Frequently Asked Questions BAPTIST HEALTH My PTO Time

Welcome to the new Baptist Health My PTO Time! We are excited about modernizing and standardizing our leave benefits and have prepared the following FAQs in the hope that they will answer most of the questions you may have as we transition from our existing leave benefit programs to the new Baptist Health My PTO Time. As announced, Baptist Health My PTO Time will include both paid time off ( PTO ) and an Extended Illness Bank ( EIB ) leave that will become standard across the entire system. The FAQs are divided into seven sections: I. General Questions II. Questions about the Conversion Process III. Questions about the new PTO Program IV. Questions about the new Extended Illness Bank (EIB) V. Miscellaneous Questions VI. Some Examples VII. Last Question Should you have questions not covered below, please contact your local HR representative. I. General Questions Q1. Why are we making this change? A) This change is being driven by our desire to (i) recognize and respond to the overwhelming requests by our employees to modernize, standardize and combine our existing PTO and sick time into one bank, (ii) improve our perceived competitiveness in the market to ensure that we can continue to recruit the best talent to serve our patients and (iii) improve the consistency, fairness and flexibility of managing our leave programs. Q2. What exactly is changing? A) Currently, Baptist Health employees participate in one of several leave programs depending on where they work. Effective with this change, and with limited exceptions, all Baptist Health employees will participate in the new PTO program, which will consist of one PTO bank to be used for all leaves (e.g., vacation, holidays, sick days, personal days, etc.) supported by an auxiliary Extended Illness Bank (EIB). 1 P a g e

Q3. Which employees will participate in the new PTO program? A) The new Baptist Health My PTO Time program will apply to all employees within Baptist Health with the exception of Baptist Health Medical Group providers and senior executives who currently participate in the Allowed Time Off ( ATO ) program. Contract, PRN/POOL, and temporary employees are also ineligible for such benefits. Q4. For those locations that currently have sick day benefits, will these still exist? A) Yes and no. Sick time as it currently exists will go away, and time has been added to the new PTO bank that is intended to be used for future sick days. Any accrued time off existing as of the date of converting to the new program, including PTO and/or sick days, will be rolled into the new PTO bank and/or EIB. See conversion process below. Q5. What are the benefits of having only one bank of time versus maintaining separate banks for PTO and sick time? A) As many of you have noted in various surveys, there are numerous benefits of having one PTO bank from which to manage your leave rather than trying to manage both PTO and sick time. First, we believe that this change provides employees increased flexibility to manage their time that best meets their individualized needs. Employees who need to care for a sick pet have the same opportunity to take off time as do employees who need to care for a sick child. Second, we believe this change will promote better planning, creating an increased commitment to fellow co-workers, as well as a decreased likelihood of perceived sick time abuse or attempts to game the system. No longer will an employee feel the need to call-in sick at the last minute for a would-be personal day merely to gain access to their sick time (e.g., instead of using PTO, which they may need for an upcoming vacation). Now, employees will be encouraged to plan ahead to take time off, which, in turn, should help their co-workers by allowing their manager (or the employee) to find someone to cover for the employee without the need for their co-workers to work short due to last minute notices. Q6. When will these changes go into effect? A) These changes will go into effect with the launch of Workday, our new Human Resources information system. Workday is currently expected to go live at most locations at the end of calendar year 2017. As this date becomes more clear, we will provide updated information as to the timing of the conversion to the new Baptist Health My PTO Time program. 2 P a g e

B) Note: Baptist Health Floyd is anticipated to go live on Workday in FY2019 but will launch Baptist Health My PTO Time with the rest of Baptist Health. II. Questions about the Conversion Process Q7. What will happen to my existing accrued balances (PTO/sick/old EIB/etc.)? A) Existing balances within your current time off banks will be transferred hour-for-hour into either the new PTO bank or new EIB as part of the new program. Significantly, no employees will lose any accrued time as part of this transition. Existing PTO banks will be rolled into the new PTO bank, and existing vacation carry-over, sick days and EIBs will be rolled into the new EIB. Further, employees will have a one-time opportunity to sell back and/or convert existing accrued PTO and/or sick time prior to transitioning to the new Baptist Health My PTO Time program. Additional details provided below. Q8. Will I have an opportunity to convert and/or sell back any of my old PTO/sick time before we make this transition to the new Baptist Health My PTO Time program? A) Yes. All employees will have the opportunity to sell back and/or convert any accrued time, consistent with existing rules prior to go-live with the new Baptist Health My PTO Time. Specifically, other than those employees working at Baptist Health Floyd or Baptist Health Madisonville (who have their own programs), employees will be have the opportunity to sell back PTO in October, consistent with existing programs, and will have one additional (a/k/a special ) opportunity to sell back PTO in November 2017 in anticipation of transitioning to the new Baptist Health My PTO Time program. Additionally, employees will also have the opportunity at the same time to sell back and/or convert accrued sick time to PTO. Q9. How will the sell-back of accrued PTO be handled? A) Both the sell-back of accrued PTO in October as well as the special PTO sell-back in November will be done on a dollar-for-dollar basis consistent with existing sell-back rules, e.g., such sell-backs are limited to a maximum of thirty (30) hours or one-half (½) of your current PTO balance, whichever is less. Please note that there will not be any PTO sellback in January, and quarterly PTO sell-backs will resume in April. 3 P a g e

Q10. How will the sell-back/conversion of accrued sick time be handled? A) In lieu of the sell-back of sick time that traditionally occurs in January, employees will be provided an opportunity to sell back accrued sick time in November as part of the one-time special PTO sell-back process. Additionally, all employees, regardless of eligibility for retirement, will have an opportunity to convert accrued sick time to PTO time as do current retirees. Sick time will be sold and/or converted based on available balances and in the following priority order: Employees with sick time balances greater 560 are eligible to sell and/or convert any accrued sick time hours greater than 560 hours at 40 on the dollar up to a maximum of 80 hours. Remaining sick time hours greater than 1,400 may be sold and/or converted at 20 on the dollar. Any remaining sick time hours may be sold and/or converted at 10 on the dollar. The normal eighty (80) hour maximum sell-back limit will not apply. Sell-back requests will take priority over requests for conversion. Eligible amounts will be verified by HR prior to sell-back or conversion. Q11. When will the one-time special sell-back/conversion opportunity take place? A) Employees will be able to sell back PTO in October in accordance with normal rules and processes. Then, in November, all employees (with the exception of those working at Baptist Health Floyd or Baptist Health Madisonville) will have an additional special opportunity to sell back PTO, as well as a special opportunity to sell back and/or convert accrued sick time prior to going live with Baptist Health My PTO Time. This opportunity will be conducted through an online survey tool that will be used to process employee requests. The survey will open on Nov. 1 and will close at midnight Nov. 15. Anyone who fails to complete the online survey request timely will not be able to participate in this sellback/conversion opportunity late submissions and paper forms will not be accepted. Following the close of the survey request period, HR and Payroll will work to verify and process all requests. 4 P a g e

Q12. When can I expect to see payment for my elected sell-back of PTO and/or sick time and/or converted sick time added to my PTO bank? A) We anticipate being able to process finalized PTO/sick time sell-back requests no later than the week of Dec. 4 and for checks to be direct deposited into employee bank accounts sometime between Dec. 8-12. Converted time should be reflected in the employee s PTO bank by Dec. 9 in advance of the Workday go-live. Q13. How will the Thanksgiving, Christmas and New Year s holidays be handled? A) When considering sell-back options, employees will be expected to bear in mind the time off they might need for these holidays. If an employee has insufficient accrued time in his/her PTO bank, their request for time off during the holiday may be denied. Q14. Can you provide an example of the sell-back / conversion process? A) Assume Jill has 200 hours in her PTO bank and 900 hours in her sick bank as of Nov. 1. During the survey request period, she elects to (i) retain all of her accrued PTO, (ii) sell onethird (e.g., 300 hours) of her accrued sick hours and (iii) convert one-third (e.g., 300 hours) of her accrued sick time hours to PTO. Her sick time will be sold / converted as follows: 80 hours of accrued sick time will be sold at 40 on the dollar (because her sick bank balance exceeds 560 hours); No hours are available to sold at 20 on the dollar (because her sick bank balance is less 1,400 hours); Note: If she had a total of 1,500 sick hours instead of 900 with which to begin, 20 hours of these hours would have been available for sale at the higher rate of 20 on the dollar (e.g., 1,500 hours less 80 hours sold at 40 on the dollar above = a balance of 1,420 hours and 1,420 hours less 1,400 hours = 20 hours available for sell / conversion at 20 on the dollar). 220 hours will be sold at 10 on the dollar; E.g., 300 hours less the 80 hours sold at 40 on the dollar above. 300 additional sick time hours will be converted at 10 on the dollar; E.g., 30 hours will be added to employee s PTO bank for a new total of 230 hours of accrued PTO. Remaining balance (e.g., 300 hours) will be transferred to her new EIB. 5 P a g e

Q15. What happens to my accrued PTO and sick time hours if I elect not to sell or convert my accrued time or elect to sell back or convert only some of my accrued time? A) Any hours not sold and/or converted to PTO (for sick time) will be automatically transferred hour-for-hour into the employee s new PTO bank or EIB (as may be applicable). o Note: If the accrued or remaining sick time hours exceed the applicable EIB cap (e.g., 560 hours), they will be automatically converted to PTO and/or cashed out pursuant to existing rules if the accrued PTO balance would exceed the new two (2) year maximum accrual amount. B) The following illustrates the overall conversion process: C) Please note that the maximum EIB hours permitted is 560 hours. However, employees who have or are expected to have more than 560 hours in their sick bank or EIB at the time of conversion to the new Baptist Health My PTO Time will have all hours transferred to the new EIB unless they make a different election as part of the one-time conversion opportunity. Please note that such employees will not be able to earn any additional (e.g., new) EIB hours until their balance drops below the 560 hour cap for the new EIB. Employees may also choose to converted sick hours to PTO hours as part of the one-time conversion opportunity in order to reduce the number of hours to be transferred to their EIB. 6 P a g e

III. Questions about the New PTO Program Q16. How much PTO will I earn under the new Baptist Health MY PTO Time? A) Full-time employees (e.g., working 40 hours per week) will accrue PTO bi-weekly based on hours worked and based on their applicable years of service as follows: Years of Service (Current Accural based on Seniority) New PTO Accrual (Total Days) (Based on 8 hour day) New PTO Accrual (Total Hours) (Based on 1.0 FTE) New PTO Accrual (Bi-Weekly Accrual) (Hours per Pay based on 1.0 FTE) New PTO Maximum Accrual (Hours) (2 Years Max) 0 24 192 40 hrs (front loaded) + 5.846 hours 384 1 26 208 8.000 416 2 26 208 8.000 416 3 26 208 8.000 416 4 26 208 8.000 416 5 31 248 9.538 496 6 31 248 9.538 496 7 31 248 9.538 496 8 31 248 9.538 496 9 31 248 9.538 496 10 31 248 9.538 496 11 32 256 9.846 512 12 33 264 10.154 528 13 34 272 10.462 544 14 35 280 10.769 560 15 36 288 11.077 576 16 36 288 11.077 576 17 36 288 11.077 576 18 36 288 11.077 576 19 36 288 11.077 576 20 37 296 11.385 592 21 37 296 11.385 592 22 37 296 11.385 592 23 37 296 11.385 592 24 37 296 11.385 592 25 37 296 11.385 592 7 P a g e

Please note that actual PTO accrued will be based on actual service hours recognized for purposes of accruing My PTO Time (e.g., generally worked hours plus approved paid time off hours). For example, a.5 FTE who works 20 hours in a week (e.g. 40 hours per pay period) will accrue half of the amounts listed above. Further, the following employees are ineligible to participate in the new PTO/EIB leave benefit program: (i) PRN/POOL employees, (ii) temporary employees, (iii) agency/contract employees and (iv) ATO providers and senior executives who participate in a separate ATO leave benefit program. Finally, under the new program, you must be actively employed for the entire bi-weekly pay period in order to accrue PTO for that period. Employees who terminate employment for any reason prior to the effective close of the applicable bi-weekly pay period will not earn any PTO for that partial week. In short, you must be actively employed for the full pay period in order to have an accrual for that pay period. If you leave for any reason in the middle of the pay period, you would not accrue any PTO for that partial period. Q17. How does this compare to what other companies provide? Is this market competitive? A) Based on recent market data, the new Baptist Health My PTO Time is still above the leave benefits provided by most other organization in our markets (indeed, by several days see, e.g., chart below). So, yes, we believe that our leave benefits remain very competitive, both in terms of the amount of time off benefits provided as well as continuing to allow carry-over and sell-backs, which have become increasingly rare in today s market place. 8 P a g e

Q18. How is PTO accrued by new hires? What does it mean to be front-loaded? A) In response to concerns raised by new-hire employees, under the new Baptist Health My PTO Time program, we will front-load five (5) days of PTO (e.g., 40 hours for full-time employees regularly scheduled to work 40 hours per week (e.g., 1.0 FTE) and prorated for employees working less than full time, e.g., a.4 FTE regularly scheduled to work 16 hours per week would have 16 hours of PTO front-loaded) upon hire. This means that newly hired employees will have immediate access to this time for planned vacations and upcoming holidays. They will accrue the remaining 152 hours at the bi-weekly rate of 5.846 hours per pay period (or such lower amount based on the actual amount of service hours recognized for purposes of accruing time, e.g., hours worked, plus approved paid time off). As a result of this change, there will also no longer be a need to allow salary exempt staff to go into arrears. Thus, negative PTO balances will no longer be allowed once we go live with the new PTO program. Employees who exceed their accrued balance will go unpaid for any approved time off that cannot be covered by accrued time. Q19. How does the new PTO accrual work for those who were hired prior to go-live but still have less than one year of service at the time of implementing the new Baptist Health My PTO Time? A) Employees with less than one year of service at the time of go-live will begin to accrue PTO at the new accrual rate, and they will receive a pro-rated amount of front-loaded time that will be added to their new PTO bank. E.g., if a full-time employee was hired five (5) months before going live with Baptist Health My PTO Time, Baptist Health will add 23.3 hours of PTO (e.g., a prorated 7/12 s of 40 hours) to their bank and they will begin to accrue PTO at the new accrual rate as of the next pay period (e.g., 5.846 hours per pay period). Q20. Will we still be allowed to carry over unused PTO year to year? A) Yes. Employees will continue to be allowed to carry over accrued but unused PTO up to a maximum of two (2) years worth of their scheduled PTO accrual. See chart above. Q21. Are there any limits on how much PTO I can accrue? A) Yes. The maximum amount employees will be allowed to accrue continues to be limited to a maximum of two (2) years worth of PTO accrual. However, because we have increased the amount of PTO accrued by employees, the maximum limit has actually increased (e.g., the maximum PTO accrual for full-time employees with at least five years of service has 9 P a g e

increased from 384 hours to a new maximum of 496 hours based on the new accrual schedule). Q22. Can I still sell back my accrued PTO? A) Yes. Under the new program, accrued but unused PTO can be sold back at 75 on the dollar up to four times per year, consistent with the current PTO sell-back schedule (e.g., in January, April, July and October), subject to the following rules: In order to be eligible to participate in the sell-back, you must have / maintain a minimum balance of 40 hours in your PTO bank. The minimum sell-back is eight (8) hours, and the maximum sell-back is limited to thirty (30) PTO hours per quarter or one-half (½) of your balance over 40 hours (whichever is less) (which mirrors the current rule). Please note that there will no longer be any automatic over-the-max cash-out of excess PTO excess PTO over the maximum will now automatically spill over into an employee s Extended Illness Bank up to the maximum of 560 hours. Any hours above this cap will be forfeited. However, as part of the conversion, employees who have greater than 560 sick hours or EIB hours will be allowed to transfer all hours as part of the initial transfer. Employees will not be able to earn additional (e.g., new) EIB hours until their balances drop below the 560 hour maximum. Q23. Why will I only be allowed to sell back PTO at 75 on the dollar? A) Baptist Health recognizes that PTO sell-back is a valued feature of our current leave program for many employees, and it helps to serve both the needs of the company and employees alike. However, we also recognized that this is a very unique practice in today s market place. Further, we believe that encouraging employees to sell back PTO rather than use it for its intended purposes may actually hurt our employees when they choose to work and not take time off to rest and rejuvenate. So, we believe this policy strikes an appropriate balance between encouraging employees to use their time off while continuing to provide other employees an opportunity to sell back their accrued PTO should they so choose. 10 P a g e

Q24. What happens to my accrued PTO at termination under the new PTO program? A) Accrued but unused PTO will be paid out as a lump sum at termination (including at retirement) based on the employee s recognized years of service at the time of separation (e.g., the employee s last day worked) per the following schedule: Years of Services (As of last day worked) Payout % Less than 2 years of service 0% 2 Yrs of Service up to 5 Yrs of Service 50% 5 Yrs of Service up to 7 Yrs of Service 60% 7 Yrs of Service up to 10 Yrs of Service 70% 10 Yrs of Service up to 12 Yrs of Service 80% 12 Yrs of Service up to 15 Yrs of Service 90% 15 or more Years of Service 100% Q25. How does this affect my current accrued but unused PTO? Does this mean my unused PTO will be worth less, or will this accrued time be grandfathered under the old payout rules? A) The new termination payout schedule will apply to all accrued but unused PTO hours as of the time we go live with the new Baptist Health My PTO Time program. Existing accrued time will not be grandfathered for purposes of payout at termination. This tiered payout schedule has been designed to promote employee retention and to reward our long-service employees. Additionally, this schedule also takes into account that, previously, part of an employee s time off benefits had no value at termination (e.g., accrued but unused sick time), whereas now such time will have value as PTO. We believe most employees will be willing to make this tradeoff for the opportunity to have more PTO and increased flexibility in how they use and manage their time off benefits. For many of our employees (those with 15 or more years of service), this change will have no impact, but we recognize that it could adversely impact those who currently fall below this level. However, we believe everyone has the ability to reach this level (e.g., it is within each employee s personal control to manage their situation so that they are not adversely affected), and it is our sincere hope that all employees will choose to remain with us for a long time so that, when they do retire or otherwise decide to leave the organization, their accrued PTO benefits will be paid out to them at the 100 percent level. Moreover, we have found that the majority of employees currently use nearly all of their accrued PTO (e.g., 11 P a g e

approximately 96 percent of all PTO accrued is used). So, one way to think about this change is that any old accrued but unused PTO is used first to cover your next PTO leave (e.g., dollar-for-dollar or at 100 percent) and that it is the accumulation of your new PTO hours that will be subject to the new termination payout schedule (e.g., applying a first in, first out ( FIFO ) rule). However, to be clear, this termination payout schedule will apply to all hours in your PTO bank as of the date the new program goes into effect. There will not be any grandfathering of existing accrued PTO, as it will all move to the new PTO bank as previously noted. Q26. When will this new termination payout schedule go into effect? A) All of these changes, including the new termination payout schedule, will go into effect with the launch of Workday, our new Human Resources information system. Workday is currently expected to go live at the end of calendar year 2017. Q27. What happens to my PTO if I convert from regular employment (e.g., FT/PT status) to PRN status? A) Consistent with existing practice, accrued PTO would be paid out to those employees who elect to convert from regular to PRN/POOL status. Accrued PTO will be cashed out based on their then accumulated years of service with the company in accordance with the new PTO termination payout schedule, as referenced above. Q28. If I use my PTO for an unscheduled absence, will I still get a point for the absence? A) A. Yes, all unscheduled absence will be subject to our Attendance policy. 12 P a g e

IV. Questions about the New Extended Illness Bank (EIB) Q29. How do I accrue time to my Extended Illness Bank? How do I use the time accumulated in my EIB? A) The Extended Illness Bank basically replaces an employee s former sick bank in two ways: First, the EIB will serve as the bank to which former sick hours are converted on an hour-for-hour basis so that employees will not lose any of their accrued but unused sick time hours. Second, while the new PTO program has been enhanced to provide additional time that can be used to cover routine illnesses (a/k/a sick days), the EIB benefit provides employees a vehicle for accruing additional time that can be used for extended illnesses or injuries. Specifically, employees who manage their PTO well and do not use their full PTO accrual will have this time spill over into their EIB rather than lose it, as many employees experience in other companies. This provides employees the opportunity to build a bank of time that can be used for planned or unplanned absences due to injury, illness, or other medical event. In short, an employee s EIB can serve as a quasi short-term disability ( STD ) plan without the need to independently purchase STD coverage through Baptist Health s voluntary STD plan. EIB hours are available to cover leaves falling under the Family and Medical Leave Act ( FMLA ) and other qualifying illnesses after five (5) working days/seven (7) calendar days. This leave includes any approved Family and Medical Leave Act (FMLA) leave due to the employee s own personal injury or illnesses, as well as can be used to cover time to provide care for an eligible child (e.g., any biological, adopted or foster child, a stepchild, a legal ward, or a child of a person standing in loco partentis, who is either (i) under the age of 18 or (ii) is 18 years of age or older who is incapable of self-care because of a mental or physical disability ). 13 P a g e

Regular PTO must still be used to cover initial absence period (e.g., any absence occurring within the first five (5) working days/seven (7) calendar days) as well as any short-term, intermittent leaves covered by FMLA. The following diagram illustrates how the new PTO and EIB work together: Q30. Can EIB benefits be used to cover intermittent leaves under the FMLA? A) No. EIBs can only be used to cover extended absences lasting more than five work days/seven calendar days and are not intended to cover short-term, intermittent leaves. Employees must use PTO to cover intermittent leaves. Q31. Are there any limits on how much EIB time I can accrue? A) The maximum amount of EIB time that can be accrued in your EIB is 560 hours. If an employee s EIB exceeds 560 hours, any time above this limit will be forfeited. However, as part of the conversion, employees who have greater than 560 sick hours or existing EIB hours will be allowed to transfer all hours as part of the initial transfer. Employees will not be able to earn additional (e.g., new) EIB hours until their balances drop below the 560 hour maximum. Q32. What happens if my current sick time balance exceeds the maximum 560 hours allowed in the new EIB? A) Employees will have the chance to participate in a one-time conversion opportunity whereby they can designate how they would like to handle their accrued sick time, which includes the option to either cash out and/or convert such time to PTO. 14 P a g e

Q33. Can I sell back any of my accrued EIB time? Frequently Asked Questions A) No. EIB time does not have any cash value and, thus, cannot be sold or cashed out. However, as noted, employees will have a one-time opportunity to convert and/or sell back part of their accrued sick bank prior to go-live as part of the conversion from the old leave programs to the new Baptist Health My PTO Time program. Q34. What happens to my accrued EIB time at termination? A) Because EIB hours have no cash value, they are forfeited and are not paid out at the time of termination or retirement. Q35. Will I still be able to extend the effective date of my retirement using either PTO and/or EIB? A) No. Under the new Baptist Health My PTO Time program, any accrued but unused PTO is paid out as part of the next regularly scheduled pay date following an employee s separation from employment (whether due to resignation, retirement or termination) in accordance with the new PTO termination payout schedule (see above) and cannot be used to extend one s retirement date. Similarly, because EIB has no cash value, such hours cannot be used to extend one s retirement date. V. Miscellaneous Questions Q36. Will I still be required to use PTO when my office / medical practice is not open during the holidays? A) No. In response to employee requests not to be forced to use PTO when their office or practice is closed on a Baptist Health recognized holiday, the PTO leave policy has been revised to provide hourly employees the option to either use PTO or to take the time off unpaid. This change only applies to holidays for which the entire department, office or practice is closed. E.g., if the employee s office is closed for Thanksgiving, hourly employees working within that office can chose to take the time off paid (e.g., with PTO) or unpaid. Given that employees will now have a larger PTO bank that can be used for vacations, sick time and holidays, it is our hope that most will choose to continue to use PTO in order to receive a full paycheck for that week. Employees working in any department, office or practice that is scheduled to be open on a holiday (e.g., a patient care unit) will be continue to be required to use PTO to cover holidays and to fill their FTE status, 15 P a g e

consistent with existing rules. Please note that salaried exempt employees will still be expected to use PTO in order to account for their full salary for such weeks. Q37. Will we be able to donate PTO / EIB to another employee in need under the new PTO program? A) No. This feature has not been built into the new Baptist Health My PTO Time program but may be considered in the future. Q38. How will these changes affect how employees on FMLA are paid? A) PTO balances will be used to cover intermittent FMLA occurrences and continuous leaves of less than five (5) working days (or seven (7) calendar days). After the fifth day of any continuous leave of absences, time will be deducted from the employee s EIB (if available). Upon exhaustion of an accrued EIB time, remaining leave time will be deducted from the employee s accrued but unused PTO balance. Should both the EIB and PTO banks be exhausted, employees will be converted to an unpaid status. Q39. How will these changes affect employees who qualify for Short-term Disability (STD) benefits? A) To apply for STD benefits, an employee must fulfill the minimum waiting period of seven (7) calendar days before becoming eligible. While PTO must be used to cover the initial waiting period, exhaustion of any additional accrued time off (e.g., PTO and/or EIB) will no longer be required in order to receive STD benefit coverage (vs. previous STD rules, which required exhaustion of all accrued sick time prior to accessing STD benefits). VI. Some Examples Q40. Can you provide an example of how all of this works in real life? A) Yes. Here is a basic example used in the My PTO Conversion / sell-back form: Assume an employee has 200 hours in their PTO bank and 1,500 hours in their sick bank. Assume further that this employee elects to (i) sell zero PTO hours, (ii) sell 300 hours of their sick hours and (iii) convert 300 of their sick hours to PTO. All of their accrued PTO will be transferred to the new PTO bank, and their accrued sick time will be sold/converted/transferred as follows: 80 hours will be sold at 40 cents on the dollar (because sick bank > 560 hours). 16 P a g e

20 hours will be sold at 20 cents on the dollar (e.g., 1,500 hours - 80 hours = 1,420 balance and 1,420 hours minus 1,400 hours = 20 hours available for sell/conversion at 20 cents on the dollar). 200 hours will be sold at 10 cents on the dollar (e.g., 300 hours less 80 hours sold at 40 cents on the dollar and less 20 hours sold at 20 cents on the dollar). 300 hours will be converted at 10 cents on the dollar (e.g., 30 hours will be added to employee's PTO bank). The balance (900 hours) will be transferred to the employee s new EIB. Please Note: Sick time will be sold and/or converted based on verified available balances and in the following priority order: The maximum PTO hours eligible for sell-back is thirty (30) hours or 1/2 of your current PTO balance (whichever is less). Sick time balances > 560 hours will be sold/converted at 40 cents on the dollar up to a maximum of 80 hours. Remaining sick time hours greater than 1,400 will be sold/converted at 20 cents on the dollar. Any remaining sick time hours will be sold converted at 10 cents on the dollar. Sell-backs will take priority over conversions. Eligible amounts will be verified by HR/Payroll prior to processing a special election request. B) We will also look at three more examples on the following pages showing how this works for employees across the employment spectrum, e.g., (i) Newbie Ned (who was just hired), (ii) Typical Tom (who has the same average bank of time that most Baptist Health employees have), and (iii) Saver Sue (who works to save a majority of her PTO and sick time for a rainy day). 17 P a g e

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VII. Last Question Q41. What if I have more questions? A) Please consult your local HR representative. 20 P a g e