General Conditions of Employment Axpo Employees

General Conditions of Employment Axpo Employees Effective: October 1 st, 2015 Version 4.2

General Conditions of Employment Axpo Table of contents 1 General Section Page 1.1 General 1 1.1.1 Scope 1 1.1.2 Code of conduct and directives 1 1.1.3 Duty of loyalty and diligence 1 1.2 Start and end of the employment relationship 1 1.2.1 Starting date 1 1.2.2 Credit of years of service within the Axpo Group 1 1.2.3 End of the employment relationship 1 1.3 Working time rules for employees in Function Levels 1 to 7 2 1.3.1 Scope 2 1.3.2 Standard working time 2 1.3.3 Allocation of working time / skeleton time / contact time 2 1.3.4 Breaks 2 1.3.5 Deployment outside skeleton time 2 1.3.6 Bridging days 2 1.3.7 Overtime 3 1.3.8 Working time balance, compensation of overtime 3 1.3.9 Time recording 3 1.3.10 Absences 3 1.3.11 Departing employees 4 1.4 Working time rules for employees in Function Levels 8 to 13 4 1.4.1 Basis 4 1.4.2 Settlement of overtime 4 1.4.3 Negative time recording 4 1.5 Holidays, public holidays, days off, leave 4 1.5.1 Holidays 4 1.5.2 Paid public holidays 5 1.5.3 Paid days off 5 1.5.4 Unpaid leave 5 1.6 Service anniversary 6 1.7 Family allowances 6 1.8 Reporting obligations 6 1.8.1 Personal data 6 1.8.2 Inability to work 6 1.9 Rights to the products of the employee s work 7 1.10 Secondary employment 7 1.11 Mandates and secondary employment on behalf of Axpo 7 1.12 Data protection 7 1.13 Duty of confidentiality 8 1.14 Communication and information media 8 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 I

General Conditions of Employment Axpo Table of contents Page 1.15 Addictive substances 8 1.16 Protection of personal rights, occupational safety and health promotion, mobbing and sexual harassment at the workplace 9 1.17 Services available from social advisory unit 9 1.18 Participation within the company and the employee representative body 9 1.19 Amendments to the Regulations 9 1.20 Entry into effect 9 2 Salary system / MbO 2.1 Principle for performance-oriented remuneration 10 2.2 Scope 10 2.3 Overview 10 2.4 Job Evaluation / Function level 10 2.5 Salary management 11 2.6 CRPC 11 2.6.1 General 11 2.6.2 Determation of the available funds for CRPC 11 2.6.3 Individual calculation basis of the CRPC 12 2.6.3.1 Factor dependent on function level 12 2.6.3.2 Factor dependent on individual performance 12 2.6.3.3 Calculation of the CRPC 13 2.6.3.4 Factor dependent on performance in case of absences 14 2.6.4 Time of CRPC payment 14 2.6.5 New hires / Departures 14 2.6.6 Change of level of employment 14 2.6.7 Amendments 14 3 Remuneration and Supplements 3.1 Work clothes 14 3.1.1 Annual remuneration 14 3.1.2 Laundry 14 3.1.3 Direct distribution 14 3.2 Supplements in the event of operational complications 14 3.2.1 Category A (CHF 10 per hour) 14 3.2.2 Category B (CHF 30 per hour) 14 3.3 Site fire brigade and first-aid organisation in the Nuclear Energy Division 14 3.3.1 Pay agreement for members of the site fire brigade and first-aid organisation 14 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 II

General Conditions of Employment Axpo Table of contents 4 Pension Provision, Insurance and Continued Payment of Salary Page 4.1 Pension fund 16 4.1.1 Principle 16 4.1.2 Partial early retirement, continued insurance of previous insured salary 16 4.1.3 Continued insurance in the event of employment beyond normal AHV retirement age 16 4.2 Insurance benefits and continued payment of salary during illness 16 4.2.1 Basic prerequisite 16 4.2.2 Continued payment of salary and sick pay insurance 16 4.3 Insurance benefits and continued payment of salary in the event of an accident 17 4.3.1 Compulsory accident insurance pursuant to the Accident Insurance Act (UVG) 17 4.3.2 UVG supplementary insurance 17 4.3.3 Supplementary continued payment of salary by the Employer 17 4.4 Continued payment of salary in the event of death 17 4.5 Continued payment of salary during military, community and civil defence service 17 4.6 Continued payment of salary during pregnancy and maternity leave 18 4.6.1 Pregnancy 18 4.6.2 Maternity leave 18 4.6.3 Reduction of holiday entitlement 18 4.6.4 Breastfeeding breaks 18 4.7 Insurance cover during business trips abroad 18 5 Expenses 5.1 General 19 5.1.1 Scope 19 5.1.2 The definition of expenses 19 5.1.3 Principle of expenses reimbursement 19 5.1.4 Credit cards 19 5.1.5 Business trips 19 5.2 Travel costs 19 5.2.1 Reimbursement of travel costs 19 5.2.2 Public transport 19 5.2.3 Air travel 20 5.2.4 Use of vehicles 20 5.3 Board and lodging expenses 21 5.3.1 Expenditure on food 21 5.3.2 Accommodation costs 21 5.4 Work clothes 21 5.4.1 Annual compensation 21 5.4.2 Laundry 22 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 III

General Conditions of Employment Axpo Table of contents Page 5.5 Other costs 22 5.5.1 Minor expenses 22 5.5.2 Representation costs 22 5.6 Validity 22 5.6.1 Approval by the cantonal tax authorities 22 6 Training and Development 6.1 Principles 23 6.2 Cost-sharing of external training and development courses 23 6.3 Training categories 23 6.4 The Axpo cost-sharing model 24 6.4.1 Amount of cost-sharing 24 6.4.2 Obligations of the course participant 24 6.5 Training and Development Agreement 24 6.6 Repayment obligation 25 6.6.1 Guidelines 25 6.7 Procedural provisions 25 6.7.1 Administrative procedure 25 6.7.2 Payment modalities 26 6.7.3 Repayment obligation 26 6.7.4 Quality control 26 6.7.5 Training goals / transfer of acquired know-how 26 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 IV

1 General Section 1.1 General To make the General Conditions of Employment more readable, all references shall be made to the masculine form. 1.1.1 Scope The General Conditions of Employment form an integral component of the individual employment contract. They shall apply to the employment relationship between the respective company in the Axpo Group (Employer) with its registered office in Switzerland and to its employees employed in accordance with Swiss law. Any deviatory arrangements in the individual employment contract shall take precedence over the provisions of the General Conditions of Employment. The individual employment contract may exclude application of the General Conditions of Employment in full or in part. 1.1.2 Code of conduct and directives All of the companies in the Axpo Group are committed to the principles of compliance with the law, integrity and ethics. These fundamental rules are summarised in the Code of Conduct and apply to all employees. The General Conditions of Employment contain various references to subject-specific directives. These directives shall also be adhered to by employees in the absence of any provision to the contrary in the individual employment contract. The directives may be amended or rescinded by the Employer at any time. 1.1.3 Duty of loyalty and diligence The employee shall carry out the tasks assigned to him carefully and conscientiously, adhering to Axpo s regulations, guidelines and directives and the instructions of his line manager and upholding the interests of his employer and customers in good faith. He shall use the materials made available to him in an economical and correct manner and handle Axpo s property with due care. In the event that the employee causes damage to the Employer or a third party intentionally or as a result of gross negligence, he may be obliged to pay compensation. The Employer reserves the right to offset any claims for damages against any amounts due to the employee (particularly salary claims). 1.2 Start and end of the employment relationship 1.2.1 Starting date The employment relationship shall start on the day agreed in the employment contract. 1.2.2 Credit of years of service within the Axpo Group Years of service from previous employment relationships (including time spent in an apprenticeship) with a company in the Axpo Group shall be fully credited. 1.2.3 End of the employment relationship The employment relationship shall end upon termination, upon expiry in the case of fixed-term contracts, upon termination by mutual agreement, upon retirement or upon the death of the employee. Termination The employment relationship may be terminated in writing by either party after the end of the probationary period subject to a period of notice of three months to the end of the month. The employment relationship may be terminated without notice at any time for good reason (Article 337 of the Swiss Code of Obligations). Retirement The employment relationship shall be terminated without special notice at the end of the month in which employees reach the age of 63. Employees born in 1951 and 1952 will continue to retire at the end of the month in which they reach the age of 63. Employees born in 1953 and 1954 will retire when they reach the age of 64. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 1

1 General Section Employees of Axpo Kompogas AG, Axpo Holz + Energie AG and Axpo Kleinwasserkraft will generally retire at the end of the month in which they reach the age of 65. Any further employment beyond the normal retirement age stipulated by PKE shall be by written arrangement. 1.3 Working time rules for employees in Function Levels 1 to 7 1.3.1 Scope The working time rules apply to all full-time and part-time employees in Function Levels 1 to 7 who are in receipt of a monthly salary. They also apply to employees who carry out shift or on-call work in the absence of any provisions to the contrary in the Shift and On-Call Regulations. 1.3.2 Standard working time Axpo has an annual working hours model. The weekly net standard working time for full-time employees is 41 hours. The daily standard working time is 8.2 hours. The standard working time for part-time employees is based on their respective degree of employment. 1.3.3 Allocation of working time / skeleton time / contact time The allocation of working time shall be generally based around the operational requirements of the individual sections/departments. Wherever possible, account shall be taken of employees personal circumstances. Employees shall be generally required to work from Monday to Friday during the period from 6am to 8pm (skeleton time). The individual sections/departments may define daily contact times. The line manager shall be responsible for compliance with the rules on working time. 1.3.4 Breaks Employees shall take breaks as prescribed by law, with breaks generally to be scheduled during the middle of working time: 15 minutes in the case of daily working time of more than 5.5 hours 30 minutes in the case of daily working time of more than 7.0 hours 60 minutes in the case of daily working time of more than 9.0 hours The daily net standard working time shall include a break of 15 minutes. This break should be taken on the company premises or in proximity to the employee s current place of work. The timing of breaks shall be determined by the organisational unit. In general 1 hour is deducted for the lunch break when working away from the workplace. Other breaks shall not be counted as working time and should be recorded. 1.3.5 Deployment outside skeleton time Work shall only be carried out outside skeleton time if required for operational reasons and if expressly requested by the line manager. The following time supplements shall apply: 50% for work carried out Monday to Saturday between 8pm and 6am; 25% for work carried out on Saturday from 6am to 8pm; 50% for work carried out on Sunday and on public holidays. Supplements cannot be accumulated (e.g. for night work on a Saturday). Planned nigh work (between 8pm and 6am) and work on Sundays and public holidays require approval and must be reported to HR Services in advance. 1.3.6 Bridging days The Employer may specify work-free bridging days for the respective location. Public Holiday Calendar Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 2

1 General Section The working time required to compensate for bridging days shall be settled individually through the employee s time account. Individual work on bridging days must be agreed in advance with the employee s line manager 1.3.7 Overtime The employee shall be obliged to work overtime if required insofar as he can reasonably be expected to do so in good faith. Overtime shall be defined as the difference between standard working time and the number of hours actually worked. Any working time subject to a supplement must be at the express instruction of the line manager or be subsequently approved by him. 1.3.8 Working time balance, compensation of overtime The individual working time balance shows the difference between the working time actually carried out (including any absences charged to working hours) and the standard working time. Regular efforts should be made to keep the employee s working time balance at a reasonable level. In the event of an excess / shortfall of 120 hours, the employee must agree a timetable for reducing the number of excess hours / shortfall in agreement with his line manager. As a general rule, employees should take time off in lieu («compensation») if they have a positive working time balance. Compensation must be agreed with the employee s line manager and be taken within 12 months at the latest. The Employer shall be entitled to instruct the employee to compensate for any overtime with an equivalent number of hours off. Overtime may, by mutual agreement, be compensated in the form of salary without supplement pursuant to Article 321c (2) of the Swiss Code of Obligations. If an employee has a positive holiday balance, reduction of this positive balance shall take precedence over compensating for overtime. 1.3.9 Time recording Working time (including all breaks and absences in accordance with Chapter 1.3.4) is recorded in the electronic time recording system. The employee shall be personally responsible for recording his working time truthfully. Employees may not appoint a deputy to record working time on their behalf. Any non-compliance shall be punished. 1.3.10 Absences Work-related absences / Work performed outside the workplace The actual number of hours absent shall be recorded for work-related absences. The standard daily working time shall be the maximum working time recorded for participation in training and development courses and attendance at trade fairs and conferences. The amount of travel time that may be recorded shall be the time spent travelling between the destination and normal place of work or place residence if the employee s place of residence is closer to the destination. In the case of international travel, a maximum of 8.2 hours (standard daily working time) of travel time shall be compensated per journey. Long-term absences The standard daily working time shall be the maximum amount of time that may be recorded per day for long-term absences such as holidays, illness, accident, therapy, military service, civil defence service, fire-fighting service and youth/sport or apprentices camps. Short-term absences Given flexible working time, personal affairs (e.g. medical or dental appointments, blood donation, appointments with the authorities) should wherever possible be dealt with during the employee s free time and, as a general rule, outside contact time. Holding public offices The maximum number of hours that may be recorded per day of absence (on a working day) by employees exercising public offices (see Section 1.10. Secondary employment and public offices) shall be the standard daily working time. A maximum of 150 working hours shall be granted per calendar year for this purpose. If more than 150 working hours are dedicated to such functions during working hours, these shall be compensated or offset against salary. Regardless of the extent of the absences, Axpo may at any time request a reduction in the degree of employment in accordance with the average absences. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 3

1 General Section 1.3.11 Departing employees The employee is responsible for ensuring, in agreement with his line manager, that his working time balance is as close as possible to zero upon termination of his employment relationship or commencement of retirement. In the event of the employee being released from his duties, any positive working time and holiday balance shall be deemed to have been compensated during the period of leave of absence. Any shortfall in the number of hours worked shall be offset from the employee s final salary payment. 1.4 Working time rules for employees in Function Levels 8 to 13 1.4.1 Basis The working hours for employees in Function Levels 8 to 13 shall be in response to operational requirements. The basis shall be weekly working time of 45 hours, with the actual hours worked to be determined by the employee himself. Working time shall not be recorded, with the exception of negative time recording pursuant to Section 1.4.3. These working time rules also apply to employees who carry out shift or on-call work in the absence of any provisions to the contrary in the Shift and On-Call Regulations. 1.4.2 Settlement of overtime Employees in Function Levels 8 to 13 shall receive five additional days of holiday to cover any overtime that may be required. Holiday entitlement shall, however, be limited to 35 days (bridging days shall not be counted as holidays for this purpose). 1.4.3 Negative time recording Absences such as holidays, training and development courses, military service, youth and sport camps, accidents, illness, or secondments abroad must be recorded (negative time recording). 1.5 Holidays, public holidays, days off, leave 1.5.1 Holidays Employees shall agree the timing of their holidays with their line manager. Employees must take at least two consecutive weeks holiday during each calendar year. Holidays should be taken during the calendar year for which they were granted. In exceptional cases, holidays may be carried over to the next year, in which case they must be used by no later than 31 May of the following year. Holiday entitlement The employee is entitled to paid holiday per calendar year as follows: 30 working days in the case of employees up to the age of 20; 22 working days with effect from the calendar year in which the employee celebrates his 21 st birthday; 25 working days with effect from the calendar year in which the employee celebrates his 36 th birthday; 27 working days with effect from the calendar year in which the employee celebrates his 50 th birthday; 30 working days with effect from the calendar year in which the employee celebrates his 57 th birthday. During the employee s first or last year with the company, his holiday entitlement shall be calculated in line with the duration of the employment relationship in the calendar year concerned on a pro rata basis. In the case of part-time employees, holiday entitlement shall be based on their degree of employment. In the case of employees paid on an hourly wage basis, holiday entitlement shall be settled financially in the form of a separate salary supplement. Illness or accidents during holidays If the employee falls ill or has an accident during his holiday through no fault of his own and is thus prevented from enjoying the relaxation aspect of his holiday, such days shall not be counted as holiday upon submission of a doctor s certificate confirming that the employee was fully unfit for work on the days in question. Doctor s certificates should be submitted to the employee s line manager without delay. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 4

1 General Section Reduction of holiday entitlement If an employee s unpaid leave lasts longer than one month, his annual holiday entitlement shall be reduced by 1/12 for each additional full month. Absences that are not due to the fault of the employee due to illness, accident, military service or civil defence: Holiday entitlement shall not be reduced in the case of absences that are not due to the fault of the employee up to a total duration of three months per year. If the total duration exceeds three months, the employee s holiday entitlement shall be reduced by 1/12 for each additional full month absent. 1.5.2 Paid public holidays The Employer shall determine the paid public holidays. A maximum of 12 paid public holidays shall be granted per calendar year. No compensation shall be provided if a public holiday falls on a weekend, during military service or during a period in which the employee is absent due to his being unfit for work. 1.5.3 Paid days off The employee shall be given paid days off for events in accordance with the following list: a) Employee s own wedding 3 days b) Paternity leave or parental leave when adopting small children * 5 days c) Death of the employee s spouse, co-habiting partner or child 5 days d) Death of another relative who lived in the employee s household, a sibling or of a parent or parent-in-law of the employee If the journey time is longer than 3 hours each way e) Moving house (provided that the move is not related to the termination of the employment relationship) 2 days + 1 day 1 day * If the employee s wife or partner gives birth, the father shall be entitled to 5 days paid leave. This paternity leave must be taken within two months of the birth of the child/children. Otherwise the entitlement shall be lost. This rule also applies when adopting small children up to the fourth birthday. With regard to the following events, the employee shall receive time off as follows if the events fall on a working day: f) Accompanying youth and sport camps (official confirmation required, 1 per year) max. 5 days g) Marriage of the employee s own children, grandchildren, siblings and parents 1 day h) Organising unplanned care of sick children or dependents who require support * max. 3 days i) Baptism, communion or confirmation of children 1 day j) Attendance at funerals of closely related persons in Switzerland abroad max. 1 day max. 2 days k) Active participation in a Swiss national competition (maximum once per year) 1 day * Entitlement applies per calendar year and per child / dependent in need of support. Part-time employees are entitled to days off on a pro rata basis in accordance with their degree of employment. 1.5.4 Unpaid leave In justified cases, and upon written request from the employee, the Employer may grant unpaid leave provided that operational circumstances permit. Unpaid leave shall only be granted if the performance of duties and achievement of the department s goals shall not be impaired as a result. The employee shall have no entitlement to have a request for unpaid leave approved. Unpaid leave shall result in a reduction of holiday entitlement (see Section 1.5.1 Reduction of holiday entitlement). The employee s attention is drawn to the fact that taking unpaid leave could have an impact on his insurance position. Details in accordance with the information sheet Unpaid leave Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 5

1 General Section 1.6 Service anniversary After a long period of service, the employee shall receive a loyalty bonus, which shall be paid after 5 full years of employment in the following amounts: 5 years of employment CHF 2000 gross 10 years of employment CHF 3000 gross 15 years of employment CHF 4000 gross 20 years of employment CHF 5000 gross From the 25th year of service every 5 years of employment CHF 6000 gross The Employer shall deduct the statutory and regulatory contributions from the loyalty bonus. The loyalty bonus may be awarded in the form of paid holiday if the employee prefers, provided that operations will not be adversely affected as a result. The following paid holiday shall be granted in such cases: 5 years of employment 3.5 days of paid holiday 10 years of employment 5.0 days of paid holiday 15 years of employment 7.0 days of paid holiday 20 years of employment 8.5 days of paid holiday From the 25th year of service every 5 years of employment 10.5 days of paid holiday This holiday must be taken within a year of the loyalty bonus falling due. If the employment relationship is terminated as a result of retirement or disability, the next loyalty bonus due shall be paid out on a pro rata basis. In the case of part-time employees, entitlement shall be based on the average degree of employment over the previous 12 months. 1.7 Family allowances The amount of children s and educational allowances shall correspond to those laid down by law. 1.8 Reporting obligations 1.8.1 Personal data The employee must report any changes in his personal circumstances such as marital status, surname, place of residence, birth of children, death of children and partners, and also commencement, duration and end of children s education, changes to bank account and postal account details and further information that is crucial to the employment relationship, providing HR Services with such information in writing without delay and without being requested to do so. If the employee is absent from his place of residence for more than eight weeks, he must, without being requested to do so, provide HR Services with an alternative delivery address to which notifications can be sent with legally binding effect. Should the employee fail to provide such information, notifications sent to the registered residential address shall be deemed to have been sent with legally binding effect. 1.8.2 Inability to work Long-term and foreseeable absences must be reported as soon as possible but no later than 5 working days in advance. Any case of inability to work must be reported to the employee s line manager immediately. Accidents that do not result in the inability to work must also be reported to HR Services without delay. If an absence due to inability to work lasts longer than 5 days, a doctor s certificate must be submitted to HR Services without being requested and without delay, stipulating the likely duration, scope and cause (illness or accident) of the inability to work. In individual cases, however, the Employer shall be entitled to request a doctor s certificate as of the first day of the period of absence. In the case of long-term inability to work, HR Services must be supplied with a new doctor s certificate at least every 4 weeks documenting the inability to work. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 6

1 General Section The Employer and respective insurer shall be authorised at any time to request that the employee be examined or assessed by a doctor appointed by the Employer or insurance company. 1.9 Rights to the products of the employee s work All products of the employee s work created during the exercise of his duties and in fulfilment of his contractual obligations alone or in cooperation with others shall belong exclusively to the Employer. In particular, the Employer shall be entitled to all rights relating to inventions, works, designs and topography within the meaning of the laws on patents, copyright, design and topography, including all rights of use and personal rights, to the extent that the latter may be transferred and in particular including the right to process and further develop such products. The employee shall not be entitled to any additional compensation for these rights. Where the transfer of such rights requires assignment, the employee shall declare such assignment at the time of the creation of these rights, with such declaration applying to all current and future (known or unknown) types of use. The employee shall refrain from exercising any personal rights and, in particular, from being named as the author or inventor. This assignment shall also include, without entitlement to additional compensation, the rights to work results that are created by the employee in the exercise of his duties but not in the fulfilment of his contractually agreed tasks. An exception applies to inventions and designs conceived by the employee in the course of his employment otherwise than as part of the duties for which he was employed that the Employer does not release to the employee within six months pursuant to Article 332 (3) of the Swiss Code of Obligations. In such a case, the employee shall be paid appropriate remuneration as defined in Article 332 (4) of the Swiss Code of Obligations. The employee shall be obliged to inform the Employer in writing without delay of the creation of intellectual property as referred to above and to issue all declarations and provide all documents required by the Employer to assert, implement and/or exercise the above rights. 1.10 Secondary employment Employees are obliged to get approval from their line manager before taking up any secondary employment that is related to what they do at Axpo, that is likely to consume a significant amount of time or that could give rise to a conflict of interest with their work for Axpo. This includes, specifically, the following secondary activities: Assuming a public or political office Assuming directorships or management roles at professional organisations or trade associations, with customers, business partners or Axpo competitors. The line manager informs the appropriate Compliance Officer about the planned secondary employment. If this is compatible with the employee s contractual work obligations and there are no objections from the Compliance Officer, the employee informs HR Services. Activities outside Axpo, secondary employment or private mandates that are not related to Axpo s business activities, that have no potential for a conflict of interest, and are not associated with a particularly large amount of time do not require approval. 1.11 Mandates and secondary employment on behalf of Axpo The Employer shall be entitled to payments received by the employee (e.g. in the capacity of a member of the board of affiliates or partner plants) in the fulfilment of his duties, such as in particular consultancy fees, meeting fees and any expenses received. Expenses incurred by the employee shall be paid in accordance with the Expenses Regulations. If the employee takes up a form of secondary employment on behalf of the Employer, or if he is released from his duties on full pay to carry out a voluntary form of secondary employment, he shall assign any monies received for this secondary activity to the Employer. 1.12 Data protection The Employer shall only process data relating to the employee for the purpose of evaluating his suitability for employment or are required for the purposes of the execution of the employment contract. The Employer shall adhere to the provisions of the Data Protection Act when processing such data. Personal data may be exchanged within the Axpo Group. The employee agrees to his personnel data being held in the HR information systems and being used for commercial purposes. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 7

1 General Section 1.13 Duty of confidentiality The employee shall be obliged to maintain the strictest possible confidentiality with regard to all confidential information of which he acquires knowledge through the course of his work. This duty of confidentiality encompasses knowledge of any information that is not in the public domain and with regard to which it can be assumed that the Employer would wish confidentiality to be maintained. It applies specifically to company and production secrets, including such information as details of customers and suppliers, business strategies and organisation, and finance and accounting. The employee may not disclose to any third party or use for his own purposes commercial, operational or technical information that is entrusted to him or otherwise become known to him in the course of his employment duties that relates to the Employer and is confidential in nature. This duty shall continue to apply to the same extent even following the termination of the employment relationship. 1.14 Communication and information media The communication and information media provided by the Employer such as the Internet, intranet, e-mail, telephone and fax shall be used primarily for business purposes and shall be treated with the appropriate due care. The private use of the company s communication and information systems shall only be permitted with due regard for the Employer s interests. The Employer s interests shall include, in particular, ensuring that its resources (working time, network, storage space, capacity etc.) are only used to a negligible extent and that security is not impaired. Employees may not install their own or third-party computer programs on the Employer s electronic systems or copy the Employer s software to their own or third-party electronic systems. Accessing websites and Internet platforms that have immoral or illegal content is also prohibited. The use of all company communication and information systems may be logged. The logging and evaluation of such records shall be used to monitor compliance with the applicable directives and to uphold other justified interests of the Employer. These shall include in particular: guaranteeing that processes that are of relevance to business can be tracked; monitoring and guaranteeing the security and functioning of information and communication systems; as well as monitoring and planning capacity. Access to business data may in particular result in the Employer s inspection of any private data stored by the employee in the system. Where there are signs of unlawful use or use that is in contravention of the company directives, the Employer may, without notifying the employee concerned in advance, monitor and record the employee s private and business use of communication and information media and keep such records on file as evidence. The Employer reserves the right to enforce disciplinary measures extending to immediate dismissal as well as measures available under criminal and/or civil law. Further information is available in the directive Use of IT and Internet services 1.15 Addictive substances The consumption of alcohol, drugs or other addictive substances by employees during working hours or when on call is strictly prohibited. Additionally, employees may not arrive for work under the influence of alcohol, drugs or other addictive substances. The Employer may allow alcoholic drinks to be consumed at special events. The Employer shall support the employee if he has such problems and shall invite him to seek help from in-house and external experts. Should the employee be unwilling to seek treatment for his addiction and to adhere to the agreements made, the Employer reserves the right to impose sanctions under labour law extending to termination of the employment relationship. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 8

1 General Section 1.16 Protection of personal rights, occupational safety and health promotion, mobbing and sexual harassment at the workplace Axpo respects and protects the personal rights of employees and gives due consideration to their health. Axpo takes measures to prevent accidents and damage in accordance with the valid guidelines. All employees are obliged to remedy any faults that impede occupational safety as soon as possible and to report such faults to their line manager and/or the safety officer (SiBe). Axpo shall not tolerate sexual harassment or mobbing, racist or other forms of discrimination against the personal rights of employees or forms of behaviour that harm third parties. Further information can be found in the Directive on dealing with mobbing and sexual harassment at the workplace 1.17 Services available from social advisory unit The employee, his family and retired employees have at their disposal access to an impartial social advisory unit, which they can use free of charge. Further information on the services provided by the Social advisory unit can be found in Insider 1.18 Participation within the company and the employee representative body The purpose of participation within the company is to maintain and promote constructive cooperation in the mutual interests of the Employer and employee with the following aims: promotion of employees and thus of the company s performance employees personal development and work satisfaction employees co-responsibility and contribution to shaping the company promotion of a good working climate within the company the proper and respectful treatment of employees Participation in the employee s personal area of work encompasses exercising rights and assuming duties and responsibilities that extend beyond carrying out his assigned tasks. The employee representative body ensures participation that goes beyond the employee s area of duties and is composed exclusively of members of staff who are themselves elected by staff. Management recognises the employee representative body as the sole representative of participation within the company and issues statements on the proposals put forward by this body. The aim of exchange between management and the employee representative body is to promote mutual agreement and trust. Further information is available in the staff representative body (MAV) regulations on Insider Participation within the company and articles of association of the staff representative body (MAV) 1.19 Amendments to the Regulations These Regulations shall apply until further notice and may be amended, replaced or rescinded by the Executive Board following discussion with the employee representative body at any time. Any amendments to these Regulations shall be communicated to the employee in writing and shall enter into effect on the stated date provided that the employee does not lodge an objection in writing within 30 days of receiving such notification 1.20 Entry into effect These Regulations shall enter into effect on 1 January 2015. Upon the entry into effect of these Regulations and the related internal guidelines, all previous regulations and related guidelines shall cease to apply. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 9

2 Salary System / MbO 2.1 Principle for performance-oriented remuneration The performance-oriented remuneration system shall provide incentive to employees for good performance. This policy shall support the Executive Board, Human Resources and managers in the salary determination process and calculation of the performance-related company result pay component (CRPC). 2.2 Scope The system described in this policy applies to all employees in Switzerland under a permanent employment contract and a monthly salary for the function levels FL 1 to FL 8 in the management units: Business area Assets; Business area Trading & Sales; Support functions of the Axpo Group; Axpo Informatik AG. Separate trader bonus plans can be applied in place of the CPC for Trading employees and managers. 2.3 Overview This policy regulates the following three areas of the performance-oriented remuneration system: Job evaluation: Guidelines for the evaluation of a position and assignment to the respective function level (see 2.4); Salary management (see 2.5); CRPC: System and measurement of CRPC (see 2.6) Overview of the performance-related remuneration system: 125% = Maximum value 100% = Midpoint 75% = Minimum value Base Salary from 75% to 125% Performance-related company result Demand on a position, Job evaluation Salary band of the Function level Salary band CRPC pot attainment of objectives PERFORM Market Comparison Individual CPRC 2.4 Job Evaluation / Function level Axpo has 13 function levels (FL1 to FL13), whereby FL13 is the highest function level. Each function level corresponds to a defined point range based on the Hay Job Evaluation system. The Hay Job Evaluation system helps evaluate and compare the requirements of a position (NOT the knowledge, experience and skills of the job holder). The Hay system identifies 8 Evaluation criteria: a) Experience and specialised knowledge (acquired through education or experience) b) Complexity of the position: Planning, organisation and integration c) Communication and influence d) Intellectual framework / freedom e) Problem complexity f) Freedom to act g) Scope /Area of influence h) Type of influence Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 10

2 Salary System / MbO Evaluation of these criteria results in a score that can be assigned to one of the 13 function levels (FL). A salary band has been defined for each function level. The salary band sets the framework for the minimum and maximum salary of the respective function level. The band midpoint is determined based on external competitiveness. HR periodically compares the salary bandwidth with comparable external data and, if necessary, submits a request to the Executive Board for adjustment of the salary bands. The salary band goes from 75% to 125% of the band midpoint. If an employee is taking over a new position or his current position is substantially expanded, his function level may change. In principle salary increases granted in connection with a function level change take place in the next ordinary salary review. Interim adjustments are reviewed when the salary is under the minimum or at the lowest end of the new function level. 2.5 Salary management The Executive Board approves an annual salary budget that can be used for salary adjustments. Managers decide on the distribution of this budget based on the salary proposal lists prepared by HR. These take into account the salary compared to the market, the position in the salary band for the respective function level and the employee s performance (PERFORM Evaluation grid, see point 2.6.3.2). The manager can take additional factors such as employee personal development or similar criteria into account. 2.6 CRPC 2.6.1 General The CRPC is a variable incentive that enables employees in function levels 1 to 8 to benefit of the company s success. The CRPC is not a fixed salary component and is not insured under the PKE pension fund. Payment of CRPC does not substantiate a legal claim for future payments. A legal claim is also not substantiated when the CRPC was unconditionally paid out repeatedly in the past. Calculation of the CRPC takes place in three steps at the end of the financial year: 1. Review of the degree of fulfilment of RONOA (Return On Net Operating Assets) of the Axpo Group according to point 2.6.2; 2. Determining the total available funds for CRPC according to point 2.6.2; 3. Individual calculation of the CRPC according to point 2.6.3. 2.6.2 Determation of the available funds for CRPC To determine the CRPC, the overall performance of the Axpo Group is measured against RONOA (Return On Net Operating Assets). RONOA indicates how high operating profit before interest, taxes and exceptional items is in relation to invested capital. The basis is the financial result according to the approved yearly financial statement. The valid RONOA target values for a financial year and the respective valid upper and lower threshold values are relevant for the calculation of the available CRPC funds. The Executive Board defines the target values and the lower and upper thresholds at the request of HR and in coordination with Controlling on an annual basis. These are communicated at the beginning of a financial year. The target financial value corresponds to the budgeted RONOA. Determination of the upper and lower threshold values takes into account the relevant budgeting and economical conditions and the underlying changes in the result: If RONOA (100 % of the target value) is achieved, CHF 4000 per FTE is allocated for the CRPC. If RONOA is on or below the lower threshold value, CHF 1500 per FTE is allocated for the CPC (minimum CRPC pot). If RONOA is on or above the upper threshold value, CHF 8000 per FTE is allocated for the CPC (maximum CRPC pot). The total available CRPC funds (CRPC pot) are calculated as follows: CRPC base rate number of FTE = CPRC available funds The number of FTE is the sum of the level of employment of the CRPC eligible employees in the respective financial year according to point 2.2. Example: 100% degree of fulfilment of RONOA at 2000 FTE: CHF 4000. 2000 = CHF 8 000 000 CRPC funds Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 11

2 Salary System / MbO 2.6.3 Individual calculation basis of the CRPC The individual calculation of the CRPC for employees is carried out based on a: factor dependent on the function level (see point 2.6.3.1); and factor dependent on performance rating (see point 2.6.3.2). 2.6.3.1 Factor dependent on function level Participation in CRPC funds increases with the function level. This takes into account the significance of the function level and any longer working hours performed by the employee. The following factors apply in the calculation of the individual CRPC for the respective function level: Function Level 1 2 3 4 5 6 7 8 Factor 1.0 1.25 1.5 1.75 2.0 2.2 2.4 2.6 The function level factors are rated on a pro rata basis for employees whose function level changes during the financial year. When transferring to function level 9 or higher, the current function level factor is taken into account on a pro rata basis; an accumulation of claims from various variable compensation models for the same time period is ruled out. 2.6.3.2 Factor dependent on individual performance A) Basis of individual performance evaluation Individual performance evaluation is carried out based on the objectives setting and the performance evaluation system PERFORM. PERFORM is based on three performance components: objectives, main tasks and competencies that can be rated differently. Objectives The respective manager and the employee agree to objectives in the annual MbO process. Objectives relate to the overarching objectives of the organisational unit. The objectives are defined so that they are specific, measureable (or observable), ambitious but realistic, and hold to a fixed time schedule. Main taskes The main tasks are derived from the job and qualifications profile for the respective function. The profile defines the expected results and success criteria for the fulfilment of the main tasks. This builds the basis for evaluation. Competencies Competencies describe the behaviour expected of employees when carrying out their tasks and that is crucial for successful performance in the function. Competency evaluation is based on the requirements of the specific function (job and qualification profile). B) PERFORM objective agreement and performance Evaluation system Three weighting options are available in the PERFORM objective setting and performance evaluation system, whereby the choice of the weighting option is mainly determined by the upcoming activities for the subsequent year. The manager selects the appropriate option for the function. The weighting option can change again owing to a new focus in the subsequent year. 3 4 Performance components Weighting options Evaluation 1 Main duties At least 3 /maximum 6 Objectives At least 2 / maximum 6 70% 40% 30% 1 2 3 4 5 30% 40% 1 2 3 4 5 2 Competencies 30% 30% 30% 1 2 3 4 5 1 2 3 4 Main tasks and objectives agreed to annually Competencies are defined and described with behavioural descriptors 3 weighting options available 5-point scale for evaluation (see point c) Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 12

2 Salary System / MbO C) Individual performance Evaluation The evaluation grid from the PERFORM objective setting and performance evaluation system consists of a 5-point scale for all three performance components: 1 = unsatisfactory expectations not met 2 = satisfactory expectations partially met 3 = good expectations fully met 4 = very good expectations mainly exceeded 5 = excellent expectations clearly /Always exceeded Each individual performance component is evaluated with a score from 1 to 5. Evaluation at level 3 means that the qualifications and performance criteria have been fully met. The average score is multiplied by the applicable weighting factor. The calculated value is not rounded off to a whole number and is used in the calculation of the individual CRPC. Example of an individual performance evaluation calculation Performance Evaluation Weighting Ø Evaluation Weighting Evaluation Main tasks 40% 3.2 1.28 Objectives 30% 2.75 0.83 Competencies 30% 3.1 0.93 Total 100% 3.04 2.6.3.3 Calculation of the CRPC The individual score for the calculation of the CRPC is the product of the «factor dependent on the function level the factor dependent on performance evaluation». The allocated CRPC funds divided by the sum of all individual scores of evaluated employees (rated according to employment level) results in the granted monetary amount per point. Example Base value for CRPC: CHF 4000. Employee in function level 6: Rating factor dependent on function level = 2.2 points (see 2.6.3.1) Rating factor dependent on performance = 3.04 points (see 2.6.3.2) Individual score as basis for CRPC: 2.2 3.04 = 6.688 points Monetary amount per point is determined by dividing the available CRPC funds by the sum of the individual score (rated according to employment level): In this example CHF 630.11 Individual CRPC (individual score multiplied by the monetary amount per point): 6.688 points CHF 630 = CHF 4214.17 2.6.3.4 Factor dependent on performance in case of absences Calculation of the CRPC for employees whose performance cannot be evaluated (e.g. due to extended sick leave, new employees, unpaid leave, etc.) a PERFORM value (= individual performance evaluation) of 2.1 points is assigned. 2.6.4 Time of CRPC payment The CRPC is paid out after publication of the approved financial statement, by February of the following financial year at the latest. 2.6.5 New hires / Departures New employees that join the company during the financial year participate in the CRPC on a pro rata basis. Employees who leave the company during the financial year do not receive the CRPC. Employees who retire during the financial year receive the CRPC proportionally. 2.6.6 Change of level of employment If the level of employment changes during the financial year, the average level of employment during the financial year is applicable. 2.6.7 Amendments The Executive Board may change or revoke these at any time with effect for future financial years without compensation. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 13

3 Remuneration and Supplements 3.1 Work clothes 3.1.1 Annual remuneration Employees shall generally be provided with work clothes (overalls, work aprons, etc.). If this is not the case, the employee may claim expenses in accordance with the current Expenses Regulations for any work clothes that he provides for himself. 3.1.2 Laundry If the Employer does not offer a clothes laundering services, employees shall be compensated in accordance with the current Expenses Regulations for having their work clothes cleaned. 3.1.3 Direct distribution The Employer shall where necessary provide employees with personal protective equipment, such as: Rubber boots Hearing protection Safety shoes Rainproof clothing Protective helmet Protective goggles This list is not exhaustive. The details are set out in the Health and Safety Concept (KAS). 3.2 Supplements in the event of operational complications 3.2.1 Category A (CHF 10 per hour) Nuclear Energy Division Working with a full protection mask Hydroenergy Division (Hydro Beznau) Packing turbine glands 3.2.2 Category B (CHF 30 per hour) Nuclear Energy Division Working in protective suit and full mask Working in ventilated protective suit 3.3 Site fire brigade and first-aid organisation in the Nuclear Energy Division 3.3.1 Pay agreement for members of the site fire brigade and first-aid organisation In addition to compensation for time and expenses incurred, members of the site fire brigade or first-aid organisation shall be entitled payment for the following deployments (of approx. 2 hours in each case): Site fire brigade: Type of deployment Commanding Officer/Vice Com. Officer Junior officer (on call) Junior officer Materials manager AS-Spez. Driver Soldier MS-Spez Exercise / course CHF 27 CHF 26 CHF 25 CHF 24 CHF 23 Real deployment / drill CHF 32 CHF 31 CHF 30 CHF 29 CHF 28 Site first-aid organisation: Type of deployment Chief and Deputy Medical Officer Chief and Deputy Training Manager Instructors Chief and Deputy Materials Manager First-aid staff Exercise / course CHF 27 CHF 26 CHF 25 CHF 24 CHF 23 Real deployment / drill CHF 32 CHF 31 CHF 30 CHF 29 CHF 28 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 14

3 Remuneration and Supplements These amounts shall be paid with the December salary for all deployments carried out during the course of a year. Employees may not claim payments in the event of explained or unexplained absences. Similarly, they shall not be paid for meetings discussions etc. involving the full-time fire brigade staff (commanding officer, vice-commanding officer, materials manager etc.) or the full-time first-aid organisation staff (chief medical officer, training officer, equipment manager etc.) Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 15

4 Pension Provision, Insurance and Continued Payment of Salary 4.1 Pension fund 4.1.1 Principle The Employer is affiliated with the pension fund Pensionskasse Energie (PKE) for the purposes of providing occupational pension provision. The rights and obligations of the insureds and the benefits provided by the pension fund are based on the applicable fund regulations. 4.1.2 Partial early retirement, continued insurance of previous insured salary The pension fund Pensionskasse Energie (PKE) currently offers employees who reduce their degree of employment or salary from the age of 58 (partial early retirement) the option of continuing to have their previous salary insured up to the age of 65. The applicable PKE regulations shall apply exclusively in each case. PKE reserves the right to amend or rescind the relevant regulatory provisions. The employee must submit a written application for partial early retirement in good time. This is subject to the employee s retention of a degree of employment of at least 50% and the reduction of his salary by no more than a half as a result of partial early retirement. The employee has no entitlement to have his application for partial early retirement approved by the Employer. When submitting his application, the employee shall state the proportion of his previously insured salary that regardless of the reduction in his degree of employment is to continue to be insured by PKE (hypothetical salary). If the Employer approves the partial early retirement application, it shall pay the employer contributions due for the hypothetical salary. 4.1.3 Continued insurance in the event of employment beyond normal AHV retirement age PKE currently offers employees the option of continuing their insurance in PKE subject to certain conditions if they continue to work between the ages of 65 and 70. The applicable PKE regulations shall apply exclusively in each case. PKE reserves the right to amend or rescind the relevant regulatory provisions. If the employee continues to work beyond normal AHV retirement age, he may submit a written application in good time requesting that his occupational pension provision be extended at least until his 70th birthday. The PKE shall decide whether this continued insurance cover is possible (specifically, whether it will result in over-insurance). If insurance continues, the Employer shall pay the employer contributions due on the insured salary. 4.2 Insurance benefits and continued payment of salary during illness 4.2.1 Basic prerequisite Employees shall be entitled to continue to be paid provided that the employment relationship has lasted for more than three months or was entered into for more than three months (Article 324a (1) of the Swiss Code of Obligations). In the case of fixed-term contracts of less than three months, there shall be no entitlement to continued payment of salary. Continued payment of salary in the event of illness shall as a general rule only apply if the employee, through no fault of his own, is prevented from working and has properly fulfilled his reporting obligations (Section 1.8.2 of the General Conditions of Employment). 4.2.2 Continued payment of salary and sick pay insurance The Employer has taken out collective sick pay insurance in favour of those employees with entitlement to cover. In the event of entitlement to continued payment of salary pursuant to Article 324a of the Swiss Code of Obligations, the Employer shall guarantee to pay the previous salary during the waiting period but for no longer than until the end of the employment relationship should the employee be unable to work as a result of illness through no fault of his own. After the waiting period, insurance benefits shall replace the Employer s obligation to continue payment of salary. After the end of the waiting period, the Employer shall supplement the insurance benefits up to 100 % of the average net salary of the past 12 months until the end of the employment relationship or for no longer than until the beginning of the period during which a disability pension is paid by a Swiss or foreign social insurance organisation, up to a maximum of 730 days. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 16

4 Pension Provision, Insurance and Continued Payment of Salary The insurance benefits shall be based on the applicable insurance conditions in each case. In the event that the sick pay insurer refuses to pay insurance benefits due to a health-related restriction, the Employer shall pay the employee s salary pursuant to Article 324a of the Code of Obligations (Zurich scale). Employees who leave the company during their probationary period have no entitlement to insurance benefits. The person who is ill is obliged to comply with the measures imposed by the sick pay insurer with regard to his duty of cooperation and duty to mitigate. The premiums for sick pay insurance shall be split between the Employer and the employee, with each paying half. The portion to be paid by the employee shall be deducted from his gross salary. For further details see the information sheet Collective sick pay insurance 4.3 Insurance benefits and continued payment of salary in the event of an accident 4.3.1 Compulsory accident insurance pursuant to the Accident Insurance Act (UVG) The employee is insured with SUVA against the consequences of occupational and non-occupational accidents and occupational diseases pursuant to the relevant statutory provisions of the Federal Accident Insurance Act (UVG). The employee and the Employer shall each pay half of the premiums due for insurance for non-occupational accidents. The employee shall not be covered for non-occupational accidents if he generally works fewer than 8 hours per week for the Employee. In the event of an accident, the employee s line manager and HR Services should be alerted as quickly as possible, with the latter arranging for an accident report to be sent to SUVA. For further details see the information sheet Accident insurance pursuant to UVG 4.3.2 UVG supplementary insurance All employees have supplementary UVG insurance cover. The premiums are paid by the Employer. For further details see the information sheet UVG supplementary insurance 4.3.3 Supplementary continued payment of salary by the Employer The Employer shall supplement insurance benefits up to 100 % of the average net salary of the past 12 months, until the end of the employment relationship at the latest. 4.4 Continued payment of salary in the event of death In the event of the employee s death, the Employer shall pay the monthly salary applicable at the time of the employee s death for the month of the death and for three further months if the employee is survived by a spouse, registered partner, minor or other persons in the absence of such heirs for whom he fulfilled a maintenance obligation. Payment to these survivors shall be made in addition to any benefits from insurance companies and/or other pension fund institutions and regardless of their amount. Family allowances shall be paid for the month during which the employee dies and for the following three months. The Employer shall be entitled to set aside the continued payment of salary following the employee s death if there is any uncertainty as to the entitled parties. 4.5 Continued payment of salary during military, community and civil defence service The employee shall be entitled to receive his full salary if he is required to attend military, community or civil defence service. The payments due under the income replacement scheme shall be paid to the Employer. In the case of voluntary services, salary shall continue to be paid as follows: Services % of salary Recruit school 100 Promotion course 100 Compulsory courses and inspection 100 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 17

4 Pension Provision, Insurance and Continued Payment of Salary Upon completion of a promotion course, the employee may be obliged to maintain the employment relationship for an appropriate period of time. Youth and sport leader courses, as well as voluntary military services (e.g. specialist mountaineering courses), shall be treated as obligatory services, provided that a military service pay card is submitted. Salary shall continue to be paid in any event (compulsory and voluntary services) up to the end of the employment relationship at the latest. 4.6 Continued payment of salary during pregnancy and maternity leave 4.6.1 Pregnancy It is recommended that pregnant employees consult their line manager or Human Resources by the beginning of their 5th month of pregnancy at the latest to discuss their employment arrangements. In the event of medically attested inability to work due to pregnancy-related complications, the rules otherwise applicable to illness shall apply accordingly. 4.6.2 Maternity leave Maternity pay shall be based on the applicable provisions of the Income Replacement Act (EOG). If the employee is entitled to maternity pay in accordance with EOG, the Employer shall supplement the payment up to the amount of 100% of the previous net salary for a period of 16 weeks from the date on which the employee gives birth. The payments due under the income replacement scheme shall be paid to the Employer. If the employee applies for a deferral in maternity pay as provided for by Article 16c (2) EOG and Article 24 EOV, continued payment of salary by Axpo (100% of previous net salary) shall nevertheless begin on the date that the employee gives birth. This means that the period of time during which salary will continue to be paid and maternity pay supplemented shall also be 16 weeks in total. 4.6.3 Reduction of holiday entitlement Maternity leave shall not result in any reduction of holiday entitlement. Consequently, any reduction may only be enforced for periods of absence during pregnancy and after the expiry of maternity leave (see Section 1.5.1 Reduction of holiday entitlement). 4.6.4 Breastfeeding breaks Breastfeeding breaks count as paid working time up to 52 weeks after the birth as follows: if daily hours worked are 4 Std. = 30 minutes > 4 Std. = 60 minutes > 7 Std. = 90 minutes. After 52 weeks breastfeeding mothers are entitled to the time needed for breastfeeding. However, this time is not counted as working time. 4.7 Insurance cover during business trips abroad The Employer has taken out insurance for employees required to make business trips abroad. All business trips abroad must be recorded for insurance purposes. A card with emergency telephone numbers should be obtained from the respective office prior to making a business trip abroad. For further details see the information sheet Business trip insurance Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 18

5 Expenses 5.1 General 5.1.1 Scope The present Expenses Regulations apply to all Axpo staff who have an employment relationship with the company and whose contractual place of work is in Switzerland. 5.1.2 The definition of expenses For the purposes of the present Regulations, expenses shall be deemed to be expenditure incurred by an employee in his employer s interests. Employees are obliged to keep the expenses covered by these Regulations as low as possible. Expenditure that is not necessary for the fulfilment of an employee s duties shall not be reimbursed by the employer and must be met by the employee himself. In general, employees shall be reimbursed the following work-related expenditure: Travel costs Expenditure on food Accommodation costs Other costs 5.1.3 Principle of expenses reimbursement In principle, all claims for expenses shall be submitted in retrospect and accompanied by the original receipts. By claiming expenses, the employee requests reimbursement of actual expenditure that he has been authorised to incur. By signing an expenses and credit card claim, the employee and his line manager confirm that the expenses have been claimed correctly in accordance with the applicable regulations. Should any audits by the tax authorities reveal irregularities, the employee and his line manager may be penalised by the authorities. In addition to additional tax, fines may also be imposed. Particularly serious cases may even result in prosecution. 5.1.4 Credit cards Employees who travel frequently shall be generally entitled to a corporate credit card the annual fee for which shall be paid by the company. This card is to be used for business purposes only. Cash withdrawals and use of the credit card for private expenditure are forbidden. The approval of the employee s line manager and HR Services is required for a corporate credit card. 5.1.5 Business trips Business trips must be kept to a minimum and carried out taking the associated costs and time into consideration. In particular, employees must assess whether the purpose of the trip may not also be fulfilled using modern communication media (e.g. video conferencing). Employees shall be obliged to obtain, extend or renew their passport and other identification documents at their own cost. Visas shall be obtained at the company s expense. For information about insurance, see Section 4.7 Insurance during business trips abroad 5.2 Travel costs 5.2.1 Reimbursement of travel costs If a business trip begins or ends directly at the employee s place of residence, the cost of travel between the travel destination and his place of work shall be reimbursed. In general, public transport should be used, or failing that, the mode of transport that is most appropriate with regard to cost and time. 5.2.2 Public transport When travelling on business trips by train, all employees shall be permitted to travel in first class both at home and abroad. Employees shall be periodically paid the cost of a two-year half-fare travel card (Halbtax) from the Swiss transport authorities (SBB, Post, etc.). If business trips are taken using only public transport covered by the travel card, only the cost of half-fare tickets shall be paid. When using the private GA travel card for business travel, the costs of a first-class half-fare ticket shall be reimbursed via an expenses claim. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 19

5 Expenses 5.2.3 Air travel Travel to distant destinations in Europe and overseas shall generally be undertaken by air, in which case the most appropriate and most reasonable alternative shall be booked. Air travel must be planned and booked as early as possible to take advantage of special low fares. Air travel may be used in exceptional circumstances for travel to neighbouring European countries, if, having considered all the circumstances, this proves a practical option. In general, the company shall pay for economy-class tickets for flights within Europe and businessclass tickets for intercontinental flights. Excess baggage fees shall be reimbursed only for important business files and if no cheaper alternative mode of transport is possible. The company shall pay for the cost of necessary meals (breakfast, lunch, dinner and/or snacks) during a flight, if these are not included in the cost of the ticket. Air miles, bonus points and other awards given to employees by airlines as a result of business travel should be used for business purposes. 5.2.4 Use of vehicles All travel for business purposes must be in the company s interests. Public transport should be used wherever possible. If this is not practical, a Mobility vehicle should be used. Employees may use their own cars if use of a Mobility vehicle is either not possible or impractical. For details see the information sheet on the Use of Mobility vehicles Transportation of others and materials Drivers of company or private cars for business trips shall be obliged, at the company s request and at no special extra charge, to transport other employees or third parties working for the company The driver shall be further obliged to carry a reasonable amount of any necessary materials with him. Drivers are forbidden from stopping for hitchhikers during business trips. Accident prevention Employees may under no circumstances use a company vehicle for business trips if their ability to drive is impaired due to overtiredness, the consumption of alcohol or drugs or other reasons or if the vehicle is not in a roadworthy condition according to the legal requirements and the manufacturer s specifications. Claiming expenses for use of a private vehicle Trips for business purposes shall normally qualify for reimbursement starting from the place of work; however, trips starting at the employee s home shall be reimbursed in the event of a fault. The reimbursable distance shall be limited to the return distance between the place of work and the place of assignment or the actual distance travelled, if this is shorter (according to the quickest route given in Twix Route). The place of residence shall be deemed to be the place of work for employees without a fixed place of work. Travelled kilometres qualifying for reimbursement must be claimed monthly as expenses. The employer shall reimburse expenses for the use of a private vehicle at a per-kilometre rate. This shall amount to: CHF 0.70 / km This per-kilometre rate shall cover all the costs associated with use of the employee s own vehicle. Employees using their own vehicle for business purposes do so at their own risk. In particular, employees shall be required to pay any fines for speeding or other infractions themselves. Employees should not use their own vehicle if severe weather conditions indicate that it may be dangerous to drive. Car rental Rental cars may be used only if no vehicle is available in the Axpo carpool at the relevant location and if this results in a better use of time and/or saves costs. Vehicles must also have adequate insurance cover. This is the employee s responsibility to check. Mid-range vehicles should generally be rented. Rental cars should be booked through Hertz specifying the contract number CDP 594 422. Bookings may be made by phone or over the Internet ( www.hertz.ch). Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 20

5 Expenses 5.3 Board and lodging expenses 5.3.1 Expenditure on food If an employee is instructed to go on a business trip or is obliged for another reason to consume food away from the employee s normal place of work, the employee is entitled to the following maximum reimbursements against proof: Meal Max. Expense rate Breakfast CHF 15 Lunch CHF 30 Dinner CHF 35 Employees eligible for subsidised meals (staff restaurant, luncheon vouchers or meals allowance) are not entitled to a meals allowance at locations with a staff restaurant. The following flat-rates apply to plant staff and fitting personnel who must consume food off-site (self-catering): Meal Expense rate Breakfast CHF 10 Lunch CHF 25 Dinner CHF 28 The expense rates for food shall apply as follows: For breakfast, if work begins before 6am For dinner, if work ends after 7.30pm The following note will be added in section 15 of the salary statements of employees who spend at least 60% of their working hours in the field: «Expenditure on food covered by the employer». Field G on the salary statements of employees who spend at least 40% of their working hours in the field will be checked. The time taken to consume meals is not counted as work time and is not reimbursable. If a meal is consumed away from the workplace for business reasons, the actual length of the break although at least one hour for lunch or dinner and at least half an hour for breakfast or a midnight snack must be entered in the absence report or the working hours report. Travel expenses and travel time to a suitable restaurant shall be included in the rates and shall not be reimbursed separately. 5.3.2 Accommodation costs Accommodation costs may be reimbursed if work away from the normal place of work requires this or it is unreasonable to expect the employee to return to his place of work. Employees may claim their actual expenditure on accommodation. Mid-range hotels should generally be chosen. Higher category hotels may be chosen only in exceptional circumstances for representational reasons if it is in the company s interests or on health and safety grounds. The company shall reimburse the actual cost of hotel accommodation according to the original receipts, after the deduction of any private expenditure (e.g. use of the telephone for private calls, mini-bar bills). If the employee stays with friends, etc. at a private address, a flat fee of CHF 60 may be claimed for a present for the host. 5.4 Work clothes 5.4.1 Annual compensation Employees shall generally be provided with work clothes (overalls, company aprons, protection goggles, etc.). If this is not the case, employees may claim the following compensation annually: Transformer team, overhead power line personnel, assembly personnel, plant staff, fitting personnel CHF 228 Other power plant and meter workshop personnel CHF 114 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 21

5 Expenses Compensation must be claimed as expenses every January and applies to the current year. Employees who join the company during the year shall be entitled to compensation on a pro-rata basis. Pro-rata compensation must be added to the expenses claimed in January for the previous year. 5.4.2 Laundry If the employer does not offer a laundry service, the following employees shall receive the following monthly compensation: Transformer team, overhead power line personnel, assembly personnel, plant staff, fitting personnel CHF 13.50 Other power plant and meter workshop personnel CHF 7.30 Employees qualify for this compensation from the start of their employment. The relevant amount must be claimed as expenses in January for the previous year. 5.5 Other costs 5.5.1 Minor expenses In principle, minor expenses such as parking fees, etc. shall be reimbursed upon submission of the original receipt provided they are business-related. If submission of an original receipt is not possible or unreasonable and the expenditure is less than CHF 20, employees may submit a receipt that they have drawn up themselves in exceptional circumstances. Employees may claim reimbursement of the cost of business calls made on their private fixed-line phone by submitting an itemised telephone bill. Employees who do not have a company mobile phone but use their personal mobile phone to make business calls may also claim reimbursement for the cost of these business calls by submitting an itemised mobile phone bill. Employees who need a phone/mobile solution can obtain a business mobile phone. This can be used for private ends if costs are shared (40% of the flat-rate regardless of the subscription type, currently CHF 10 / 6 or 4.50 per month). If the additional fees from private use (e. g. calls abroad, data roaming etc.) exceed the CHF 30 limit, the employee shall pay the excess costs. 5.5.2 Representation costs In the interests of customer relationship management and / or fostering contact with third parties associated with the company, it may be in the company s interests for employees to invite these third parties to dinner. Such expenditure must be approved by the employee s line manager, wherever possible in advance. In principle, moderation is a must, as is strict adherence to the existing compliance guidelines. The costs incurred must always be commensurate with the company s business interests. The choice of location must take account of the customer s or business partner s significance for the company as well as local customs. The employer shall reimburse the actual costs upon submission of original receipts with the following information noted on the expenses claim: Names of all the people involved Name and location of the restaurant Date of the invitation Business purpose of the invitation 5.6 Validity 5.6.1 Approval by the cantonal tax authorities These Expenses Regulations have been submitted to and approved by the tax authorities of the cantons Aargau and Zurich. Due to this approval, Axpo shall not list the actual amount of expenses claimed by employees on their annual salary statements. All changes to these Expenses Regulations shall be submitted to the tax authorities of the cantons Aargau and Zurich for their approval. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 22

6 Training and Development 6.1 Principles The present Training and Development Regulations apply to all staff in Switzerland (including trainees) who are in an employment relationship with Axpo (excluding CKW staff). Employees shall be responsible for their own further development, and must agree this with their manager. They must take responsibility for their ongoing education, capitalise on opportunities to take on responsibilities and set themselves challenging targets. Participation in internal and external training and development courses helps refresh and expand their know-how and skills. They consider permanent further development an opportunity and a challenge. 6.2 Cost-sharing of external training and development courses External training and development includes all specialist, leadership, vocational and managerial training courses that support the company s activities and are not offered internally. Enrolment in and completion of internally offered training seminars should be preferred over external ones. If the range of internal training courses is insufficient for an employee s needs, advice on the search for and selection of external training courses should be sought from the HR business partner or the HR personnel development department. These can use their experience to provide support and prevent the consideration of unsuitable training and development providers. 6.3 Training categories Purpose of training Training initiator Training examples Interest to the company: A: Necessary training B: Desired training C: Of little interest to the company Development training of functional relevance Further development that is necessary for the fulfilment of tasks in the current function Manager or the employee himself Specialist skills: job-specific skills and know-how (e.g. business administration know-how) Methodological skills: know-how and skills related to work practices (e.g. problemsolving) Social skills: the ability to deal with people (e.g. conflict resolution) Personal skills: awareness of one s ability to cope with stress, etc. A Training courses of functional relevance Comprehensive further development that is useful for the fulfilment of tasks in the current function, but is not absolutely necessary Secures the employee s employability on the labour market Comprehensive (management) training that supports the employee s career development Primarily at the employee s own initiative; in exceptional circumstances at the manager s suggestion Training courses with or without recognised diplomas Preparation for official examinations Language courses related to professional activities Managerial training courses Postgraduate courses MBA B or C Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 23

6 Training and Development Executive MBA programmes (MBA, LLM or similar) The following criteria shall serve as the basis on which the company decides whether or not to share the cost of an executive programme: The employee must deliver an above-average performance; The programme must generate obvious added value for the employee and the employer; It must be a suitable training measure within the framework of his individual career planning; The programme must be recognised and offered by a renowned university/technical university; Priority is given to providers whose programme focuses on the energy industry (e.g. MBA in Utility Management at the University of Fribourg or Bremen); and The network that employees can thus develop must also be of benefit to Axpo. The Bachelor thesis must be of direct benefit to Axpo. The direct line manager is responsible for the choice of subject and the supervision of the course participant. Axpo s cost-sharing must be laid down in a training agreement. 6.4 The Axpo cost-sharing model 6.4.1 Amount of cost-sharing Interest to the company Costs Time Expenses Course fees, examination and tuition fees as well as obligatory teaching materials Lost time (max. standard working time excl. Saturdays, Sundays and bank holidays) Travel expenses, board and lodging (for events lasting several days) A 100% 100% 100% B * 50% 50% 50% C * 25% 0% 0% Executive programmes * 50% (up to CHF 30 000) 50% 50% * On account of individual underlying conditions and needs, the employer s cost-sharing in terms of time and money may vary, provided that the overall participation is not exceeded. Applications for training and development courses that exceed the company s cost sharing of CHF 10000 ** must be approved by both the employee s line manager and the relevant division head. ** Course fees, examination and tuition fees as well as obligatory teaching materials 6.4.2 Obligations of the course participant The course participant undertakes to do the following: To complete the Training and Development Agreement form in full and ensure that it contains all the required signatures and is processed according to the appropriate routing pathway; To attend lessons regularly (at least 80%) and complete all training-related assignments (homework, dissertations, etc.) and sit the required exams; To correctly note down working times / costs; Upon completion of the course: to send a copy of the attendance certificate and / or diploma to HR Services as well as feedback to the personnel development department and his line manager. 6.5 Training and Development Agreement The Training and Development Agreement form must be completed for all category B and C training courses as well as for executive programmes. The Repayment Agreement section of the form need only be completed if the employer s share of the total cost exceeds CHF 5000. To enable course attendance to be recorded, the Training and Development Agreement form should also be completed for category A training courses that last for more than two days or if the costs exceed CHF 1500. The total cost comprises all expenditure incurred in association with training and development. In particular, it includes course fees, examination fees and any expenses that may be incurred (except for lost working time). Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 24

6 Training and Development It is in the employee s interests to ensure that all the necessary procedural steps are taken and that the Training and Development Agreement form is completed in full. The signed original of the agreement must be forwarded in accordance with the form routing pathway. The employee shall receive a copy of the agreement. 6.6 Repayment obligation 6.6.1 Guidelines The company s share of the costs shall be granted in the form of a loan. However, the employer shall waive the right to repayment of the loan at the end of the obligatory employment period. Company s cost-sharing (excluding lost working time) CHF 5000 10 000 More than CHF 10 000 Repayment obligation 1 year 2 years The obligatory employment period shall begin when the training course ends. The date thereof shall be defined as the last date of the training course. This date must be noted down and entered in the SAP system. Repayments are pro rated, i.e. the amount due for repayment shall be reduced in linear fashion by 1 12 th or 1 24 th, as applicable, per month. 6.7 Procedural provisions 6.7.1 Administrative procedure Training and development courses should be agreed and defined between the employee and the line manager within the framework of individual career development planning, ideally within the framework of a written career development plan. Development courses that are of relevance to the employee s function (category A) should be approved directly by the cost centre head within the framework of the approved training budget of the home cost centre if the course costs less than CHF 10 000. To ensure that the training and development course is recorded, the Training and Development Agreement form must be completed if the course costs more than CHF 1500 or lasts longer than two days, stating the reasons for the course, its importance to the company and the type, length, cost and time credit during training. This form must be presented to the relevant responsible persons for approval. Confirmation of course attendance must be sent to HR Services in the form of a diploma or certificate for filing in the employee s personnel file. The HR business partner must also be notified about the completion of the course. Cost-sharing for category B and C training and development shall be contingent on the submission of a written application (the Training and Development Agreement form) stating the grounds, the importance of the training to the company and the type, length, cost and time credit during training. This form must be presented to the relevant responsible persons for approval. The Repayment Agreement section of the form needs only to be completed if the employer s share of the total cost exceeds CHF 5000. The Training and Development Agreement shall be processed in accordance with the approval procedure described on the form. Applications for reimbursement of approved training costs must be submitted according to the procedure described on the Cost-Sharing of Training and Development form. Cost-sharing must be noted accordingly on the form by the employee, checked by his manager in accordance with the Training and Development Agreement and signed by both. The completed form must be forwarded to HR Services together with the original of the relevant bill or receipt (not on an expenses form). The costs will be reimbursed together with the salary. The training time to be assumed by the company must be recorded. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 25

6 Training and Development 6.7.2 Payment modalities Bills for courses qualifying for 100% cost-sharing shall be paid directly by the employer. The company shall undertake the registration of such courses as the billing address must be that of the employer. In the case of partial cost-sharing, the employee may apply to have the costs that are assumed by the company paid onto the account into which his salary is paid. In the case of modular courses or those billed by semester, the employee must pay the bills and be reimbursed the cost thereof by the employer at the end of each module / semester if the cost of the course is to be reimbursed prior to its completion. If, after an employee has completed a training course, the employer does not receive attendance confirmation or a certificate from the relevant employee, Axpo may demand repayment of any costs that it has already paid. All bills must be sent to HR Services as costs shall be reimbursed with the employee s salary. All money paid to employees, irrespective of the training category, shall be declared on the annual salary statement. The employee shall be obliged to prove that he has completed the training course (by submitting attendance confirmation, certificate, etc.). Any deviatory regulations from those laid down herein shall be permitted only in exceptional circumstances and must be laid down in writing in the Training and Development Agreement. 6.7.3 Repayment obligation Discontinuation of a training and development course If the employee discontinues a training and development course, the employer shall reserve the right to demand repayment of all the costs paid by the company up until that point. Any further costs that may arise must be met by the employee. Termination of the employment relationship If the employment relationship is terminated during the training course, the employer shall discontinue all course payments. If the employment relationship ends through statutory termination by the employee or on the grounds of immediate dismissal by the employer in accordance with Art. 337 of the Swiss Code of Obligations (OR), the employee shall be obliged to repay all the costs paid by the company. If the employment relationship ends after completion of the training course through statutory termination by the employee or on the grounds of immediate dismissal by the employer in accordance with Art. 337 of the Swiss Code of Obligations, the employee shall be obliged to repay all the costs paid by the company in accordance with the guidelines laid down in Section 6.1. If the employment relationship ends through statutory termination by the employer, no repayment shall be required. Failure to pass examination If the employee completes his training course but fails to pass the final examination, Axpo shall reserve the right to demand repayment of 50% of the costs it has paid unless the employee retakes and passes the examination. 6.7.4 Quality control In order to uphold Axpo s standards sustainably with regard to external training and development, every employee who takes part in an external training and development course must submit feedback to the personnel development department in the form of a final report evaluating the provider, content of the course and the transfer of acquired know-how to the company. This feedback shall be used as the basis for recommendations for employees wishing to attend external training and development courses in the future. 6.7.5 Training goals / transfer of acquired know-how The transfer of acquired know-how must be ensured by the line manager together with the relevant employee. Depending on the training course in question, it may be a good idea for the employee to define the learning goals and the transfer of acquired know-how together with the line manager before training begins. It is up to the manager and the employee to judge the extent to which such a conversation is useful. An HR representative may be involved on request. Learning goals and/or measures for transferring acquired know-how may be laid down within the framework of the MbO process or a career development discussion and career development plan, and updated continuously. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 26