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To:

All Kennedy Wilson Employees

From: Human Resources Date: March 25, 2008 Re:

Policy for Use of Personally Owned Vehicles for Company Business

EMPLOYEES WHO USE A PERSONALLY OWNED VEHICLE FOR COMPANY BUSINESS Employees, who operate a personal vehicle on Company business, must validate the business usage of that vehicle. Contact your manager/supervisor to obtain the appropriate authorization. An employee’s driving history will be considered when seeking authorization. Authorized employees must comply with outlined practices and vehicle safety standards.

1. Driving History In an attempt to minimize the Company’s liability exposure and protect the employee’s well being, a copy of each employee’s driving record may be periodically obtained from the Department of Motor Vehicles. All information obtained will remain confidential. All employees operating a vehicle for Company business must report to their manager/supervisor within 24 hours all: accidents, moving or other violations, DWI, DUI, or any driver’s license suspension, cancellation or revocation. All suspended licenses and other driving offenses will be reviewed at the time of hire and upon discovery. The Company reserves the right to transfer to an alternative position, suspend, or terminate an employee whose license is revoked, or who fails to maintain personal automobile insurance coverage or who is uninsurable under the Company’s policy.

2. Required Vehicle Safety Standards

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The driver is responsible for making sure the vehicle used for Company business: a) b) c) d)

Is in safe operating condition Has preventive and corrective maintenance records Has a current license plate Has a current insurance card which details liability coverage

3. Required Practices a. The employee/driver must wear safety belts when operating a vehicle on Company business. All passengers in a vehicle on Company business must also wear safety belts. b. The employee must have read the vehicle owner’s manual and be familiar with the operation and safety features of the vehicle driven on Company business. c. All drivers must have a valid driver’s license in their possession when operating a vehicle on Company business and comply with all conditions on the license. d. Employees operating a vehicle on Company business must demonstrate care, courtesy and common sense when operating the vehicle. All local and state traffic rules, laws and regulations are to be strictly observed including laws relating to driving while intoxicated and under the influence of alcohol or drugs. e. It is the responsibility of the employee to report and file accurate accident reports and state-required forms within the time frame established by law.

4. Prohibited Practices The Company may revoke driving privileges and/or seek full reimbursement from an employee for a loss occurring as a result of gross or willful negligence by the employee entrusted with the care, custody and control of the vehicle driven for Company business. Gross or willful negligence will have occurred in the following events, among others; whether or not the employee was operating the vehicle at the time, if it is determined the operator of the vehicle committed any of the following violations:

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• • • • • • • • • • • •

Driving under the influence of alcohol or drugs Felony, homicide or manslaughter involving use of a motor vehicle. Operating a Company vehicle without a valid driver’s license. Leaving the scene of an accident (hit and run). Misrepresenting the facts concerning an accident. Reckless driving. Operating a Company vehicle in an unsafe condition, while having prior notice of such condition. Causing damage to a third party arising from driver’s gross or willful negligence. Company vehicle use for any purpose in violation of federal, state or local laws. Operating a vehicle without proper authorization. Carrying any type of firearm, whether registered or not in a vehicle on Company business. Operating the vehicle without proper insurance coverage.

Employees are prohibited from operating motorcycles on company business. Pagers and cellular phones must not be used while driving on company business. If a call is necessary while on the road, the employee must pull over to the side of the road before participating in the call. Employees are prohibited from driving on Company business if they have been drinking alcoholic beverages or using or are under the influence of habit forming drugs, hallucinogenic drugs or substances, such as LSD and marijuana or any other illegal drugs or substances. Use of any medication that can impair driving or other cause other related impairments, such as fatigue, among other conditions, is also prohibited. Employees are also prohibited from carrying: illegal drugs, explosives, or alcoholic beverages in a vehicle while on Company business.

Reimbursement for Business Usage Employees who use their personal vehicles for Company business will be reimbursed only when authorized in advance by their supervisor. Mileage reimbursement is meant to cover only those miles incurred above and beyond the employee’s normal commute to his/her place of business. For example, if the normal commuting round trip is 20 miles, and the employee goes on a trip that covers 75 miles, only the incremental 55 miles are reimbursable. The number of days should also be taken into account. If the 75 miles in the

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above example were incurred over three business days, then the incremental reimbursable miles would be [75-(3 x 20)] = 15 miles. The current applicable rate of reimbursement for personal use of your vehicle is available from your local controller. The rate of reimbursement changes periodically based on governmental guidelines. The rate has been calculated to include, among other factors, your prorated costs of: a) b) c) d)

Gas, oil, lubrication, washes All repairs Registration and taxes All insurance (including liability)

Reimbursement requests should indicate the points of travel and the miles eligible for reimbursement. There is no additional reimbursement for one’s use of personal vehicles to cover other unspecified operating expenses, accidents, traffic violations, parking violations, fines or late payment fees. Contact your supervisor for further details on how to submit a mileage reimbursement request.

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