . . . . . . 10 Employee Contributions . . . . . 11 Wellness Discounts. . . . . . . . . 11 Plan Comparison. . . . . . . . . . . 12

Prescriptions. . . . . . . . . . . . . .

Dental Plans . . . . . . . . . . . . . .

Vision Plans. . . . . . . . . . . . . . .

Company-Paid Benefits. . . . . .

Employee Assistance . . . . . . .

Chaplaincy. . . . . . . . . . . . . . . .

Short-Term Disability. . . . . . . .

Life Insurance . . . . . . . . . . . . .

Profit-Sharing. . . . . . . . . . . . . .

VOLUNTARY BENEFITS 13 17 18 19 20 20 22 24 33

Long-Term Disability . . . . . . . .

Supplemental Life. . . . . . . . . .

Hospital Indemnity . . . . . . . . .

Accident Guard . . . . . . . . . . . .

Critical Illness. . . . . . . . . . . . . .

Prepaid Legal. . . . . . . . . . . . . .

Retirement. . . . . . . . . . . . . . . .

22 23 25 27 29 31 32

Have a question? Contact CoreSource at www.mycoresource.com.

| 3

Return to Table of Contents

What’s New for

FY2018 NO CHANGE IN EMPLOYEE MEDICAL PLAN CONTRIBUTION RATES Herr’s employees and the company have worked hard to stem rising healthcare costs. As a result, employee contribution rates will not change in FY2018, even though rates are expected to climb by more than 5% nationally in 2017 alone.

LEARN THE TERMS

NEW MEDICAL PLAN OPTION Herr’s has added a new medical plan option for healthcare coverage in FY2018. The HDHP2 $1,500/$3,000 plan offers company contributions into a Health Savings Account and tax advantages, but with a lower out-of-pocket maximum than the existing HDHP1 $2,000/$4,000 plan or the PPO plan.

NEVER WORRY ABOUT OVERLOOKING A MEDICAL BILL AGAIN!

For HDHP: the amount you must pay before the HDHP plan begins to cover any costs.

For PPO: the amount you must pay before the PPO plan begins to cover costs other than co-pays.

CO-PAY

With SimplicityComplete, you get a single verified, consolidated medical billing statement, multiple payment options, an advocate to help you manage healthcare costs and enrollment in a rewards program.

The fee that you pay toward the cost of certain covered medical expenses.

MORE HELP TO REDUCE COSTS

CO-INSURANCE

CoreSource, our Benefits administrator, can now connect with you via text, phone, online chat or email to help you make full use of your benefits, which limits your out-ofpocket expenses and costly gaps in care.

CONTINUED EMPHASIS ON WELLNESS Herr’s employees are saving thousands on their medical plan contributions by completing their biometric screening and meeting two of the four results. It’s not too late to save. Contact Human Resources to find out how.

WELCOME TO HERR FOODS’ BENEFITS! Employees of Silk City, which was acquired in early 2017, will have access to Herr’s benefits for the first time in FY2018.

4 | 4 |

DEDUCTIBLE

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Co-payments do not apply to the out-of-pocket annual maximums.

For the PPO plan, this is the 20% you pay for certain services after the deductible has been met.

OUT-OF-POCKET ANNUAL MAXIMUM

The maximum amount you pay in deductible and co-insurance in a plan year. Once met, the plan will cover all remaining eligible costs for the rest of the plan year, except co-pays.

Return to Table of Contents

Helping You Control Healthcare Costs Throughout this guide, you will find ideas and worksheets to help you manage your healthcare costs. We also have a number of programs available to help you simplify your healthcare decisions, live a healthier lifestyle and become a better healthcare consumer. Following are overviews of some of the programs available to you: • P articipate in one or more of the many wellness activities that we offer throughout the year. They’re designed to help you stay healthy, and you might even win a prize or some time off.

• C omplete your biometrics this year and take advantage of the up-to-50% discount on your employee contributions for the medical plan. You can also participate in a health risk assessment. This assessment continues to be available to our members on a voluntary basis, and we encourage everyone to complete it at their convenience.

• N ever worry about overlooking medical bill payments again with SimplicityComplete. With SimplicityComplete, you pay one consolidated monthly bill and earn credits toward your deductibles and co-insurance.

• T ake advantage of Teladoc, a convenient and effective option to address routine medical issues. Teladoc provides access to doctors by phone or online, 24 hours a day, for medical questions and routine care, and this service is available at no cost to you!

• S hop for the highest-quality care at the lowest cost to you. Healthcare Blue Book (HBB) concierge services can help you make the best quality and cost decisions for your care. You owe it to yourself and your family to take a few moments to make sure you know your options. This transparency tool will make it easier than ever for our members to be informed consumers. HBB also offers a Go Green to get Green ($) program on certain procedures where you are rewarded ($25, $50, or $100) for using the HBB platform when shopping for the best quality at the lowest cost and then utilizing that facility or provider.

A DOSE OF PREVENTION The best way to reduce your costs is to stay healthy. We strongly encourage you and your family members to take advantage of your annual preventive care benefits and maintain healthy habits like exercising and maintaining a healthy diet. Our preventive care benefits are provided at no cost to you and are focused on identifying potential health issues early on.

• O neRx allows you to log on and find the cost of most prescriptions from pharmacies closest to you. Your savings can be significant when you shop around.

MORE WAYS TO CUT HEALTHCARE COSTS Most people have no idea what their healthcare costs will be in the upcoming year and are doing little or nothing to reduce those costs, even though Americans are spending 10% of their income on healthcare expenses, according to a recent survey. In addition to taking advantage of tools offered by Herr Foods, such as the Healthcare Blue Book, there is much you can do to cut your healthcare costs.

You will find tips on how to cut your healthcare costs throughout this guide. Look for the cost-cutting icon.

Have a question? Contact CoreSource at www.mycoresource.com.

| 5

Return to Table of Contents

Your FY2018 Medical Insurance Options Option 1 HIGH-DEDUCTIBLE HEALTH PLAN (HDHP) 1 $2,000/$4,000 • Lowest Employee Contributions

• N o Co-insurance, 100% Coverage After Deductible Is Met*

• Higher Deductibles, No Co-pays

Option 2 HIGH-DEDUCTIBLE HEALTH PLAN (HDHP) 2 $1,500/$3,000 • Higher Employee Contributions

• No Co-insurance, 100% Coverage After Deductible Is Met*

• Lower Deductibles, No Co-pays

Option 3 PREFERRED PROVIDER ORGANIZATION (PPO) PLAN • Higher Employee Contributions • Lower Deductibles, Co-pays and Co-Insurance * Plan pays 100% of eligible in-network expenses. There is a co-pay for prescription drugs.

See plans for details and exclusions.

6 |

PROVIDER NETWORK

PREVENTIVE CARE COVERAGE

OFFICE VISITS

LABS, X-RAYS, IMAGING

PRESCRIPTION DRUG COVERAGE

YOUR PAYROLL CONTRIBUTIONS

HERR’S HSA MATCHING CONTRIBUTION

HDHP1 $2,000/$4,000

AETNA

100%, no deductible

100%, after deductible

100%, after deductible

Must meet deductible, then co-pays

$

Up to $1,000

HDHP2 $1,500/$3,000

AETNA

100%, no deductible

100%, after deductible

100%, after deductible

Must meet deductible, then co-pays

$$

Up to $1,000

PPO

AETNA

100%, no deductible

$20 co-pay

80%, after deductible

Co-pays

$$

Not Eligible

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

HDHP Plans

SWITCHING FROM THE PPO PLAN?

The HDHP1 $2,000/$4,000 and HDHP2 $1,500/$3,000 plans are HighDeductible Health Plans that use the same provider network and provide the same coverage of eligible medical expenses as the PPO plan. However, you pay all medical expenses until you reach your deductible, except for preventive care, which is covered 100%. Unlike the PPO, once you meet your deductible, the HDHP plans cover 100% of your eligible medical expenses with no co-insurance or co-pays (except on prescription drugs).

You will pay less in your employee contribution for the HDHP1 $2,000/$4,000 plan, but you will also have a higher deductible.

You can save for your deductible and other qualified medical expenses in a tax-free Health Savings Account. Herr Foods also matches your deposits into your HSA (up to a maximum) to help you cover your deductible.

If you are switching to an HDHP plan for FY2018 and you are currently enrolled in the Health Care Flexible Spending Account plan for 2017, you will not be able to make any HSA contributions until the end of the grace period for your Healthcare Flexible Spending Account, due to IRS regulations if you have a balance remaining after 8/31/2018. Contact CoreSource at www.mycoresource.com for additional information about HSA eligibility.

WHAT ARE THE ADVANTAGES OF THE HDHP PLANS? • G reater control – You hold onto more of your money rather than pay it up-front in premiums for healthcare you may not use.

• Preventive services coverage – Preventive services are covered 100%.

• S pecified out-of-pocket maximum – The plan has a built-in cap on annual healthcare expenses; your deductible is your maximum.

• O pportunity to open an HSA – Save tax-free money to pay your deductible or co-insurance; both you and Herr Foods can contribute to the account.

• L ower employee contribution – Your HDHP1 $2,000/$4,000 plan has a lower weekly employee contribution than the PPO Plan.

• I ntegrated deductible – Your health plan and pharmacy benefits share the same deductible, which means your prescription costs help you meet the deductible and out-of-pocket maximum faster.

HSA MATCH Herr Foods will match 50% of your annual HSA contribution, up to $500 for an individual and up to $1,000 for employee+1 or more. The Herr’s contribution will be made during the first week of September 2017 to help ensure you have funds in your HSA when you need them.

Have a question? Contact CoreSource at www.mycoresource.com.

| 7

Return to Table of Contents

Save Tax-Free with a Health Savings Account One of the primary benefits of HDHP plans is that they qualify, under IRS regulations, as high-deductible plans, which enables you to save money tax-free in an HSA to offset your deductible. The HSA is a savings account that you own.

There are many benefits to opening an HSA, including: • P re-tax savings. You don’t have to pay taxes on the funds you save in your HSA. You can contribute up to the maximum IRS contribution limit to your HSA. • S pending your healthcare savings tax-free. By using tax-free dollars to pay for IRS-qualified medical, dental and vision expenses, you’re actually paying less than you would pay out-of-pocket.

• I t’s your money! Unlike other accounts, there’s no “use it or lose it” policy—even if you change jobs or healthcare plans.

• I nvestment options. You can grow your HSA by investing your savings in self-directed investment offerings. The interest you earn from HSA investments is not taxed, as long as the funds remain in the HSA Bank savings account. You can find out how much you can earn over time, using the Health Savings Calculator at http://www.hsabank.com/hsabank/ education/hsa-savings-calculator.

BE A SMART HEALTHCARE CONSUMER HDHP plans are designed to encourage participants to be smarter healthcare consumers since they are generally putting their own money up before plan benefits begin. Being an educated healthcare consumer will drive down your healthcare costs, which will benefit not only you but all healthcare users.

To learn more, there are videos, worksheets and more available at www.hsabank.com.

HSA FREQUENTLY ASKED QUESTIONS Q: How do I establish my HSA? A: You must elect the HDHP option during Open Enrollment. Our HSA administrator, the HSA Bank, will mail an HSA kit to your home that will contain details about optional selfdirected investment options, instructions for you to access your account online and your HSA Bank account number. In a separate mailing, you will receive your HSA Bank debit card.

Q: Who is HSA Bank?

A: HSA Bank is a division of Webster Bank, NA, Member FDIC.

8 |

Q: Is interest paid on my HSA balance?

A: Yes. Your HSA fund will accumulate interest each year, just like a traditional savings account. You will benefit from a tiered interest rate structure on balances maintained in your HSA with HSA Bank. This means the more you save, the more you earn. Plus, the interest rate applies to every dollar in the account, with no threshold. The interest earned is also tax-free and can be used to pay eligible medical expenses tax-free.

Q: How much is Herr Foods contributing to the HSA? A: Herr Foods will jump-start your savings by depositing 50% of your contribution, up to $500 for an individual and $1,000 for all other tiers,

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

into your HSA account. Herr’s FY2018 contribution will be made during the first week of September 2017. This incentive is only available for employees during our annual Open Enrollment period.

Q: How much can I contribute annually to an HSA? A: Each year, the IRS sets an annual maximum contribution. All contributions, including those made by Herr Foods, will count toward the annual limit. The 2017 annual limits are as follows: 2017 Maximum HSA Annual Contribution Limit Employee Only. . . . . . . . $3,400 Employee + 1 or more . . . $6,750 55+ Catch-Up Contribution. . . . . . . . . . . . . $1,000

Return to Table of Contents

HOW MUCH SHOULD I CONTRIBUTE TO MY HSA? Unlike a Healthcare Flexible Spending Account, you can roll over your HSA balance from year to year, so it’s not as important to calculate exactly how much to contribute to your HSA. Following are a few suggestions.

1. Contribute the maximum. Since you can roll over your HSA, any funds left over at year end will be available to you in a future year when you might have higher medical expenses. In addition, the more you contribute, the more your HSA balance can grow since you are investing it. Any gains you earn aren’t taxed, which creates a snowball effect, helping your balance increase faster than other non-tax advantaged investments.

Important: If you are at least age 65 and enrolled in a Medicare plan, including the free Part A plan for hospitalization, you may still elect an HDHP plan. However, you are not permitted to contribute to a health savings account, per IRS regulations.

2. Can’t afford the max? Cover your deductible. Only put into your HSA what you can afford, since you will pay penalties if you need to make an emergency withdrawal. But if you can do it, save at least enough to cover your deductible. That way, you will receive the full Herr Foods matching contribution and be covered for medical expenses up to when your plan kicks in with 100% coverage.

3. Make the match. Tight on funds? Contribute at least enough to earn the full Herr Foods HSA match. This is free money!

Q: Is there a cost associated with having an HSA account?

A: No, there is no cost since Herr Foods Inc. pays the monthly maintenance fee.

Q: Can I use my HSA funds to cover any health expense?

A: You can use your HSA funds to pay your eligible medical expenses that are being applied to your HDHP plan deductible. In addition to covered medical expenses, you also may use your HSA funds on a tax-free basis to pay any IRS-qualified (or eligible) healthcare expenses, as defined by Section 213(d) of the Internal Revenue Code. Some of these eligible health expenses include eyeglasses, prescription contacts, dental expenses and LASIK surgery.

You can locate a quick reference guide of eligible medical expenses at http://www.hsabank.com/ Q: What types of services CANNOT be reimbursed from the HSA on a tax-free basis?

A: If you make a withdrawal from your HSA for any nonqualified healthcare expenses, a penalty of 20% plus ordinary income taxes may be due on the amount of money spent. Some examples of nonqualified expenses include: • Elective cosmetic surgery • Teeth-whitening procedures • T oiletries used for general hygiene and well-being • Over-the-counter drugs

Q: Are there any restrictions on establishing an HSA? A: You (the employee) must be enrolled in an HDHP and be 18 years or older. You cannot be enrolled in Medicare, claimed as a dependent on someone else’s tax return or have non-HDHP health coverage, except as permitted by the IRS. Q: How do I access my HSA funds?

A: There are a variety of options for accessing your HSA funds, but you will primarily use your HSA debit card, which you will receive free from HSA Bank. You can present the debit card for direct payment of service to any provider who accepts Visa. If you pay with the debit card in a “credit” transaction, no fees will apply. A $2 fee will be applied if it is processed as a “debit” transaction.

Have a question? Contact CoreSource at www.mycoresource.com.

| 9

Return to Table of Contents

Preferred Provider Plan (PPO) The PPO Plan enables you to receive preventive, routine and emergency care from a network of doctors, hospitals, healthcare facilities, laboratories and other healthcare providers in the Aetna Signature Administrators PPO network (the same comprehensive doctor/hospital network as the HDHP). If you are accessing care with a network provider, then your responsibility will be in the form of deductibles and co-insurance.

The plan pays 80% of eligible medical expenses after the deductible for in-network services has been met. If you access care from a non-network provider, then you will be responsible for higher deductibles and co-insurance amounts. This plan has higher employee premiums than the HDHP, but lower deductibles.

You can save tax-free for medical expenses with a Health Care Flexible Spending Account (FSA), but the FSA has less flexibility than the HSA.

ESTIMATE YOUR MEDICAL EXPENSES Estimating medical expenses is not only critical to selecting the best medical plan option for you and your family, but it also will help you identify how much to save in your tax advantaged HSA or Healthcare Flexible Spending Account. In addition, you can start planning now to reduce your costs.

Some factors for estimating your medical expenses for FY2018: • C alculate your employee medical plan contribution for FY2018 • W ill you be covering just yourself or adding on your dependent(s)?

Review the plan rates on page 11.

• W hat did you pay for deductibles and co-pays in FY2017? Do you expect those costs to be the same or different in FY2018?

• W hat other healthcare costs did you have in FY2017? Do you expect any differences in FY2018?

10 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Healthcare Flexible Spending Accounts Most of us have expenses for health that must be paid out-of-pocket. A Healthcare Flexible Spending Account (FSA) gives you a way to save for these expenses in advance—and get a tax break at the same time.

Your contributions are automatically deducted from your pay on a pretax basis—this means they are not subject to federal income tax, Social Security and, in some cases, state taxes.

Remember, unlike an HSA, you can’t carry over FSA balances from year to year. Any money left in the account will be swept away by the IRS. In addition, Herr Foods does not make contributions into your FSA account.

The full advantages of an FSA are only available to participants of the PPO plan.

If you have an HSA with your HDHP plan, you have limited healthcare flexible spending account options. For more information, please contact your Human Resources team at 1-800-344-3777, ext. 6440 or 6533, or at benefits@herrs.com.

THE POWERFUL TAX BENEFITS OF AN FSA The following example shows how you can save money on your taxes by using a Healthcare FSA. Joan is an employee who earns $45,000 a year. She estimates that she will incur about $2,500 in unreimbursed FSA-eligible healthcare expenses this year so she contributes that amount. Following is a comparison of Joan’s take-home pay after expenses, with and without flexible spending accounts.

WITH FSA $45,000

WITHOUT FSA $45,000

Pre-Tax contributions to FSA (which are used to pay eligible healthcare expenses)

-$2,500

-$0

Taxable Salary

$42,500

$45,000

Federal Income Taxes*

– $10,625

– $11,250

Social Security and Medicare

– $3,188

– $3,375

State Taxes

– $1,275

– $1,350

– $0

– $2,500

$27,412

$26,525

JOAN’S ANNUAL PAY

After-Tax Expenses for Healthcare Take-Home Pay

Amount Extra in Joan’s Pocket: $887 *Estimate based on Joan filing a federal income tax return using head of household filing status with three personal exemptions and the standard deduction. State taxes differ; 3% was used for this example. This example does not show the effect of the dependent care tax credit.

QUIT SMOKING, SAVE THOUSANDS Quitting tobacco can save your health, your looks and your money. Smoking cigarettes is a massive financial drain. The average cost of a pack of cigarettes in the U.S. is $6.36. That means that quitting smoking will save you: • $44.52 in just one week, enough for dinner for two in an average restaurant • $190.80 in one month, enough for a return flight from Europe • $2,321.40 in one year, enough to pay cash for a new Apple MacBook or a round-trip flight to Europe • $23,214.00 in one decade, enough to pay cash for a new Kia Soul or Chevrolet Sonic

Have a question? Contact CoreSource at www.mycoresource.com.

| 11

Return to Table of Contents

Comparing Your Plan Options – Your Medical Coverage

The benefits schedule below is illustrative and not intended as a contract of benefits. Expenses are considered as outlined in the official plan documents and medical plan contract. Have a question about your medical plan? Contact CoreSource at www.mycoresource.com or 1-877-218-7345.

HDHP1 $2,000/$4,000 NETWORK

HDHP2 $1,500/$3,000

NON-NETWORK

NETWORK

NON-NETWORK

PPO PLAN NETWORK

NON-NETWORK

Deductible

Employee: $2,000 Family*: $4,000

Employee: $4,000 Family: $8,000

Employee: $1,500 Family: $3,000

Employee: $4,000 Family: $8,000

Employee: $1,000 Family: $2,000

Employee: $2,000 Family: $4,000

Co-insurance Maximum

N/A

N/A

N/A

N/A

Employee: $1,500 Family: $3,000

Employee: $4,000 Family: $8,000

Out-of-Pocket Max (includes deductibles)

Employee: $2,000 Family: $4,000

No Limit

Employee: $1,500 Family: $3,000

No Limit

Employee: $2,500 Family: $5,000

Employee: $6,000 Family: $12,000

Office Visit Co-Pay

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$20 co-pay

50% after deductible

Specialist Visit

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$40 co-pay

50% after deductible

Lab

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

X-ray

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

Advanced Imaging

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

Surgery

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

In-Hospital Co-Pay

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

Outpatient Surgery

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

Skilled Nursing Facility

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

80% after deductible

50% after deductible

Outpatient Physical Therapy

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$20 co-pay first 10 visits w/ recertification

50% after deductible

Emergency Room Co-Pay

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$150 co-pay

$150 co-pay

Urgent Care

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$50 co-pay

50% after deductible

Wellness/ Preventive Care

100% covered in full if preventive

50% covered after deductible

100% covered in full if preventive

50% covered after deductible

100% covered in full if preventive

50% covered after deductible

Chiropractic Co-Pay

100% covered after deductible

50% covered after deductible

100% covered after deductible

50% covered after deductible

$40 co-pay

50% after deductible

Durable Medical Equipment

100% covered, after deductible

80% covered, after deductible

Prescription Drugs

Prescription drugs are subject to the deductible. When the deductible is met, Rx co-pays apply.

See pages 13-15 for information.

*Family includes all tiers, except Employee Only

STAY IN-NETWORK 12 |

Check to make sure you are receiving all care from in-network providers. Even if your doctor and hospital are in-network, it doesn’t mean that every service prescribed for you is as well. Make sure when you receive a test, lab work and other services that the providers are in-network. Contact CoreSource if you have a question.

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Comparing Your Plan Options: Medical Plan Contributions for FY2018 Region 2: Allentown, Chillicothe, Claysburg, Concordville, Egg Harbor, Hainesport, Hatfield, New Castle, N.E. Philadelphia, Nottingham, Perryopolis, South Philadelphia, Wilkes Barre FY2018 EMPLOYEE PREMIUMS

HDHP1 $2,000/$4,000 DISCOUNTED RATES* Weekly

Annual

HDHP2 $1,500/$3,000

FULL RATES Weekly

Annual

DISCOUNTED RATES* Weekly

Annual

PPO PLAN

FULL RATES Weekly

DISCOUNTED RATES*

Annual

Weekly

Annual

FULL RATES Weekly

Annual

Employee

$12.00

$624.00

$26.00

$1,352.00

$28.35

$1,474.20

$47.25

$2,457.00

$28.35

$1,474.20

$47.25

$2,457.00

Employee + Child(ren)

$15.00

$780.00

$34.00

$1,768.00

$50.40

$2,620.80

$71.40

$3,712.80

$50.40

$2,620.80

$71.40

$3,712.80

Employee + Spouse

$18.00

$936.00

$40.00

$2,080.00

$53.55

$2,784.60

$84.00

$4,368.00

$53.55

$2,784.60

$84.00

$4,368.00

Family

$24.00

$1,248.00

$54.00

$2,808.00

$72.45

$3,767.40

$112.35

$5,842.20

$72.45

$3,767.40

$112.35

$5,842.20

Region 3: Elkridge, Elmsford, Hampton, Lakewood, Oakland, Seaford, Silk City, Somerset FY2018 EMPLOYEE PREMIUMS

HDHP1 $2,000/$4,000 DISCOUNTED RATES* Weekly

Employee

$13.00

Annual $676.00

HDHP2 $1,500/$3,000

FULL RATES Weekly $28.00

Annual $1,456.00

DISCOUNTED RATES* Weekly $30.45

Annual $1,583.40

PPO PLAN

FULL RATES Weekly $51.45

DISCOUNTED RATES*

Annual $2,675.40

Weekly $30.45

Annual

FULL RATES Weekly

$1,583.40

$51.45

Annual $2,675.40

Employee + Child(ren)

$16.00

$832.00

$37.00

$1,924.00

$54.60

$2,839.20

$77.70

$4,040.40

$54.60

$2,839.20

$77.70

$4,040.40

Employee + Spouse

$20.00

$1,040.00

$43.00

$2,236.00

$57.75

$3,003.00

$91.35

$4,750.20

$57.75

$3,003.00

$91.35

$4,750.20

Family

$26.00

$1,352.00

$59.00

$3,068.00

$78.75

$4,095.00

$120.75

$6,279.00

$78.75

$4,095.00

$120.75

$6,279.00

* See the Wellness Discount information below

Discounts and Surcharges WELLNESS DISCOUNT

TOBACCO SURCHARGE

SPOUSAL SURCHARGE

You can save more than $2,000 on your employee medical plan contributions when you (and your spouse, if enrolled in our health plan) complete biometric screening and meet 2 out of the 4 metrics:

The tobacco surcharge will remain at $10 per week for FY2018. The tobacco surcharge is added for those employees who used one or more of the following products at least one time per week on average during the preceding six months: cigarettes, cigars, pipes, hookahs, smokeless tobacco, chewing tobacco, snuff or electronic cigarettes.

Herr Foods is proud to provide medical plan coverage to you and your family. However, there is a surcharge if your spouse meets the criteria outlined below. If you are enrolled in the HDHP1 or HDHP2 plan, the spousal surcharge is $10 per week. The spousal surcharge for those electing the PPO plan in FY2018 is $40 per week.

(Please note: If you complete a tobacco cessation program or engage with your physician on a treatment plan and turn in your certificate of completion to the Human Resources department, then you will qualify as a non-tobacco user and the surcharge will be removed. A mouth swab test will be administered to confirm that you are tobacco-free.)

The spousal surcharge is added for those employees whose spouses meet all of the following criteria:

• BMI — less than or equal to 33 • B lood pressure — less than or equal to 140/90 • T otal Cholesterol/HDL ratio — less than or equal to 4.0 • B lood sugar — less than or equal to 100 See page 19 for additional information.

• S pouse is employed at a company that offers healthcare coverage** • S pouse is eligible to enroll in his/ her employer’s coverage • S pouse declines his/her employer coverage **If you and your spouse work for Herr Foods, you are not subject to the spousal surcharge

Have a question? Contact CoreSource at www.mycoresource.com.

| 13

Return to Table of Contents

Comparing Your Plan Options: Selecting the Plan That Is Right for You With so many options, it can be challenging to compare plans to determine the best choice for you and your family. Use the following information to help you compare plan costs and make the right choice for you and your family.

EXAMPLE: EMPLOYEE-ONLY Chip (who works in Region 2 and qualified for the Wellness Engagement incentive) has employee-only coverage and has a hospital bill of $10,000. This is his only medical event for the year. (He did not pay anything toward his annual deductible until the hospital stay. He uses in-network providers.)

HDHP1 $2,000/$4,000

HDHP2 $1,500/$3,000

PPO PLAN

Chip’s hospital bill

$10,000

$10,000

$10,000

Chip must first pay his deductible before the plan begins to cover his costs

$2,000

$1,500

$1,000

Balance

$8,000

$8,500

$9,000

Chip is responsible for his co-insurance, up to his out-of-pocket maximum

$0

$0

20% co-insurance capped at $1,500

LESS: Herr Foods Matching HSA Contribution

$500

$500

N/A

TOTAL paid by Chip for the medical event (deductible + co-insurance, up to maximum)

$1,500 ($2,000-$500)

$1,000

$2,500 ($1,000+$1,500)

Medical plan employee contributions paid by Chip during the FY2018 plan year

$624

$1,474

$1,474

Total paid by Chip for medical coverage in FY2018

LOWEST COST: $2,124 (Does not include Rx co-pays)

$2,474 (Does not include Rx co-pays)

$3,974 (Does not include Rx or other co-pays)

EXAMPLE: EMPLOYEE+FAMILY Example: Chip (who works in Region 2, qualified for the Wellness Engagement incentive and covers his spouse and two children) has employee + family coverage. His entire family has received services and has hospital bills that total $20,000.

(He did not pay anything toward their annual deductible until the hospital stay. His family uses in-network providers.)

HDHP1 $2,000/$4,000

14 |

HDHP2 $1,500/$3,000

PPO PLAN

Chip’s hospital bill

$20,000

$20,000

$20,000

Chip must first pay his deductible before the plan begins to cover his costs

$4,000

$3,000

$2,000

Balance

$16,000

$17,000

$18,000

Chip is responsible for his co-insurance, up to his out-of-pocket maximum

$0

$0

20% co-insurance capped at $3,000

LESS: Herr Foods Matching HSA Contribution

$1,000

$1,000

N/A

TOTAL paid by Chip for the medical event (deductible + co-insurance, up to maximum)

$3,000 ($4,000-$1,000)

$2,000 ($3,000-$1,000)

$5,000 ($2,000+$3,000)

Medical plan employee contributions paid by Chip during the FY2018 plan year

$1,248

$3,767

$3,767

Total paid by Chip for medical coverage in FY2018

LOWEST COST: $4,248 (Does not include Rx co-pays)

$5,767 (Does not include Rx co-pays)

$8,767 (Does not include Rx or other co-pays)

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Your Prescription Drug Coverage After you enroll in one of the Herr Foods medical plan options, you will automatically receive a combined Medical and OptumRx prescription drug card that you can use at any pharmacy in the OptumRx network. You have multiple options when selecting a pharmacy to fulfill your prescription drug order. Please make sure you present your medical/prescription drug card when ordering.

• A lign Program Pharmacies: These pharmacies offer generic drugs for a $0 co-pay: Farm Fresh, Genuardi’s, Health Mart, www.accesshealth.com, Kmart, Kroger, Med-Fast, Safeway, Sam’s Club, Shoppers, Weis Markets, Albertsons, Sav-on, Tom Thumb and Walmart.

• O ptumRx Pharmacy Network: With more than 64,000 participating pharmacies nationwide, including the Align pharmacies, there are likely several convenient to your home and work. Visit the pharmacy locator at www.optumrx.com to find the pharmacy nearest you.

• O ptumRx Home Delivery: OptumRx is a market leader in mail-order prescription for maintenance drug solutions.

• C anaRx: CanaRx was formed by doctors, pharmacists and healthcare professionals to provide safe, affordable $0 co-pay brand-name medications.

• OptumRx Briova: This specialty pharmacy provides 30-day supplies of specialty drugs, such as Injectables.

Important – If you are enrolled in an HDHP, you pay 100% of your pharmaceutical costs until your deductible is reached. You are then responsible only for the co-pays.

PRESCRIPTION PLAN COSTS

GO GENERIC AND SAVE BIG Whenever possible make sure you request and receive a generic version of your prescribed medications.

These drugs contain the same ingredients as the brand-name medications, but will save you big. For PPO participants, you will pay a much lower co-payment.

HDHP1 and HDHP2 participants will save the most, since you must pay the full cost of prescription drugs until you reach your deductible.

Our prescription drug benefit provides you with increased flexibility at the lowest cost to you—all the way down to $0 if you order a 30-day supply of select generic drugs from an Align Program pharmacy. Through our Prescription Drug Plan administrator, Optum Rx, you have multiple options to save money.

Make sure you understand your options when ordering prescription drugs to take advantage of your lowest-cost options.

Have a question? Contact CoreSource at www.mycoresource.com.

| 15

Return to Table of Contents

*

Prescription Program Co-payments HOW ARE YOU ORDERING YOUR PRESCRIPTION DRUGS?

At the Pharmacy (30-day supply)

YOUR CHOICES OptumRx Program Pharmacies OptumRx Affiliate Pharmacies

OptumRx

Mail Order (90-day supply)

DRUG TYPE

CO-PAYMENT

Generic

$0

Preferred Brand

$20

Non-Preferred Brand

$60

Generic

$15

Preferred Brand

$35

Non-Preferred Brand

$75

Generic

$30

Preferred Brand

$70

Non-Preferred Brand

$150

Generic

N/A

Preferred Brand

$0

Non-Preferred Brand

N/A

Generic

$150

Preferred Brand

$150

Non-Preferred Brand

$150

CanaRx

Specialty

OptumRx/Briova

WHAT DO YOU DO?

Present your medical/prescription card

You have several options: Order by mail using an order form available at https://www.optumrx.com/ Order online at https://www. optumrx.com/ Visit www.HerrsScripts.com or call 1-866-893-6337 (M-F, 8:30 a.m. to 6:30 p.m. or Saturday, 9 a.m. to 5:30 p.m.) If your medication is offered through the Herr’s Scripts program, complete an enrollment form (available from your Benefits team, on the website www.HerrsScripts.com or by calling 1-866-893-6337). Submit the enrollment form, along with your original prescription(s) via mail or fax. (Faxed prescriptions are ONLY accepted if sent directly from the physician’s office.)

Your pharmacy will be notified by OptumRx when Briova must be used.

You or your physician may request prior authorization by calling OptumRx at 1-877-526-9906.

For a list of OptumRx Align program pharmacies and affiliated pharmacies, visit www.optumrx.com. *HDHP plan participants must pay the full cost of prescription drugs until you reach your deductible. Co-pays only apply after you reach your deductible.

SAVE ON YOUR PRESCRIPTION DRUGS WITH ONERX You can save on your prescription drug costs by using the OneRx mobile savings solution. OneRx finds coupons and discounts on prescription medication and lets you know your out-of pocket costs in real time. Stay up-to-date with notifications on all savings and price changes for the drugs you track.

16 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Managing Your Care: Prescription Drug Programs VOLUNTARY DIABETES MANAGEMENT PROGRAM – COVERED BENEFITS

STEP THERAPY PROGRAM Herr Foods Inc. promotes a step therapy program for people who must take prescription drugs regularly for an ongoing condition.

• C o-pays are waived for all generic diabetic medications.

Through this program, drug therapy for a medical condition begins with the most safe and cost-effective treatment.

If necessary, the program will utilize more costly and risky treatments if the initial therapies are not effective. The step approach aims to minimize risks and control costs.

In fact, step therapy typically saves you money on out-of-pocket costs.

Please make sure your physician is aware of the Herr Foods Inc. step therapy program.

• T est strips and lancets are available at no cost through ActRx. eed Help to Manage Your N Diabetes? 4G Biometrics Might Be Right for You. 4G Biometrics “Diabetes Wellness” allows you to:

Note: Step therapy guidelines may be updated on an ongoing basis due to changes in the pharmacy industry. For more information, contact CoreSource Connect at 1-877-218-7345.

• A cquire diabetic supplies: glucometers, test strips, lancer/lancets, etc., at no cost to you.

VOLUNTARY DIABETES MANAGEMENT PROGRAM

• W ork with trained educators to meet your blood sugar goals.

Herr Foods Inc. has partnered with ActRx to improve patient healthcare for individuals with diabetes.

The program is offered to our employees and their dependents with diabetes. Participation is voluntary, and those participating will actively engage in an educational/ health monitoring program, working with specially trained pharmacists to learn how to better self-manage their diabetes. They will meet with their assigned pharmacist coach (once a month for the first six months, then every three months thereafter) to review and discuss matters regarding all of the complexities of diabetes.

They will work collaboratively with their physicians/healthcare providers by communicating throughout the program.

Successful self-management results in good health while reducing the need for expensive medical services. At your scheduled visits, your pharmacist coach will review topics such as medication, nutrition, exercise, techniques and laboratory results. Program goals will be established to build knowledge and skills to achieve success at self-managing your diabetes. Your participation in the program is intended to help you achieve optimal health benefits from your diabetes treatment plan. As an incentive, Herr Foods Inc. will offer certain diabetic-related benefits at no cost to participants in this voluntary program.

• K eep an eye on loved ones who are diabetic when they are away at school or away from your home.

• T rend your own blood glucose (BG) readings electronically (no more log books) and share a comprehensive electronic report for doctor visits.

• A utomatically report BG readings that are too high or too low to your physician for expert, timely help.

Getting Started To begin to take charge of your diabetes today, visit www.activecare.com.

Have a question? Contact CoreSource at www.mycoresource.com.

| 17

Teladoc at No Cost to You

Return to Table of Contents

Need a doctor after your provider’s office is closed or while out of town on vacation? No problem!

MORE ABOUT TELADOC

You now have 24/7 access to a physician through Teladoc. Teladoc does not replace your primary care physician, but provides you a convenient option to access a doctor, anytime, anywhere, when you are not able to see your regular doctor. And, it’s at no cost to you!

Teladoc connects you to a doctor, via phone or online video, who can diagnose, recommend treatment and prescribe medication, when appropriate, for many medical issues. Healthcare on your terms!

Get immediate access to a U.S. board-certified doctor at no cost to you.

WHO ARE THE TELADOC DOCTORS? All of the doctors in the national network are U.S. board-certified family practitioners, PCPs, pediatricians and internists who use electronic health records to diagnose, treat and write prescriptions, when necessary. Teladoc’s quality process meets National Committee for Quality Assurance (NCQA) standards. Teladoc doctors are credentialed every three years.

TALK TO A TELADOC DOCTOR www.Teladoc.com | 1-800-Teladoc

Available 24/7/365 • Q uality care is only a call or click away. You will receive a call back from our doctors in less than 10 minutes, on average. Now that’s access to care!

Resolves many of your medical issues • 9 2% of Teladoc members resolve their medical issue with Teladoc.

Unlike nurse-run call centers, Teladoc doctors can diagnose, recommend treatment and prescribe medication, when necessary.

Has great doctors • O ur national network includes the highest-quality U.S. board-certified doctors licensed in your state.

Teladoc can help with many medical conditions, including the following:

From wherever you are

• Cold and flu symptoms

• Allergies

• S ummer skin issues, such as poison ivy or bug bites

• R espiratory infections and more

• A ccess Teladoc from home, work or on vacation. Compare that with taking a day off from work to sit in a waiting room.

• Sinus problems

Managing Your Care: Support from CoreSource CLINICAL GUIDANCE AND 24/7 NURSE LINE You or someone in your family may need after-hours guidance on a health issue. In some of these situations, even when they are not serious, it may seem that the hospital emergency room is your only option. But that’s not the case anymore. CoreSource Connect offers access to registered nurses 24/7. CoreSource nurses can offer decision aids and health information and help assess the severity of symptoms in a calm and caring manner.

PATIENT-CENTRIC ONCOLOGY MANAGEMENT PROGRAM No one can tell what tomorrow will bring. But if a cancer diagnosis occurs, it may be reassuring to know that you won’t be alone in navigating the complex world of cancer care. CoreSource, your health benefits administrator, provides access to a cancer management and support program from Biologics.

This cancer management and support program is designed to simplify issues with cancer treatment and elevate the level of care for health plan members with cancer, all the while reducing stress and anxiety for the patient and his or her family. From the point of diagnosis through treatment and release from medical care, the program offers comforting support and guidance.

An experienced oncology-certified nurse is assigned to each member with cancer. As a personal resource and patient advocate, the oncology-certified nurse is available to answer questions about the disease, treatment and side effects from medication. To support cancer patients between office visits, the nurse acts as an extension of, and liaison to, medical practices specializing in cancer care.

18 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Your Dental Benefits Herr Foods shares 50% of the cost of dental coverage through MetLife. You may use in-network or out-of-network providers through our MetLife Preferred Dentist Program (PDP) plan.

The benefit percentages paid will be the same both in and out of network.

However, you are likely to save money by using in-network providers, since they have agreed to limit their charges to the allowance negotiated by MetLife, the plan administrator. If you use an out-of-network provider, your cost will be based on the Reasonable & Customary allowance. To locate a network provider, visit www.metlife.com and select “Locate a PDP Dentist” or contact CoreSource Connect at 1-877-218-7345. Herr Foods saves you money by sharing 50% of the cost for this benefit.

SERVICE

STANDARD PLAN

Employee Contributions (All Regions) STANDARD PLAN

DELUXE PLAN

Deductible

Individual: $75 Family: $150

Individual: $75 Family: $150

Annual Benefit Maximum

$1,000

$1,500

DELUXE PLAN

PER PAY

ANNUAL

PER PAY

ANNUAL

Employee

$2.60

$135.20

$4.49

$233.48

$4.90

$254.80

$7.95

$413.40

$7.25

$377.00

$12.00

$624.00

Preventive and Diagnostic

100% (no deductible) of Reasonable & Customary

100% (no deductible) of Reasonable & Customary

Employee +1

Basic Services

80% after deductible

80% after deductible

Family

Dentures and Bridges

Not covered

50% after deductible

Orthodontics (Children only, up to age 26)

Not covered

50%; up to a lifetime maximum of $1,000 per child

Have a question? Contact CoreSource at www.mycoresource.com.

| 19

Return to Table of Contents

Your Vision Benefits Herr Foods will share 50% of the cost for this benefit when you choose a participating VSP Network provider. You can find a participating VSP Network provider at www.vsp.com or by calling 1-800-877-7195. All services are provided at the doctor’s office. This includes exams, as well as frames, lenses and contact lenses.

IN-NETWORK

OUT-OF-NETWORK

Eye Exam

$10 co-pay

Up to $45

Frames

$160 allowance

Up to $70

Single Vision

$20 co-pay

Up to $45

Bifocal

$20 co-pay

Up to $65

Trifocal

$20 co-pay

Up to $85

$50 co-pay

Up to $125

Standard

$160 allowance

Up to $105

Specialty

$160 allowance

Up to $105

Disposable

$160 allowance

Up to $105

Average 15% off regular price or 5% off promotional price from contracted facilities

N/A

Eyeglass Lenses

Lenticular Progressive Contact Lenses (in lieu of glasses)

Laser Correction* Benefit Period Exam

12 months

Frames

24 months

Eyeglass Lenses

12 months

Contact Lenses

12 months

*After surgery, use your frame allowance (if eligible) for sunglasses from any VSP doctor.

20 |

Employee Contributions (All Regions)

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

VISION PER PAY

ANNUAL

Employee

$0.64

$33.28

Employee +1

$1.28

$66.56

Family

$2.07

$107.64

CHECK YOUR MEDICAL BILLS One miscoding could be the difference between a medical test with no co-pay and one that costs you hundreds of dollars. One simple way to check is to compare the bill you receive from the hospital or doctor (or other providers) against the Explanation of Benefits (EOB) you receive from CoreSource. If you have an issue, contact CoreSource Connect at 1-877-218-7345.

Return to Table of Contents

Get Well and Save The mission of the Herr Foods Inc. Wellness Program is to create a motivated and health-conscious work environment by promoting fun team-based activities, healthy choices, low-cost resources and relevant information. For more information and other resources, please contact CoreSource Connect at 1-877-218-7345.

WELLNESS DISCOUNT Herr Foods offers discounts through our Wellness program to encourage you to accomplish your personal lifestyle goals and sustain good health. You could save more than $2,000 on your medical plan contributions by completing simple biometric screenings and meeting certain goals.

How Do I Qualify?

To qualify for the Wellness discount: • Complete a biometric test • Meet two out of four of the following Healthy Living standards: •

BMI less than or equal to 33

•

Blood pressure less than or equal to 140/90

•

Total Cholesterol/HDL ratio less than or equal to 4.0

•

Blood sugar less than or equal to 100

Having Trouble Meeting the Standards of the Healthy Living Metrics?

If you don’t meet two of the four healthy living standards, you can complete an alternative program to qualify for the discount. You can access the Alternative Biometrics Outcome form on the Benefits Portal or by contacting Human Resources at 1-800-3443777 or at benefits@ herrs.com.

New employees must complete biometric testing by visiting their primary care physician and completing an Alternative Means Screening Authorization Form.

Once completed by the physician, it must be faxed to Health Fitness, as indicated on the form.

HEALTH SCREENING Because we care about employee health, Herr Foods provides free annual biometric screenings. The screenings provide important information about cholesterol, blood pressure, heart rate, blood glucose level, triglycerides and body mass index. Individuals who are not able to attend the on-site screenings will be able to use an Alternative Means Screening Authorization Form. To obtain a form, please contact your Benefits team in Nottingham or your branch clerk or branch manager.

YOURCARE COACHING CoreSource registered nurses and health coaches are available to help you understand your health condition, learn about standards of care and create lasting lifestyle behavioral changes that will improve your health. Contact CoreSource Connect at 1-877-218-7345 to learn more.

WELLNESS COMMITTEE The Herr’s Wellness Committee meets monthly and is committed to promoting healthy lifestyle choices in a safe, fun and informative way. The role of the wellness champion is to provide leadership and support for the wellness initiatives at various locations Companywide. If you are interested in becoming an active member of the Wellness Committee, please contact your local wellness champion or your Benefits team directly.

MANAGE YOUR EXISTING HEALTHCARE ISSUES If you have a chronic disease, such as diabetes, you can reduce your healthcare costs by participating in a disease management program, such as the Voluntary Diabetes Management program offered

by Herr Foods through ActRx. A Georgetown University report found that diabetes management program participants reduced their average monthly healthcare costs by nearly 20 percent.

Have a question? Contact CoreSource at www.mycoresource.com.

| 21

Return to Table of Contents

Take Charge of Your Well-Being EMPLOYEE ASSISTANCE PROGRAM The Employee Assistance Program (EAP) offers confidential counseling, educational tools and referral services to help you manage life’s occurrences— and to help you and your family members lead a happier and more productive life at home and at work. The EAP is provided through CIGNA Behavioral Health, an independent national employee assistance firm.

In addition to providing access to counseling, CIGNA also provides telephone and online support for nearly any work/ life challenge. Webinars and telephonic and on-site seminars are also available to educate you on topics from health to parenting. Discounts on tobacco cessation programs and gym memberships are also available. Visit www.Cignabehavioral.com, Employer ID: herr, for more information.

You and your family can contact the EAP personally and privately. To schedule an appointment or to talk to a psychologist on the phone, call 1-800-849-6031 toll-free. Telephone coverage is provided 24 hours a day.

Many cases may be resolved within the four sessions provided. If you need more sessions than the EAP provides and the EAP psychologist is a member of your healthcare plan, you may continue your treatment under the terms of your health insurance. If your EAP psychologist isn’t a member of your healthcare plan, you may be referred to another therapist.

In either case, your insurance will be billed and you will be responsible for any deductibles, co-payments and co-insurance.

“WE CARE AT HERRS”: CHAPLAINCY PROGRAM Herr Foods offers employees and their immediate family members no-cost access to Marketplace Chaplains USA. All services are voluntary and confidential (as laws permit). Marketplace Chaplains USA offers the following services: • N ationwide chaplaincy services for all employees and their immediate families.

• 2 4-hours, 365-days-per-year on-call availability for crisis intervention or in event of an emergency situation.

• W orksite visits, as well as hospital, nursing home, family home or jail visits, when appropriate.

• C onfidential pastoral care for issues such as marriage, divorce, remarriage, serious illness, death and dying, child rearing, stress, finances and other personal issues.

• A ttend funerals and, if asked, assist with funeral arrangements, conduct the service and provide follow-up grief counseling.

• P rovide options for assistance through local agencies and organizations.

ADDITIONAL WELLNESS BENEFITS Coaching • Your Best You from the Wellness Committee • O nline/telephone coaching from CIGNA EAP Fitness • Fitness reimbursement up to $300 per year • Walk & Work-Out programs • QuickFit program • Nottingham walking trail Healthcare Consumer Education • Make the Call from the Wellness Committee CPR/First Aid/Safety • $25 reimbursement for a safety class (Herr’s sponsored programs are excluded)

22 |

• $ 25 reimbursement of a CPSC- or ASTM-certified bike helmet purchase Weight Management • $200 reimbursement for approved programs • M aintain Don’t Gain Webinars from CIGNA Stress Management • Face-to-face and telephone counseling • O nline tools and education from CIGNA

Heart Health • Biometric testing for cholesterol levels • Blood pressure screenings Tobacco Cessation • $200 reward for quitting through Herr Foods program • $ 200 reimbursement for approved programs Diabetes Management • Biometric screenings

• Webinars from CIGNA

• V oluntary Diabetes SelfManagement Program

Nutrition • Six free nutrition counseling sessions with an approved provider

Prenatal • Special Delivery Program (requires preregistration during the first trimester)

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

• $75 gift card to Babies ”R” Us

Return to Table of Contents

Use Tax-Free Dollars to Reduce Your Child Care Costs

SHOULD I USE THE DEPENDENT CHILD SPENDING ACCOUNT OR TAKE THE FEDERAL TAX CREDIT?

DEPENDENT CHILD AND/OR ADULT CARE SPENDING ACCOUNT The dependent child and/or adult care spending account lets you reimburse yourself with tax-free dollars for day care expenses for a dependent child or adult, including expenses for day care services provided by a qualified caregiver for day care provided in your home, someone else’s home or a day care center.

You and your spouse (if you’re married) must both be working to participate in this account, unless your spouse is a full-time student or totally disabled.

Eligible dependents include your children under age 13 whom you claim on your federal income tax return or a dependent adult who is not capable of self-care and spends at least eight hours a day in your home.

To receive reimbursement from your dependent care spending account, your request must include the care provider’s Taxpayer Identification Number (TIN), unless your provider is a tax-exempt organization (e.g., a church or a synagogue). For individual providers, the TIN is usually that person’s Social Security number. If the person works in your home, you are responsible for filing an employer’s return with the IRS and for paying Social Security tax on wages paid to that employee. The care provider cannot be your dependent or your child under age 19.

While considering participation in the Dependent Care Account, it is important to compare these savings and those you accrue through the Earned Income Tax Credit.

CONTRIBUTION LIMITS

DEPENDENT CARE SPENDING ACCOUNT

Minimum

$5.00 per week

Maximum

$5,000 per year*

* If you are married and your spouse also has a dependent care spending account, your combined contribution limit is $5,000 a year. If you are married and file a separate tax return, your maximum annual contribution is $2,500. In addition, if you are married, you cannot contribute more than the lower of your or your spouse’s annual salary. For example, if your spouse works part-time and earns $4,000 per year, you cannot contribute more than $4,000 to your account. If your spouse is disabled or a full-time student for at least five months of the year, your spouse is treated as having a monthly income of $250 (if you have one eligible dependent) or $500 (if you have two or more eligible dependents).

When you file your annual income tax return, the IRS and some states allow a tax credit for the same kind of expenses that qualify for the dependent care spending account. If you choose to take a federal tax credit, you pay your expenses with after-tax dollars and then claim the childcare credit on your tax return at the end of the year.

There is a limit on the expenses you can use toward the tax credit. That limit is $3,000 for one dependent and $6,000 for two or more dependents.

However, only 20%-35% of these expenses may be claimed, depending on your adjusted gross income.

Any dependent care expenses reimbursed through the dependent care spending account will offset the amount you may claim as a tax credit, dollar for dollar.

Your tax savings will vary, depending on whether you claim the childcare credit or use the dependent care spending account. Of course, each situation is different, and you will have to determine which approach is best for you. You should check with your tax advisor if you have questions or need further information.

Have a question? Contact CoreSource at www.mycoresource.com.

| 23

Return to Table of Contents

Protection for You and Your Family

Long-Term Disability Weekly Premiums ANNUAL WAGES $20,000

$1.27

$30,000

$1.90

$40,000

$2.54

$50,000

$3.17

$60,000

$3.81

SHORT-TERM DISABILITY BENEFIT

$70,000

$4.44

If you miss work for more than seven consecutive days because of a non-workrelated covered illness or injury, your Short-Term Disability (STD) coverage replaces 65% of your average pay per week and is offset by any statemandated benefits you may receive. Coverage begins on the 1st of the month after 12 months of employment.

$80,000

$5.08

$90,000

$5.71

$100,000

$6.35

SHORT- AND LONG-TERM DISABILITY COVERAGE How would you pay household and uncovered medical expenses for yourself and your family if you became disabled? Your Short-Term and Long-Term Disability benefits are designed to work together to help provide financial protection under these circumstances.

You are eligible for STD benefits on the eighth day that you have been absent from work due to a covered sickness or injury. Once your claim is approved, benefit payments will be retroactive to:

Long-Term Disability Benefit Periods AGE ON DATE OF YOUR DISABILITY

• Your first day of disability for a covered accident

BENEFIT PERIOD

• Your eighth day of disability for a covered illness

Less than 60

To age 65

You must use any accrued and unused sick, vacation or personal days to cover the first seven days of disability. The STD program will continue for up to 26 weeks. An employee may not be off work on short-term disability for more than 52 weeks during a rolling five-year period.

60

60 months

61

48 months

62

42 months

63

36 months

64

30 months

65

24 months

66

21 months

67

18 months

68

15 months

69 and over

12 months

LONG-TERM DISABILITY BENEFIT As a full-time employee regularly working 30 or more hours per week, you are eligible to purchase Long-Term Disability (LTD) insurance. If elected, coverage begins on the first of the month after you have completed one month of continuous employment. If you did not enroll when first eligible, you may enroll during any Open Enrollment period. Coverage will take effect when your evidence of insurability is approved.

If you remain disabled and unable to work after your STD benefits end, the LTD plan may continue 50% of your total monthly earnings, up to a maximum benefit of $10,000 per month at no cost to you. (Herr Foods has waived Evidence of Insurability (EOI) for Open Enrollment FY2018.)

To qualify for LTD benefits, you must be certified as disabled by a physician and meet the other requirements of the plan. Your LTD benefit is reduced by any disability income you receive from other sources, such as Social Security or Workers’ Compensation. The benefit you receive from the plan will never be less than $100 per month or 10% of the monthly benefit before deductions for other income benefits.

LTD benefits begin when you have been disabled for 180 consecutive days (the elimination period). Benefits continue until you recover (with some limitations) or reach age 65 (see your LTD plan booklet for details). If you become disabled at age 62 or later, the date benefits end depends on your age when you become disabled.

24 |

WEEKLY COST

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

NOTE: These costs are only illustrative costs for the exact wages shown. Individual costs will vary according to your actual annual wages and will be adjusted annually to reflect any changes in your wages.

I f you die while receiving benefits, your beneficiary will receive up to three (3) times your last gross monthly benefit.

The Maximum Benefit Period is the latter of: a. Your normal retirement age b. The period shown in the chart above

Return to Table of Contents

Group Term Life and Accidental Death and Dismemberment Group Term Life Insurance benefits provide income to your beneficiary(ies) to help meet expenses in the event of your death. Accidental Death and Dismemberment (AD&D) insurance can provide income for you in the event of an accidental loss of limb or sight or for your family in the event of accidental death.

GROUP TERM LIFE INSURANCE If you die while employed by Herr Foods Inc., the life insurance policy will pay your surviving beneficiaries a lump-sum benefit equal to one times your basic annual earnings (rounded to the next higher $1,000) to a maximum of $200,000.

ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE AD&D Insurance is included with your Group Term Life Insurance coverage. Your accidental death insurance pays your beneficiaries an additional benefit equal to the amount of life insurance if you die as a result of a covered accident.

Dismemberment benefits are also payable for certain types of physical loss, such as loss of a hand, a foot or an eye. No more than 100% of your AD&D insurance will be paid for all losses resulting from one covered accident.

If you terminate employment, you will be notified by Herr Foods Benefit department with instructions on how to convert your policy, if you choose. Based on your individual circumstances, you may want additional Term Life and AD&D insurance protection through a supplemental plan.

SUPPLEMENTAL EMPLOYEE TERM LIFE/AD&D INSURANCE When you are first eligible, you may buy up to a maximum of the lesser of 5x your salary or $500,000, in multiples of your salary—in addition to the Group Term Life coverage that Herr Foods Inc. provides.

(The guaranteed issue amount is 3x your Group Term life amount or $275,000, whichever is lower when you first become eligible. If you apply for coverage after you are first eligible, you must complete an Evidence of Insurability form for any amount.)

If you are already enrolled and wish to increase your level of coverage by two or more tiers, you must complete a Statement of Health. If you are already enrolled and would like to increase coverage by one tier, a Statement of Health is not required.

You must use after-tax dollars to purchase Supplemental Life/AD&D Insurance. No EOI for FY18 OE up to the guaranteed issue amount.

Have a question? Contact CoreSource at www.mycoresource.com.

| 25

Return to Table of Contents

Supplemental Spouse & Dependent Child Life Insurance

WEEKLY RATE PER $1,000

Under 30

$ .06

30-34

$ .08

35-39

$ .09

40-44

$ .10

You may also purchase life insurance protection for your spouse and children; however, you must purchase additional life insurance for yourself before you may purchase insurance for your dependents. You must use after-tax dollars to purchase this additional protection.

45-49

$ .15

50-54

$ .23

55-59

$ .43

60-64

$ .66

• F or your spouse: You may buy up to a maximum of $100,000 as long as the amount does not exceed 100% of your supplemental insurance. Life insurance amounts for spouses must be purchased in increments of $10,000, and the guaranteed issue amount is $30,000 when first eligible.

65-69

$ 1.27

70-74

$ 2.06

Children To Age 26

$ .14 per $10,000

• F or your children: You may buy $5,000 or $10,000 of coverage for your dependent children ages 13 days to 26 years.

26 |

EMPLOYEE OR SPOUSE

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

NOTE: These costs are only illustrative costs for the exact wages shown. Individual costs will vary according to your actual annual wages and will be adjusted January 1 annually to reflect any changes in your wages.

Return to Table of Contents

®

MetLife Hospital Indemnity Insurance MetLife® Hospital Indemnity Insurance provides you with payments when you are admitted or confined to a hospital due to to an accident or illness. It can complement your medical coverage by helping to ease the financial impact of a hospitalization. Your premiums are paid through payroll deduction.

FREQUENTLY ASKED QUESTIONS Q. What is Hospital Indemnity insurance?

A. Hospital Indemnity insurance coverage provides you with payments when you are admitted and when you are confined to to a hospital1 due to an accident or illness and the policy and certificate requirements are met. Typically, a flat amount is paid for admission, and a daily amount is paid for each day of a hospital stay. It also pays extra benefits for admission to or confinement in an Intensive Care Unit (ICU), and for other benefits and services.2 Payments are made directly to you to use as you see fit. They can be used to help pay for medical plan deductibles and co-pays, for out-of network stays, for your family’s everyday living expenses, or for whatever else you need while recuperating from an illness or accident.

Q. Who is eligible to enroll for this coverage?

A. You are eligible to enroll yourself and your eligible family members. You just need to enroll during your Open Enrollment period and be actively at work for coverage to be effective. Dependents to be enrolled may not be subject to a medical restriction as set forth in the Certificate. Some states require the insured to have medical coverage. Additional restrictions apply to dependents serving in the armed forces or living overseas.

Q. I have a good medical plan through work. Why do I need Hospital Indemnity insurance?

A. Even quality medical plans can leave you with unexpected expenses to pay when you are hospitalized. Costs like plan deductibles, co-pays and co-insurance for doctor and emergency room care, testing and supplies, and extra costs for out-of-network care may not be covered. Many people aren’t financially prepared to handle these extra costs. Having extra financial support if the time comes may mean less worry for you and your family, and it will give you the ability to protect your savings and focus on your recovery.

Q. Can I enroll for this coverage without having to take a medical exam?

A. Yes. Your Hospital Indemnity coverage is guaranteed issue, which means your acceptance is guaranteed, provided the employee enrolls during the enrollment period and is actively at work and dependents to be covered are not under a medical restriction as set forth in the Certificate. There are no medical exams to take and no health questions to answer. Some states require the insured to have medical coverage. Additional restrictions apply to dependents serving in the armed forces or living overseas.

Have a question? Contact CoreSource at www.mycoresource.com.

| 27

Return to Table of Contents

Q. How much does Hospital Indemnity insurance cost?

A. It may be less expensive than you think. This insurance is designed to be an economical way for you to supplement your healthcare plan. Be sure to review your plan-specific rates to see if this coverage is a good fit for your family’s budget.

Q. How do I pay for my coverage?

A. Premiums will be conveniently paid through payroll deduction, so you don’t have to worry about writing a check or missing a payment.

Q. Are benefits paid directly to me or to my healthcare provider?

A. Payments will be paid directly to you3, not to the doctors, hospitals or other healthcare providers. You will receive a check, payable to you, for maximum convenience. There is no coordination of benefits with any other insurance you may have.

Hospital Coverage (Accident) Admission Non-ICU ICU

$500/accident $1,000/accident

(Must occur within 180 days after the accident) Confinement Non-ICU ICU

$100/day, up to 365 days $200/day up to 30 days

(Must occur within 180 days after the accident) Inpatient Rehab (Stay must occur immediately following hospital confinement and occur within 365 days of accident.)

$100/day, up to 15 days per accident and 30 days per calendar year

Q. What happens if my employment status changes?

Can I take my coverage with me?

Hospital Coverage (Sickness)

A. Yes. This coverage is portable, meaning you can take it with you if your employment status changes. Your coverage will only end if you stop paying your premium or if your current employer chooses to terminate the Group Hospital Indemnity insurance policy.

Non-ICU

$500

ICU

$1,000

Q. Is the claims process simple?

Non-ICU

$100/day, up to 365 days

A. Yes. Once all required information is received, claims are generally processed within 10 business days. Only one claim form is needed per admission or hospital stay, and every claim is reviewed by a claims professional.

ICU

$200/day, up to 30 days

1 Hospital does not include certain facilities such as nursing homes, convalescent care or extended care facilities. See your Disclosure Statement or Outline of Coverage/Disclosure Document for full details.

2 Covered services/treatments must be the result of an accident or sickness as defined in the group policy/certificate. See your Disclosure Statement or Outline of Coverage/Disclosure Document for more details.

3 An assignment of benefits to a hospital or other healthcare facility will be available when required by applicable law.

METLIFE’S ACCIDENT AND HOSPITAL INDEMNITY INSURANCE POLICIES ARE LIMITED BENEFIT GROUP INSURANCE POLICIES. The policies are not intended to be a substitute for medical coverage, and certain states may require the insured to have medical coverage to enroll for the coverage. The policies or their provisions may vary or be unavailable in some states. There is a preexisting condition exclusion for hospital sickness benefits, if applicable. There is a benefit reduction at age 65. And, like most group accident and health insurance policies, policies offered by MetLife may contain certain exclusions, limitations and terms for keeping them in force.

For complete details of coverage and availability, please refer to the group policy form GPNP12-AX or GPNP12-HI or contact MetLife.

Benefits are underwritten by Metropolitan Life Insurance Company, New York, New York. In certain states, availability of MetLife’s Group Accident and Hospital Indemnity Insurance are pending regulatory approval.

28 |

METLIFE HOSPITAL INDEMNITY PAYS YOU

BENEFIT TYPE

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Admission

(Payable 1x per calendar year) Confinement

(Paid per sickness) Other Benefits Lodging (Benefit provided for a companion accompanying a covered insured while hospitalized.)

$100/day, up to 30 days per calendar year; lodging facility must be located within 50 miles from covered person’s primary residence

Health Screening (Wellness) (Benefit provided if the covered insured takes one of the covered screening prevention tests—payable 1x per calendar year.)

$50

Return to Table of Contents

MetLife Accident Insurance Accidents can happen anytime, anywhere. Today’s active lifestyles may make you more susceptible, too. You can’t plan for accidents, but you can be better prepared financially to handle them when they do occur. MetLife offers accident insurance so you can focus more on your recovery and less on your finances.

There are more than 150 covered events that could trigger benefits.

MetLife Accident Insurance can complement your medical coverage by helping to ease the financial impact of an accident. It provides you with a payment to use as you see fit and can help with any of the out-of-pocket expenses you may incur as a result of an accident, such as insurance deductibles, co-pays, transportation to/from medical centers, child care and more. Your premiums are paid through payroll deduction.

FREQUENTLY ASKED QUESTIONS Q. What is Accident insurance?

A. Accident insurance coverage provides you with a lump-sum payment when you suffer a covered injury or undergo covered testing, medical services or treatment and meet the group policy and certificate requirements. There are more than 150 covered events, and there is no limit on the number of different accidents that will be covered. Payments are made directly to you to use as you see fit. They can be used to help pay for medical plan deductibles and co-pays, out-of-network treatments, for your family’s everyday living expenses or whatever else you need while recuperating from an accident.

Have a question? Contact CoreSource at www.mycoresource.com.

| 29

Return to Table of Contents

Q. Who is eligible to enroll for this coverage?

A. You are eligible to enroll yourself and your eligible family members. You need to enroll during your Enrollment Period and be actively at work for your coverage to be effective.

Dependents to be enrolled may not be subject to a medical restriction as set forth on the enrollment form and in the Certificate. Some states require the insured to have medical coverage.

Q. I have a good medical plan at work. Why do I need Accident insurance?

A. Because accidents can happen anytime, anywhere, when you least expect them, and they can be costly. You hurt your back while doing home repairs, your child is injured while on the playground or playing sports, or your spouse slips on the stairs.

Even quality medical plans can leave you with extra expenses to pay. Costs like plan deductibles, co-pays for doctor and emergency room care, testing and supplies and extra costs for out-of-network care may not be covered.

Many people aren’t financially prepared to handle these extra costs. Having the extra financial support if the time comes may mean less worry for you and your family.

Q. Can I enroll for this insurance without having to take a medical exam?

Yes! Your Accident insurance is guaranteed issue1 , which means your acceptance is guaranteed, provided the employee enrolls during the Enrollment Period and is actively at work and dependents to be covered are not under a medical restriction as set forth in the Certificate.

There are no medical exams to take and no health questions to answer. Some states require the insured to have medical coverage.

Q. How much does Accident insurance cost?

A. It may be less expensive than you think! Accident insurance is designed to be an economical way for you to supplement your healthcare plan. Exact rates can be found in the enrollment materials provided by your employer.

Q. How do I pay for my coverage?

A. Premiums for coverage under the Accident Plan are paid through an after-tax payroll deduction, so you don’t have to worry about writing a check or missing a payment.

Q. Is there a waiting period before my coverage begins?

A. No. Your coverage will be in force on the effective date of your coverage. There are no waiting periods to satisfy.

30 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Q. Are benefits paid directly to me or to my healthcare provider?

A. Payments will be paid directly to you, not to the doctors, hospitals or other healthcare providers. You will receive a check, payable to you, for maximum convenience.

Q. What happens if my employment status changes?

Can I take my coverage with me?

A. Yes! You can take your Accident insurance coverage with you. You will need to continue to pay your premiums to keep your coverage in force. Your coverage will only end if you stop paying your premium or if your employer offers you similar coverage with a different insurance carrier.

Q. Does this plan cover any other out-of-pocket costs?

A. Yes, you can use your payment as you see fit. Use it to help cover your medical insurance deductibles, co-pays, household bills and more.

Q. Is the claims process simple?

A. Yes! Once all required information is received, claims are generally processed within 10 business days. Only one claim form is needed per accident, and every claim is reviewed by a claims professional.

1 Coverage is guaranteed provided (1) the employee is actively at work and (2) dependents to be covered are not subject to medical restrictions as set forth on the enrollment form and in the Certificate. Some states require the insured to have medical coverage. Additional restrictions apply to dependents serving in the armed forces or living overseas.

METLIFE’S ACCIDENT INSURANCE IS A LIMITED BENEFIT GROUP INSURANCE POLICY. The policy is not intended to be a substitute for medical coverage. The policy or its provisions may vary or be unavailable in some states. There is a preexisting condition exclusion for hospital sickness benefits, if applicable. There are benefit reductions that begin at age 65.

And like most group accident and health insurance policies, polices offered

by MetLife may include waiting periods and contain certain exclusions, limitations and terms for keeping them in force. For complete details of coverage and availability, please refer to the group policy form GPNP12-AX or contact MetLife. Benefits are underwritten by Metropolitan Life Insurance Company, New York, New York. In certain states, availability of MetLife’s Group Accident Insurance is pending regulatory approval.

Return to Table of Contents

MetLife Critical Illness Insurance Critical Illness insurance can complement your medical and disability income coverage and help ease the financial impact of a critical illness by providing a lump-sum benefit to help you pay some of your additional expenses.

MetLife Critical Illness Insurance policies feature: • A lump-sum benefit payment to use as you • No obligation to submit expense receipts see fit • C overage that can go with you if you leave • Dependent coverage for your spouse/ your employer domestic partner and children • Your premiums are paid through payroll • Convenient payment options

deductions

FREQUENTLY ASKED QUESTIONS

Q. Who is eligible to enroll for this coverage?

Q. What is Critical Illness insurance?

A. You and your eligible family members!6 You just need to enroll during your Open Enrollment.

A. This is coverage that can help cover the extra expenses associated with a serious illness. When a serious illness happens to you or a loved one, this coverage provides you with a lump-sum payment of either $10,000 or $20,000 in Initial Benefits upon diagnosis. The Total Benefit Amount available to you is three times the Initial Benefit Amount you select, either $30,000 or $60,000, in the event that you suffer more than one Covered Condition. Payment(s) you receive will be made in addition to any other insurance you may have and may be spent as you see fit.

Q. What types of illnesses are covered under this plan?

A. If you meet the group policy and certificate requirements, Critical Illness insurance provides you with a lump-sum payment upon diagnosis of the following conditions: • Full Benefit Cancer1 • Partial Benefit Cancer1

Q. I have a good medical plan at work. Why do I need Critical Illness insurance?

A. Even quality medical and disability income plans don’t always cover all of your expenses. For example, your medical coverage may have deductibles and co-pays and may not cover out-of-network treatments. And if you’re out on disability, only a portion of your income may be covered.

With the average person spending thousands of dollars during a time of critical illness and recovery,7 most people will need the means to cover extra medical and daily living expenses for items like groceries, housing expenses, car payments and more.

Q. Can I enroll for this coverage without having to take a medical exam?

A. Yes. Provided you are actively at work, your enrollment is guaranteed.9 Q. Are there any other benefits payable under this Critical Illness Insurance plan?

• Heart Attack • Stroke

2

• Coronary Artery Bypass Graft

• Major Organ Transplant

A. Yes. This plan provides an annual benefit per calendar year for eligible health screenings/prevention measures.

This benefit amount is above and beyond the Total Benefit Amount. Your Health Screening Benefit Amount will be based on the Initial Benefit you selected:

• 2 2 Listed Conditions3 (see your Outline of Coverage for details)

$10,000 = $50 Health Screening Benefit

Q. What happens if I have a recurrence?

$20,000 = $100 Health Screening Benefit

• Alzheimer’s Disease

3

• Kidney Failure

A. Your plan pays a Recurrence Benefit for the following covered conditions: Heart Attack, Stroke, Coronary Artery Bypass Graft, Full Benefit Cancer, Partial Benefit Cancer and All Other Cancer. A Recurrence Benefit is only available if an Initial Benefit has been paid for the Covered Condition. There is a Benefit Suspension Period between Recurrences.5

Have a question? Contact CoreSource at www.mycoresource.com.

| 31

Return to Table of Contents

Q. How much does Critical Illness insurance cost?

A. This coverage may be less expensive than you think! You can put this coverage in place as a way to supplement your medical and disability income plans. Your initial rate is based on your age at the time your coverage becomes effective, and your rates will not increase due to age.10 Exact rates can be found in the materials provided by your employer.

Q. How do I pay for my coverage?

Q. Are payments made directly to me or my healthcare provider?

A. Payments will be made directly to you, not to the doctors, hospitals or other healthcare providers. You will receive a check, mailed directly to your home.

Q. What happens if my employment status changes?

Can I take my coverage with me?

A. Yes. This coverage is “portable,” meaning you can take it with you if your employment status changes.11

A. Premiums will be conveniently paid through payroll deduction, so you never have to worry about writing a check or missing a payment.

CRITICAL ILLNESS INSURANCE Eligible Individual

Initial Benefit

Requirements

Employee

Initial Benefit Amount of $10,000 or $20,000

Coverage is guaranteed provided you are actively at work.

Spouse/Domestic Partner

100% of the employee’s initial Benefit

Coverage is guaranteed provided the employee is actively at work and the spouse/domestic partner is not subject to a medical restriction as set forth on the enrollment form and in the certificate.

Dependent Child(ren)

100% of the employee’s initial Benefit

Coverage is guaranteed provided the employee is actively at work and the dependent is not subject to a medical restriction as set forth on the enrollment form and in the certificate.

1 Please review the Disclosure Statement or Outline of Coverage/ Disclosure Document for specific information about cancer benefits. Not all types of cancer are covered. Some cancers are covered at less than the Initial Benefit Amount. For NH-sitused groups and NH residents, there is an initial benefit of $100 for All Other Cancer.

2 In certain states, the Covered Condition is Severe Stroke.

3 Please review the Outline of Coverage for specific information about Alzheimer’s Disease.

4 MetLife Critical Illness Insurance will pay 25% of the Initial Benefit Amount for each of the 22 Listed Conditions until the Total Benefit Amount is reached. A Covered Person may only receive one payment for each Listed Condition in his/her lifetime. The Listed Conditions are: Addison’s disease (adrenal hypofunction); amyotrophic lateral sclerosis (Lou Gehrig’s disease); cerebrospinal meningitis (bacterial); cerebral palsy; cystic fibrosis; diphtheria; encephalitis; Huntington’s disease (Huntington’s chorea); Legionnaire’s disease; malaria; multiple sclerosis (definitive diagnosis); muscular dystrophy; myasthenia gravis; necrotizing fasciitis; osteomyelitis; poliomyelitis; rabies; sickle cell anemia (excluding sickle cell trait); systemic lupus erythematosus (SLE); systemic sclerosis (scleroderma); tetanus; and tuberculosis.

5 MetLife will not pay a Recurrence Benefit for a Covered Condition that Recurs during a Benefit Suspension Period. MetLife will not pay a Recurrence Benefit for a Full Benefit Cancer, a Partial Benefit Cancer or an All Other Cancer unless the Covered Person has not had symptoms of or been treated for the Full Benefit Cancer, Partial Benefit Cancer or All Other Cancer for which we paid an Initial Benefit during the Benefit Suspension Period. In some states, we will not pay a Recurrence Benefit for a Covered Condition that Recurs less than 180 days after another Occurrence of a Covered Condition for which we paid an Initial Benefit.

6 Eligible Family Members means all persons eligible for coverage as defined in the Certificate.

7 MetLife Financial Impact of Critical Illness Study, April 2010.

8 Coverage is guaranteed provided (1) the employee is actively at work and (2) dependents are not subject to medical restrictions as set forth on

32 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

the enrollment form and in the Certificate. Some states require the insured to have medical coverage. Additional restrictions apply to dependents serving in the armed forces or living overseas.

9 I n most states there is a 30-day waiting period for the Health Screening Benefit. There is no waiting period for MD sitused cases. The Health Screening Benefit is not available to NH sitused cases or NH residents.

There is a separate mammogram benefit for MT residents and for cases sitused in CA and MT. 10 See your Certificate for details.

11 See your Certificate for details.

METLIFE CRITICAL ILLNESS INSURANCE (CII) IS A LIMITED BENEFIT GROUP INSURANCE POLICY. Like most group accident and health insurance policies, MetLife’s CII policies contain certain exclusions, limitations and terms for keeping them in force. Product features and availability vary by state. There is a preexisting condition exclusion. There is a Benefit Suspension Period between Recurrences.

MetLife’s Issue Age CII product is guaranteed renewable, but may be subject to benefit reductions that begin at age 65. Rates are subject to change. MetLife reserves the right to raise premium rates for Issue Age CII on a class-wide basis. A more detailed description of the benefits, limitations, and exclusions applicable can be found in the applicable Disclosure Statement or Outline of Coverage/Disclosure Document available at time of enrollment. For complete details of coverage and availability, please refer to the group policy form GPNP14-CI or contact MetLife for more information. Benefits are underwritten by Metropolitan Life Insurance Company, New York, New York. In certain states, availability of MetLife’s Issue Age CII product is pending regulatory approval.

MetLife’s Critical Illness Insurance is not intended to be a substitute for Medical Coverage providing benefits for medical treatment, including hospital, surgical and medical expenses. MetLife’s Critical Illness Insurance does not provide reimbursement for such expenses.

Return to Table of Contents

®

MetLaw /Hyatt Legal Plan Herr Foods employees are eligible for the MetLaw®/Hyatt Legal Plan. Enrolling in the legal plan is like having a lawyer on call at an affordable price.

Participation includes access to a nationwide network of more than 9,500 experienced attorneys who can provide you with a wide range of services. Plus, the low weekly premiums are conveniently deducted right from your paycheck.

Whether you’re buying a new home, drawing up a will or just need some legal advice, the MetLaw/Hyatt Legal Plan can give you easy access to experienced local network attorneys. Plus, you receive a wide range of covered legal services for just $3.81/per week.

Some of the services available: • Preparation of wills, living wills and living trusts • Restoration of driving privilege and traffic ticket defense • Civil litigation defense • Debt-collection defense and identity theft • Office and/or phone consultation for virtually any personal legal matter

PROTECT YOUR IDENTITY WITH PRIVACYARMOR Herr Foods is now partnering with InfoArmor to provide you with optional PrivacyArmor identity theft protection. PrivacyArmor gives you the comprehensive identity protection you need so your private information stays that way.

With PrivacyArmor, which is administered by InfoArmor, you can manage your accounts through an interactive web application that assesses threats and provides you with alerts. PrivacyArmor is available for $2.30 per week for employee-only coverage and $4.14 per week for family coverage.

PrivacyArmor includes the following benefits:

®

MetLife Auto & Home

The Group Auto and Home Insurance program from MetLife Auto & Home® is available to Herr Foods Inc. employees. This program allows you to apply to purchase quality auto and home* insurance at special group rates.

A variety of policies are available to you through the program, including: • Home*

• Renters*

• Auto

• Recreational vehicle

• Landlord’s rental dwelling • Condo*

• P ersonal excess liability (“Umbrella”)*

• Mobile home*

• Boat

By participating in the program, employees may benefit from special group insurance rates that are designed to help save them money. There are a variety of discounts for which they may be eligible. * Customers should consult their policies or agents for coverage and discount availability and policy restrictions.

• I dentity Monitoring: PrivacyArmor monitors identities to uncover fraud at the source – now with High Risk Transaction alerts to detect fraud sooner.

• C reditArmor: You receive an annual credit report, monthly credit scores and monitoring of your TransUnion credit file.

• I nternet Surveillance: PrivacyArmor scans for information misuse and compromised credentials and will alert you to abuses with unparalleled accuracy.

• W alletArmor: This secure online document repository makes lost wallet replacement quick and easy.

• $ 1 Million Identity Theft Insurance Policy: You have protection from the financial damages of identity theft with this policy for associated costs, legal defense expenses and lost wages.

• S pam Reduction: PrivacyArmor reduces the root cause of up to 20% of identity theft by decreasing junk mail.

Have a question? Contact CoreSource at www.mycoresource.com.

| 33

Return to Table of Contents

Saving for Your Future: Herr Foods Inc. Retirement Plans 401(K) SAVINGS PLAN ACCOUNT All employees age 19 or older will automatically be enrolled in our 401(k) plan on the first of the month after completing one month of continuous employment with a 3% payroll deduction. If you choose to opt out when eligible, you may do so at any time.

Here are some key features of the plan: • S tep ahead. You may also plan for your retirement by signing up for the “Step Ahead” program, which will allow you to automatically increase your deduction amount annually on September 1. It makes sense to coordinate this program with any changes to your compensation.

• P re-tax savings. You decide how much to save—up to 75% of your eligible pay, up to the IRS legal maximum, which is $18,000 in 2017. If you are age 50 or older, you may contribute up to $24,000 in 2017. Your savings are deducted from your pay before current federal income taxes and, in most cases, state taxes are taken out—so you pay less in taxes and save more. You are still required to pay Social Security taxes on your contributions.

• C onvenient payroll deductions. Automatic pre-tax deductions from your pay make it easy to build your retirement nest egg.

• I mmediate vesting. You are always 100% vested in the money you contribute to the plan.

34 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

• P rofessionally managed investment options. You can invest your savings among an extensive array of professionally managed investment funds.

Savings and any investment earnings grow tax-free while in the plan.

• F lexibility in managing your account. You can change your elections every 30 days, if you so desire.

• A ccess to your savings. While the plan is designed as a means to build your retirement income, if you need your money before retirement, loans and withdrawals are available under certain circumstances.

• B eneficiary receives funds in the event of your death. If you die while employed, your account is payable to your named beneficiary.

• R oll over your prior savings. If you have money in a prior “qualified” 401(k) account from another employer’s plan, you can roll it over into the Herr Foods Inc. 401(k) Savings Plan.

• Y ou can take it with you. If you leave the Company, you can choose to receive your vested account balance, you can defer payment or you can roll your vested 401(k) balance into another qualified retirement plan. If you choose to receive your vested account balance, your money will be subject to 20% federal tax withholding and a penalty tax if you are under age 59 1/2.

• Herr Foods Inc. pays the administrative costs.

LITTLE EXTRAS ADD UP TO BIG RETIREMENT SAVINGS We all have those little extra things that we spend money on each day, week, month or year. Avoiding those little extras and saving the money in your 401(k) plan can quickly contribute to your future financial security. Here are just a few examples.* Bagel with Cream Cheese Daily Cost: $3.50

PROFIT-SHARING TRUST ACCOUNT We help you plan for future financial security through Herr Foods Inc. ProfitSharing Trust Account. Herr’s shares company profits with our employees—the people who help the company grow! Together, the company and its employees work toward a mutual interest. Continued company success helps our employees save for retirement.

Total Cost by Retirement: $63,299.87 Retirement Savings if $$ Contributed to 401(k) Plan: $149,914.23

All employees age 19 or older who have been employed a minimum of eighteen (18) months and have worked 1,000 hours during the year are eligible to participate in the Profit-Sharing Trust.

Soda

Here are some key features of the plan:

Total Cost by Retirement: $27,128.51

• A ll contributions are made by the Company. You don’t have to contribute a penny! Each year, the Board of Directors will determine the amount of the annual contribution if Company profits permit.

• C ompany contributions are allocated among participants in proportion to your compensation.

• P articipant-directed investment—You have control of the portion of the Profit-Sharing assets mapped to the appropriate Principal Lifetime target date fund. This will not include the Company investment portion shown as Herr Foods Inc. Investment.

• Y ou become 100% vested in your account once you have completed six years of employment. After you have completed 18 months of employment, you will become 20% vested in your account. Your vested percentage will increase by 20% each subsequent year until you reach six years of employment and become fully vested.

• I f you die while employed, your account balance is payable to your named beneficiary.

• I f you leave the Company, you can choose to receive your vested account balance and pay the appropriate taxes, you can defer payment or you can roll your vested account balance into an individual retirement account (IRA).

Daily Cost: $1.50

Retirement Savings if $$ Contributed to 401(k) Plan: $64,248.95 Monthly Meal Out Cost: $35 Total Cost by Retirement: $20,810.92 Retirement Savings if $$ Contributed to 401(k) Plan: $49,286.87 * Assumes a 6% annual return (compounded annually at year-end after all contributions have been made), 3% inflation, starting age of 35 and retirement age of 65. Source: Transamerica Retirement Calculator

Have a question? Contact CoreSource at www.mycoresource.com.

| 35

Return to Table of Contents

Other Important Information

HOW TO ENROLL Enrolling in the Herr Foods Inc. benefits program is easy with our new online enrollment system, HR InTouch Marketplace Portal.

• Log in to the HR InTouch Marketplace Portal https:// herrs.hrintouch.com.

• I f this is your first time logging in, click “Create an account,” then select “Member” and follow the prompts to create your account.

• I f you need assistance in completing your enrollment, see a member of the Benefits team in Nottingham or your branch clerk or branch manager.

• O nce you have enrolled online, you may also need to complete and return certain forms to complete the enrollment process, such as an evidence of insurability form for Supplemental Life Insurance. All forms are available on https://herrs.hrintouch.com or from the Benefits department. Forms must be completed and returned to a member of the Benefits department by October 31 when enrolling during the Open Enrollment period or within 30 days of date of benefits eligibility for newly hired employees.

Send your completed forms to: ATTN: Benefits 20 Herr Drive Nottingham, PA 19362

• B y making your elections through the online enrollment system, you authorize Herr Foods Inc. to deduct contributions from your pay to cover the non-employer-paid portions of your benefits elections, including flexible spending accounts.

36 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

BENEFITS ELIGIBILITY You are eligible to enroll in the Herr Foods Inc. benefits plans if you are a full-time employee hired to work 30 hours or more weekly. Regardless of coverage, you must complete an online enrollment to be eligible for voluntary and company-paid benefits. Part-time employees (less than 30 hours weekly) may elect to pay for voluntary benefits by enrolling online during Open Enrollment.

Are My Dependents Eligible?

As a full-time employee, you can also enroll your spouse to whom you are legally married and eligible children, as described below: • C hildren up to age 26 (coverage ends the last day of the child’s birth month), including natural children, stepchildren and legally adopted children (a legally adopted child is considered eligible from the date the employee assumes a legal obligation for support in anticipation of adoption).

• U nmarried children of any age who are incapable of self-support and who became mentally or physically handicapped before the limiting age (26) and are dependent on you for more than half of their maintenance and support.

Important: Current Employees: You must enroll by July 14, 2017.

New Employees: You must enroll within 30 days of the date of benefits eligibility.

If you do not complete your enrollment within the designated period, you will not be eligible for any elective benefits for the FY2018 plan year.

Dependent Verification To activate coverage for your dependents, you are required to submit the appropriate eligibility documentation to the CoreSource eligibility team. Please use the Dependent Coverage Summary Form available at mycoresource.com to verify your dependents.

Please note, we cannot provide coverage for any dependents who are not verified.

QUALIFIED LIFE STATUS CHANGE After the Open Enrollment deadline has passed, you cannot change your benefit elections until the next Open Enrollment period unless you experience a qualified change in life status that affects your benefits. You must request the change within 31 days of the event. Your benefit election changes will be effective on the date of the qualified life status change for birth, adoption or loss of coverage.

Use the online HR InTouch Marketplace Portal to make midyear changes to your plan elections.

Examples of change in status: • Marriage • Birth/adoption • Spouse or dependent loss of coverage or new employment • Change in work hours/eligibility status • Death in family • Loss of dependent status • Divorce

Have a question? Contact CoreSource at www.mycoresource.com.

| 37

Return to Table of Contents

Have a Question About Your Benefits?

GENERAL QUESTIONS: HR INTOUCH PORTAL You have access to your benefits information 24/7/365 by logging in to HR InTouch https://herrs.hrintouch.com. The HR InTouch portal includes specific information about your selections and detailed information about our benefits. Always check the portal first for questions about plan details, eligibility and other general information.

QUESTIONS WHEN USING YOUR BENEFITS: CORESOURCE CONNECT You can contact CoreSource Connect at any time of the day or night for a one-stop source for answers to any questions you have as you use your benefits. CoreSource Connect provides you with guidance to help you realize the greatest value from your benefits resources and coverages.

The primary functions and benefits of CoreSource Connect: • O ne dedicated toll-free number, 1-877-218-7345, for members to call 24/7/365 for benefits-related questions, whether it is for any services that CoreSource directly administers or ones that are provided by a Herr Foods Inc. third-party vendor. If resolving your question requires the assistance of another company (for example, if you have a vision or pharmacy question), a CoreSource Connect representative will personally transfer you and stay on the line until he or she is certain that you’re in the right hands.

Your Advocate for Benefits Issues If have specific concerns about a bill or need to file a claims appeal, CoreSource Connect member advocates are ready to assist you. These professionals are skilled at resolving in-depth benefits issues and are ready to tackle any problem to help ease your mind.

RESOLVING BENEFITS ISSUES: YOUR HUMAN RESOURCES TEAM AT HERR’S Have a benefits issue that you can’t resolve? Contact your Human Resources team at 1-800-344-3777, ext. 6532 or 6533, or at benefits@herrs.com.

HUMAN RESOURCES TEAM Benefits Manager Steve Ewing, steven.ewing@herrs.com ext. 6440 Benefits Coordinator Kerry Jo Powell, kerry.powell@herrs.com ext. 6533 Compensation & HRIS Supervisor Jenna Colligan, jenna.roenne@herrs.com ext. 6530 HRIS Specialist Yolanda Bautista, yolanda.bautista@herrs.com ext. 6519 HR BUSINESS PARTNERS TEAM HR Business Partner, DSD & Corporate Nicole Sharpe, nicole.sharpe@herrs.com ext. 6477 Recruiter Leah Rothstein, leah.rothstein@herrs.com ext. 6235 Part-Time Recruiting Specialist Katelyn McGonigal, katelyn.mcgonigal@herrs.com ext. 6532 HR Business Partner, Manufacturing Stacy Zeager, stacy.zeager@herrs.com ext. 6223 HR Coordinator Victoria Roth, victoria.roth@herrs.com ext. 6234 SAFETY BUSINESS PARTNER TEAM DSD Dan Kilby, daniel.kilby@herrs.com ext. 2994 Nottingham & Chillicothe Manufacturing Dave Messaros, dave.messaros@herrs.com ext. 2988 Risk Management Coordinator Karen Steffy, karen.steffy@herrs.com ext. 6531 Safety Clerk Kathy Kilby, kathy.kilby@herrs.com ext. 2987 HR ADMINISTRATION TEAM Benefits Representative for Helping Hands & Partners in Service, Tuition Reimbursement and Service Awards Kim McLimans, kimberly.mclimans@herrs.com ext. 6456 CORESOURCE CONNECT Your HR team is generally available M-F, 8 a.m. to 5 p.m. For questions at any other time, please contact CoreSource Connect at 1-877-218-7345.

38 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Mobile Apps to Answer Questions and Maximize Your Benefits (Available for iPhone and Android smartphones. Download at the App Store for Apple and Google Play for Android.)

ACCESS CORESOURCE THROUGH MYCORESOURCE.COM CoreSource, your health benefits administrator, is expanding its suite of consumerengagement tools and now offers an app, myCoreSource Mobile, to help you manage your benefits information while you’re on the go, anytime day or night! myCoreSource Mobile allows you to check the status of your claims, control out-of-pocket expenses, contact CoreSource and so much more! With myCoreSource Mobile, you can use your mobile phone or tablet to access the information you need the most while you’re on the go!

• See your deductible and out-of-pocket maximum • Show your ID card to providers • View claims status • Access other important benefits information • Find a doctor • Contact CoreSource

GET BENEFITS INFO ANYTIME, ANYWHERE The HR InTouch Mobile application enables you to keep information about all of your benefits right in your pocket. Please use activation code 015do8d.

HSA BANK Make the most of your health benefit accounts with HSA Bank Mobile. Our secure app makes managing your HSA, HRA, FSA or Commuter account(s) easy through real-time access and intuitive navigation to all your important account information on the go! Powerful features of the app include: Easy, Convenient & Secure • S imply login to the intuitive app using your same health benefits website username and password (or follow alternative instructions if provided to you)

• View charts summarizing account(s) • Click to contact Customer Service • P rovides additional time-saving options (if supported or applicable to your account(s))

• N o sensitive account information is ever stored on your mobile device; • Take a picture of a receipt and submit for a new or existing claim secure encryption is used to protect • View, contribute and distribute HSA all transmissions transactions • Connects you with the details • Check available balances 24/7 • Access account details • View claims requiring receipts • S ubmit medical FSA and HRA claims

• U sing Expense Tracker, enter medical expense information and supporting documentation to store for later use in paying claims via your health benefits website

• Report a debit card as lost or stolen

Have a question? Contact CoreSource at www.mycoresource.com.

| 39

Return to Table of Contents

TELADOC: A DOCTOR’S CARE. ANYTIME. ANYWHERE. Teladoc® connects you with a board-certified doctor 24/7/365 through the convenience of phone or video consults. Within minutes, a doctor will contact you, ready to listen and resolve your issue. If medically necessary, a prescription will be sent to your pharmacy of choice. It’s healthcare when and wherever you want it! Teladoc doctors can diagnose, recommend treatment and prescribe medication, if medically necessary, for many medical issues, including: • Sore throat and stuffy nose • Allergies • Cold and flu symptoms • Bronchitis • Poison ivy • Pink eye • Urinary tract infection • Respiratory infection • Sinus problems • Ear infection and more …

ONERX: SAVE $$ ON YOUR PRESCRIPTION DRUGS Compare prices for your prescription drugs at pharmacies near you with the OneRx Pharmacy app.

COMPARE AND SAVE ON HEALTHCARE The Healthcare Bluebook app could save you hundreds of dollars by helping you understand the cost and quality ratings of local healthcare facilities. Shop for healthcare from a map of providers that offer fair prices for excellent healthcare service. We encourage you to visit the website to learn more.

MYCHAP: FIND A CHAPLAIN Now you can connect with your chaplain team simply and easily with a free app for iPhone and Android smartphone users. Just download the app from the Google Play Store (Android) or App Store (Apple). To use the app, just open it and enter the ID# for your location. (Contact Human Resources at 1-800-344-3777 or at benefits@herrs.com to get your ID#. For example, Herr Foods Corporate ID# is 663.) Once you enter your ID#, you will find a list of chaplains available near your location, along with their contact information.

SIMPLIFY YOUR RETIREMENT PLANNING Planning for retirement has never been easier. Access your 401(k) account information 24/7 from any device through Principal’s mobile-friendly website at www.principal.com. You can download the Principal® mobile app at principal. com/onthego. You can sign up for account balance and personal rate of return text alerts and emails. You must register online before you can download the app.

40 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

Notes:

Have a question? Contact CoreSource at www.mycoresource.com.

| 41

Return to Table of Contents

Appendix 1: Benefits Quick Reference Guide This chart contains only highlights. For more information on eligibility and enrollment, please see detailed information in this guide.

YOUR BENEFITS

WHO IS ELIGIBLE?

• Full-time employees • Employees who regularly work 30 or more hours Medical, Dental, Vision Care

Health Savings Account (HSA)

• Dependents of eligible employees: • Spouse • Children up to age 26

Employees enrolled in the High-deductible Health Plan. (If you are at least age 65 and are enrolled in Medicare, including the free hospitalization Plan A, you are not eligible to contribute toward a health savings account, per IRS regulations.)

HOW/WHEN DO I ENROLL?

WHO PAYS/OVERVIEW

Coverage is effective on the first day of the month after you have completed one month of continuous employment. Enrollment is completed online through the HR InTouch portal during the new hire and annual Open Enrollment process or within 30 days of a qualifying life event.

You and the Company share the cost—you pay your share on a pre-tax basis. See page 10 for a comparison of plan medical benefits and page 11 for a side-by-side comparison of employee contributions for our medical plans.

Keep in mind you can reduce your costs by participating in the Wellness Discount Program. See page 11.

Elect the HDHP option during Open Enrollment. Our HSA administrator, the HSA Bank, will mail an HSA kit to your home.

Herr Foods will match 25% of your contribution, up to $500 for an individual and $1,000 for all other tiers. This incentive is only available during the annual Open Enrollment period.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may offset your healthcare or dependent care expenses by contributing pretax dollars to the healthcare spending account or the dependent child and/or adult care spending account.

Coverage is effective on the first of the month after one year of completed continuous employment. No enrollment is necessary.

The Company pays the full cost of STD benefits, which replaces 65% of your pay for up to 26 weeks in any rolling 12-month period.

Coverage is effective on the first of the month after one month of completed continuous employment. EOI (Evidence of Insurability) has been waived for open enrollment FY18.

You may purchase LTD insurance, which replaces 50% of your monthly earnings, up to a maximum of $10,000 per month after you have been totally disabled for 180 days.

Coverage is effective on the first day of the month after you have completed one month of continuous employment. No enrollment by the employee is necessary.

The Company pays the full cost of the benefit, which is equal to one times your salary, up to a maximum of $200,000.

• Full-time employees Flexible Spending Accounts

Short-Term Disability (STD)

• Employees who regularly work 30 or more hours a week

• Full-time employees • Employees who regularly work 30 or more hours

Long-Term Disability (LTD)

• Full-time employees • Employees who regularly work 30 or more hours

Group Term Life Insurance and Accidental Death and Dismemberment (AD&D) Insurance

42 |

• Full-time employees • Employees who regularly work 30 or more hours

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

Return to Table of Contents

YOUR BENEFITS

WHO IS ELIGIBLE? • Full-time employees

Supplemental Life and Accidental Death and Dismemberment Insurance

• Employees who regularly work 30 or more hours • Dependents of eligible employees: • Spouse • Children up to age 26

HOW/WHEN DO I ENROLL?

WHO PAYS/OVERVIEW?

To newly elect Supplemental Life Insurance coverage for yourself, your spouse and/or your dependent children up to age 26 or to increase your level of coverage by two or more tiers, you must complete an Evidence of Insurability Form and designate a beneficiary. These forms are available on the HR InTouch portal. EOI waived up to guaranteed issue amount.

You may purchase Supplemental Life and AD&D insurance, up to a maximum of five times your salary, up to a maximum of $500,000. You may also purchase life insurance for your spouse and dependent children.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may choose to pay weekly to protect your identity.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may choose to pay weekly to receive the cash benefit to ease the financial impact of a hospitalization.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may choose to pay weekly to receive the cash benefit to ease the financial impact of an accident.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may choose to pay weekly to receive the cash benefit to ease the financial impact of a critical illness.

You will enroll annually, or upon new hire eligibility, through the HR InTouch portal.

You may choose to pay weekly to receive a wide range of covered legal services.

You can make changes by contacting the HR Operations department.

You may purchase auto and home insurance at special group rates.

Coverage is effective after 18 months of employment. No enrollment by the employee is necessary.

All contributions to the Profit-Sharing Trust are made by the Company.

• All employees PrivacyArmor Identity Protection

• Dependents of eligible employees: • Spouse • Children up to age 26 • All employees

MetLife Hospital Indemnity Insurance

• Dependents of eligible employees: • Spouse • Children up to age 26 • All employees

MetLife Accident Insurance

• Dependents of eligible employees: • Spouse • Children up to age 26 • Full-time employees

MetLife Critical Illness Insurance

• Employees who regularly work 30 or more hours • Dependents of eligible employees: • Spouse • Children up to age 26 • Full-time employees • Employees who regularly work 30 or more hours

MetLaw/Hyatt Legal Plan

MetLife Auto & Home

• Dependents of eligible employees: • Spouse • Children up to age 26

• All employees

• Full-time employees Profit-Sharing Trust

401(k) Plan

• Part-time employees who worked at least 1,000 hours in the previous fiscal year

• Full-time employees • Part-time employees

If you are already enrolled: Your plan contributions will continue. If you would like to enroll, You must complete: • A Principal Enrollment Form • A Principal Retirement Plan Beneficiary • Designation Form

The Company pays all administrative costs for the 401(k) plan.

These forms can be found on the HR InTouch portal.

Have a question? Contact CoreSource at www.mycoresource.com.

| 43

Return to Table of Contents

Appendix 2: Legal/Special Notices DISCRIMINATION IS AGAINST THE LAW

Herr Foods Inc. complies with applicable Federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability or sex. Herr Foods Inc. does not exclude people or treat them differently because of race, color, national origin, age, disability or sex.

Herr Foods Inc.:

• P rovides free aids and services to people with disabilities to communicate effectively with us, such as: Qualified sign language interpreters • W ritten information in other formats (large print, audio, accessible electronic formats, other formats) • P rovides free language services to people whose primary language is not English, such as: qualified interpreters • Information written in other languages If you need these services, contact your HR business partner.

If you believe that Herr Foods Inc. has failed to provide these services or discriminated in another way on the basis of race, color, national origin, age, disability or sex, you can file a grievance with: HR Business Partner 20 Herr Drive, Nottingham, PA 19362 610-932-6500 Fax: 610-998-2904 benefits@herrs.com You can file a grievance in person or by mail, fax or email.

If you need help filing a grievance, [Name and Title of Civil Rights Coordinator] is available to help you.

You can also file a civil rights complaint with the U.S. Department of Health and Human Services, Office for Civil Rights, electronically through the Office for Civil Rights Complaint Portal, available at: https://ocrportal.hhs.gov/ ocr/portal/lobby.jsf, or by mail or phone at: U.S. Department of Health and Human Services, 200 Independence Avenue, SW Room 509F, HHH Building Washington, D.C. 20201, 1-800-368-1019, 800-537-7697 (TDD). Complaint forms are available at http://www.hhs. gov/ocr/office/file/index.html.

NEW HEALTH INSURANCE MARKETPLACE COVERAGE OPTIONS AND YOUR HEALTH COVERAGE General Information When key parts of the healthcare law take effect in 2014, there will be a new way to buy health insurance: the Health Insurance Marketplace. To assist you as you evaluate options for you and your family, this notice 44 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

provides some basic information about the new Marketplace and employment-based health coverage offered by your employer.

What is the Health Insurance Marketplace?

The Marketplace is designed to help you find health insurance that meets your needs and fits your budget. The Marketplace offers "one-stop shopping" to find and compare private health insurance options. You may also be eligible for a new kind of tax credit that lowers your monthly premium right away. Open Enrollment for health insurance coverage through the Marketplace begins in October 2013 for coverage starting as early as January 1, 2014.

Can I save money on my health insurance premiums in the Marketplace?

You may qualify to save money and lower your monthly premium, but only if your employer does not offer coverage or offers coverage that doesn't meet certain standards. The savings on your premium that you're eligible for depends on your household income.

Does employer health coverage affect eligibility for premium savings through the Marketplace?

Yes. If you have an offer of health coverage from your employer that meets certain standards, you will not be eligible for a tax credit through the Marketplace and may wish to enroll in your employer's health plan. However, you may be eligible for a tax credit that lowers your monthly premium or a reduction in certain cost-sharing if your employer does not offer coverage to you at all or does not offer coverage that meets certain standards. If the cost of a plan from your employer that would cover you (and not any other members of your family) is more than 9.5% of your household income for the year, or if the coverage your employer provides does not meet the "minimum value" standard set by the Affordable Care Act, you may be eligible for a tax credit.1 Note: If you purchase a health plan through the Marketplace instead of accepting health coverage offered by your employer, then you may lose the employer contribution (if any) to the employer-offered coverage. Also, this employer contribution–as well as your employee contribution to employeroffered coverage–is often excluded from income for Federal and State income tax purposes. Your payments for coverage through the Marketplace are made on an after-tax basis.

How can I get more information?

For more information about the coverage offered by your employer, please check your summary plan description or contact Benefits at benefits@herrs.com.

The Marketplace can help you evaluate your coverage options, including your eligibility for coverage through the Marketplace and its cost. Please visit HealthCare.gov for more information, including an online application.

1 An employer-sponsored health plan meets the "minimum value standard" if the plan's share of the total allowed benefit costs covered by the plan is no less than 60% of such costs.

Return to Table of Contents

PREMIUM ASSISTANCE UNDER MEDICAID AND THE CHILDREN’S HEALTH INSURANCE PROGRAM (CHIP)

If you or your children are eligible for Medicaid or CHIP and you’re eligible for health coverage from your employer, your state may have a premium assistance program that can help pay for coverage, using funds from their Medicaid or CHIP programs. If you or your children aren’t eligible for Medicaid or CHIP, you won’t be eligible for these premium assistance programs, but you may be able to buy individual insurance coverage through the Health Insurance Marketplace. For more information, visit www.healthcare.gov.

If you or your dependents are already enrolled in Medicaid or CHIP and you live in a state listed below, contact your state Medicaid or CHIP office to find out if premium assistance is available.

If you or your dependents are NOT currently enrolled in Medicaid or CHIP, and you think you or any of your dependents might be eligible for either of these programs, contact your State Medicaid or CHIP office or dial 1-877KIDS NOW or www.insurekidsnow.gov to find out how to apply. If you qualify, ask your state if it has a program that might help you pay the premiums for an employersponsored plan.

If you or your dependents are eligible for premium assistance under Medicaid or CHIP, as well as eligible under your employer plan, your employer must allow you to enroll in your employer plan if you aren’t already enrolled. This is called a “special enrollment” opportunity, and you must request coverage within 60 days of being determined eligible for premium assistance. If you have questions about enrolling in your employer plan, contact the Department of Labor at www.askebsa.dol.gov or call 1-866-444-EBSA (3272).

If you live in one of the following states, you may be eligible for assistance paying your employer health plan premiums. The following list of states is current as of January 31, 2017. Contact your State for more information on eligibility.

ALABAMA – Medicaid

Website: http://myalhipp.com Phone: 1-855-692-5447

ALASKA – Medicaid The AK Health Insurance Premium Payment Program Website: http://myakhipp.com/ Phone: 1-866-251-4861 Email: CustomerService@MyAKHIPP.com Medicaid Eligibility: http://dhss.alaska.gov/dpa/Pages/ medicaid/default.aspx

ARKANSAS – Medicaid Website: http://myarhipp.com/ Phone: 1-855-MyARHIPP (855-692-7447)

COLORADO – Medicaid Health First Colorado (Colorado’s Medicaid) & Child Health Plan Plus (CHP+) Health First Colorado Website: https://www.healthfirstcolorado.com/ Health First Colorado Member Contact Center: 1-800-221-3943/State Relay 711 CHP+: Colorado.gov/HCPF/Child-Health-Plan-Plus CHP+ Customer Service: 1-800-359-1991/State Relay 711

FLORIDA – Medicaid Website: http://flmedicaidtplrecovery.com/hipp/ Phone: 1-877-357-3268

GEORGIA – Medicaid Website: http://dch.georgia.gov/medicaid - Click on Health Insurance Premium Payment (HIPP) Phone: 404-656-4507

INDIANA – Medicaid Healthy Indiana Plan for low-income adults 19-64 Website: http://www.in.gov/fssa/hip/ Phone: 1-877-438-4479 All other Medicaid Website: http://www.indianamedicaid.com Phone 1-800-403-0864

IOWA – Medicaid Website: http://dhs.iowa.gov/ime/members/medicaid-ato-z/hipp Phone: 1-888-346-9562

MAINE – Medicaid Website: http://www.maine.gov/dhhs/ofi/publicassistance/index.html Phone: 1-800-442-6003 TTY: Maine relay 711

MASSACHUSETTS – Medicaid and CHIP Website: http://www.mass.gov/eohhs/gov/departments/ masshealth/ Phone: 1-800-462-1120

MINNESOTA – Medicaid Website: http://mn.gov/dhs/people-we- serve/seniors/ health-care/health-care-programs/programs- and-services/ medical-assistance.jsp Phone: 1-800-657-3739

MISSOURI – Medicaid Website: http://www.dss.mo.gov/mhd/participants/pages/ hipp.htm Phone: 573-751-2005

MONTANA – Medicaid Website: http://dphhs.mt.gov/MontanaHealthcarePrograms/ HIPP Phone: 1-800-694-3084

NEBRASKA – Medicaid Website: http://dhhs.ne.gov/Children_Family_Services/ AccessNebraska/Pages/accessnebraska_index.aspx Phone: 1-855-632-7633 Have a question? Contact CoreSource at www.mycoresource.com.

| 45

Return to Table of Contents

NEVADA – Medicaid Medicaid Website: https://dwss.nv.gov/Medicaid Phone: 1-800-992-0900

NEW HAMPSHIRE – Medicaid Website: http://www.dhhs.nh.gov/oii/documents/hippapp.pdf Phone: 603-271-5218

NEW JERSEY – Medicaid and CHIP Medicaid Website: http://www.state.nj.us/humanservices/ dmahs/clients/medicaid/ Medicaid Phone: 609-631-2392 CHIP Website: http://www.njfamilycare.org/index.html CHIP Phone: 1-800-701-0710

NEW YORK – Medicaid Website: https://www.health.ny.gov/health_care/medicaid/ Phone: 1-800-541-2831

NORTH CAROLINA – Medicaid Website: https://dma.ncdhhs.gov/ Phone: 919-855-4100

NORTH DAKOTA – Medicaid Website: http://www.nd.gov/dhs/services/medicalserv/ medicaid/ Phone: 1-844-854-4825

OKLAHOMA – Medicaid and CHIP Website: http://www.insureoklahoma.org Phone: 1-888-365-3742

OREGON – Medicaid Website: http://healthcare.oregon.gov/Pages/index.aspx http://www.oregonhealthcare.gov/index-es.html Phone: 1-800-699-9075

PENNSYLVANIA – Medicaid Website:http://www.dhs.pa.gov/provider/medicalassistance/ healthinsurancepremiumpaymenthippprogram/index.htm Phone: 1-800-692-7462

RHODE ISLAND – Medicaid Website: http://www.eohhs.ri.gov/ Phone: 401-462-5300

SOUTH CAROLINA – Medicaid Website: https://www.scdhhs.gov Phone: 1-888-549-0820

SOUTH DAKOTA - Medicaid Website: http://dss.sd.gov Phone: 1-888-828-0059

TEXAS – Medicaid Website: http://gethipptexas.com/ Phone: 1-800-440-0493

UTAH – Medicaid and CHIP Medicaid Website: https://medicaid.utah.gov/ CHIP Website: http://health.utah.gov/chip Phone: 1-877-543-7669

VERMONT– Medicaid Website: http://www.greenmountaincare.org/ Phone: 1-800-250-8427

46 |

HERR FOODS INC. FY2018 EMPLOYEE BENEFITS PROGRAMS

VIRGINIA – Medicaid and CHIP

Medicaid Website: http://www.coverva.org/programs_ premium_assistance.cfm Medicaid Phone: 1-800-432-5924 CHIP Website: http://www.coverva.org/programs_premium_ assistance.cfm CHIP Phone: 1-855-242-8282

WASHINGTON – Medicaid

Website: http://www.hca.wa.gov/free-or-low-costhealth- care/program-administration/premiumpayment-program Phone: 1-800-562-3022 ext. 15473

WEST VIRGINIA – Medicaid

Website: http://www.dhhr.wv.gov/bms/Medicaid%20

Expansion/Pages/default.aspx

Phone: 1-877-598-5820, HMS Third Party Liability

WISCONSIN – Medicaid and CHIP

Website: https://www.dhs.wisconsin.gov/publications/

p1/p10095.pdf Phone: 1-800-362-3002

WYOMING – Medicaid

Website: https://wyequalitycare.acs-inc.com/ Phone: 307-777-7531 To see if any other states have added a premium assistance program since January 31, 2017, or for more information on special enrollment rights, contact either:

U.S. Department of Labor Employee Benefits Security Administration Website: www.dol.gov/agencies/ebsa Phone: 1-866-444-EBSA (3272)

U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services Website: www.cms.hhs.gov Phone: 1-877-267-2323, Menu Option 4, Ext. 61565 Paperwork Reduction Act Statement According to the Paperwork Reduction Act of 1995 (Pub. L. 104-13) (PRA), no persons are required to respond to a collection of information unless such collection displays a valid Office of Management and Budget (OMB) control number. The Department notes that a Federal agency cannot conduct or sponsor a collection of information unless it is approved by OMB under the PRA, and displays a currently valid OMB control number, and the public is not required to respond to a collection of information unless it displays a currently valid OMB control number. See 44 U.S.C. 3507. Also, notwithstanding any other provisions of law, no person shall be subject to penalty for failing to comply with a collection of information if the collection of information does not display a currently valid OMB control number. See 44 U.S.C. 3512.

The public reporting burden for this collection of information is estimated to average approximately seven minutes per respondent. Interested parties are encouraged to send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the U.S. Department of Labor, Employee Benefits Security Administration, Office of Policy and Research, Attention: PRA Clearance Officer, 200 Constitution Avenue, N.W., Room N-5718, Washington, DC 20210 or email ebsa.opr@dol.gov and reference the OMB Control Number 1210-0137.

Return to Table of Contents

Quick Reference MEDICAL

VISION

LIFE AND LTD

CoreSource Member Services • Claims • 24/7 Nurse Line 1-877-218-7345 www.mycoresource.com

VSP Member Services 1-800-877-7195 www.vsp.com

Aetna Life and LTD 1-800-344-3777 www.benefits.herrs.com

EMPLOYEE ASSISTANCE PROGRAM (EAP)

401(K) SAVINGS/PROFIT SHARING

Healthcare Blue Book https://healthcarebluebook.com Teladoc 1-800-Teladoc www.teladoc.com HSA Customer Contact Center 1-800-357-6246 www.hsabank.com CoreFlex 1-877-267-3359 www.mybenny.com PRESCRIPTION DRUG OptumRX 1-855-210-3219 www.optumrx.com OneRx.com (Savings on prescription drugs) www.OneRx.com DENTAL MetLife Member Services (Contract#: 305316) 1-800-942-0854 www.metlife.com/mybenefits

CIGNA Behavioral Health Member Services 1-800-849-6031 www.Cignabehavioral.com

Principal Member Services (Contract #6-17232) 1-800-547-7754 www.principal.com MEDICARE

WE CARE AT HERRS (CHAPLAINCY) Marketplace Chaplains USA 1-800-775-7657

Malloy Medicare Advisors 610-353-2231 HR INTOUCH

MetLaw/Hyatt Legal Member Services 1-800-821-6400 www.legalplans.com

HR InTouch • Open Enrollment • Benefit plan details • HR forms and policies • Employee Handbook https://herrs.hrintouch.com

IDENTITY PROTECTION

HERR’S BENEFITS HOTLINE

Identity Protection InfoArmor 1-800-789-2720 www.myprivacyarmor.com

Benefits Hotline 1-800-344-3777 Ext. 6440 or 6533

LEGAL SERVICES

METLIFE AUTO & HOME METLIFE HOSPITAL INDEMNITY METLIFE ACCIDENT INSURANCE METLIFE CRITICAL ILLNESS MetLife Member Services 1-800-GET-METS (1-800-438-6388) www.metlife.com/mybenefits

Have a question? Contact CoreSource at www.mycoresource.com.

| 47