LEAVE OF ABSENCE FAMILY/MEDICAL LEAVE (FMLA) Revised 06/2010. PURPOSE To remain compliant with the Family and Medical Leave Act (1993) as amended.

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1 Subject Policy & Procedure LEAVE OF ABSENCE FAMILY/MEDICAL LEAVE (FMLA) Revised 06/2010 PURPOSE To remain compliant with the Family and Medical Leave Act (1993) as amended. 1. Description Family & Medical Leave of Absence The FMLA entitles eligible employees to take up to 12 workweeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons, or for any Qualifying Exigency arising out of the fact that a covered military member is on active duty, or has been notified of an impending call or order to active duty, in support of a contingency operation. The FMLA also allows eligible employees to take up to 26 workweeks of job-protected leave in a rolling 12-month period to care for a covered servicemember with a serious injury or illness. The rolling 12-month period is measured backward from the date an employee begins an FMLA leave. Under the Wisconsin Family and Medical Leave Act, eligible employees may take up to 6 weeks of unpaid leave in connection with the birth or adoption of a child; up to 2 weeks per calendar year for the care of a child, spouse, domestic partner, or parent with a serious health condition; or up to 2 weeks per calendar year for care of the employee s own serious health condition. 1 Spouses employed by the same employer are limited in the amount of family leave they may take for the birth and care of a newborn child, placement of a child for adoption or foster care, or to care for a parent who has a serious health condition to a combined total of 12 workweeks (or 26 weeks if leave to is to care for a covered servicemember with a serious injury or illness is also used). Leave for birth and care, or placement for adoption or foster care, must conclude within 12 months of the birth or placement. Clarification: If two spouses work for the same employer, each spouse only can take leave that amounts to 12 workweeks between the two spouses to care for a newborn child or seriously ill parent. They are still eligible to take leave individually for other FMLA reasons, such as a serious health condition, from the time that remains out of the original FMLA 12 week leave designation (29 C.F.R , ). Example: John and Jane Smith work for Beta Company. Jane takes eight weeks of FMLA leave after the birth of her son, David, and John then takes four weeks of FMLA leave to care for David when Jane returns to work. Jane can take up to four more weeks of FMLA leave to care for her mother who has a serious health condition, and John can take eight more weeks of leave because of his own serious health condition. 1 There is not a separate 2-week family leave entitlement for domestic partners. Leave taken to care for a domestic partner will be counted in the 2 weeks of family leave available to eligible employees under the Wisconsin law. If an employee is eligible for leave under both the federal FMLA and the Wisconsin Family and Medical Leave Act, the employee will be allowed to take advantage of whichever of these two provides the greater benefit.

2 If two spouses work for the same employer and take military caregiver leave, they are limited to a total of 26 workweeks during the single 12-month period for such leave and leave taken for other FMLA qualifying reasons. They remain subject to the 12 workweek limit for the portion of leave that is taken to care for a newborn child or seriously ill parent (29 U.S.C. 2612;29 C.F.R ). 2. Employees are eligible for an FMLA approved leave if they: have at least any 12 months of service with Polaris Industries at a location in the US or in any territory or possession of the US where at least 50 employees are employed by the employer within 75 miles, and have worked at least 1,250 hours during the 12 months prior to the effective date of the leave. (Non-full time employees are eligible if they meet the 1,250 hour provision.) NOTE: While the 12 months of employment need not be consecutive, employment periods prior to a break in service of seven years or more need not be counted unless the break is occasioned by the employee s fulfillment of his or her National Guard or Reserve military obligation (as protected under the Uniformed Services Employment and Reemployment Rights Act (USERRA)). 3. Employees are eligible for a Wisconsin Family and Medical Leave Act leave if they: have worked for the company for more than 52 consecutive weeks; and have worked at least 1,000 hours during the preceding 52-week period. 4. Leave may be taken for the following reasons: upon the birth of the employee's child and to care for such child; (The leave must be completed within 12 months of birth.) upon the placement of a child with the employee for adoption or foster care; (The leave must be completed within 12 months of placement.) when the employee is needed to care for a child, spouse, domestic partner*, parent, or spouse s parent** who has a serious health condition; or when the employee is unable to perform the functions of his/her position because of his/her own serious health condition. to deal with a Qualifying Exigency (defined below) arising out of the fact that the employee s spouse, child (of any age), or parent is on or has been notified of an impending call or order to active duty, in support of a contingency operation. to care for a Covered Servicemember with a serious injury or illness if the employee is the spouse, child, parent (of a child of any age), or next-of-kin of the Covered Servicemember; NOTE: Employees taking leave to care for a Covered Servicemember may be entitled to up to 26 workweeks in a single 12-month period. The 12-month period for leave taken for this reason is not a rolling 12-month period. Rather, the 12-month period for leave taken for this reason begins on the first day that the employee takes leave and ends 12 months later.

3 Employees may be entitled to one 26-week period of leave total to care for a single Covered Servicemember and for that Covered Servicemember s serious illness or injury; additional weeks of leave (in a new single 12 month period ) can only be taken to care for a different illness or injury of the servicemember or to care for a different servicemember. * Only employees working in Wisconsin are eligible for domestic partner FMLA ** Only employees working in Wisconsin are eligible for parent of spouse or parent of domestic partner FMLA NOTE: Spouses employed by the same employer are limited in the amount of family leave they may take for the birth and care of a newborn child, placement of a child for adoption or foster care, or to care for a parent who has a serious health condition to a combined total of 12 workweeks (or 26 workweeks if leave to care for a covered servicemember with a serious injury or illness is also used). Leave for birth and care, or placement for adoption or foster care, must conclude within 12 months of the birth or placement. 5. Leave Denial Employees are not eligible for leave if: Eligibility requirements are not met Adequate notice is not given for a foreseeable leave. Medical certifications of serious health conditions are not provided. Leave request is for the care of a family member not covered under the FMLA. 6. Job Protection Upon return from FMLA leave, an employee must be restored to the employee s original job, or to an equivalent job with equivalent pay, benefits, and other terms and conditions of employment. An employee s use of FMLA leave cannot result in the loss of any employment benefit that the employee earned or was entitled to before using FMLA leave, nor be counted against the employee under a no fault attendance policy. If a bonus or other payment, however, is based on the achievement of a specified goal such as hours worked, products sold, or perfect attendance, and the employee has not met the goal due to FMLA leave, payment may be denied unless it is paid to an employee on equivalent leave status for a reason that does not qualify as FMLA leave. An employee has no greater right to restoration or to other benefits and conditions of employment than if the employee had been continuously employed. When the employee returns from up to 12 workweeks of FMLA approved leave, he/she will be restored to the position he/she held when the leave began or to an equivalent position (same rate of pay, benefits, working conditions, privileges and status). If an employee does not return at the end of an approved leave the manager may staff the position. An employee whose Short-Term Disability benefit runs beyond the FMLA job protection period will continue to receive pay according to the Polaris STD schedule. EXCEPTION: A "key employee" who is among the highest paid ten percent (10%) of employees within a 75 mile radius of his/her office need not be restored to his/her former or equivalent position if job restoration would result in "substantial and grievous" economic injury to the Company. However, in this situation, the manager must notify the employee of his/her intent to

4 replace the position and give the employee an opportunity to return to work prior to the time the position is replaced. EXCEPTION: If a job is eliminated due to close-down of a business unit or as part of a layoff, which would have affected the status of the employee regardless of the FMLA, restoration will not be possible. Such job elimination entitles the employee to the same benefits given other employees, whose positions are eliminated, including severance pay. 7. Employee's Responsibilities Procedures For Requesting Leaves Of Absence An eligible employee must provide the company at least 30 days advance written FMLA notice when practicable and/or possible. If 30 days notice is not possible, due to a medical emergency, uncertain adoption/foster placement or a change in circumstances, verbal notice is acceptable within at least two days of learning of the need for leave. Failure to timely provide a completed certification to the company may result in the delay or denial of leave. If an employee is absent from work as the result of his/her own serious illness or injury, he/she may be eligible for Short-Term Disability benefits. See the Short-Term Disability-Salaried Employees Policy available on For the birth of a child: Submit completed Leave of Absence Request form available on to the HR Benefit Administrator or Polaris Medical Office indicating the date or anticipated date of birth for employee's period of disability. On the form, be sure to note if additional time is requested for care of a newborn. Also, submit completed physician s certification to support a claim for the FMLA based on the birth of a child and employee s own serious health condition. For the adoption or foster care of a child: Submit completed Disability/Family Leave of Absence Request form available on to the HR Benefit Administrator or Polaris Medical Office indicating date of placement and the time period the employee intends to take off to care for his/her child. For care of a sick family member: Submit completed Leave of Absence Request form available on to the HR Benefit Administrator or Polaris Medical Office accompanied by physician's certification to support a claim for the FMLA based on a "serious health condition" of a child, spouse or parent. The Certification of Healthcare Provider is available on For an Employee's Own Serious Health Condition: Submit completed Leave of Absence Request form available on to the HR Benefit Administrator or Polaris Medical Office indicating anticipated date of leave. This should be accompanied by physician's certification to support a claim for the FMLA based on a "serious health condition" of the employee. The Certification of Healthcare Provider is available on Hourly employees must also notify the Short Term Disability vendor when it is known the illness or injury will exceed seven consecutive work days. If an employee is absent from work as the result of his/her own serious illness or injury, he/she may be eligible for Short-Term Disability benefits. See the Short-Term Disability- Salaried Employees Policy available on for requirements and information. The company may require an employee to provide re-certifications and/or report periodically on his or her status or intent to return while on leave.

5 For Serious Injury or Illness of a Covered Servicemember Submit a completed Certification for Serious Injury or Illness of Covered Servicemember for Military Family Leave (Family and Medical Leave Act) form available to the HR Benefit Administrator indicating anticipated date of leave. The HR Benefit Administrator or his or her designee will follow up with you with respect to any additional information that may be necessary. To deal with a Qualifying Exigency (as defined below): Submit a completed Certification of Qualifying Exigency for Military Family Leave (Family and Medical Leave Act) form available on to the HR Benefit Administrator indicating anticipated date of leave. The HR Benefit Administrator or his or her designee will follow up with you with respect to any additional information that may be necessary. 8. Intermittent FMLA Under some circumstances, employees may take FMLA leave intermittently taking leave in separate blocks of time for a single qualifying reason or on a reduced leave schedule reducing the employee s usual weekly or daily work schedule. When leave is needed for planned medical treatment, the employee must make a reasonable effort to schedule treatment so as not to unduly disrupt the employer s operation. If FMLA leave is for birth and care, or placement for adoption or foster care, use of intermittent leave is subject to the employer's approval. FMLA may be taken on an intermittent or reduced leave (part-time) schedule if medically necessary due to the nature of the serious health condition of the employee or his/her family member. If leave is requested on this basis, however, the employee must first attempt to ensure that medical treatment be scheduled during non-company time. If this is not reasonably possible, the manager may require the employee to transfer, temporarily, to an "alternative" position which better accommodates recurring periods of absence or a part-time schedule, provided that the position has equivalent rate of pay and benefits. FMLA leave taken because of a Qualifying Exigency also may be taken intermittently or on a reduced schedule basis. 9. Pay Provisions Unused and accrued vacation can be used to supplement periods of unpaid leave. In instances where paid time is not available, Payroll will make deductions from the employee's salary for the hours and/or days taken as unpaid FMLA. (Under FMLA, an employer may make these deductions from an employee's salary without affecting his/her exempt status.) These absences, like all absences attributable to FMLA, are not counted as chargeable units of absence against an employee's attendance record. Note: Full-time employees should refer to the Short-Term Disability-Salaried Employees Policy available on to determine if paid disability leave may be included for a portion of the family/medical leave. 10. Status Of Employee Benefits During FMLA Insurance Insurance coverage will continue. However, the employee is responsible for his/her portion of the premiums. If the employee chooses not to return to work after the leave, Polaris will recover its

6 portion of the premium paid, as long as the failure to return is not due to continuation, recurrence, or onset of a serious health conditions or other circumstances beyond the employee s control. Profit Sharing/Employee Stock Ownership (ESOP) An active employee on family/medical leave as of December 31 is eligible to receive profit sharing and ESOP provided they meet the other eligibility requirements of these programs. Compensation prior to the family/medical leave and length of service including FMLA time will count towards the employee s profit sharing calculation. Note: Profit sharing payout is based on Polaris ability to maintain adequate profit levels and all payouts are subject to management discretion. Holidays Holidays that fall during the FMLA leave will not be paid. For Holidays during a paid leave for disability, please refer to the Short Term Disability policy for more information. Vacation/Sick/Personal Hours Employees on a family/medical leave of absence will not accrue sick/personal hours or vacation hours. Other Benefits An employee is not eligible for any benefit not discussed in this document. 11. Fitness for Duty Certification/Fitness for Duty Medical Exam With the approval of the Human Resources Department, an employee returning from disability leave may be required to submit to a Fitness for Duty Medical Examination if there is a sufficient business related reason to believe that ongoing limitations, related to the serious health condition that necessitated the leave, may interfere with his/her ability to perform the essential functions of his/her job. The Company reserves the right to delay return to work until the employee is examined by a health care provider and submits a Fitness for Duty certification to Human Resources. 12. Rights Under Law The Company reserves all rights it may have under the Family and Medical Leave Act. 13. No Discrimination or Retaliation You will not be discriminated against or retaliated against because you have exercised your rights under the federal FMLA or the Wisconsin Family and Medical Leave Act. 14. Definitions Covered Servicemember A servicemember who is a member of the Armed Forces (including members of the National Guard or Reserves) who is undergoing medical treatment, recuperation, or therapy; is otherwise in outpatient status; or is otherwise on the temporary disability retired list, for a serious injury or illness incurred in the line of duty on active duty. A serious injury or illness is an injury or illness incurred by a Covered Servicemember in the line of duty on active duty that may render the servicemember medically unfit to perform the duties of the member s office, grade, rank, or rating. Domestic Partner For purposes of the Wisconsin Family and Medical Leave Act, Domestic Partner is defined as a same-sex or opposite-sex relationship. If an employee has registered as a Domestic Partner with

7 the county in which he or she resides, the employee may provide the company with proof of registration to demonstrate eligibility for leave benefits. If the employee is unregistered, the employee may demonstrate eligibility by certifying that the employee satisfies the following conditions: (1) each individual in the relationship is at least 18 years old and is otherwise competent to enter into a contract; (2) neither individual is married to, or in a domestic partnership with, another individual; (3) they share a common residence; (4) they are not related by blood in any way that would prohibit marriage under the Wisconsin Code; (5) they consider themselves to be members of each other s immediate family; and (6) they agree to be responsible for each other s basic living expenses. Health Care Provider FMLA defines health care providers and those capable of providing health care services as including: doctors of medicine or osteopathy who are authorized by state law to practice medicine or surgery; podiatrists, dentists, clinical psychologists, optometrists, and chiropractors who are authorized to practice under state law; nurse practitioners, nurse-midwives, clinical social workers, and physician assistants who are authorized to practice under state law; Christian Science practitioners listed with the First Church of Christ, Scientist in Boston, Mass.; any health care provider that employers or their group health plan benefits managers accept certifications of serious health conditions to substantiate benefits claims; and any health care provider as defined above who is licensed to practice in a foreign country and practices in those countries. (29 U.S.C. 2611; 29 C.F.R ). [Note: Authorized health care providers for military caregiver leave certification include those from the federal Department of Veterans Affairs, federal Department of Defense, and DOD TRICARE network and non-network private health care providers (29 C.F.R ). ] Qualifying Exigency A qualifying exigency in connection with the active duty status or call to active duty of a covered family member may include any of the following, which are related to, arise from, or are necessitated by the active duty status or call to active duty of the covered family member: (1) a short-notice deployment calling a covered military member to service within seven or fewer days notice; (2) attendance at military events and related activities (e.g., official ceremony, program, informational briefings); (3) arrangement of childcare and school activities; (4) making of financial or legal arrangements; (5) attendance at counseling; (6) time to spend with person on short-term, temporary rest and recuperation leave (up to five days for each instance of rest and recuperation); (7) post-deployment activities; and (8) additional activities. If you have any questions about what may constitute a qualifying exigency, please contact Human Resources. Serious Health Conditions A serious health condition means an illness, injury, impairment, or physical or mental condition that involves either: Inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical-care facility, including any period of incapacity (i.e., inability to work, attend school, or perform other regular daily activities) or subsequent treatment in connection with such inpatient care; or Continuing treatment by a health care provider, this includes:

8 (1) A period of incapacity lasting more than three consecutive, full calendar days, and any subsequent treatment or period of incapacity relating to the same condition that also includes: treatment two or more times by or under the supervision of a health care provider (i.e., in-person visits, the first within 7 days and both within 30 days of the first day of incapacity); or one treatment by a health care provider (i.e., an in-person visit within 7 days of the first day of incapacity) with a continuing regimen of treatment (e.g., prescription medication, physical therapy); or (2) Any period of incapacity related to pregnancy or for prenatal care. A visit to the health care provider is not necessary for each absence; or (3) Any period of incapacity or treatment for a chronic serious health condition which continues over an extended period of time, requires periodic visits (at least twice a year) to a health care provider, and may involve occasional episodes of incapacity. A visit to a health care provider is not necessary for each absence; or (4) A period of incapacity that is permanent or long-term due to a condition for which treatment may not be effective. Only supervision by a health care provider is required, rather than active treatment; or (5) Any absences to receive multiple treatments for restorative surgery or for a condition that would likely result in a period of incapacity of more than three days if not treated.