Military Leave Informational Summary read & keep

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1 Military Leave Informational Summary read & keep SCOPE The guidelines and procedures outlined in this document and in all policies relating to Military leave This document serves as summary of procedures. For more detailed information about Adobe s Leave of Absence and disability policies, please refer to the Total Rewards Handbook.. ELIGIBILITY All employees will be granted military leave in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA) (and any applicable state laws) if they enlist or are called for active duty in any of the uniformed services or to satisfy annual reserve training. The uniformed services include the U.S. Armed Forces (U.S. Army, Marines, Navy, Air Force, or Coast Guard) and their reserves; The Army National Guard and Air National Guard; and the commissioned corps of the Public Health Service. How the Leave Works If you take a leave for purposes of serving in one of the uniformed services, or for reserve training, you must give Adobe an advance notice of the impending service unless an emergency precludes advance notice. Upon completion of your duty, you must return to Adobe within a reasonable period of time. You must Submit a Report To Duty or an Application of Redeployment to Liberty Mutual within a reasonable period of time, this is defined differently based on the t ype and length of military service. If your period of service is between 1 and 30 days, you must report to work at Adobe on your next regularly scheduled workday. For periods of military service between 31 and 180 days, a reasonable period is 14 days; for periods of service that exceed 180 days, a reasonable period is up to 90 days following completion of service. Generally, employment rights are given to employees whose cumulative period of uniformed service does not exceed five years (unless extended by national emergency or other similar circumstances). Applying for a Military Leave Request a Military Leave Application Form from Liberty Mutual. Complete and submit the form to Liberty Mutual with a copy of your military orders prior to your deployment, unless emergency precludes advance notice. You should notify your manager of your leave and, if possible, the expected return to work date and submit a copy of your orders. Refer to the Total Reward Handbook for more information about your leave and how your pay and benefits will be affected during your leave of absence. If you have questions, contact the Employee Resource Center (ERC) at or at erc@adobe.com. Use of Adobe Time Off During a Military leave: 1 P a g e R

2 Use of Sabbatical while on Military leave: Exempt or Non Exempt employees may not use Sabbatical during paid portion. During unpaid portion, you may use concurrently with leave to receive pay, if permitted by applicable military rules Company Breaks while on Military leave: Exempt and Non Exempt employees Will be paid if they occur during the paid military leave portion of leave Company Holidays while on Military leave: Exempt and Non Exempt employees will be paid, if they occur during the paid military leave portion of leave Sick time/pto while on Military leave: Exempt employees Sick Time will not be paid For Non Exempt employees PTO is not applicable for first 6 months as pay continues. Thereafter employee can use PTO during leave Seniority will not be affected for accrual purposes when you return to work. You can use the PTO Cash Out Program at any time during your leave Use of Sabbatical while on Military leave under Qualifying Exigency: As an Exempt You can use Sabbatical concurrently with your leave to receive pay (only after exhaustion of state programs where applicable). With manager s approval may use to extend time away after exhausting FMLA-eligible period, or if not eligible for FMLA As a Non Exempt Employee can use your sabbatical concurrently with your leave to receive pay. (CA and NJ employees should not overlap state family leave pay with sabbatical as the state may consider it an overpayment.) With your manager s approval may use to extend time away after exhausting FMLA-eligible period or if not eligible for FMLA. Company breaks while on Military leave under Qualifying Exigency: Exempt employees receive no pay for company breaks if an employee is on leave status For Non Exempt employees no PTO will be deducted (nor holidays paid) if employee is on leave status Company Holidays while on Military leave under Qualifying Exigency: For Exempt and Non Exempt Employee no holidays are paid if an employee is on leave status Sick time/pto while on Military leave under Qualifying Exigency: Exempt employees will not receive sick time unless time off qualifies under Family Care Leave Non Exempt employees: cannot use PTO during this portion of your leave. With manager s approval may use PTO to extend time away after exhausting FMLA-eligible period, or if not eligible for FMLA Pay and Benefits While on a Military Leave For the first six months of duty, Adobe will continue 100% of your base pay less any military pay you are eligible to receive. After six months, your pay from Adobe will stop. However, your benefits will continue as described in the chart below. While on military leave, your service credit with Adobe will continue as if it had not been interrupted for the following service-based benefit plans: The Adobe 401(k) Plan match (certain rules apply), service awards program, Equity vesting, sabbatical eligibility date, and PTO accrual. For example, if you worked for Adobe for 4 continuous years, then went on a military leave for 6 months and returned on your 5 year anniversary, you would be eligible to begin accruing PTO at the 5 years of service level and would be immediately eligible for a sabbatical. However, you would not accrue PTO during your leave after the first 30 calendar days. PTO is applicable to non-exempt employees only. 2 P a g e R

3 1. Health Care, Life, AD&D, STD, LTD Insurance: Coverage continues up to a maximum of 12 months. At the end of 12 months healthcare continuation is available through COBRA and conversion may be available for LTD and Life Insurance. Your contributions will continue for the first 6 months of leave that you remain on Adobe Payroll. During the last 6 months Adobe will continue your coverage at no cost to you. The medical waiver credit will cease after your lastadobe paycheck and for the duration of your leave. 2. Flexible Spending Accounts: Pre-tax contributions, and the Dependent Care FSA childcare gift, will continue while you remain on Adobe payroll. After this, pre-tax contributions are suspended until you return to work. Restrictions apply if your return to work is in the following or subsequent years. The Dependent Care Gift is suspended after the end of the calendar year in which the unpaid leave first began. Submit the FSA Payment Election Form 30 days prior to the start of your unpaid leave to make arrangement to pay your FSA contributions. You must submit this form to be eligible for the Adobe Dependent Care FSA child care contribution.. The following options are available: Pre-pay before the leave begins (pre-tax) Pay (catch-up) missed contributions when you return from leave (pre-tax) if within the same plan year. 3. Savings Account (HSA): For questions regarding your HSA account, please contact Adobe s Benefits Call Center at extension 6Help or adobebenefits@xerox.com: 4. Employee Stock Purchase Plan (ESPP): Deductions will stop once you are no longer receiving an Adobe paycheck and will resume upon your return to Adobe payroll. If a purchase period occurs during your leave, the deferral amount in your account will be used to purchase stock on the purchase date, though deductions will continue for no more than six months of your leave as long as you receive a paycheck from Adobe, unless you withdraw from the plan. 5. Stock Options: Vesting will not be affected, except for Incentive Stock Options (ISOs) as may be required in accordance with plan documents and/or securities and tax regulations Restricted Stock Units (RSU): Vesting will not be affected (k): Deductions will continue as long as you receive a paycheck from Adobe for the first 6 months of your leave, unless you suspend deductions or withdraw from the plan; upon your return, you will have an opportunity to catch up on salary deferral contributions along with related matching contributions to the plan; loan repayment may be suspended for your entire leave, in which case the term of the loan is extended so no re-amortization of payments is necessary upon your return to work. Vesting will not be affected regardless of the length of leave. AIP: Bonus is prorated based on time actually worked during the eligibility period. Refer to the Annual Incentive Plan summary and discuss any questions with your manager. 9. Check In s and pay Increase s: Check ins will not occur while you are out on leave. However, you should resume the check in s once you are released back to return to work. Any pay increases will be evaluated at the same time as everyone else and will be based on the work you accomplished during the period you worked. Any increase to your salary will not take effect until you are back on Adobe Payroll. 10. Compensation Plan: You will receive commissions and/or quota credit to the extent earned in accordance with the terms of your Sales Compensation Plan 11. Deferred Compensation Plan (DCP): You continue to be eligible for the DCP, but are excused from fulfilling your annual deferral amount to the extent compensation ceases or is reduced during your leave. If your leave results in a separation of service due to a reduction in your service level, your DCP account balance will be paid out to you in accordance with plan rules. Note that these are general statements regarding the effects of a leave on DCP participation, and you are advised to contact Vanguard for additional detail at the start of your leave Savings Plan: It is your responsibility to submit contributions directly to Alliance Bernstein once you are no longer receiving an Adobe paycheck. 13. Educational Reimbursement: You are eligible to complete course(s) in progress before your leave began; otherwise, your eligibility is suspended until you return to work. 14. Group Legal Plan: Coverage continues up to a maximum of 12 months. While you remain on Adobe payroll, your contributions will continue for the first 6 months of leave. During the last 6 months Adobe will continue your coverage at no cost to you. At the end of 12 months, contact the insurance carrier directly to discuss converting to an individual plan. 3 P a g e R

4 15. Long term Care (LTC) Plan and Other Voluntary Insurance (Auto, Pet, and Home): During the first 6 months of paid leave, deductions will continue. After this, you must send your monthly premium directly to the plan to continue participation. If you are enrolled in the LTC Plan and coverage lapses due to non-payment of any premium, you will need to re-enroll and provide evidence of insurability upon return to work to resume coverage. 4 P a g e R

5 Returning from a Military If Leave you meet certain requirements, Adobe will reinstate you upon your return from military leave. To be eligible for reinstatement: 1) Unless the law requires otherwise or an emergency otherwise precludes advance notice, you must give oral or written advance notice to Adobe of your plan to enter uniformed service before you leave Adobe s employment. 2) Unless the law requires otherwise, you must return to Adobe employment in a timely fashion from a period of uniformed service that cannot exceed five years. 3) You must provide written documentation to establish that your period of uniformed service ended under honorable circumstances. Upon your return, Adobe will reinstate you in a position to which you are entitled and for which you are qualified. Generally, the position to which you are entitled will be the position that you would have held if you had been continuously employed during that period of military leave or a position of similar seniority, pay and status. However, you must be qualified for or capable of becoming qualified for this position. If you do not qualify for the position to which you are entitled, you will be reinstated in accordance with applicable laws. Adobe will make reasonable efforts to assist you in qualifying for a reinstatement position. Adobe will provide reasonable training to refresh or update your skills, in an effort to help you qualify for your reinstatement position. Your right to reinstatement may be affected if there has been a Reduction In Force. 5 P a g e R