Valid as of: 01.03.

2017
Version: 2.0 / HB / 19.01.2017
Seite: 1 von 5

Policy on Annual Leave:

Leave is granted to employees for the purpose of relaxation for a certain period of time, with simultaneous
continued payment of remuneration and under exemption from the obligation to work (Holiday).

I. Holiday schedules
In order to best plan presences in the departments, the department managers ask their employees to
announce their desired holidays for the coming year by no later than the 31st of January of the year. A
reserve of 4 to 5 days of leave may be left unscheduled in order to allow for unforeseen events.

The holiday schedule is managed in the Interflex time recording system. The employee submits an
application for the requested period and the responsible manager approves it by the 28th of February,
unless there are overriding holiday requests from other employees (also see section V). When there are
overriding requests from others, the manager rejects the request with an explanatory note and consults
with the employee if necessary.

PLEASE NOTE THE FOLLOWING when scheduling holidays: Pursuant to the Federal Holiday Act,
at least one continuous recreation leave of 2 weeks must be authorised and taken per year.

II. Holiday approval / changes

Until the expiry of the corresponding approval deadline on the 28th of February for a year, approval is only
provisional and shall be subject to the absence of any later request received from an employee with
priority for the period requested by the employee. In the event of changes made before the deadline cited
in section I, an employee may not invoke any such approval to claim financial losses (for example, due to
cancellation of booked holiday travel) unless the department manager has confirmed the irrevocability of
the leave in writing.

However, insofar as is allowed by the presences in the department and operational requirements, later
changes requested by the employee (by cancellation of the originally requested holiday and entry of the
changed holiday in the Interflex system) shall be possible.

Parts Europe also reserves the right to revoke previously approved holiday in the event of operational
requirements, even after the passing of the approval period. In that case, however, the employee shall be
compensated for the financial losses resulting from reliance on the approval.

Parts Europe GmbH Managing Director: Fred Fox Ust-ID-Nr.: DE 246910427

Conrad-Roentgen-Str. 2 Amtsgericht Wittlich St.Nr.: 42/652/0511/5
54332 Wasserliesch/Trier HRB 40711
 Valid as of: 01.03.2017
Version: 2.0 / HB / 19.01.2017
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III. Eligibility requirements: Waiting time

Pursuant to § 4 of the Federal Holiday Act (BUrlG), employees are deemed to be eligible for holiday only
after six months of service (the so-called 'waiting time')

This waiting period may be reduced or waived in exceptional cases.

The 6-month waiting period need not be completed within a calendar year. The months may be distributed
between 2 consecutive years. Thus, when employment begins on the 1st of November, the waiting period
shall end on the 30th of April of the following year.

IV. Holiday allowance and duration

1. The contractual holiday allowance is usually 24 days per calendar year.

As the holiday year is the calendar year, anticipated use of the holiday period for the subsequent
year shall in principle be excluded. Exception: Exemption from work under holiday credits in the
event of termination across calendar years.

2. Employees are entitled to exceptional paid leave in the following situations:

a. Wedding of the employee: 1 day

b. Delivery of a child by the wife, life partner or longtime companion: 1 day
c. Death of a close relative:
If the place where the funeral will take place is less than 300 km away from the employee’s
residence: 1 day if it is more than 300km away: 2 days
As close relatives are considered parents, children, siblings, spouses, life partner and
longtime companions.

If such an event occurs during regular paid leave, there is no entitlement to exceptional leave after
or in addition to the regular leave as the employee is already exempted from the obligation to work.

Unpaid exceptional leave may be granted by the employer in case all days of regular leave were
already consumed and if exceptional circumstances of life require it. Granting unpaid exceptional
leave is not compulsory though.

3. Leave for training shall be granted in accordance with the Rhineland-Palatinate Education Leave
Act.

4. Employees being in continuous employment for more than the time mentioned below are entitled
to an additional day of regular paid leave starting with the calendar year following on the year in
which said years of employment were completed:

Parts Europe GmbH Managing Director: Fred Fox Ust-ID-Nr.: DE 246910427

Conrad-Roentgen-Str. 2 Amtsgericht Wittlich St.Nr.: 42/652/0511/5
54332 Wasserliesch/Trier HRB 40711
Valid as of: 01.03.2017
Version: 2.0 / HB / 19.01.2017
Seite: 3 von 5

a. > 4 years: + 1 day

b. > 6 years: + 1 day
c. > 8 years: + 1 day
d. > 10 years: + 1 day

Periods of prior employment of employees who left the company and later returned to employment
will not be taken into account.

5. The following shall apply for employees who enter or leave during the holiday year:

During the year of entry, each employee shall be entitled to the full holiday allowance provided that
the six-month waiting period is completed (minus leave already received under previous
employment relationships). For employees who start work in the first half of the year, the waiting
period is usually completed during the year of entry and they may already claim the full holidays
during the entry year. However, for those who start after the 1st of July and later in the year, so-
called ‘twelfth averaging’ (§ 5 para. 1a BUrlG) shall be performed.

If an employee leaves service in the first half of the year, his/her original full holiday allowance
shall be shortened by one twelfth for each full month during which the employment relationship no
longer exists during that year.
Those who leave in the second half of the year, after having completed the waiting period, shall be
entitled to the full amount of leave, regardless of how many months are still remaining until the end
of the year.

6. Part-time and temporary workers / Part-time employees

Part-time workers, temporary workers and part-time employees shall be entitled proportionally to
as much holiday time as full-time employees. This shall also apply for study and holiday-employed
students provided that the employment relationship has existed for at least one full month (not
required: one full calendar month). On the other hand, no holiday allowance shall be granted for
example if the temporary employment relationship only lasts four weeks or for prior internships
required for admission to study.

The calculation shall depend on whether the part-time work corresponds to fixed days or only a
fixed number of hours and not fixed work days, or if the part-time work was performed only on
demand. More detailed information can be obtained from the Human Resources Department.

7. Holiday allowance during maternity and parental leave:

The employer may shorten the recreation leave to which the employee is entitled for the holiday
year by one twelfth for each full calendar month that the employee takes as parental leave.

Parts Europe GmbH Managing Director: Fred Fox Ust-ID-Nr.: DE 246910427

Conrad-Roentgen-Str. 2 Amtsgericht Wittlich St.Nr.: 42/652/0511/5
54332 Wasserliesch/Trier HRB 40711
 Valid as of: 01.03.2017
Version: 2.0 / HB / 19.01.2017
Seite: 4 von 5

However, this shall not apply to periods of maternity leave, i.e. the 6 weeks before birth and 8
weeks thereafter and for those employees who work part-time for their employer during their
parental leave.

V. Temporal definition of holidays

The timing of holidays shall in principle be determined by the employer based on the requested holidays
of the employee in consideration of operational requirements and the requested holidays of other
employees. This means that the employee may not unilaterally (arbitrarily) take holiday leave.

An employee who takes holiday leave without the consent of his/her employer shall be in breach of his/her
work duties, which may in individual cases justify termination of the employment relationship. The arbitrary
overstepping of the granted holidays by an employee shall also constitute a breach of the work contract.

Pursuant to § 7 para. 2 sentence 2 of the BUrlG, a contiguous relaxation leave of two weeks must be
granted at least once per year. Departures from this principle are only possible in exceptional cases and
by separate agreement.

In principle, pursuant to § 7 para. 1 of the BUrlG, the employer must use social considerations when
deciding on the priorities between the holiday requests of several employees. These may include: age and
seniority of the employees, school holidays of school-age children, leave of the spouse (especially when
related to company holidays), health or special recovery needs following extended illnesses, non-
consideration of holiday requests in the previous years.

VI. Transfer of leave / Expiry of holiday allowances

In principle, the leave should be granted and taken during the ongoing calendar year. The Interflex system
automatically transfers any remaining outstanding holiday allowance to the next calendar year.

However the remaining holiday leave must then be taken in the first three months of the following
calendar year. On the 31st of March of each year, the holiday allowance from the previous year and
remaining days shall expire and be deleted from the Interflex system, unless the holiday was not granted
and not taken due to medically-confirmed illness of the employee or a prolonged waiting time (see section
III).

Any other transfer after the 31st of March of the following year shall only be possible if the employee
submitted a request for approval of the holiday within the first three months and that request was not
approved or was rejected for urgent operational reasons. In that case, a short written statement from the
supervisor must be placed in the employee's file.

Parts Europe GmbH Managing Director: Fred Fox Ust-ID-Nr.: DE 246910427

Conrad-Roentgen-Str. 2 Amtsgericht Wittlich St.Nr.: 42/652/0511/5
54332 Wasserliesch/Trier HRB 40711
 Valid as of: 01.03.2017
Version: 2.0 / HB / 19.01.2017
Seite: 5 von 5

VII. Occupation during leave

Any occupation during the holiday which is contrary to the aim of the leave, i.e. relaxation, is prohibited.
However, outside activities that the employee could perform without taking leave (such as work on their
own vineyard or their own house) shall be permitted.

VIII. Illness and holidays

In the event of illness during holidays, those days of incapacity for work, as attested by a medical
certificate, and which thus defeat the purpose of the relaxation, shall not be deducted from the annual
leave.
These holidays must be granted later. The employee is not permitted to unilaterally and arbitrarily "attach"
the sick leave to the holiday; this shall require an express agreement with the employer.

Regarding illness while on holiday abroad, the following rules shall apply: The employee must notify the
employer of his/her incapacity for work, its probable duration and the address of his/her place of stay by
the fastest possible mode of transmission. In addition, if the employee is a member of a statutory health
insurance plan, he/she shall also be obliged to immediately report his/her incapacity for work and its
probable duration to the insurer. If the incapacity for work lasts longer than indicated, the employee is
obliged to inform the statutory health insurance plan of the expected further period of incapacity for work.
When a sick employee who is incapacitated for work returns to the country, he/she is obligated to
immediately report his/her return to the employer and the insurance company.

During a period of incapacity for work, an employee shall in principle not be entitled to holidays. Illness
excludes the granting of holidays. Even when illness occurs at the start of holidays, the holiday must be
postponed and rescheduled.

Pursuant to Case law of the Federal Labour Court, the statutory holiday allowance of long-term ill
employees expires 15 months after the end of each calendar year if an employee is ill and has a lasting
incapacity for work. This 15-month period shall begin at the end of the calendar year on the 31st of
December and end on the 31st of March of the year after the following year.

Parts Europe GmbH Managing Director: Fred Fox Ust-ID-Nr.: DE 246910427

Conrad-Roentgen-Str. 2 Amtsgericht Wittlich St.Nr.: 42/652/0511/5
54332 Wasserliesch/Trier HRB 40711