EMPLOYEE BENEFITS

Full-time, permanent Employees of Karlsson receive the following Company benefits:

INSURANCE

· Group health insurance is provided through HealthPartners. Karlsson pays the major portion (in most cases all) of health insurance premiums for Employee coverage.

· Life Insurance coverage (100%)

· AD&D Insurance coverage (100%)

· Short-term and Long-term Disability coverage (100%)

· A Dental Expense Reimbursement plan is also funded by the Company

FLEXIBLE BENEFITS PLAN

Karlsson Staff Members may set aside pre-tax and pre-FICA dollars to pay for the following qualified expenses:

· Excess health care premiums

· Unreimbursed medical expenses

· Dependent care with pre-tax and pre-FICA dollars.

TRAINING

· An Individual Development Plan is prepared with each Employee, and updated at least twice per year. Funds are committed for training, as defined in the Individual Development Plan.

· Karlsson pays for 100% of approved training costs for items such as tuition, books, seminars, and subscriptions.

PAID LEAVE

Paid leave is defined as a combination of vacation time, sick time, and personal leave. Leave is paid at the Employee’s normal rate of pay. Leave is earned as follows:

· 2 1/2 weeks in the first year

· 3 weeks through the third year

· 4 weeks through the fifth year

· Increasing to a maximum of 5 weeks after ten years

HOLIDAYS

The Company provides each Employee nine paid holidays per year.

PAID OVERTIME

Employees are paid at their normal rate of pay for overtime hours at a Client site. Alternatively, those hours can be banked for use at a future time (to be taken later either as paid leave or as pay).

401(k) PLAN

· Employees are immediately eligible to enter the 401(k) plan

· Entry dates are February 1 and August 1

· Investment options include a variety of mutual funds

· Daily investment changes are permitted

PROFIT SHARING

Karlsson shares its profits with its Employees in the form of annual contributions to the Karlsson 401(k) plan. Employee vesting in Profit Sharing occurs over a five-year period.

PARTICIPATORY APPROACH

Karlsson provides substantial opportunity for Employee involvement in the management of the Company. This is done through semi-annual Planning Sessions, Staff Meetings, internal project teams, and Staff membership on the Karlsson Management Team.

COMMUNITY AFFAIRS

· Karlsson is involved in multiple Employee-selected community causes or events each year.

· The Company also matches each Employee's charitable contributions, up to $250 per year.

· The Company annually makes significant contributions to qualifying local causes or organizations; these contributions are based on Employee input.

PARKING

Karlsson reimburses Employees for business-related parking expenses.