ALLERGAN CORPORATE VEHICLE POLICY CORPORATE VEHICLE

ALLERGAN CORPORATE VEHICLE POLICY

CORPORATE VEHICLE PROGRAM POLICY


January 2019 Page 2

TABLE OF CONTENTS

Contact Information ........................................... 3 GENERAL PROGRAM PARAMETERS .......... 4 Introduction ........................................................... 4 Scope .................................................................... 4 Purpose ................................................................. 4 Eligibility ................................................................ 4 Vehicle Use ........................................................... 5 Driver Expectations ............................................... 5 Driver Responsibilities ........................................... 6 Vehicle Program Participant Acknowledgement .... 6

VEHICLE SAFETY POLICY......................... 7 Policy Administration and Enforcement ................. 7 New Hires and Candidates.................................... 8 Current/Existing Drivers ........................................ 8 Driving While Impaired .......................................... 8 ARI Scorecard – Risk Assessment ....................... 9 Motor Vehicle Points ............................................. 9 Preventable Accident Points ............................... 10 Non- Preventable Accident Points ....................... 10 Safety Policy Violations ....................................... 10 Other Authorized Drivers ..................................... 10 DRIVER TRAINING ............................................ 11 New Hires ............................................................ 11

Existing Drivers ........................................................ 11 Automobile Accidents/Incidents .......................... 12 Accident/Incident Reporting ................................ 12 Driver Accountability ........................................... 12

FLEET PROGRAMS AND PROCEDURES ... 13 Vehicle Eligibility ................................................. 13 Company Leased Vehicle to Car Allowance Switch ... 13 Car Allowance to Company Leased Vehicle Switch ... 13 Transferring to an In-house Position ................... 13

COMPANY LEASED VEHICLE PARAMETERS ............................................... 14 Vehicle Availability .............................................. 14 Replacement Parameters.................................... 14 New Car Orders .................................................. 15 Used Vehicles ..................................................... 15 Vehicle Condition ................................................ 15 Smoking / Pet / Animal ........................................ 15 Option to Buy ...................................................... 15 Vehicle Quote ...................................................... 16

VEHICLE OPERATIONS/ PROGRAMS/CARE ........................................ 17 Fuel Card Program .............................................. 17 Vehicle Maintenance Management ..................... 17 Routine or Scheduled Maintenance .................... 18 Warranty Repair Work ......................................... 18 Post Warranty Repairs ........................................ 18 Emergency Roadside Assistance ........................ 18 Snow Tires .......................................................... 18 Rental Vehicle ..................................................... 18 LICENSE AND TITLE SERVICES ...................... 18

• Toll Program ...................................................... 19 Citation Payment Compliance ............................. 19 PERSONAL USE AND MILEAGE REPORTING .. 20 Definition ............................................................. 20 Taxable Benefit ................................................... 20 Employee Contribution ........................................ 20 Benefit Calculation .............................................. 20 Reconciliation ...................................................... 20 Non-Reporting Policy .......................................... 21 Exhibit A – Sample Tax Calculation ...................... 21 Driver Neglect ..................................................... 22 Definition of Neglect ............................................ 22 Repercussions for Neglect .................................. 22

CAR ALLOWANCE PROGRAM PARAMETERS ................................................ 23 Purpose ............................................................... 23 Eligibility .............................................................. 23 Driver Responsibilities ......................................... 23 Program Components ......................................... 24 Vehicle Cost Schedule ........................................ 24 Procedures for Reimbursement .......................... 24


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CONTACT INFORMATION

ARI Fleet Program

ARI Fleet Services Hotline 1-877-353-3857 ARI Fleet Web Site http://allergandriverinsights.com ARI Fleet Email [email protected] ARI Fleet Address 4001 Leadenhall Rd., Mt Laurel, NJ 08054

Motus Car Allowance Program

Motus Customer Support (888) 801-6714 Motus Web Site http://www.motus.com/ Motus Email [email protected] Motus Address 60 South St. Boston, MA 02111

ALLERGAN Corporate Vehicle Administration Contacts

Fleet Specialist

Alex Fenwick – Fleet Specialist [email protected] 862-261-8586

Director – Fleet Services

Theresa Belding [email protected]

http://allergandriverinsights.com/

http://www.motus.com/

mailto:[email protected]



ALLERGAN CORPORATE VEHICLE POLICY GENERAL PROGRAM PARAMETERS

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GENERAL PROGRAM PARAMETERS

Introduction Allergan supplies Company owned, leased, rented vehicles (collectively, "Company Vehicles") and an Auto Allowance program (Allowance Vehicles) to certain employees who require transportation for business. With the use of these vehicles come certain responsibilities. Failure to comply with any of the standards set forth in this policy exposes the company to a high level of risk and may result in disciplinary action up to and including termination.

Scope This Policy applies to all authorized drivers of Company Vehicles when operated for business or personal use, including pool vehicles, and Allowance Vehicles where applicable. As such, in addition to Authorized Employee Drivers, the Policy applies to authorized spouses or certified domestic partners, who have satisfactorily passed a Motor Vehicle Record screening ("Other Authorized Drivers"). (Authorized Employee Drivers and Other Authorized Drivers are collectively referred to as "Authorized Drivers"). Proof of domestic partnership will be required in addition to a satisfactory Motor Vehicle Record.

Purpose This Corporate Vehicle Policy (the "Policy") describes the requirements for the use of Company and Allowance Vehicles. Further, the Policy describes requirements to assist in the reduction of work-related motor vehicle incidents, as well as to provide a safe work environment for our authorized Allergan employee drivers ("Authorized Employee Drivers"). Allergan, in its sole discretion, reserves the right to change, modify or rescind this Policy in whole or in part at any time. Furthermore, this Policy is not a contract of employment.

Eligibility Allergan may offer a company vehicle to any employee where their primary job duties would warrant the use of a company vehicle. Allergan reserves the right to deny a company vehicle to any employee in accordance with the Policy or for any lawful reason it deems necessary. If an individual is in a position that warrants a company vehicle, they will be ineligible for employment if they are ineligible for a vehicle. This includes new and existing employees. Eligibility standards are defined later in the policy.

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Vehicle Use Allergan provides a Company Vehicle as a tool to conduct company business. Allergan does allow personal use of the vehicle. Personal use must be accounted for in accordance with the Personal Use Policy contained within this policy. Business and personal use of the vehicle should be professional and lawful at all times. Use of the company vehicle is limited to the United States and Puerto Rico. Use of the Company Vehicle in Mexico and Canada is prohibited.

Vehicle Use While on Leave of Absence Employee may retain and use the company vehicle while on Leave of Absence. The employee must comply with this policy while on leave, this includes but is not limited to: performing preventative maintenance, reporting monthly mileage, reporting accidents, obtaining licensing pre-requisites, etc. All mileage while on leave is considered personal and should be reported as such on a monthly basis. If the leave period is for an extended period of time, the company reserves the right to retrieve the vehicle and any other company assets and materials until such time as the employee is able to return to work.

Driver Expectations All vehicles used to conduct company business (fleet, car allowance or rentals) must be operated in compliance with all applicable motor vehicle laws, manufacturer operating regulations, state driver's license regulations and state vehicle inspection regulations.

The following activities are PROHIBITED while in a Company or Allowance vehicle: • Operating a fleet vehicle, rental or car allowance vehicle without a valid driver's license. • Operating a vehicle without driver and all passengers utilizing seat belts, car seats, and any

other applicable safety restraints • Driving while under the influence of alcohol or drugs. • Driving while in the possession of an open container of alcohol by driver or any passenger. • Failure to report an accident (regardless of damage) to ARI at 1-877-353-3857 and local

authorities (as appropriate) within 24 hours. • Failure to provide factual information when reporting a vehicle accident, including willful

misrepresentation or withholding of information. • Leaving the scene of an accident (hit and run). • Using a cell phone, laptop or other mobile device while driving (hands-free or hand-held). • Towing of any kind. Trailer hitches or tow packages, as well as any vehicle modification

which allows towing, are not permitted on a company vehicle. • Smoking in the fleet vehicle, whether by the driver or any passenger. • Use of a speed detection device. • Addition of racks on roof or trunks for purpose of carrying recreational equipment (i.e.,

bikes and / or kayaks, etc.). • Addition of temporary or permanent signage (bumper stickers, etc.) to the vehicle. • Operating a company vehicle for business use other than Allergan’s, including but not

limited to ride-sharing, i.e. Uber, Lyft, etc. . • Animals and / or pets in the vehicle at any time. • Transportation of any firearms, fireworks or flammable liquids or materials. • Transporting hitchhikers. • Operating Company Vehicles that are in an unsafe condition. Safety-related repairs must

be completed immediately to avoid accident or injury

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Driver Responsibilities In addition to the things prohibited above, all Authorized Drivers are subject to the following responsibilities.

• Possess a valid license, at all times, issued in the state in which they reside. If an Authorized Driver relocates to a new state, the driver should apply for that state’s driver’s license within 60 days or as specified by the state laws, whichever is sooner.

• Consent to Motor Vehicle Record (MVR) screening, pre-hire and at all times during employment. To the extent permitted by law, any employee who refuses to sign the form evidencing his/her consent to the MVR check shall be discharged from employment or have his/her offer of employment withdrawn, whichever the case may be. To the extent permitted by law, any spouse or certified domestic partner who refuses to sign the form evidencing his/her consent to the MVR check shall be prohibited from operating a Company Vehicle.

• Provide safe overnight parking for the company vehicle and in well-lit areas. • Comply with all applicable motor vehicle laws, rules, codes and regulations while operating

Company Vehicles. • Ensure all doors and windows are locked and contents of vehicle secured when

unattended

Vehicle Program Participant Acknowledgement All Authorized Employee Drivers will be assigned the Vehicle Program Policy module through ARI, the Safety and Risk Management Program. A 100% pass rate will be required for this module. Successful completion of the module will serve as acknowledgment that the Authorized Employee Driver acknowledges the Policy. Failure to complete the Policy Module will result of revocation of your Company Vehicle or Allowance Eligibility.

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VEHICLE SAFETY POLICY

Allergan will make every attempt to provide its Authorized Employee Drivers with safe and reliable automobiles in order to perform their job functions in the safest manner possible. In addition, each Authorized Driver is expected to operate the Company Vehicle in a safe, courteous and lawful manner, including the consistent wearing of the seatbelt by all passengers while the vehicle is in motion/operation.

If the Company Vehicle’s safety equipment, i.e. seat belts, airbags, etc. are not functioning, the driver must immediately have these items serviced.

The below policies will outline the Company’s Safety Policy with regard to Drivers (Company and Allowance Vehicle) before and during employment.

Policy Administration and Enforcement The policy is administered and enforced by the Allergan Fleet Department, in conjunction with Sales Leadership, Human Resources and Legal. When warranted, The Fleet Department will consult with these other departments regarding matters of, but not limited to: New Hire Eligibility, and Existing Drivers/Employees with regards to related disciplinary action, up to and including termination.

ALLERGAN CORPORATE VEHICLE POLICY VEHICLE SAFETY POLICY

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New Hires and Candidates Upon extension of an offer of employment and to the extent permitted by applicable law, candidates will be subject to a Motor Vehicle Record ("MVR") check. This includes existing employees moving from a non-driving position to a driving position and employees new to Allergan’s Fleet program due to acquisition. Allergan, in its sole discretion, may choose to withdraw an offer of employment based on the results of the MVR check. Examples of MVR check results that will result in the withdrawal of an employment offer include, but are not limited to, the following:

1. Any license status other than valid, i.e. suspended, revoked, surrendered, invalid, etc. 2. Three or more violations, events and /or accidents within the last 24 months. 3. Four or more violations, events and/or accidents within the last 36 months. 4. Any driving related alcohol or drug event that resulted in a guilty plea, no contest plea or

conviction in the last five (5) years; 5. Any one administrative action related to alcohol or drugs in the last five (5) years. 6. Any suspension or revocation of driving privileges related to drugs or alcohol in the last five

(5) years. 7. Any refusal to submit to a driving related alcohol or drug test in the last five (5) years; or 8. More than one alcohol related event, as outlined above, regardless of event age. 9. Any guilty plea, no contest plea or conviction in an “at fault” accident resulting in a fatality or

serious bodily injury.

Other charges or results from the MVR check that expose Allergan to what Allergan deems to be an unacceptable level of liability may also result in a revocation of the offer of employment.

Current/Existing Drivers Allergan will continuously monitor the driving performance for all current employee drivers. Upon hire, all Company and Allowance Vehicle drivers will be enrolled in Allergan’s Safety Program administered by ARI. This program provides risk assessment and training for drivers.

While ARI’s Scorecard will be used to continuously monitor accidents and violations, more serious events will be reviewed as they occur. Driving while impaired/under the influences is one example.

Driving While Impaired Driving While Impaired, in a Company, Allowance or Personal Vehicle, at any time, exposes the Company to an unacceptable level of risk.

Authorized Drivers are strictly prohibited from operating a Company Vehicle at any time while impaired.

Impaired is defined as, but not limited to, the following:

• A blood alcohol level at or above the legal limit of the state in which the Authorized Driver is driving;

• Having a detectable presence of alcohol or drugs, legal or illegal, that impairs an employee’s ability to safely operate a motor vehicle.

• Any other impairment of an employee’s ability to safely drive a vehicle, such as drugs, prescription or over-the-counter, alcohol, illness, fatigue or injury.

Driving Impaired Incident Reporting

As mentioned above, Driving While Impaired, in a Company, Allowance or Personal Vehicle, at any time, exposes the Company to an unacceptable level of risk.


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As a result:

Immediate notification is required, if an Authorized Driver is stopped, tested, ticketed, or arrested for (regardless of conviction status):

• Driving While Impaired as defined above. • Driving While Impaired as identified by a law enforcement officer • Failure to participate in a sobriety test of any kind. • Is involved in any type of alcohol related vehicle incident involving law enforcement.

Any of the above incidents must be reported to the Fleet Department and the Authorized Employee Driver’s direct supervisor within 24 hours of the incident. Reportable incidents include incidents that occurred in an Allergan provided vehicle, personal vehicle or rental vehicle, as all of these reportable incidents may affect the status of the Authorized Driver’s license. Possessing a valid driver’s license is a condition of continued employment. If your driver’s license is suspended, the Fleet Department and your manager must be notified immediately. Failure to notify the appropriate parties, within the prescribed time frame, will result in immediate disciplinary action up to and including termination. If the situation occurs over a weekend, please report the incident first thing Monday morning.

Any events covered in this section of the policy will be reviewed by Fleet, in conjunction with HR. Driving While Impaired (as defined above) or failure to comply with company policies regarding notification, as provided above, expose the Company to a high level of risk and will result in disciplinary action, up to and including termination.

ARI’s Driver Scorecard – Risk Assessment Upon enrollment in the Allergan Safety Program through ARI, Drivers will be assigned the Risk Assessment module. In addition to this assessment, 36 months of historical data/violations from the pre-hire Motor Vehicle Report will be loaded into the ARI Scorecard. Based on these components, new hires will be assessed an initial Risk Level and may be assigned remedial training based on the MVR results and Risk Assessment Module.

Going forward, any new violations and accidents will be added to the Scorecard as they occur. Based on these new events, the Risk Level may change, and additional training assigned. The points assigned to accidents and violations are based on a point matrix that Allergan and ARI have compiled. Points are assigned to Motor Vehicle Report violations, preventable accidents, non-preventable accidents, camera violations, safety policy violations and incomplete training. The assigned points may be different than the state points, as the points are harmonized across the Fleet so all drivers are assessed based on the same criteria.

Increases in Risk Level and/or new events while in the High Risk category will be reviewed by the Fleet Department and may result in disciplinary action, up to and including termination.

Motor Vehicle Points: ARI has taken hundreds of violations codes in all 50 states and Puerto Rico and condensed them into a list of universal codes. Doing so allows Allergan to assess a driver’s risk level using a fair and objective method.

Any convictions, violations or other infractions not covered by the above will be subject to review by the Fleet Department. The review may result in disciplinary action up to and including termination of employment in the case of an Authorized Employee Driver or prohibition from operating a Company Vehicle in the case of an Other Authorized Driver.


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Preventable Accident Points: Based on the National Safety Council guide and/or the Fleet Department all accidents/incidents/physical damage will be categorized as preventable or non-preventable. All events deemed to be preventable will be assigned four (4) points.

Non-Preventable Accident Points: All non-preventable accidents/incidents/physical damage will be assessed one (1) point. This is not an assessment of responsibility on the part of the driver, it is simply a way to identify that an event has occurred.

Safety Policy Violations: Safety policy violation points will be assigned by the Fleet Department. These violations may or may not be in conjunction with an accident or other motor vehicle violation. A sample of some violations and the corresponding points as to that criteria is listed below:

• Failure to complete the assigned on-line training – 1 point • Failure to ensure the security of the company vehicle – 10 points • Failure to report an accident/incident within 24 hours – 10 points • Failure to report an alcohol related event within 24 hours – 10 points • Allowing an unauthorized driver to operate a company vehicle – 10 points

The Fleet Department will review the profiles of all Medium and High-Risk drivers. Based on the content of the review, the driver may be reviewed by management, assigned safety training modules and/or may be subject to disciplinary action, up to and including termination of employment.

Other Authorized Drivers Allergan allows only Authorized Employee Drivers and Other Authorized Drivers to operate Company Vehicles. Other Authorized Drivers, defined as spouses or certified domestic partners, must consent to and complete a motor vehicle record check, prior to being permitted to operate a Company Vehicle. Prior to the return and acceptance of the motor vehicle report, the spouse or certified domestic partner will be considered “unauthorized”. The Employee Driver will receive an email when their Other Authorized driver is approved to operate a Company Vehicle.

Allergan, in its sole discretion, may choose to prohibit the spouse or certified domestic partner from operating the Company Vehicle based on their risk assessment in whole or any one violation that exposes Allergan to an unacceptable level of risk, as determined by Allergan. Additionally, Allergan may at any time revoke the Other Authorized Driver's driving privileges. If driving privileges are denied for a spouse or certified domestic partner, the employee will receive a letter stating such. The letter must be signed and returned.

If it is determined that an unauthorized driver was operating a Company Vehicle, the assigned driver of the vehicle will be subject to disciplinary action up to and including termination of employment. Further, if a disqualified or prohibited spouse or certified domestic partner, or any other unauthorized driver, is involved in an accident of any kind while operating a Company Vehicle, such driver, as well as any employee allowing such operation, in addition to any other liability that may be imposed by law, will be responsible (jointly and severally) for the full cost of the repairs to the Company Vehicle, to the extent permitted by applicable law.



DRIVER TRAINING New Hires All new hires will be assigned the Skills Assessment Module and the Allergan Policy module. Other modules may be assigned as a result of the Skills Assessment and pre-hire MVR. The Policy module must be completed with a score of 100%. The test must be retaken until passed. Employees not passing the test shall be considered unauthorized drivers and shall be subject to disciplinary action, up to and including termination of employment. Employees are expected and required to complete any assigned training within the time allotted.

Existing Drivers Existing drivers may be assigned training as new events, violations and accidents, as they occur. The policy may be reassigned as determined by the Fleet Department. The completion and pass requirements for New Hires will be applicable any time this module is assigned. Employees are expected and required to complete any assigned training within the time allotted.

At the discretion of the Fleet Department additional training may be assigned as deemed necessary.

Automobile Accidents/Incidents An automobile accident/incident is defined as any impact, or event that results in physical damage to a company vehicle, damage to any other property or injury to a person.

Insurance The Allergan automobile insurance policy provides coverage for Allergan employees when operating a company provided vehicle. A company provided vehicle is defined as Allergan leased vehicles and rental vehicles only when they are arranged through the Fleet Department.

Allergan’s automobile policy DOES NOT cover: • Personal items in the vehicle that may be damaged or stolen. • Allergan drivers when they are not operating a company provided vehicle.

Allergan, is self-insured for physical damage and carries a significant liability deductible. Self-insured is defined as a company bearing financial responsibility for all physical damage to its company vehicles and property. Further, Allergan is responsible for any damages caused by an Allergan vehicle up to the pre-determined deductible amount. Subject to the specific terms and conditions of Allergan’s automobile insurance policy and applicable provisions of this Policy, generally, Allergan’s insurance carrier provides insurance for your Company Vehicle only when operated by an Authorized Driver.

If the Company Vehicle is operated by an unlicensed or otherwise unauthorized driver, as outlined in this Policy, and is involved in an accident, the Authorized Employee Driver will be 100% financially responsible for the physical damage to the Company Vehicle, to the extent applicable by law.

Because the company possesses a significant amount of risk in insuring employees, the company may at any time determine if an individual exceeds the level of risk we are willing to incur. In addition, the insurance company has the right to deny coverage to any employee or spouse or certified domestic partner or to cancel the insurance of any Authorized Driver who, for example, they deem to be an uninsurable risk. If either occurs, the employee may be terminated, as they will not be allowed to operate a company vehicle.



Accident/Incident Reporting All accidents/incidents involving a Company Vehicle at any time must be reported to:

1. The local law enforcement at the time of the accident; 2. ARI, our Accident Management Provider, within 24 hours, at 877-353-3857. ARI will notify

our liability insurance carrier if necessary; 3. The Authorized Employee Driver’s direct supervisor, within 24 hours; 4. If the accident involves a fatality or serious injury to ANY person, the Allergan Fleet

Department must be contacted within 8 hours at 862-261-8586. Serious injury is one that requires transport to a medical facility;

5. The HR Benefits Department, at 862-261-7161 within 24 hours, if the Authorized Employee Driver suffers an injury while on Company business.

Failure to report an accident/incident to the local law enforcement may lead to disciplinary action and/or financial responsibility for the accident/incident.

All accidents/incidents/damage must be reported regardless of the severity.

Driver Accountability When a Company Vehicle is involved in an accident, the accident report will be reviewed by ARI, on behalf of the company. ARI will make a determination regarding preventability of the accident. ARI will make this decision based on the National Safety Council’s guidance. At times, the preventability of an accident may change based on additional facts about the accident or a determination by the Company’s insurance carrier.

If warranted, an accident/incident may be presented to management for review. If it is determined the accident/incident to be the result of grossly negligent or reckless behavior, or caused by direct violation of any component of this Policy, the review may result in disciplinary action up to and including termination of employment.

If, during any 36-month period, an Authorized Driver has been involved in a preventable event as determined by this Policy, the Authorized Employee Driver will bear the following responsibility:

• 1st preventable offense: The Company will pay the cost of repair, and the Authorized Employee Driver will receive written notification of the preventable accident/incident. In addition, the Authorized Employee Driver's direct supervisor will be copied on the notification.

• 2nd preventable offense: The Authorized Employee Driver may be required to participate in additional safety training, which will be assigned and arranged by the Fleet Department. The Authorized Employee Driver also will receive written notification of the preventable incident and the direct supervisor of the Authorized Employee Driver will be copied on the notification. If this is the second preventable accident within 12 months, a Final Warning will be issued. 3rd preventable offense: The complete Driver Profile will be reviewed by the Fleet Department. The Authorized Employee Driver may be subject to disciplinary action up to and including termination of employment.



FLEET PROGRAM AND PROCEDURES

Vehicle Eligibility Based on job title and Global Grade (GG), Allergan offers three levels of vehicles. At the third vehicle level, the employee may select from the offered vehicles or the Auto Allowance Program.

Vehicle Level 1 :GG 8-11; Vehicle Level 2: GG 12-14; Vehicle Level 3: GG15 and above

Company Leased Vehicle to Car Allowance Switch Those driving a company leased vehicle, which are eligible for the car allowance, may opt to receive a car allowance once their current vehicle lease reaches the termination point or can be reassigned without extraordinary cost to the company.

Car Allowance to Company Leased Vehicle Switch Those who currently receive a car allowance and are eligible to choose to transfer to a company leased vehicle will be permitted to transfer at either the spring or fall vehicle order process. The driver will remain on the allowance program until the new vehicle is available. If an employee opts to take a vehicle in existing inventory, they may do so at any time, provided a vehicle is available. The employee will keep this vehicle until it is time for replacement.

Transferring to an In-house Position If a driver moves from a field-based position with vehicle benefits to an in-house position, they are entitled to a one-time taxable cash payment ("buy-out") in lieu of the company leased vehicle or car allowance. The current buy-out amount of $10,000 is based on the average annual lease value of an Allergan vehicle. If the driver held a position that was entitled to a vehicle benefit for less than a year, the driver will receive a pro-rated buy-out versus the full amount of $10,000. Also, if the driver received a previous buy-out during employment with Allergan, the driver will receive the difference between the current buy-out amount ($10,000) and the amount previously paid by Allergan. Allergan reserves the right to change this one-time taxable cash payment (“buy-out”) at any time.



COMPANY LEASED VEHICLE PARAMETERS

Vehicle Availability Upon hire, an employee eligible for a company vehicle, will receive a vehicle from existing inventory. The new hire will retain the vehicle until the vehicle is due for replacement per the replacement parameters.

Additionally, Fleet Administration reserves the right to move vehicles from one employee to another, without notification or approval, at any time. In some cases, the driver may not receive a new vehicle when their company leased vehicle reaches the lease termination eligibility point, when there is an "unassigned" or “orphaned” vehicle within the fleet that needs to be placed.

When a driver receives a new or transferred vehicle, please check that the following items are present and current in your vehicle:

• Valid Motor Vehicle Insurance Card • Valid Vehicle Registration • Valid Inspection Sticker and / or County Stickers (if applicable) • Wright Express (WEX) Fuel Card • ARI Fleet Maintenance Packet

All of the above items are mailed separately for new vehicles and should be in the glove box for transferred vehicles. Please contact ARI Fleet with any questions regarding the above items.

Any violations received due to invalid documentation are the driver’s responsibility and cannot be expensed or reimbursed.

Replacement Parameters The company leased vehicle may be eligible for replacement when it reaches 36 months or 75,000 miles. The new car order process usually takes place twice yearly, once in the fall and once in the spring. Drivers will be invited to order if they meet the replacement criteria during a normal order cycle. The replacement parameters are guidelines and may change as necessary or appropriate.

The Fleet Department reserves the right to lengthen or shorten the duration of any vehicle in service (without notice) due to economic climate, manufacturer's production dates, model availability, market valuations and industry trends.

ALLERGAN CORPORATE VEHICLE POLICY COMPANY LEASED VEHICLE PARAMETERS


New Car Orders Eligible individuals will receive an email giving them access to ARI’s website for the new order process. Following the instructions online, they may select the make, model and color of their new vehicle from the approved selector list within the specified time frame. The new car will be delivered to a local dealer for pick up within approximately 10 to 12 weeks from the time the order was placed with ARI Fleet.

Where available, the company may offer Driver Paid Options, DPOs. If a driver chooses to add any optional equipment to the vehicle, it is at the driver’s expense. A personal credit card is required to purchase optional equipment. No rebate or refund will be issued, for additional vehicle options, upon territory reassignment, territory transfer, termination of the vehicle, or upon employee separation.

New vehicles should be inspected to insure there is no damage to the vehicle. Additionally, drivers should verify the vehicle is the vehicle they ordered. Drivers should not to accept the new vehicle if the vehicle is damaged or not as expected. Driver should contact ARI immediately to report the concern.

A new Driver Kit including a new WEX fuel card, maintenance guide and vehicle identification card will be sent to the driver for use with the new company vehicle. A new toll transponder will be issued, where applicable.

Used Vehicles The delivering agent or dealer will usually take the "old" vehicle when the "new" one is delivered. The WEX fuel card, maintenance guide, and vehicle identification card are to be destroyed by the driver. The registration card and owner's manual should be left in the vehicle's glove compartment. The driver should retain their proof of insurance card. The driver should retain the toll transponder for return to the toll vendor. A return kit will be mailed to the driver with instructions on the return process.

Driver is responsible for removing all personal and company belongings from the used vehicle before leaving it.

Vehicle Condition Ultimately, Allergan is responsible for the condition of the vehicle upon disposition. A vehicle in poor condition will result in financial loss to the company and a driver’s cost center. Major body repair should be completed as soon as possible; however, all repairs should be made within three to four weeks after the damage occurs. Minor, cosmetic repairs may be denied if a replacement vehicle has been ordered.

Smoking / Pet / Animal Smoking in any company vehicle is strictly prohibited.

If a company vehicle is determined by ARI or PARS, our transport company, to require reconditioning due to smoking, damage due to pets, etc., the driver will be required to pay a $250 deductible toward reconditioning costs.

Option to Buy The driver assigned to the vehicle has the option to purchase the vehicle at the termination point. The vehicle will be sold “as is.” Fleet reserves the right to decline repair work prior to termination / sale of a company leased vehicle. Employees will not be given the option to purchase their fleet vehicle upon separating from Allergan. Vehicle purchases must be complete within 10 days of receiving the new company vehicle.

http://allergan.gefleet.com/

ALLERGAN CORPORATE VEHICLE POLICY COMPANY LEASED VEHICLE PARAMETERS


Spouses, other family members and co-workers are also eligible to purchase company vehicles. The purchase may not be completed prior to delivery of the new vehicle. The purchase, however, must be completed within 10 days of receiving the new vehicle.

Vehicle Quote The current Fair Market Value (FMV) will be quoted by the leasing company based on the age, mileage, equipment and condition of the vehicle. This pricing is determined by the current used vehicle market and other market indices. Please note that used vehicle prices are non-negotiable.



VEHICLE OPERATIONS/ PROGRAMS/CARE

All Company Provided Vehicles are on the following programs through ARI: Fuel Cards, Maintenance Management, Rental Vehicles, License & Title and Personal Use/Mileage Reporting.

FUEL CARD PROGRAM ARI, in conjunction with WEX, issues fuel cards for each Company Provided Vehicle. The purchases made with the fuel card are directly billed to the Company and do not need to be included on an expense report.

The WEX card should be used to fuel the assigned fleet vehicle only, and should not include fueling on rental cars, or any other motorized equipment / vehicle or stand-alone fuel containers / gas cans. The odometer reading is required each time the WEX card is used and should be entered as the exact mileage reading without rounding. Additionally, a PIN is required for each fuel transaction. Your PIN is your six-digit Workday Employee ID. If your Workday ID is less than six digits, add a zero (0) in front to make six digits. Do not keep the PIN with the fuel card.

The fuel card is assigned to the vehicle, not to the employee. When a new or transferred vehicle is received, please take the time to check that the Wright Express (WEX) Fuel Card is in the glove box. If it is not, please contact ARI Fleet for a replacement. The vehicle number is printed on the lower-left corner of the WEX card. Allergan’s fleet vehicles require regular unleaded fuel only; it is prohibited to use a plus or premium grade fuel. Full service should never be used, if self service is available.

The corporate credit card should be used for all company rental vehicle fuel purchases.

ARI monitors fuel purchases through exception reporting. Fleet Services will contact drivers who are out of compliance with the Policy.

If the fuel card is lost, stolen or damaged, please contact ARI immediately at 877-353-3857. The Corporate Card should be used for fuel while waiting for the new card.

Vehicle Maintenance Management Company Vehicle routine maintenance and mechanical repairs are managed by ARI, a Fleet Management Company. The Authorized Driver is responsible for performing routine preventative maintenance in accordance with the Preventative Maintenance schedule provided by ARI. Any additional mechanical repairs, not covered by the Preventative Maintenance schedule should be reported to ARI at 877-353-3857, before taking the vehicle in for service. Based on the symptoms reported by the driver, ARI will assign the most appropriate shop within their network. Under no

ALLERGAN CORPORATE VEHICLE POLICY VEHICLE OPERATIONS/PROGRAMS/CARE


circumstances are drivers to perform maintenance on their company vehicles personally or use a shop outside of ARI’s network.

Routine or Scheduled Maintenance Routine or scheduled maintenance in accordance with ARI’s schedule should be performed at National Account vendors. Prior to your first service, contact ARI for the nearest National Account provider. Once this vendor has been identified, the driver will not need to call ARI prior to service being performed at these locations, if in accordance with the maintenance schedule.

Warranty Repair Work Maintenance and repair work covered by the manufacturer’s warranty must be done at an authorized dealer. Please contact ARI at 877-353-3857 for a list of dealers in your area and to document the vehicle concern. Current model vehicles typically carry a 36-month or 36,000-mile warranty.

Post Warranty Repairs For all repair post warranty and “wear and tear” items, the driver must contact ARI at 877-353-3857 to report the vehicle concern and for the location of the nearest National Accounts and independent garages.

Emergency Roadside Assistance In the event emergency roadside assistance is needed 24/7, drivers must contact ARI at 877-353-3857 to arrange.

Snow Tires Snow tire requests should be made to ARI directly. ARI will consult with the Allergan Fleet Services Department for approval. Request should be made in advance of arriving at the tire store. It is expected that the regular tires are stored by the driver in optimal storing conditions (i.e. dry non-damp areas) during the winter and vice versa in the spring/summer.

Rental Vehicles When the Company Vehicle is out of service for more than one day, Allergan will provide a company provided rental vehicle. All rental vehicles must be set up through ARI, the Fleet Management Company. By properly reserving rental vehicles, insurance coverage, pre-negotiated pricing and direct billing are guaranteed.

Rental Vehicles are Company Vehicles, in that they are subject to all components of this policy and the Fleet Safety Policy.

Company provided Fuel Cards are not to be used for rental vehicles. The corporate credit card should be used to purchase fuel for rental vehicles.

Additional Authorized drivers must be listed on the individual contract with the rental agency in order to be eligible to drive the rental vehicle. It is not sufficient to have added an additional driver to the Allergan Safety Program.

LICENSE AND TITLE SERVICES Allergan has enlisted the services of ARI to perform registration renewals on company leased vehicles. Many states have licensing pre or post requisite requirements. ARI will notify the assigned driver in ample time requesting prerequisites. Prompt and complete compliance is required by the driver, for ARI to complete the registration process.

While ARI has been contracted to perform the service, the driver is ultimately responsible for knowing when the registration expires and contacting the appropriate parties if the renewal is not complete.



ARI will also perform state title changes, in the event a vehicle is not registered in the state where it is being used. Before moving a company vehicle to another state, please contact ARI to see if the vehicle will move with the driver or if a new vehicle will be assigned in the new state.

Toll Management Program All Company Vehicles are enrolled in ARI’s Toll Management Program. This includes company issued toll transponders, window clings, or plate enrollment, based on what is applicable in your area. All tolling programs are linked to the vehicle license plate. When a new vehicle goes into service, the driver is responsible for reporting any new plate information to ARI as soon as possible. The toll transponders are specific to the assigned vehicle and must be returned to ARI when a vehicle is taken out of service. Drivers will receive a return kit for the transponder.

Citation Payment Compliance Paying traffic, parking and toll citations is the driver’s responsibility. Citations that are ignored or unpaid are ultimately forwarded to the leasing company, who in turn, will bill them to the assigned driver. The leasing company will charge the driver a processing fee per citation to cover the cost of tracking the vehicle involved.



PERSONAL USE AND MILEAGE REPORTING It is the intent of Allergan to maintain a fair and competitive approach to your total compensation, while maintaining the necessary procedures to ensure compliance with all payroll and tax regulations.

Allergan considers personal use of your company car to be an important benefit that increases the value of your total compensation. Therefore, our policy permits personal use of assigned vehicles.

Definition Personal Use is any use of the company vehicle that is not business related. Commuting to and from the office and/or to and from your first call/last call, is considered personal use by the IRS, as is any other non-business driving including vacations.

Taxable Benefit The IRS considers certain fringe benefits to have a taxable value. Personal use of a company provided automobile is one such benefit. All employers are required by law to calculate the income benefit of personal use, less any contribution the employee has paid to the company, and include this amount as income on the employee’s W-2. Allergan is required to deduct applicable taxes for this benefit. The taxes will be deducted from a December paycheck.

Personal use will be tracked and reported on a “Benefit Year” not a calendar year. The typical benefit year will be November 1 through October 31 of the next year.

Employee Contribution Allergan collects a flat fee for personal use for all employees assigned a company vehicle. The annual fee will be $1200 and will be deducted from each paycheck in the amount of $46.15. The employee contribution paid to Allergan is intended to offset the taxable benefit value. The personal use charge will be applied to any pay period in which you have use of the vehicle. The contribution will start on the hire date. The personal use contribution is subject to change at any time.

Benefit Calculation The total taxable benefit is a combination of two components, the Annual Lease Value (ALV) Taxable Benefit and the Fuel Benefit. The IRS publishes the Annual Lease Value table. The Annual Lease Value is directly related to the cost to lease/purchase the vehicle. The ALV Taxable Benefit is calculated by multiplying the percentage of personal use (personal mileage divided by total mileage) by the Annual Lease Value from the IRS table. The Fuel Benefit is calculated by assessing 5.5 cents per mile for each personal mile reported. The ALV Taxable Benefit and the Fuel Benefit will be derived from the personal and business miles reported through Fleet Management Company’s driver website. Monthly reporting of business and personal use will be required by every driver.

Reconciliation At the end of the Benefit Year, the driver’s gross taxable benefit will be calculated. The employee contribution amount will be subtracted from your gross taxable benefit. If the taxable benefit exceeds the employee contribution, the excess taxable benefit will be added to the employee’s W-2 as income. Allergan will withhold all applicable taxes, as mentioned above.

If the employee contributions exceed the gross taxable benefit calculated, no refunds will be given.

See example on Exhibit A attached.



Non-Reporting Policy If a driver fails to report their mileage to ARI monthly, Allergan will calculate the taxable benefit value based on 100% personal use. This policy is necessary to protect Allergan from potential tax infractions associated with unreported personal use.

Questions:

Please direct your questions concerning this policy to the Fleet Hotline at 877-353-3857. Questions regarding your personal income tax liability should be directed to your tax preparer or advisor.

EXHIBIT A

Sample Tax Calculation Assumptions:

2015 Chevy Impala valued at: Annual Lease Value per IRS Table

$22,000.00

$6,100.00

Miles Driven

Percentage

Business Miles: 17,000 85% Personal Miles 3,000 15% Total Miles Driven: 20,000 100%

Calculation of Net Taxable Benefit (Personal Use Value Added to W2)

Annual Lease Value (per IRS table) $6,100.00

Personal Use Percentage x 15%

ALV Taxable Benefit $915.00

Personal Miles Driven from above 3,000 IRS Fuel Factor x $0.055 Personal Use Fuel Benefit $165.00 $ 915.00 ALV Taxable Benefit Gross Taxable Benefit: + 165.00 Fuel Benefit $1,080.00

Employee Contribution Amount (monthly) $100.00 # of Deductions (12 mos per year) x 12 Personal Use Contribution Paid During the Year $1,200.00 W-2 and Year End Adjustments Gross Taxable Benefit $ 1,080.00 Less: Personal Use Paid During the Year - 1,200.00 Net Taxable Benefit



Driver Neglect Allergan provides the tools necessary to properly and safely maintain and operate a company vehicle. The driver is responsible for using these tools to keep the vehicle in the best condition possible. Failure to properly maintain the Company Vehicle may significantly reduce the safety of the vehicle. As a result, situations of neglect will be taken seriously, and in addition to the repercussions listed below, such neglect may result in disciplinary action up to and including termination of employment.

Definition of Neglect Driver neglect is defined to include, among other things, the following:

1. Failure to provide maintenance to the Company Vehicle according to the maintenance schedule. Following the schedule includes, among other things, adhering to the time frames listed on the schedule and completing all of the required maintenance.

2. Failure to report body and other damage to the Company Vehicle in a timely manner and failure to repair the Company Vehicle in a timely manner, as damage worsens over time due to rust, etc.

3. Failure to keep the Company Vehicle clean, inside and out. Including, but not limited to smoking in the vehicle and the presence of excessive pet hair.

4. Failure to properly secure the Company Vehicle and its contents at all times. The Company Vehicle should be turned off and locked at all times when the vehicle is unattended. Further the contents of the vehicle, including but not limited to samples, Tablet PCs and other Company property, should be properly secured and stored in compliance with the Company’s Sampling Policy. In the event of a breakdown or accident, the leasing company or accident management company should be contacted immediately to tow the vehicle to a secure location. The vehicle and its contents should not be left on the side of the road unattended.

Repercussions for Neglect 1. Failure to maintain the Company Vehicle according to the maintenance schedule will result

in the Authorized Employee Driver assuming financial responsibility for 50% - 100% of the repair cost for ANY item the leasing company deems as driver neglect to the extent applicable by law. Some examples include engine replacement for lack of oil changes and premature tire wear due to lack of tire rotation.

2. Failure to report and/or repair body and other damage to the Company Vehicle in a timely manner will result in a pro-rated financial responsibility as determined by the repair facility. The Fleet Department will consult with the repair facility to determine additional damage that was sustained by not repairing the Company Vehicle in a timely manner. This amount will become the financial responsibility of the driver to the extent applicable by law.

3. Failure to keep the Company Vehicle clean will result in a charge back for auto detailing (1) upon termination of employment OR (2) transfer of the Company Vehicle to another representative to the extent applicable by law.

4. Failure to properly secure the Company Vehicle and its contents may result in disciplinary action up to and including termination of employment, as well as financial responsibility for damage or theft of the Company Vehicle or other company property to the extent applicable by law.



CAR ALLOWANCE PROGRAM PARAMETERS

Purpose The purpose of this policy is to set forth guidelines, standards and controls for those employees whose job functions or positions require the use of vehicles and who meet the eligibility requirements to participate in the Allergan Car Allowance Program. These guidelines will be reviewed regularly and will be revised when appropriate. The purpose of the car allowance is to make the driver whole for the business use of their personal car.

Eligibility In order to be eligible to participate in the Car Allowance Program, the following requirements must be met:

1. Active, full-time employee, Global Grade 15 or higher. 2. Hold a job position designated as “car allowance eligible” as dictated by the Allergan Fleet

Policy. 3. Have job requirements which necessitate the use of a vehicle and drive a minimum of

5,000 business miles in a calendar year. Participation may be impacted based on a change in job responsibilities or a change in driving territory that reduces the annual business miles driven to below 5,000. Casual business drivers, defined as driving less than 5,000 annual miles, will not qualify for this program. Casual business miles should be accounted for through the company’s T&E process and will be paid at the current IRS rate.

4. Possess a current, unrestricted driver’s license. 5. Have a satisfactory driving record. The Motor Vehicle Record (MVR) for each driver will be

reviewed semi-annually. The company reserves the right to cancel driver eligibility to participate in the Car Allowance Program when, in the opinion of the company, the driver has a record of repeated accidents or moving violations.

6. If a participant becomes ineligible in the program, for any reason, they shall be immediately removed from the Car Allowance Program and will no longer receive reimbursements.

Driver Responsibilities The allowance driver is subject to ALL of the terms of the Safety Policies listed in this document. Should a driver fail to meet the Safety Standards outlined in this policy, they may be subject to disciplinary action, up to and including termination.



The Allowance Vehicle Program Requirements

To carry the minimum level of insurance as required by the company. The company requirements for this program are: 1. $1000 deductible for Comprehensive and Collision 2. $100,000 / $300,000 / $100,000 for Bodily Injury, Property Damage 3. $100,000 / $300,000 Uninsured Motorist 4. Allergan’s auto liability program provides coverage above driver’s policy limits 5. The vehicle driven by the employee must be less than 4 years old and of a value greater

than $24,000.

If your vehicle or insurance do not meet the above listed requirements, the driver will be required to move to the Company Vehicle Program.

Guidelines and procedures related to this document are subject to change at any time.

Program Components Driver participants are reimbursed for business related fixed and variable costs associated with using personal vehicles. The rate at which a driver is reimbursed is specific to the program base vehicle, the driver’s geographic location and annual business mileage, and is outlined on a Vehicle Standard Cost Schedule provided to each participant.

Fixed Reimbursements (flat monthly payment) Allowance payment for:

1. Vehicle depreciation 2. Liability, Comprehensive and Collision insurance 3. Taxes 4. License and registration fees

The fixed allowance payments are for expenses that are incurred as a result of owning or leasing vehicles. This payment is determined for the driver’s geographic area and is based on business usage and annual miles reported. Reimbursements for “fixed” costs will be paid each month through Motus’ Driver Payment Solutions. The reimbursement rates are updated annually, as well as any time there is a change to the driver’s home address or annual business mileage. The fixed payment is paid in the current month.

Variable Reimbursements (per business mile rate) Allowance payment for:

1. Fuel 2. Normal tire wear 3. Regular maintenance

The variable allowance payments are projected based on the assigned retention cycle and then reimbursed on the actual amount of business miles driven. This reimbursement is calculated on a “cents-per-mile” rate multiplied by each business mile that is reported. Variable reimbursements will be updated monthly based upon changes in fuel prices.

Vehicle Cost Schedule A specific Vehicle Standard Cost Schedule is generated for each driver participant. Because vehicle costs vary across the country, fixed and variable operating costs are gathered for specific geographic locations and for specific driving conditions. These costs are researched and reviewed regularly to determine the fair and appropriate rates for participants.

The major factors in determining the Vehicle Cost Schedule are: • Base Vehicle: The vehicle the company has designated is appropriate for driver

participants. All reimbursement values are based on the cost of acquiring and operating that base vehicle in the specific geographic area in which the driver is located.



• Specific Geographic Location: Reimbursement rates reflect specific geographic costs throughout the country, as well as different types of road and traffic conditions. The fixed and variable reimbursements are associated with the driver’s home address. In addition, the variable reimbursement also takes into consideration the driving territory.

• Annual Business Mileage: The annual business mileage each program participant drives is considered in the development of reimbursement amounts. Individuals who drive higher business mileages incur greater depreciation costs and therefore will likely receive higher fixed payments than lower mileage drivers.

Procedures for Reimbursement

Submitting Mileage

Business mileage should be submitted monthly online at http://www.motus.com/. Mileage must be submitted by the 3rd of the month. The submission should include the current month’s business mileage. Mileage is to be reported at trip level using the Motus App. The mileage log should be maintained to identify total business miles driven, place, business purpose and date in order to meet IRS regulations

If the mileage is submitted by the 3rd of the month, the driver will receive payment, directly from Motus, for the fixed and variable amounts. If the mileage submission is late, the driver will receive only the fixed amount. Mileage reported late will be processed with the next month’s payment.

If a driver is out of compliance in any way, the fixed amount will be suspended until the driver regains compliance. Payments will be made retroactively for no more than three months.

Specific questions regarding the administration of this plan should be directed to Motus Customer Service at 1-888-801-6714.

EHICLE PROGRAM POLICY

Acknowledgement PARAMETERS

By completing the online training module, employees acknowledge they have read and accept the Allergan Corporate Vehicle Program Policy and will adhere to the rules and regulations as set forth in this policy.

Drivers also understand there are circumstances that may deem their participation in the Allergan program as a taxable transaction, subject to withholding and W-2 reporting as required by law.

http://www.motus.com/

Documents

ALLERGAN CORPORATE VEHICLE POLICY CORPORATE VEHICLE