CORPORATE CAR POLICY

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1 Ermanno Molinari itiative

2 1. INTRODUCTION CORPORATE CAR POLICY The Corporate Car Policy document: defines the criteria for the optimum use and assignment of company car to employees, informing about rights and obligations in accordance the use of cars in the company s fleet, defines the main Company guidelines concerning the company car management, specifies the key factors for an effective car fleet management and the parameters on the basis of car models list. Assignment criteria of company cars are defined by the company in consideration of the role of the employee, to which is assigned a car for business purposes only (pooled cars that could be shared employees) or for mixed-use (car in benefit ). itiative

3 Another essential part of the Corporate Car Policy document is: accuracy and responsibility by the drivers, fleet managers and business team in charge of fleet management and operational support to the needs of company car drivers, and by the Human Resources Department which is responsible to handle complaints and disputes regarding the fleet management. itiative

4 2. OBJECT OF THE CORPORATE CAR POLICY dication of the company s objectives in terms of safety and maintenance of adequate quality standards, guaranteeing compliance environmentally sustainable and comfort parameters to optimally meet user needs in carrying out the job responsibilities. 3. APPLICATION AREA Corporate Car Policy is applicable in Societies and subsidiaries. itiative

5 4. PRINCIPLES Company Car Policy principles: improvement of management efficiency and purchasing policies; optimization of costs and services; coherence the company organization; consistency of car models the function of position and responsibilities and the specific utility of cars in carrying out the company s functions. 5. ASSIGNMENT CRITERIA Identifying the number of assignment segments of the people entitled to cars for business purposes; assignment of car regard to the organizational zone; identification of car models to be assigned and possible choice of favorite model by the user; possible choice by the user to opting for different models and definition of additional expenditure at his charge. itiative

6 6. Exemplifying table. Group of assignees/models of cars GROUPS OF ASSIGNEES MODELS OF CARS GROUP A GROUP B GROUP C..... itiative

7 7. TYPES OF ACCESSORIES dication of the required standard accessories, such as: original antitheft device, external colour (metallic paint and not), air-conditioner, airbag for driver, front and back-seat passenger, Abs, fog light, radio CD player, particulate filter (F.A.P.), winter tyres, satellite navigation system, bluetooth, Usb and I-Pod, tyre pressure monitoring, adjustable external rear-views mirrors. 8. OPTIONAL ON REQUEST AND CYLINDER UPGRADING dication of the possibility for assignees to customize cars (or possible cylinder upgrading) contingent added optional compared to what is already planned; clarifying the payment modalities of the related costs per optional at the expenses of the employee. itiative

8 9. METHODS OF OPERATIONAL FLEET MANAGEMENT Definition of the company policy settings in relation to the method of fleet management; options in favor of ownership, long term rental leasing, full leasing. 10. DURATION AND NUMBER OF KILOMETRES TRAVELLED Specification of the duration of the car rental agreement for.months a total distance of km (.. km per year), or in other case (owned or leased cars management ) specification of the duration and mileage. Way of charging of the distance above the limit laid down. itiative

9 11. THE VALUE OF FRINGE BENEFIT With reference to the tax legislation, an annual charge of fringe benefit - that is defined every year by ACI ( - is provided. general, charge is effected by retaining pay slips a monthly accrual of the net value of the benefit, followed by an invoice issued by the Company to the beneficiary of the car company. itiative

10 12. VEHICLE MANAGEMENT The assignment of a vehicle is regulated either directly by the company or by an agreement between the company and a rental or leasing company. this respect, a «User s Guide» is predisposed and is usually located inside each car. The Guide contains all the information required for its correct use, paying particular attention to the indications referred to car maintenance, what to do in the event of an accident and duties of driver, giving a full explanation concerning these issues: - proper and efficient use of the company cars - duties and responsibilities of vehicle care by the company drivers - behaviours and operational procedures to be followed in case of a breakdown and/or accident - car maintenance/repair rules - monitoring mileage and fuel consumptions - vehicle replacement rules itiative

11 The User s Guide (if present) recommends suggestions and rules in conformity the use of the company car and, therefore, it suggests for example to: - drive always a car care and diligence, according to the rules of the Highway Code; - do not leave valuables in the car that could capture the attention of spiteful person; - report in writing to Claims Office of., any accident ( or out counterparty, act of vandalism or theft (partial or total) caused to the vehicle; - highlighting the employee s responsibilities regarding alcohol or drug abuses. Non-compliant use of mobile phone. itiative

12 13. REFUELING AND USE OF FUEL CARDS Fuel cards and related PIN numbers for refueling are usually assigned together car. The use of fuel cards is allowed only for fuel consumptions originating from company car or for the refueling of a possible replacement vehicle. Generally, no other use of fuel card is permitted and, therefore, refueling special engine fuels are expressly prohibited. At every usage of fuel cards, the user is obliged to indicate to the service personnel the kilometers travelled up to that moment, in order to ensure a correct verification of charges and a check control for immediate detection of any fault or breakdown. itiative

13 14. FUEL COSTS, CONTAINMENT OF CONSUMPTIONS AND POLLUTING EMISSIONS, HEALTH AND SAFETY - The Corporate Car Policy contains the principles which the drivers must comply (behaviours to be kept related to the containment of fuel costs, consumptions and polluting emissions). - Specification of the company procedures regarding health and safety in line the objectives of CSR. - Periodically monitoring procedures of accidents and health conditions of drivers. - Possibility of making use of safe driving courses - Specification of the travel planning in the corporate policy. itiative

14 15. INSURANCES AND DEDUCTIBLES - Specification of insurance terms of the company s vehicle fleet. What is covered and what is not, and therefore: - Management of damages in excess for the insurance coverage - Highlighting corporate policy regarding all costs in excess and responsibilities related to the company car insurance - Specification of possible costs for damage to vehicles at the expenses of the employees. 16. FINES: payments, charge to the employee - Specification of the procedure to be used in case the company driver receives a fine regard to road traffic offences. - Responsibility for the payment and charge to the employee - Monitoring of sanctions and offences for each driver itiative

15 17. TARIFFS AND TOLLS - Possibility of transit in payment areas - Highlighting methods and procedures in case of transit in payment areas and ways of recovery of costs incurred. 18. ORDERING PROCEDURES AND DELIVERY - Highlighting rules and procedures regarding order and delivery of company cars 19. WITHDRAWAL AND RETURN OF COMPANY VEHICELS - Specification of procedures to be followed by the employee for the return of the company car. - Definition of what is expected about the normal wear state of the vehicle that must be returned - Possible charges at the expenses of the employee - Highlighting procedures to be followed in case of drawal or job change by the driver. itiative

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