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Exhibit 10.68

 

 

 

 

Walgreens Boots Alliance Long-Term Global Assignment

 

Relocation Policy

 

Effective January 1, 2013

And amended April 1, 2015

 

	Page
Introduction	1
Executive Summary	2
Eligibility	4
Orientation	4
Pre-Assignment Consultation	5
Immigration and Travel Documents	5
Immunizations and Physical Examinations	5
Review of Terms and Conditions of Assignment	6
Tax Briefing	6
Cultural Orientation Program	6
Language Instruction	7
Mentor Program	7
Dependents	7
Domestic Partner Relationship	7
Spouse/Partner is also an Assignee	7
Family Size Changes	8
Pre-Assignment Trip	8
Homefinding Trip	8
Assignment Compensation and Allowances	8
Salary	9
Incentive Programs and Awards	9
Goods and Services Allowance	9
Host Location Housing and Utilities Allowance	10
Major Appliances	11
Tax Assistance	11
Tax Return Preparation	12
Mobility Premium	13
Hardship Premium	13
Repayment Agreement	13
Relocation Expenses Allowance	13
Home Location Housing	14
Homeowner	14
Homesale	14
Retaining Your Home	15
Renter	15
Costs of Moving to Host Location	15
Shipment of Household Goods	16
Temporary Living	16
Furniture Allowance	16
Insurance	17
Household Pets	17
Automobiles	17
Vehicle Lease Cancellation	18
Host Country Transportation	18
Educational Assistance Allowance	19
Primary and Secondary Education	19
Pre-School	19
Tertiary Education	19

Spousal/Partner Career Assistance	19
Effect on Other Compensation and Benefits Plans	19
Destination Services	20
Health and Welfare Benefits	20
Medical Insurance	20
Employee Assistance Program ("EAP")	20
Additional Insurance	21
Leave and Time-Off Benefits	21
Settling-in Time	21
Working Schedule and Public Holidays	21
Home Leave	21
Family Visitation	22
Emergency Leave	22
Evacuation and Safety	22
End of the Assignment	23
Repatriation Process	23
Repayment Agreement	23
Position Within WBA:  Post-Assignment	23
Lease Termination	23
Cultural Re-integration Assistance	24
Return Shipment of Household Goods	24
Furniture Allowance	24
Return Travel Expenses	25
Spousal/Partner Career Assistance	25
Rental Home Finding Assistance	25
Medical Examinations	25
Relocation Expenses Allowance	25
Sequential Assignments	25
Conversion to the Permanent International Transfer Policy	25
Termination	26
Involuntary Termination	26
Voluntary Termination	26
Retirement	27
Death on Assignment	27
Automobiles	27
Tax Consequences of Remaining in the Host Country	27
Appendix A - Terminology	28
Appendix B - Shipment and Storage Exclusions	30

As we expand our business to be the premier global pharmacy-led, health and well-being enterprise, we will be asking some of our team members to live and work on assignment in a "host country," other than their "home country” in a cross-continental relocation.  We have designed this policy to make the assignment experience reasonable for you and your family, understanding that taking on a global assignment can be disruptive to your work and family life.  Our intent is to provide you with assistance throughout the assignment process, including the return to your home country, and to provide compensation and benefits to you so that you will incur neither a financial loss nor gain as a result of the assignment.

A separate document (“WBA Relocation Process”) outlines the selection and management of talent prior to and during assignment. It is important that Talent Acquisition be involved in the talent selection process to insure the best talent is chosen for assignment in advance. It is also key that appropriate talent management processes are followed during an assignment and that alignment with the home country business is maintained.

Another key consideration are the requirements around obtaining a visa and following the immigration requirements while considering and preparing for the assignment. To that end, the “Immigration FAQ” document has been provided and should be fully understood prior to agreeing to an assignment.

This document explains the global assignment policy for team members of Walgreens Boots Alliance and any of its entities (“WBA”) and the associated benefits.  All allowances and costs are shown in $US and will be adjusted to the correct host country currency as required. This policy applies only when the global, cross-continental assignment is being undertaken at the request of WBA (or one of the entities) and is for a period of more than one year and less than five years.  Assignments of less than twelve months ("Short-Term" assignments) and permanent international transfers are covered under separate policies. While assignments are normally 2 to 3 years in length, if you remain in the host country after the fifth anniversary following the effective date of employment at the new work location, you will be expected to convert to the Permanent Transfer Policy.

We would like to make transitioning to your host country location a good experience for you and your family.  Therefore, reasonable and necessary expenses that might be incurred in your move have been addressed.  It is our shared responsibility to communicate openly and honestly and to cooperate with one another to ensure the highest level of motivation, morale, and productivity during the relocation process.  Exceptions to this policy beyond an aggregate $25,000US in cost must be approved by the Global Chief Human Resource Officer and Global Chief Financial Officer. Exceptions that total under $25,000 must be approved by the Vice President of Global Benefits & Mobility.

The statements contained in this policy do not create or constitute a contract, or an implied contract of employment or any other kind of binding agreement between WBA and any team member.  In addition, nothing in this policy constitutes a contract or guarantee of indefinite employment.  Employment at WBA and any of its entities is at will, for no definite term, and is subject to WBA policies, which can be changed from time to time.  As business practices and company needs change, the policies are subject to revision and may be modified or discontinued at WBAs discretion.

This policy is administered by the Global Vice President, Total Rewards and the Global Benefits Governance Committee.  WBA reserves the right to change this policy at any time or to amend it, without notice or obligation to anyone.  Any intentional misrepresentation on the part of a team member who is using this policy will automatically terminate all benefits and WBA has a right to recover any and all expenditures made or intended for that team member.

YOU WILL BE RESPONSIBLE FOR ANY EXPENSE YOU INCUR OUTSIDE THIS POLICY, UNLESS APPROVED IN WRITING BY THE VICE PRESIDENT OF GLOBAL BENEFITS & MOBILITY.

 

In summary, the following benefits will be provided to you as part of a long-term global assignment:

Initiation Orientation	Upon initiation on a global assignment, you will receive assistance from:  (1) a global assignment counsellor; and (2) a tax consultant.  Assistance will be provided once you complete all necessary paperwork.  WBA and the sponsoring entity will pay for the cost of these services, directly to the vendor.
Immigration	WBA and the sponsoring entity will assist you to obtain the appropriate and required authority to work in the host country.  Please be aware that jurisdictional administrative processes may influence the formal date for initiation of the assignment.
Cultural Orientation	Through a WBA designated service provider, you and your dependents will participate in cultural orientation and language instruction programs to understand local customs and culture associated with the host country.
Pre-Assignment Trip	WBA and the sponsoring entity will provide one trip to the host country for you and your spouse/partner to assess housing and education options prior to beginning the assignment. This may be combined with the Homefinding Trip, below. Totaling two visits as part of pre-relocation support.
Homefinding Trip	WBA and the sponsoring entity will provide one trip to the host country for you and your spouse/partner to procure host country housing and schooling. This may be combined with the Pre-Assignment Trip, above. Totaling two visits as part of pre-relocation support.
Base Salary	Your base salary will remain the same as it was in the home country and you will be eligible for annual merit increases just as you were in the home country.  Salary will continue to be paid in home country currency and through home country payroll.
Incentive Bonus	Bonus eligibility and program will be the same as in the home country.
Equity Awards	You will receive equity awards under the same programs as you were in the home country, unless there are adverse tax consequences for receiving stock awards in the host country.  If this occurs, a suitable financial equivalent will be awarded.
Cost of Living Allowance (COLA)	You may receive a monthly COLA based on the difference between the costs of goods and services in the home country versus the host country.  This will be added to your normal paycheck and will be grossed-up to cover the additional tax liability.
Host Country Housing and Utilities Allowance	You may receive a housing and utilities allowance based on the housing arrangement in the host country, accounting for the difference in housing cost between the home and host countries.  This allowance will be grossed-up to cover the additional tax liability.
Major Appliances	You may receive reimbursement of up to $10,000 USD to pay for the cost of major appliances needed in the host location and will be grossed-up to cover the additional tax liability.
Tax Assistance	WBA and the sponsoring entity will assign a tax consultant to help you with the tax implications of a global assignment.  This includes preparing annual federal and state tax returns for both the home and host countries for every year you are on assignment.  In addition, we will pay the additional tax liability associated with the global assignment, incremental to what you would have paid in the home country on your work related income received.
Disturbance Allowance	WBA and the sponsoring entity will provide an allowance of 5% of pay –up to  $10,000 (wage and destination based) USD to pay for expenses you will incur for moving to the host country and to cover personal miscellaneous items not already covered by the program.  This allowance will be remitted in a lump-sum, both upon initiation and then again upon completion of your assignment at repatriation, and will be grossed-up to cover the additional tax liability.

 

Home Location Housing	WBA and the sponsoring entity will provide assistance with home property management, or rental property lease cancelation based on your home country residence status and length of assignment.
Shipment of Household Goods	WBA and the sponsoring entity will provide surface shipment for your household goods at both the beginning of the assignment and then again upon completion of the assignment if the host country home does not come furnished and/or leasing furniture in this host country is prohibitive
Furniture Allowance	If furnished host location housing is unavailable, you may be eligible to receive a furniture allowance to rent furniture in the host location in lieu of the surface shipment of your household goods.
Transportation	WBA and the sponsoring entity assumes you will dispose of your personal automobile(s) at both the beginning and end of the assignment.  Lease cancellation assistance may be provided if applicable.  While on assignment, you may receive a monthly transportation allowance to assist with the cost of leasing, gas, maintenance, etc., based on the difference between home and host countries.  This will be added to your normal paycheck and will be grossed-up to cover the additional tax liability.
Dependent Education	Education of accompanying children is an important part of the relocation process. To that end, WBA and the sponsoring entity will provide you with assistance in locating appropriate schooling for your minor dependents attending the equivalent of kindergarten through to the last year of secondary school.  Although it is encouraged to use public schools in the host location we recognize that there will be situations where private education is the most viable option. In these circumstances we will pay the tuition at a reasonably-priced private school.
Spousal Assistance	WBA and the sponsoring entity will provide a reimbursement of up to $5,000 USD or 100 hours to further your spouse/partner's personal development, seek employment or secure work permits in the host country and upon returning to the home country.  This allowance will be grossed-up to cover the additional tax liability.
Destination Services	WBA and the sponsoring entity will provide destination services to assist you with settling into the host country environment and complying with local requirements.
Healthcare Benefits	We will arrange for separate coverage through our global insurance arrangement at no cost to you and your family located with you.
Paid Time Off	You will have five paid days off to settle into host country housing.  Annual paid time off will be in accordance with WBA’s policies and procedures in the home country.  Public holidays will be subject to host country practice.
Home Leave	Assignees and accompanying dependents are eligible for two annual home leave trips to travel to the home country by a calculated allowance or direct reimbursement.  This allowance will be calculated based upon WBA and the sponsoring entity’s travel policy.  Absence from work during this leave is to be counted as paid time off.
Family Visitation Allowance	Your spouse/partner and/or minor children will be provided with a reimbursement allowance to cover two trips to the host country per year, in accordance with WBA and the sponsoring entity’s travel policy, who do not relocate to the host country with you. The allowance may also be used to cover visitation to the host country from family members. The allowance is not paid out if it is not fully used.
Repatriation	When the global assignment ends, WBA and the sponsoring entity will assist with the transition back to the home country or to a new global assignment.  This includes return travel, continued tax assistance, relocation allowance, and air shipment of personal belongings.

 

 

This policy applies to permanent members (based on immigration requirements) who are transferred from their home country to another cross-continent country at the request of WBA or one of its entities and are expected to remain in the host country from one to five years.  Any other type of assignment is covered under separate policies.

Where citizens or nationals of one country are hired by a WBA in another country, the country where the team member is hired/currently working is considered the home country for purposes of this policy.  Also, you are not eligible for this policy if you are a:

·

Team member who voluntarily requests a transfer, and/or

·

Team member with a recent performance rating below 3.0 ("Achieves Expectations") or equivalent in your area

All global assignments must be approved by supporting Vice Presidents from both the Home and Host countries before any offer or commitment concerning a global assignment is made.  All global assignments must be reported to the Vice President of Global Benefits & Mobility for WBA. All assignments and assignment letters for Senior Vice President or above roles (Officer roles) must be approved by the Vice President Global Benefits & Mobility as well as the Vice President of Executive Compensation. Applications for exception will be heard by the Global Chief Human Resources Officer.

The selection process will be a key part of the process in insuring the right talent is selected for any cross-continental assignment.  Components of the selection process will be outlined are outlined in the Global Mobility Process document.

Please Note:  Eligibility for assignment is subject to medical clearances, foreign government entry documents or visas, and the acceptance of the terms and conditions outlined in your Letter of Assignment (see section entitled "Review of Terms and Conditions of Assignment").

With respect to the relocation benefits described herein, only one team member per household is eligible for relocation benefits, even if another member of your household is employed by WBA.  Relocation benefits will only be authorized for one team member.

Accepting a global assignment may be one of the most important decisions you make during your career at WBA.  WBA will provide assistance with all aspects of this decision and transition.

An important part of your global assignment will be the process for you and your family to move to/from the host country.  WBA has selected global vendors such as Brookfield Global Relocation Services ("Brookfield") and Ernst & Young ("EY") to provide quality services associated with the assignment.

 

The relocation process will begin with the designation of a global assignment counselor.  Your global assignment counselor is an individual, from Brookfield, who is accountable for assisting you with all the details associated with living and working in the host country.  Your global assignment counsellor will contact you within 24 business hours of initiating your global assignment.

 

Throughout this process, Brookfield will act as WBA’s agent.  Therefore, it is critical that you provide to WBA any feedback concerning your experience with this vendor to assess and continue to provide high service levels.

 

You and your spouse/partner (when applicable) will receive an introductory briefing from our designated global assignment counsellor.  This orientation is designed to ensure you have a full understanding of WBA’s policy, the support that will be offered, as well as an opportunity to discuss any unique circumstances that may exist which require special handling.

IMPORTANT:  You should not take any action toward the assignment, including, but not limited to, booking travel, reserving accommodations, shipping goods, etc., until after this consultation has taken place.

A valid passport is required to apply for a business visa or work permit in the host country.  The nature of your assignment, as well as the length of the assignment, determines the type of visa that may be required.  Some countries require work permits, which can delay entry for noncitizens.

Immigration can be a lengthy process.  WBA will coordinate arrangements with an immigration legal representative who will work with you and your family to secure the appropriate immigration documentation for your assignment.  Eligibility for a long-term assignment is contingent upon the team member's successful compliance with passport and/or entry visa and work permit requirements in the host country.   In some host countries it is a criminal offense to have an unauthorized worker in country without the necessary documentation.

IMPORTANT:  You are not permitted to move to the host country and begin the assignment until you have obtained all necessary visas and work permits.  Should the host country border agents refuse to grant leave to enter/remain in line with your visa application, then WBA will have no choice but to withdraw its offer of assignment.  Please be aware that jurisdictional administrative processes may influence the formal date for initiation of the assignment.

Your accompanying spouse/partner and dependents also will receive assistance from WBA in order to obtain the appropriate documentation.  You will be compensated for any directly related fees for obtaining the passports, work and/or residence permits, and visa documents.

The availability of medical care in the host country may differ from the medical facilities available in the home country, and you may also be subject to considerable differences in climatic and living conditions.  Any medical issues that may be associated with the assignment should be addressed in advance.  Therefore, you are strongly encouraged to undergo a medical consultation and/or examination before the assignment.  This will afford you an opportunity to be informed of necessary precautions and receive any recommended immunizations/inoculations.  You may incur expenses (if not covered by insurance) for legally required examinations and immunizations/inoculations for you and your family.  We will coordinate the payment and delivery of these services.

 

Prior to accepting a global assignment, you will be provided with the following information to become familiar with WBA mobility policies and compensation programs:

1.

Global Assignment Policy outlining general information and specific details of how WBA will support you on assignment.  Affirmation that this policy has been read will be included in your assignment letter.

2.

Letter of Assignment outlining specific job responsibilities and explaining the method of compensation.  You must return a signed copy of the WBA Letter of Assignment, acknowledging that you understand and agree with terms and conditions of the assignment.

3.

Repayment Agreement outlining the terms and conditions if you voluntarily or involuntarily leave the company while on assignment and upon repatriation.

4.

Assignment Initiation Packet from Brookfield Relocation Services.

You also should be familiar with WBA’s tax assistance program and how it applies to you.  Expenses such as housing, the cost of goods and services, and host country income taxes may be "tax assisted."  This is based on the principle thatshould only be taxed at a level equivalent to the tax you would pay in your home country on your home country ‘stay-at-home’ package, i.e. additional assignment specific allowances / benefits will not be factored into this calculation. . This is often termed as “tax equalization”.

WBA will arrange for you to meet with an international tax consultant to review the tax assistance program and to discuss tax-effective planning in relation to your global assignment and your related WBA compensation. Personal taxation issues and planning are not included in this service.  Although the impact of tax assistance on your personal income will be covered, please note that this meeting will not be a financial planning session.

The briefing will review the pre-assignment tax status and tax reporting arrangements in the home country, as well as the tax regulations and reporting requirements in the home and host country during the assignment.  You will also be briefed on the company's procedures for tax payments.

To help you better understand local customs and policies associated with the assignment location, if available, you and your family will be eligible to attend a cultural orientation program.  You and accompanying family members will participate in cultural training through a WBA’s designated service provider, Brookfield Relocation Services.   A specialist will conduct a needs analysis and work with you to tailor the level of training to your needs.

The types of assistance that may be provided include an introduction and understanding of:

·

The country, its politics, and its history

·

The cultures, customs, and etiquette of the country

·

The impact of the culture's customs and values on work and social life

·

Preparing to work with new colleagues in the host location

·

How to adapt and deal with cultural differences

 

Considering the importance of local language competence in attaining desired business results, language instruction may be necessary as part of your assignment.  WBA encourages starting instruction prior to the assignment to assist with the settling-in process.  Based on the location, length, and objective of the assignment, WBA will identify the language training best suited for you to make the transition to the host country.

Language instruction will be provided to you and your accompanying spouse by a WBA-designated vendor.  As stated above, the length of the training will vary depending upon the location, length, and objective of the assignment and may be for up to 100 hours in total for you and your spouse.  Additional hours of instruction are available at your own expense.

 

For purposes of determining eligibility for the relocation provisions of this policy, and for such expatriate benefits as home leave, host country services, etc., a dependent is (unless otherwise defined):

·

Spouse/domestic partner

·

Unmarried children under age 21 for whom the expatriate has legal custody or guardianship and who are dependent upon the expatriate for financial support (or, if full‑time undergraduate students, under age 26 (U.S.) or as appropriate in the home country), including:

o

Legally adopted children or children in the process of legal adoption and who are living with the team member;

o

Disabled family members dependent on you;

o

Children from a former marriage;

o

Stepchildren living with you.

Domestic Partner Relationship

A domestic partner as defined in WBA’s benefits policy may accompany you only when the domestic partner relationship is not in conflict with immigration or other regulations in the host country.

Spouse/Partner is also an Assignee

If both you and your spouse/partner are on global assignments for WBA in the same location, your spouse/partner's assignment-related benefits will be adjusted to ensure your spouse/partner does not receive duplicate benefits.

Family Size Changes

If your family size changes during the assignment (either an increase due to marriage, birth or adoption, or a decrease due to divorce/separation, or a child ceasing to be a dependent or ceasing to reside at the host country with you), all benefits calculated on family size will be updated accordingly. Global Mobility will need to be notified within 10 days of such a change.

In the event of a family death while on assignment we will provide you with support and the time you need to address the loss in line with your home country bereavement policy.  If it results in an early termination of your assignment, we will remove any liability you may have as a result of that decision.

If you marry during an assignment, or you acquire other new dependent(s) (by birth or adoption, for example), your new dependents will receive, at WBA discretion, transportation to the host location and additional shipment of goods.

To help you assess housing alternatives, WBA will provide one trip to the host country for you and your spouse/partner to visit the host location and begin the process of home search and, if applicable, school selection for children.  The trip should not exceed five days, excluding transit time.

You will be reimbursed for expenses (including airfare, lodging, transportation, and meals) in accordance with WBA’s business travel policy.  Dependent children, and/or other family members may accompany you on this trip, and you may utilize company travel resources to book the itinerary.  However, you must reimburse the company for the airfare cost only of the dependents and/or other family members.  Reasonable daycare in home country for dependent children will be reimbursed.  Daycare provided by family members will not be reimbursed.

WBA will provide one trip to the host country for you and your spouse/partner to visit the host location to procure host location housing and, if applicable, final school selection for children.  The trip should not exceed five days, excluding transit time.

You will be reimbursed for expenses (including airfare, lodging, transportation, and meals) in accordance with WBA’s business travel policy.  Dependent children, and/or other family members may accompany you on this trip, and you may utilize company travel resources to book the itinerary.  However, you must reimburse the company for the airfare cost only of the dependents and/or other family members.  Reasonable daycare in home country for dependent children will be reimbursed.  Daycare provided by family members will not be reimbursed.

WBA uses a "balance sheet" approach in the form of a cost projection to ensure that you do not substantially gain or lose purchasing power as a result of the international assignment.  Under this approach, your compensation and living expenses are calculated using a statistical norm, which compares a comprehensive "market basket" at your home country work location to the host country work location.

 

Expenses such as housing, the cost of goods and services, and income taxes are normalized to ensure that, in principle, your out-of-pocket net income is approximately the same amount had you remained in the home country.

 

This methodology helps to ensure you are not financially disadvantaged due to the change in living costs you may experience in the host country.  To achieve this, WBA protects your home country salary against host country living costs through adjustments, allowances, and expense reimbursement provisions.

WBA reserves the right to deliver various elements of global assignment compensation, adjustments, and/or reimbursements in the most tax efficient manner, pursuant to the laws and regulations of each country.  Where the global assignment policy and other WBA-provided benefits have inconsistent applications, the assignment policy and local law will determine the final benefit provided to you.

All benefits are provided for you as stated throughout this policy and as detailed in the Letter of Assignment, unless a conflict with host country laws and/or practices requires WBA to alter such benefit accordingly.

Your base salary is determined according to the home country compensation policies and guidelines and denominated in the home country currency.  It is therefore expected that while on assignment, your base salary will not change other than for typical merit and promotional increases.  There should not be an immediate expectation that this assignment qualifies you for a promotion or salary increase.  Your eligibility for these types of recognition remains subject to the standard company processes and practices.  Merit and promotional increases for expatriate team members are reviewed and awarded according to normal home country practice for all team members and will be based on the performance of agreed upon goals with the host country assignment..

Eligibility requirements and procedures for the various incentive programs will be the same as for other home country team members and you will rated on your performance based on the duties in the host country.  In addition, you will continue to be eligible for equity awards, where legally acceptable.  In certain countries, tax laws may prohibit you from exercising your stock options in a regular manner.  While on a global assignment, you are expected to contact your WBA’s appointed tax advisor a minimum of two weeks before you exercise any stock options to determine the consequences of exercising options while in the host country.

A Cost of Living Allowance (COLA) may be provided to ensure that you have the equivalent purchasing power of goods and services in the host country as in the home country.  This allowance covers the differences in all living costs except housing, automobile, taxes, and education, which are addressed separately in this policy up to a salary amount of $250,000 US.  Eligibility for the COLA begins the day you move into permanent living quarters in the assignment location.  Payment of the allowance will cease when you vacate your host country residence to assume a new global or domestic assignment.

 

WBA’s designated service provider will determine the data necessary to calculate the difference in the cost of a comparable market basket of goods and services between the home and host locations.  You are responsible for the portion of costs that would have been used to purchase those goods and services in the home country.  WBA will then provide an adjustment/allowance which represents the difference for goods and services between the host location and the home location, and is remitted to you on a monthly basis.  The provider continuously monitors exchange rates and issues regular COLA updates to WBA.  The host country allowance will be reviewed every six (6) months and upon changes in your home country base salary.  The allowance will be adjusted, either upward or downward, to reflect changes in the economic tables.  In addition, the host country adjustment is reviewed when any of the following events occur:

·

Change in base salary

·

Change in tax tables

·

Unusual economic circumstances

·

Change in number of dependents in the host country

Differentials between home and host countries will vary by salary, family size, and work location.  Therefore, it is unlikely that team members in the same assignment location will receive identical COLA.

A host location housing allowance is calculated to offset the differential between housing and utilities costs in the home and host locations.  The allowance is calculated by our service provider for consistency after obtaining validated information on the home country costs.The allowance is designed to help you with the expense of housing and utilities in the host country that would be reasonably expected for a person with your base salary level and family size.  It is not the intent of the company to replicate home country housing, or a particular standard or lifestyle. A housing norm may be deducted from the Balance Sheet when your home country home is leased or sold (not encouraged) or when you break your home country lease. This is used to offset any advantage that might be there by not having home country home costs.

The allowance reflects standard housing and utilities costs in the assignment location.  Local real estate professionals identify appropriate living communities for expatriates based on safety and convenience.  Housing differentials based on salary and family size are established by a WBA designated data provider from actual cost surveys in these communities.  The provider updates housing adjustments regularly to accommodate changes in market prices.

If you choose to exceed the housing guideline and/or allowance provided to you, the excess spending is your responsibility.  Alternatively, if you do not spend the entire amount of the housing allowance as set by the provider research, the difference is yours to retain.

In certain countries it is more tax effective for WBA to pay housing costs directly to the landlord than it may be to provide a housing adjustment to you.  In those cases, the lease will be in WBA’s name and WBA will pay the rent directly to the landlord.  This provision will be offset by the cost of housing in the home country that a person of your income and family size would be reasonably expected to spend.

WBA will pay the cost of any required finder's fees, tax stamps, and security deposit, as well as any other normal and reasonable costs related to the lease agreement.  WBA also will pay for residence insurance and for specific maintenance charges included in the monthly lease fee agreement.  Prior to signing any lease, you must contact your global assignment counselor.  To the extent there are incremental costs due to your choice of a home that exceeds the guidelines and/or allowance, WBA will expect you to cover the incremental costs from your personal income except as described in the Tax Section of this policy.

 

The housing allowance is reviewed from time to time, or in conjunction with the renewal of your lease.  This adjustment will be adjusted either upward or downward to reflect changes in the economic tables.

If you consider moving host country residences, please see Lease Termination located under Repatriation Process included in this policy.

Due to the legal, tax, and currency fluctuation implications, you are discouraged from a new home purchase in the host country.  If at any time during your global assignment you decide to purchase a home in a foreign location, WBA will not provide you with a secondary housing and utilities adjustment or financial assistance of any kind for this purchase.  You will be fully responsible for any adverse tax implication you may experience as a result of purchasing a home in a foreign location.

WBA will reimburse up to a maximum of $10,000 USD, to be submitted on an expense report with related receipts in the host location, for the purchase of the following major appliances when such appliances are not provided in rental accommodations in the host location and shipping from the home location is not appropriate:

·

Cooking Range

·

Washer

·

Dryer

·

Microwave

·

Television

·

Refrigerator

·

Freezer

·

Dishwasher

Major appliances are defined as appliances that require installation.  Any other appliances are considered "small" and are assumed to be covered by the Relocation Allowance.

Upon completion of the assignment, you may sell these items and keep any proceeds you may receive.

This benefit will be grossed‑up to offset the additional tax liability caused by the allowance.

WBA recognizes that the actual income and social taxes while on a global assignment are different from what they would have been in the home country.  This is because:

1.

You may be subject to income tax in the host country, home country, or both.  This depends on the applicable home/host country tax laws, the length of your assignment, and income tax treaties, etc.

2.

In addition to your regular taxable income (e.g., base salary, bonus, etc.), supplemental adjustments that you may receive are also generally taxable in one or both of the countries involved.

3.

Personal Income that may become exposed to host country taxation will be remunerated up to $100,000US (including gross up amount) as long as you;

a.

Are not or do not become a Section 16 Officer of the Company; and

b.

Can demonstrate that your assignment will produce sufficient Return on Investment to the Company to cover the additional cost (to be determined by you and your manage).

 

To eliminate concerns over these complications, WBA has formalized a full tax assistance policy that covers your WBA-based income earned while you are on assignment.  The objective of this policy is to neutralize the tax effect this assignment may have on you, so that in principle your net tax obligation iscalculated by reference to your regular ‘stay-at-home’ compensation and should therefore remain relatively unchanged. .  The income covered by the tax assistance policy is strictly limited to the income you earn as a WBA team member, and excludes income earned by your spouse or dependents in the home or host country.

WBA will arrange for you to meet with an international tax consultant to review the tax assistance program and to discuss tax-effective planning in relation to your international assignment.  You will be provided with one in-person or telephonic meeting while still in your home country to discuss home country tax implications and one meeting once you arrive in your host country to discuss host country tax implications.  As part of these meetings:

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The tax consultant will calculate a hypothetical tax liability based on your estimated covered compensation plus any estimated personal income or loss.

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This hypothetical tax liability represents approximately the amount of income tax that you would have experienced had you remained in your home country, and it will be deducted from your salary each pay period. The hypothetical tax anmount will represent your contribution to the global tax liability arising on your WBA income.

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Each year, after your personal income tax is prepared, the tax consultant will do a final income tax liability calculation based on actual covered compensation plus personal income or loss to ensure that the hypothetical tax collected from you during the year was correct. Any adjustments will be collected from you / paid back to you at this point.

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WBA will be responsible for the actual taxes that arise on your WBA income globally. .  However, you will also be responsible for any income and social security tax related to income earned by your spouse or dependents in the home and host countries.

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You also will be responsible to pay any fees, penalties, or interest incurred in the preparation of your tax return which may result in processing delays caused by your untimely actions.  This includes fees and other expenses associated with an extension you may request.

If you have dual citizenship or another situation in which you have a tax obligation to more than two jurisdictions, then WBA will review the application of the tax equalization policy on a case‑by‑case basis.  Also, if you receive a social stipend in your host country, then you will be required to return that to the company as part of the tax equalization process.

To help you understand the tax assistance policy, as well as to help you meet all filing and reporting requirements during your global assignment, WBA has retained at company expense an international tax consultant for the following services:

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Preparation of your home country and host country tax returns during your assignment, until you no longer have employment related tax liability in your host country; and

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Assistance with tax authority examination (including routine inquiries and correspondence) of such returns to the extent such examination relates to company-paid income or reimbursed expenses.

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Application for rebates in countries where this is available and appropriate.  Any rebate is to be provided to WBA global mobility as soon as it is received.

Although WBA provides you with such assistance, you are responsible for complying with all home/host country filing requirements in a timely manner.  All information disclosed by you to the consulting firm will be treated confidentially.

Tax return preparation may also be provided for additional year(s) deemed necessary by WBA.  The company reserves the right to continue providing tax preparation services to you beyond your assignment date based on the company's ability to recover tax attributes in the affected countries.

 

The mobility premium is paid in certain assignment locations where an entity needs to be established and little support has been built into current operations in the host country.  The mobility premium, if applicable, is 10% of the base salary, rounded up to the nearest $1,000. The mobility premium must be separately approved by the Chief Human Resources Officer, and will be consistently applied only when necessary to achieve the business objectives of the assignment.

The hardship premium is paid in certain assignment locations, to recognize the difficult living, working, climatic conditions and physical hardships you may experience while on assignment.  The allowance is established by WBA designated data provider from actual cost surveys in these communities.  The provider updates adjustments periodically due to changing world conditions and competitive developments.

We consider the team members that we relocate to be valuable assets to WBA.  As an indication of your understanding of the relocation program, you are required to sign an agreement to repay certain relocation allowances, costs, and reimbursements should you voluntarily or involuntarily (except in the event of a permanent reduction in force or job elimination or as deemed by the Company) leave your employment within a specific time period after your assignment begins.  Regardless of the circumstances of your termination, WBA will pay for reasonable expenses incurred for your return to the home country (inclusive of your dependents and household goods), but not to a secondary location.  WBA will provide you with the Repayment Agreement, which you must sign and return as soon as you have agreed to relocate.  Funds associated with this assignment policy will not be disbursed to you until the Repayment Agreement has been signed and is on file.

 

Retention of any payments made under the relocation program is expressly conditioned on your continued employment with WBA.  It is understood that nothing in this policy guarantees that WBA will employ you for any specified period of time.

After signing your Repayment Agreement, you will receive a lump sum allowance in the amount of 1/12^th of your salary at a minimum of $5,000 but not to exceed $10,000 USD  designed to cover normal and customary relocation expenses.  The lump sum is designed to reduce record-keeping requirements for your expenses, simplify administrative processes, and provide you with the maximum flexibility to manage your own cash flow during your relocation.  If your actual expenses are less than the lump sum, you may retain the unused portion.  Conversely, if your expenses exceed the lump sum, you will be responsible for these costs.  No receipts are required to obtain this allowance.

 

The allowance will be grossed‑up for the additional tax liability and is expected to cover such items as (but not limited to):

 

You also have the option of shipping some of the above-named items in your air shipment.

	Assignee Only	Accompanied Assignee* (Assignee and one dependent)
Air Shipment	D Container, approximately 62 cubic feet gross (typically holds 300-400 lbs.)	LDN Container, approximately 95 cubic feet gross (typically holds 400-500 lbs.)
*For each additional dependent, shipment is increased by 150 lbs., subject to space limits within appropriate containers **Where movement is possible by truck as an overland move, no air shipments will be made, and additional surface shipment will be permitted to include the volume of the air-shipment not utilized.