GENERAL EMPLOYMENT GUIDELINES This summary will give you a brief introduction into the most commonly used employment guidelines. If you have further questions about these guidelines and policies, please contact your Manager, or Human Resources Department. Furthermore, you should read Business Conduct Handbook, and the Company "Statement of Purpose", and then discuss them with your Manager. Compensation Our compensation objectives are simply: 1. To provide a salary which is based on individual performance and contribution, and 2. To provide an annual total compensation package which is competitive with the leading companies with which we compete for our employees. To ensure we meet these objectives, the Management will closely monitor the local market situation regarding compensation developments. Regularly, a Compensation Survey will be performed with companies with which we compete, in terms of; 1)similar career opportunities, 2)similar work environments, 3)similar compensation packages and 4)similar calibre of people. Based on these surveys, the total compensation guidelines will be adjusted accordingly. These surveys will be performed using a team of people from all levels and departments to ensure a reliable and supportable survey result is obtained. Throughout an employee's career, salary increases are based solely on performance. Therefore, employees who perform well, will be given merit increases. Your Manager, after consultation with Human Resources and the most recent salary survey data, will determine the frequency and amount of your salary increases. Each person's salary is confidential information which should be discussed only between the individual and his/her Manager, or the one up Manager. This confidentiality is important to you and your associates. Therefore, you should take the necessary precautions to maintain it. Page 1 of 8 GENERAL EMPLOYMENT GUIDELINES Performance Reviews To ensure continuous development throughout your career, you will have regular (usually annual) performance reviews. These performance reviews will focus on your results in; 1)Building the Business and 2)Building the Organisation. To facilitate these performance reviews, you and your manager will use the standard "Work and Development Plan (W&DP)" process. The primary purposes of the W&DP are; 1)to agree on your past review period's results, 2)create your work and development plan for the upcoming year and 3)creating a career interest plan. The work and development plan will focus on creating a plan which will allow you to develop and strengthen the skill areas necessary to deliver the agreed upon business and organisational results. Performance reviews are confidential information, which are kept in each employee's personnel file . Working Hours Regular working hours in Prague office are 40 hours per week, 8 hours per day. Normal working hours are considered to be between 08:30 - 17:30. However, you and your manager can agree to hours which are better suited for your particular job or situation. A break for lunch should be taken each day and it should last no longer than 60 minutes. You are not paid for your lunch break, and thus, it is not part of your regular 8 hour working day. You must keep your manager informed when you cannot be at work. If you will not be able to come to work, as soon as possible, you should contact your manager and inform him/her. If you cannot contact your manager, you should contact his/her manager. Page 2 of 8 GENERAL EMPLOYMENT GUIDELINES Vacation and Personal Days Off Entitlement and Planning Please review with your manager, all details of the Vacation and Personal Days Off Policies which apply to you. In summary, your vacation and personal days off entitlement is, at least, in accordance with the CR and SR Labour Code, and thus, it is based on the number of years of employment in CR and SR. Years of Employment Total Vacation/Personal Day Entitlement More than 1, but less than 15 4 weeks 15 or more years 5 weeks * -The maximum entitlement of Vacation and Personal Days in a calendar year is 25. In the first and last calendar years of your employment, your entitlement is pro-rated for the actual months of employment. (e.g. - if you work only 6 months of a year and have only work for 12 years, you will receive - (months worked/total months in year)*total entitlement or (6/12*20) = 10 days) All time off must be planned and approved by your manager. During vacation days, you will be paid your regular base salary. You are strongly encouraged to plan your Vacation and Personal Days so that you use your entire entitlement in the calendar year in which you received them. This will help avoid carry-over days into the next year. Official Holidays Date 1 January 6 January ??/??/?? ??/??/?? ??/??/?? 1 May 8 May 5 July 6 July 29 August 1 September 15 September 28 October 24,25,26 December Page 3 of 8 Czech Republic New Year Easter Sunday Easter Monday Labour Day Liberation of Native Country 1945 Cyrillus + Methodicus Jan Hus Slovak Republic National Day Epiphany Good Friday Easter Sunday Easter Monday Labour Day Cyrillus + Methodicus Slovak National Uprising Slovak Constitution Day St. Maria's Day Independence of CSR 1918 Christmas Christmas GENERAL EMPLOYMENT GUIDELINES Leave of Absence If you are not able to come to work, as soon as possible, you should contact your manager and inform him/her. If you cannot contact your manager, you should contact his/her manager. If you know, for some unavoidable reason you are going to be absent in the future, discuss this with your Manager in advance. For all absences (>=3 days) due to sickness, the Company expects that an employee will consult his/her regular physician. If the absence extends beyond 5 days, you are required (by Czech law) to obtain a doctor's statement and provide this to your direct manager, whom should provide this to the Human Resources dept. and then to the Payroll Dept. During your sickness, the Company will continue to pay you based on a percentage of your base salary. This percentage is calculated based on the length of sickness. In the unfortunate case of your sickness lasting longer than 5 days, a weekly call to your Manager would be appropriate. Employees' health is very important to the company and thus, leave of absence due to sickness is fully supported by the company. In these absences, it is also important that those employees, remaining in the office, realise they will need to fill in for their sick colleagues. Alcohol and Drug Policy To ensure a safe working environment and productive performance, you must report to work in a suitable working condition. Alcohol or illegal drug consumption is strictly prohibited immediately before or during working hours. In accordance with legal requirements, any violation will result in serious disciplinary actions, up to and including termination. NO Smoking Policy Smoking inside the Prague General Office is prohibited. If you are a smoker, you should use one of the several designated outdoor smoking areas. Be kind to your fellow employees whom do not smoke. Page 4 of 8 GENERAL EMPLOYMENT GUIDELINES Company Cars (only for employees with company cars) All employees, with a Company car, are responsible for operating the vehicle in accordance with the current Czech and Slovak laws and regulations. Additionally, you must comply with Company safety rules and administrative instructions. This includes the personal responsibility for maintaining the vehicle according to the manufacturer's recommendations, as well as the Company Vehicles Administrative Procedures. While an employees is using a company vehicle, they will be held responsible for all traffic rules' violations, fines and tickets obtained while using the company vehicle. To obtain and continue to use a company vehicle, you must hold a valid driver's licence. If you lose your license, you must immediately inform your manager. If you are involved in an accident or there is damage to the Company car, you are requested to immediately inform your Manager and you are also responsible for completing all required administration The company fleet manager is able to assist you with this. Insurance Policy In addition to State social security, the Company provides the following insurance: a. Insurance for all Company cars: In addition to local legal requirements, any accident which occurs, whether during private or business usage, must be reported immediately to the Company, giving exact and complete details. You are also responsible for completing all required administration (police reports, etc.). It is against Company Policy, to agree to a settlement for an accident without first receiving the proper company authorisation. b. World-wide Travel Accident Insurance: When travelling on Company business, you are covered by company world-wide travel accident insurance. Coverage begins at the start of a business trip and ends upon your return to your office or home. This insurance is equal to three times your annual base salary, if you die or become permanently disabled as a result of a business trip accident. There is also a provision for dismemberment. The insurance does not include accidents which occur during; your commute to and from work your vacation travel c. Group Life and Accidental Death Insurance: For eligible employees, this insurance provides 24 hour coverage of an amount equivalent to one times your annual personal salary. This insurance is paid for by the Company. d. Medical Insurance for Business Travellers: This insurance covers any medical costs you may incur while travelling outside of the CR or SR on business. Page 5 of 8 GENERAL EMPLOYMENT GUIDELINES Security and Confidentiality The Confidentiality and Security of company information and property is in your hands - treat it like it was your own personal information and property! All employees should be fully aware of the security procedures which have been developed for protecting the Company's competitively sensitive information and the working environment. The security program is intended to provide legal and actual protection for Company proprietary information and property. In order for us to have legal protection against the intentional or inadvertent disclosure of competitively sensitive information, it is important to establish that we have a loss prevention program for this information. You are accountable for the safeguarding of all Company information entrusted to you, whether you hear it, see it, receive it in writing or access it in computer files. Access to company information, for which you are responsible, should not be provided to any external people, unless they have signed the required confidentiality disclosure agreement, their identity has been confirmed and they have a valid reason for wanting the information. Internal sharing of confidential/sensitive information should only be done on a "Need-to-Know" basis. You should take the necessary precautions to protect all confidential/sensitive information; including; conversations, documents, recordings, photographs, models, computer data, etc.. Company information is particularly vulnerable outside Company offices or buildings. Therefore, when in public places or in social groups, you should avoid conversations about Company plans, problems or our business. It is important that you also protect Company information when it is unattended. You should secure your desk, files, company car, etc. when they are unattended. You should also treat your briefcase and its content as security items. Each person has some information which is competitively sensitive. Therefore, you have the individual responsibility for maintenance of security over information under your control. The following precautions should be reviewed and understood to ensure the general protection of the Company's information. Your employee identification card is also an entry key to the building. Your ID must be worn visibly when you are in the office. All visitors, including contractors without permanent contractor badges, must register at the reception area and receive the appropriate visitor's badge prior to being permitted to enter any working area. These visitor's badges must be worn visibly at all times. Visitors are not permitted to wander about unattended in the working areas - they should always be escorted by a company employee. GENERAL EMPLOYMENT GUIDELINES During hours, other than normal working hours, employees are responsible for all personnel who enter the company premises using their badge. Before leaving the office at night, remove all papers from your desk and lock them in your filing cabinets. All desks should be "clean" and free of documents after work hours. Avoid discussion about competitively sensitive information with anyone within or outside the Company who does not have a need-to-know. Page 6 of 8 Never discuss competitively sensitive information in public places, such as restaurants or aeroplanes. Accidental disclosure of competitively sensitive information is just as harmful as intentional disclosure. Shred all materials which are no longer needed. Your computer also contains access to valuable information. You should follow all current security technology and procedures. You should use your screen saver with password when you are away from your working area. Also, you should not share with anybody nor write down your computer passwords. Do not accept gifts from business associates. (i.e. - clients, customers, competitors, etc.) If a business associate does offer you a gift (usually during holidays), you should politely decline, stating our gift-accepting policy. If you feel the gift is ill-intended, you should inform your manager immediately. The secure handling of competitively sensitive information affects both you and the Company. Our knowledge is our competitive advantage. The general guidelines outlined above are not intended to be all-inclusive, but rather a helpful guide for you to follow to ensure confidentiality and security of our company's information and property. The key is for you to be aware that competitors are trying to obtain our information and we are responsible for ensuring that our information does not end up in the wrong hands. (e.g. - those of our competitors) If you have any questions about the handling of competitively sensitive information, you should discuss them with the person to whom you report, or the Human Resources contact person, responsible for Corporate Security and Confidentiality. Page 7 of 8 GENERAL EMPLOYMENT GUIDELINES Contacts with Media No employee is permitted to provide information or to make statements to the media (radio, T.V., newspapers) regarding any matter concerning the Company, its staff or its products, without first obtaining the clear authorisation of the General Manager. All requests from media sources should be directed to the General Manager or the individual responsible for Public Affairs. Company Property Throughout your career you will have direct responsibility for the Company's assets. (information, money, office supplies etc.) You should manage and regard the Company's property and assets with the same attention and care as if these assets were your own. Any misuse or theft of Company property will result in disciplinary action, up to and including termination. Removal of any Company property from the premises requires the approval of your manager. When travelling on Company business, you should travel in the most cost efficient manner according to the Company's travel expense guidelines. You should also try to make use of travel discounts whenever possible. Safety Each employee has the responsibility for ensuring the safety of the work environment. If you identify a situation or procedure that is unsafe, you should take the initiative to correct the situation and/or discuss it with your Manager. Office Dress Standards Each employee is a representative of the Company and it is important that we present ourselves in a professional manner to our customers and to other employees. Therefore, all employees are expected to wear the appropriate business clothes in the office during official business hours. This means business trousers, shirt and tie for men and dresses, skirts, blouses, dress trousers for women. Casual clothes (i.e. - jeans, sports clothes, etc.) are not acceptable during normal business hours, Monday-Friday, 08:00-18:00. The exception to this policy is during trainings. If you are participating in a corporate training session, you can wear business casual clothing. Page 8 of 8