Wellness is a part of the Manatt’s Inc. Health Plan.   The statistics provided over the past 3 years have shown that participating in Wellness has been beneficial.   Therefore, management has made it a bigger part of the health plan.  If you want to continue on the Manatt Group Health Plan and have Manatt’s Inc. pay 80% of the monthly health premium, you MUST participate in a wellness screening in the year prior.  For example, in order to have Manatt’s Inc. pay the 80% of your premium during 2007, you must participate in a wellness screening in 2006.   IMPORTANT:   If you have a family plan with your spouse insured, BOTH you and your spouse must go through the screening in order to receive the company contribution of 80%.   If you opt to not participate in the Wellness Program, Manatt’s Inc. is going to reverse the percentage paid on the monthly premium.  You will pay the 80% and Manatt’s Inc. will pay the 20%.   Based on this year’s premiums, listed below are the monthly premiums comparing wellness participants versus non-participants:

Wellness is a confidential screening between you and Principal Wellness Company.  It is intended to give you an AWARENESS of your basic health status. Absolutely none of the personal information is made available to the company.  It is NOT intended to take the place of your annual physical, which is provided by the Manatt Group Health Plan.

LIFE INSURANCE

Effective January 1, 2006, Sun Life Assurance Company of Canada has became our life insurance carrier.   There have been no plan changes.   However, PLEASE complete a new beneficiary form so we can update our files.  Also, it takes just a few minutes to read the Emergency Travel Assistance Services Brochure.  It could save you a lot of money and trouble should you need help while on a vacation or are far away from your home.

401K

Enrollment and all changes regarding the 401k are to be done directly with Fidelity.   You can do this by telephone (1-800-835-5097) and follow instructions or via internet (www.401k.com).  You are the only person who has the authority to make these transactions.   Contact Frank Heinen in the Brooklyn Office if you would like assistance. 

FLEX PLAN

The Flex Plan is a federally regulated plan.   It is also an annual plan.   This means you must complete an enrollment form every year either choosing to participate or choosing not to participate.   If you do not want to participate in the plan, we are required to have an enrollment form signed declining participation.  

Beginning in 2007, there will be two “negative elections” for the Flex Plan.  This will effect employees who participate in the following:

� Manatt Group Health Insurance Premium

� Manatt contribution of $144.00 per year

into the Un-reimbursed Medical Account

If you completed an enrollment form for the 2006 Flex Plan choosing to participate in the Group Health Insurance Premium or the $144.00 for Unreimbursed Medical or both, and do not want to make any changes for 2007, you will not need to complete any further paperwork.   This will be automatic.   If you do need to make any changes for the 2007 Flex Plan, a new enrollment form is required.  

If you missed completing an enrollment form for the 2006 Flex Plan year, you will need to do one for 2007 in order to get started on the “negative election” format.

An enrollment form is required if you participate for any of the following reasons:

� Contributions from gross pay for unreimbursed medical, dependent care, or other qualifying flex care expenses.

� Contributions from the Company for participating in your spouse’s group health plan.

IMPORTANT: You have 60 days after the end of the year to submit any claims incurred in the prior year.   Upon termination of employment, you have 60 days to submit any claims incurred prior to the termination date.