THE OF THE JOB OFFER PROCESS

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1 As of 3/22/16 One Toyota North America THE OF THE JOB OFFER PROCESS 1 START Required Intent Questionnaire Asks if you want to be included in the new org YES / UNDECIDED NO Not included in job offer process 2 Job Offer Two weeks to accept or decline a lateral offer; one week for a promotion Accept offer Decline offer Elect Retention Apply for Open Positions* Use job search tools within Toyota May apply for promotional opportunities If available, but no lateral moves until one year following job start date Job start date Based on transition plan 3 Location effective date Based on business need Retention option Stay until division move date or final date set by Toyota NO NEW OFFER ACCEPT POSITION Relocation program and move date If moving to an eligible location; timing determined by group * The company will make one job offer to team members with acceptable performance. If you decline the offer, you can elect to apply to posted jobs. However, no future offers are guaranteed You ll begin by receiving an intent questionnaire We ll ask you: Do you want to be included in the job placement process?" Saying yes or undecided means that you will be included in the job placement process and will be given a job offer. Saying no means that you ve elected not to be given a job in the new You will still be eligible to apply for open positions as they become available. If you stay until the date set by Toyota (which should coincide with the date your group moves), maintain acceptable performance, and sign the agreement, you will receive a retention package. You ll be given a job offer You ll have two weeks to decide to accept your job offer. Your job offer will include: Job Title and Job Level Salary and Salary Range Potential Bonus Range Relocation Bonus Location If you accept the offer, you can still apply for promotions without giving up your job. For organizational stability, you cannot apply for lateral moves within one year of your job start date. If you decline, you can stay with the company based on business need and, if you choose, apply for open positions. You ll be given a job start date Your job start date is the date your new job starts. Dates will vary by Your location effective date is the date you are expected to begin working in your new location. Your location effective date may vary from your job start date. If your function is not moving until 2017, you will receive your location effective date closer to the time of your move. Your move date will be the date you move your things to your new location, and is independent of your location effective date.

2 JOB LEVEL/SALARY RANGE FACT SHEET BANDS AND GRADES REPLACED BY JOB LEVELS Our current structure of bands and grades is being replaced by a common structure of job levels. Jobs are organized by job level, based on level of responsibility and scope within the Our job levels are in line with the external market so we can attract and retain strong talent. Common Job Levels and Job Titles for Toyota North America Job Level PATHS R&D/ENGINEERING Manager/Supervisor Individual Contributor Support Engineer/Scientist Path Technician Path EXAMPLE Manager Senior/ National Manager Manager Senior Consultant Consultant Sr. Principal Engineer/Scientist/ Program Manager Principal Engineer/ Research Scientist JOB TYPES Professional 16 Senior Analyst Sr. Engineer/ Research Scientist Principal Technician Supervisor 15 Engineer/Scientist Lead Technician Analyst 14 Senior Administrator Assoc. Engineer/Scientist Senior Technician Support 13 Administrator Senior 10 Assistant 9 Assistant 8 Technician Junior Tech 1 Q: How are job levels determined? A: Job levels for each job are determined objectively and are not based on performance or decided by a team member s manager. 2 Q: Do other jobs, not listed on this chart, have separate job titles? A: Yes. Other specialized job families, such as R&D, legal and engineering, have separate technical job titles. 3 Q: When does the new job level structure go into effect? A: Your job level will go into effect when you accept your job, and it will roll out to all TMNA in When you receive your job offer, you also will receive your salary, job title, potential bonus award range, salary range and job level in the future

3 JOB LEVEL/SALARY RANGE FACT SHEET ADVANTAGES OF THE NEW STRUCTURE S CAREER PATHS Clarifies and streamlines the different job levels Illustrates available career paths and opportunities, such as the Individual Contributor (IC) path The newly-introduced IC path allows those in technical or specialized roles to progress to higher job levels Enables easier talent mobility across locations, functions and affiliates Salary Range for a Job Level Your job level will have a specific salary range, with a minimum and maximum base salary. The ranges are broad and your experience, performance and skills will help determine where you land in yours. The salary range itself is determined by job level and work location. The midpoint is based on benchmarking. To make sure our salaries remain competitive so that we can recruit and retain the best and brightest we will continue to review salary ranges annually and make adjustments as needed based on local and national markets. Salary Range for a Job Level 80% minimum midpoint 120% maximum Salary Ranges Based on Cost of Labor If you re moving to a different city, you may find the salary range for your new location is different than what you have now. Why? Salary ranges are based on the cost of labor for an area. Here s clarification on the difference between cost of labor and cost of living. COST OF LABOR is the market value of a specific kind of work in a specific geographic area How much a job is worth in a certain city COST OF LIVING is the price of goods used by an average consumer in a specific geographic area It determines how expensive it is to live somewhere 4 Q: I m moving from Erlanger to Plano and I ve learned my salary range will increase. Why is this? A: Your salary range is actually going up because in Plano, people with your skills make more money than in Erlanger in other words, the cost of labor is higher.

4 NEW COMPANY POLICIES REFLECT ONE TOYOTA CULTURE Our updated policies are designed to make sure that you as a valued team member have the flexibility and choice you need to balance your personal life and job, and bring your best game to work every day. These policies are cornerstones of Team Toyota, and both reinforce and reflect the organization and culture we re building. We chose to introduce these policies first before you start making decisions about your future with Toyota because we feel they paint a picture of how we are evolving as a company. Look for more policies and information to roll out in the coming months. Here are a few policy and program highlights that represent what we mean when we talk about reinforcing our culture and building a better Team Toyota workplace. Flexible Work Arrangements Promoting a healthy work-life approach Life is busy. This policy allows you, when possible, to set up different ways to work that align with your personal commitments and lifestyle. This may include coming in late and leaving late for example, working part-time, or not working a traditional five-day week. It also may mean telecommuting when it makes sense for you, your manager and your job. Again, it s about providing you the flexibility and choice you need to succeed. Dress for Your Day Jeans? Suit and tie? Perhaps you plan to spend your day at your desk? Or maybe you have a big meeting with suppliers or customers? You choose what to wear at work, depending on your business of the day. Of course there are guidelines we want you to be safe and comfortable. But the policy is written to give you control and flexibility. It s about trust and respect.

5 NEW COMPANY POLICIES REFLECT ONE TOYOTA CULTURE Domestic Partners Providing the benefits you need to take care of your family We recognize that not all families are the same. However, our benefits must be inclusive of all families. It s part of the experience of working for a diverse and inclusive company. All spouses and families of Toyota team members including same-sex domestic partners and their children are eligible to receive medical and dental insurance, relocation benefits and vehicle lease benefits, be named as beneficiaries and are included in the definition of family for leave of absence and bereavement policies. This policy includes a tax gross-up to cover additional taxes that come from providing benefits for domestic partners. Vacation Time off to relax To do your best work, you need to take time off to recharge and enjoy the people and things that are most important to you. This policy provides you more flexibility and encourages you to use all your vacation days each year to spend time with family and friends. However, if unforeseen circumstances prevent you from using all your vacation days by year s end, you ll have the opportunity to sell them back to the company. In addition to these four examples, several other policies are introduced as part of this first wave. You can visit the policy page at to learn more about them. The additional policies introduced in this first wave are: Social Media Holidays Bereavement Leave Jury and Witness Duty Travel and Expense Reimbursement Equal Employment Opportunity (EEO) Relationships Within the Workplace Smoking and Tobacco Use Additional policies will be introduced during 2015.

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