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Phone (704) 538-4121
TWX (810) 649-2115

Cleveland Mills Company

Lawndale, North Carolina 28090

To All Hourly-Paid Employees:

Your Company is pleased to announce a greatly improved plan of group insurance benefits for you and your eligible dependents effective December 16, 1968.

Outline of New Benefits

Employee Life Insurance - The present total amount of $3000.00 will be continued.

Employee Accidental Death and Dismemberment Insurance (AD&D) - The present total $2,500.00 is being increased to $3000.00.

Employee Weekly Accident and Sickness Benefits - This is a new coverage for you and will provide $25.00 per week for up to 13 weeks for non-occupational disabilities. Payments start on the 8th day of disability.

Employee and Dependant Medical Benefits:

Hospital Room and Board - Benefits are being increased to $25.00 per day, 31 days.

Hospital Miscellaneous Fees - Benefits are being increased to the first $250.00 of charges.

Hospital Expense Deductible - Your new deductible will be the first $25.00 of hospital expenses in each period of disability, except for maternity.

Maternity Benefits - The new plan has a separate maternity benefit providing:

Normal Delivery - $200.00 lump sum
Caesarean Section - $300 lump sum
Miscarriage - Up to $100.00

Surgical Expense Benefit - There will be no change in the present $200.00 scheduled maximum.

Major Medical Expense Benefit - This is a new coverage and after a $100.00 calendar year deductible, the plan will pay 80% of excess covered expenses to a maximum of $5,000.00.

Dependent Life Insurance - The present maximum is being increased to provide $1000.00 for spouse and up to $1,000.00 for children.

Medical benefits will be subject to the Coordination of Benefits provision now in effect in practically all group medical plans. This will allow you to collect up to, but not more than, 100% of allowable expenses when you are insured under more than one group medical plan.

Eligible dependents will be your spouse and unmarried children under age 19 who are not eligible for this insurance as an employee. Unmarried children over 19 but under 25 years of age who are dependent upon the employee and attending school are also eligible as dependents.

Your Company is paying the entire cost of these benefits improvements for you, but the improvements for dependent benefits must be paid for by the employee. There is no change in the present weekly Employee Only contribution of $0.89. For employees insuring dependents, however, the new weekly contribution will be $2.75. (This is an increase of $0.89 per week, and a comparable individual major medical policy alone would cost considerable more than this for only one dependent, where your plan covers all eligible dependents.) Remember that added to your major medical are the other major improvements as outlined above.

All employees on the payroll as of December 16th may enroll as of that date regardless of length of employment. Any employee who fits in one of the following groups should contact the Personnel Office immediately.

(1) You are not now enrolled for yourself or your dependents.

(2) You are enrolled for life insurance only, but not the medical coverage.

(3) You are enrolled for dependent coverage, but desire to change to single coverage only.

Employees presently enrolled and who do not contact the Personnel office about changing classifications before December 17th will automatically be insured in their present insurance classification.

Employees not actively at work December 16th will be eligible for the new benefits when they return to active work. For dependents who are eligible, but in the hospital on the effective date, new benefits will become effective on the day following they are discharged.

The medial benefits will cease to apply to an employee or dependent the date they become eligible for Medicare. All other benefits will remain in effect with an appropriate reduction in contributions.

Please fell free to ask any questions you may have. The entire insurance program will now be with Provident Life and Accident Insurance Company, and new insurance certificates will be issued as soon as possible.


Cleveland Mills Company

John F. Schenk, III