BENEFIT SUMMARY FOR 2009

Following is a summary of your employee benefits for 2009, effective January 1, 2009.

Health, Medical and Prescription Drugs- 01/01/2009 – 12/31/2009

C. L. Frates and Company Self-Insured Health Plan

PPO Managed Care Health Plan (Refer to plan benefit schedule)

Oklahoma Network is PPO Oklahoma; elsewhere CCN.

Option A

In-Network: $1,250 single; $2,500 family – annual deductible
Out-of-Network: $2,500 single; $5,000 family – annual deductible
After deductible, you pay 20% in network, 40% out of network
Maximum out of pocket in-network $5,000 single, $10,000 family
Maximum out of pocket out-of-network $10,000 single, $20,000 family
Employee Premium Contribution applies.

Option B

In-Network: $2,500 single; $5,000 family – annual deductible
Out-of-Network: $5,000 single; $10,000 family – annual deductible
Other Coverage: After deductible, you pay 20% in network, 40% out of network
Maximum out of pocket in-network $5,000 single, $10,000 family
Maximum out of pocket out-of-network $10,000 single, $20,000 family
Prescription drug benefits are accessed through Script Care discount network.

This is a “Qualified High Deductible Health Plan” offering corresponding Health Savings Account (HSA) options with discretionary company contributions. HSAs are an exciting new method for managing health care costs now and over the long term. (See “Cafeteria Plan” under voluntary benefits for details.)

Employee Premium Contribution applies.

Dental – 01/01/2009 – 12/31/2009

C. L. Frates Self-Insured Dental Plan

$50 / person annual deductible; $150 / family annual maximum deductible
100% covered – diagnostic / preventive services
80% covered – basic procedures
50% covered – major procedures
$1000 maximum / year / person
Premiums for this benefit are company paid at 100%.

Life / AD&D – 01/01/2009 – 12/31/2009

Hartford

$25,000 Life Insurance and $25,000 AD&D provided by Company.
Premiums for this benefit are company paid at 100%.

Short Term Disability – 01/01/2009 – 12/31/2009

C. L. Frates Self-Funded Plan

Graduated benefits during first three years of service, full benefits thereafter.
Cost of providing this benefit is company paid at 100%.

Employee Assistance Plan – 01/01/2009 – 12/31/2009

Alliance Work Partners (AWP)

Direct access to private counseling services is available to employees and those who reside in their household. Six sessions per individual, per event, per year are available without charge. Access to limited legal services is also provided.

Premiums for this benefit are company paid at 100%.

Paid Leave Benefits

Bank of Days:

Year of hire, prorated leave to end of calendar year
1 through 5 years (full calendar years) of service – 20 days leave
6 through 14 years of service – 25 days leave
15 or more years of service – 30 days leave
Leave time is made available and is to be used on a calendar year basis. A 7-day carryover of unused leave to the next calendar year is allowed.

Holidays

The company observes the following annual holidays:
New Year’s Day
Memorial Day
Independence Day
Labor Day
Thanksgiving and the Friday following
Christmas Day
Floating Holiday – January 2, 2009

Tuition Reimbursement – 01/01/2009 – 12/31/2009

Available for approved courses that benefit your position and professional development with the company, according to policy guidelines. Designation Currency training also available in most professional disciplines.

Following are optional benefits, which may be elected. Payment for these benefits will be by payroll deduction:

Retirement Savings and Thrift Plan – 01/01/2009 – 12/31/2009

Bank of Oklahoma (BOK)

Employees may enroll and initiate participation at time of hire, or on any subsequent calendar quarter thereafter. Current participants may make contribution changes at the beginning of any calendar quarter: January 1, April 1, July 1, and October 1. Employees may contribute $16,500 in 2009; those 50 years of age and over may contribute $22,000. Ample and varied fund selections offered.

Employer Matching Contribution is 100% of the first 1% through 4%, of the Employee Contribution. This is a discretionary contribution on behalf of the Company. All contributions are in whole percentages.

Voluntary Supplemental Term Life – 01/01/2009 – 12/31/2009

Hartford Life Insurance Company

Additional term life insurance is available at time of hire. Limited “guarantee issue” amounts are available during the first 30 days of employment. During annual open enrollment, elections become subject to the carrier’s evidence of insurability guidelines. Employee maximum is 5 X salary up to $300,000; Spouse Coverage and Child Rider also available.

AD&D Supplemental Coverage – 01/01/2009 – 12/31/2009

UNUM Provident Life Insurance Company

Coverage may be elected for employee only or family in amounts with various limits up to $350,000. Optional Accidental Death and Dismemberment life insurance is available at time of hire, and annual thereafter.

Long Term Disability – 01/01/2009 – 12/31/2009

Hartford

60% of basic monthly earnings to maximum benefit of $8,000 / month after 90 days of qualified disability.

Cafeteria Plan – 01/01/2009 – 12/31/2009

Cafeteria Plan voluntary elections are made at time of hire and annually thereafter. Benefits elected are paid for as payroll deductions on a “before tax” basis. Cafeteria plan options include:

Health Savings Accounts (HSA)

An employee-owned savings account funded with tax-free dollars to use for current health care expenses, or to retain for future needs and uses. When used for allowable out-of-pocket health, dental and vision expenses, withdrawals, including investment earnings, are tax free. Combined Employee and Employer discretionary annual contributions are allowed up to the regulatory limits below:

Option A – Option B -

Single – Limit of $3,000 Single – Limit of $3,000
Family – Limit of $5,950 Family – Limit of $5,950

HSA Catch-up Contribution Maximum of $1,000 per year for 2009

Flexible Spending Accounts

Annual pre-tax amounts you elect to set aside from compensation to fund an account for eligible out-of-pocket medical, dental, vision expenses incurred within the calendar year. Any amounts remaining unused at end of plan year are forfeited.

Medical/Dental/Vision Expense Reimbursement FSA

Available to employees who are not eligible for an HSA
Limit of $4,800 per year

Dental / Vision Expense Reimbursement FSA

Same as above, except plan excludes medical expenses in order to meet HSA qualification guidelines.
Available to employees who are enrolled in an HSA

Limit of $4,800 per year

Dependent Care FSA

Annual pre-tax reimbursement of qualified dependent care costs incurred during the plan year. Forfeiture rules apply.
Maximum this plan year - $5,000
(If married and filing taxes separately, $2,500 is maximum.)

Premium Conversion – 01/01/2009 – 12/31/2009

Allstate / American Heritage / Primary Vision Care Services

Cancer -- Various benefit levels and limits
Heart-Stroke -- Various benefit levels and limits
Vision -- Participating Oklahoma Optometrists; corrective vision care benefits