Emergency Military Leave

09/14/2001

This summarizes our policies affecting compensation, benefits, and employment for employees who are Military Reservist and National Guard members and who are called to active duty as a result of a national emergency.

1. Compensation

Full-time and Part-time Employees - If an employee is a member of a Reserve or National Guard unit and is required to report for a tour of active duty due to an emergency situation, the employee will be granted a special leave of absence for the period of mandated service. During that period, the employee's regular base salary or hourly rate of pay will be coordinated with his or her base military pay. This coordination of pay is limited to thirty (30) days. It is the responsibility of the employee to provide his or her Supervisor an official copy of the military pay voucher in order for the Payroll Department to calculate the differential (if any).

2. Reinstatement

Employees returning from a Military Emergency Leave will be eligible for reinstatement to their former positions or to similar positions of like pay and status within the local geographic area. Per the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA), the re-employment protection period cannot exceed five (5) years. The Company may be required to temporarily replace the employees on military emergency leave if the time away exceeds 30 days.

If an employee is hospitalized for or convalescing from an injury sustained during service, ABX Air will hold the job open for a period of time necessary for the employee to recover, not to exceed two (2) years. Should a disability sustained during a military service prevent the employee from performing the duties of the position last held or a similar position, an effort will be made for placement in a position for which the employee is physically qualified. Such position will provide the nearest approximation of like status and pay, consistent with the circumstances of each case.

3. Seniority

Company seniority, job family seniority, and job classification seniority continue while on emergency military leave. No break will occur in seniority.

4. Benefits

A. Vacation and Sick Pay. Active military personnel will continue to accrue vacation for the duration of a Emergency Military Leave. Sick pay will accrue for up to 30 days of the absence.

B. Medical/Dental/Vision - If military leave is less than 31 days, coverage continues during the leave. Employees are required to continue to pay their share of the cost of coverage. If military leave is greater than 31 days, then coverage remains in effect until the end of the month in which the employees last worked. In the event the employee or currently covered dependents want to continue the medical, dental and vision coverage under the group plan, they are eligible to purchase the coverages under the provisions of the COBRA Continuation of Coverage Program. Current rates are available in Human Resources.

C. Life, Accidental Death & Dismemberment and Voluntary Accident: These benefits will cease at the end of the month in which the employees last worked. Coverages will be effective immediately upon reinstatement.

D. Short Term Disability and Long Term Disability - These benefits will cease immediately when the Military Emergency Leave begins. Coverages will be effective immediately upon reinstatement.

E. Universal Life - Employees may continue the universal life insurance by paying the premiums directly to the 3rd party administrator (Seabury & Smith).

F. Pension - All current pension plan participation, Retirement Income Plan, and the 401(k)/CAP Plan will continue with the employee earning market gains/losses and vesting.

If you have questions about any of the above, please email the Employee Benefits Department at abx.benefits@abxair.com or see your Employee Relations Coordinator.

Revised: June 22, 2006.