Lennox International Inc. 2140 Lake Park Boulevard Richardson, Texas 75080-2254 Mailing Address: P.O. Box 799900 Dallas, Texas 75379-9900 Telephone: 972.497.5000 Facsimile: 972.497.6668 LennoxInternational.com Dear LII Employee, LII remains committed to providing employees and their families with high quality, well-rounded and affordable health care coverage. Over the last few years, LII has made significant changes to our health care program in order to more effectively manage rising costs and strengthen our focus on health and wellness. During this time, we’ve maintained our strong commitment to preventive care, including free annual physicals and free diagnostic x-rays and lab work. Since 2010, we’ve encouraged employees and their spouses to know their health risks by completing a preventive screening and wellness assessment. In 2013, we had tremendous response with a record 93% of employees and spouses completing both the preventive screening and wellness assessment. Last year, we announced that beginning in 2015 we would ask individuals with 3 or more health risks to take even more responsibility for their own health by improving those at-risk health conditions or potentially pay more for coverage in 2015. To help, we expanded our Health Matters Wellness Program to include free health coaching, condition management programs with free prescription drugs and a new wellness website – myLIIHealthMatters.com – with enhanced tools to help manage your health. As we look ahead to 2015, rising health care costs continue to impact all of us and we have a shared responsibility to manage these costs. Although LII will continue to cover the majority of health care costs, you will see the following changes for 2015: Similar to last year, medical premiums will increase from $5 to $20 per month depending on your coverage. Medical out-of-pocket maximums will increase, as well as copays for brand name prescription drugs. Copays for generic drugs will remain at their current low levels. Employees and covered spouses who choose to continue to use tobacco will each be subject to an additional premium of $150 per month. If you need help quitting tobacco, take advantage of our free tobacco cessation program at LIITobaccoFree.com. New Flexible Spending Account (FSA) rules allow you to carry-over up to $500 in pre-tax contributions to the following year. Take advantage of the new carry-over feature to pre-fund your health care out-of-pocket expenses by contributing at least $500. You can’t lose and will save money by reducing your taxable income. Be sure to review the 2015 LII Benefits Guide e-book and take action by November 15 to enroll in your benefits. As you use the health plan in 2015, remember to use the tools and resources we’ve provided to make the most informed health care purchasing decisions. In particular, take advantage of the Benefits Value Advisor to help compare costs for medical procedures and save money. Thank you for your commitment to LII and our Health Matters Wellness Program. Sincerely, Daniel M. Sessa Chief Human Resources Officer