S.L. 452.94 Art. 17Penalties.

Any person who fails to comply with any obligation imposed on such person under these regulations shall be guilty of an offence and shall, on conviction, be liable:

(a) to a fine (multa) of not less than twenty-three euro and twenty-nine cents (23.29) and not more than one hundred and sixteen euro and forty-seven cents (116.47) for every employee of all the participating companies, concerned subsidiaries or establishments in relation to a failure by the competent organ of the SE, of the participating company or concerned subsidiary as the case may be, to comply with any requirements provided for in these regulations;

(b) in relation to any other offence, a fine (multa) of not less than one thousand and one hundred and sixty- four euro and sixty-nine cents (1,164.69) and not more than eleven thousand and six hundred and forty-six euro and eighty-seven cents (11,646.87). SCHEDULE

(Regulation 10) Standard Rules

Composition of the body representative of the employees order to achieve the objective described in regulation 1, and in the cases regulation 10, a representative body shall be set up in accordance with rules.

The representative body shall be composed of employees of the SE and subsidiaries and establishments elected or appointed from their number by the employees’ representatives or, in the absence thereof, by the entire body of employees. The election or appointment of members of the representative body shall be carried out by the special negotiating body, in accordance with any method it adopts. Where its size so warrants, the representative body shall elect a select committee from among its members, comprising at most three members. The representative body shall adopt its rules of procedure. The members of the representative body are elected or appointed in proportion to the number of employees employed in each Member State the participating companies and concerned subsidiaries or establishments, by allocating in respect of a Member State one seat per portion of employees employed in that Member State which equals 10%, or a fraction thereof, of the number of employees employed by the participating companies and concerned subsidiaries or establishments in the Member States taken together. The competent organ of the SE shall be informed of the composition of the representative body. Four years after the representative body is established, it shall examine whether to open negotiations for the conclusion of the agreement referred to in regulations 8 and 10 or to continue to apply the standard rules adopted in accordance with this Schedule. Regulations 6 to 9 shall apply, mutatis mutandis, if a decision has been taken agreement according to regulation 8, in which case the term "special body" shall be replaced by "representative body". Where, by the deadline negotiations come to an end, no agreement has been concluded, the initially adopted in accordance with the standard rules shall continue

Standard rules for information and consultation competence and powers of the representative body set up in an SE shall by the following rules: The competence of the representative body shall be limited to questions which concern the SE itself and any of its subsidiaries or establishments situated in another Member State or which exceed the powers of the decision-making organs in a single Member State. Without prejudice to meetings held pursuant to paragraph (c), the representative body shall have the right to be informed and consulted and, for that purpose, to meet with the competent organ of the SE at least once a year, on the basis of regular reports drawn competent organ, on the progress of the business of prospects. The local managements shall be informed accordingly. The competent organ of the SE shall provide the representative with the agenda for meetings of the administrative, appropriate, the management and supervisory organ, and all documents submitted to the general meeting of its shareholders.The meeting shall relate in particular to the structure, financial situation, the probable development of the business production and sales, the situation and probable trend of investments, and substantial changes concerning introduction of new working methods or production processes, of production, mergers, cut-backs or closures of establishments or important parts thereof, and collective

(c) Where there are exceptional circumstances affecting the interests to a considerable extent, particularly in relocations, transfers, the closure of establishments or undertakings collective redundancies, the representative body shall have be informed. The representative body or, where it particular for reasons of urgency, the select committee, right to meet at its request the competent organ of the SE appropriate level of management within the SE having of decision, so as to be informed and consulted significantly affecting employees’ interests. Where the competent organ decides not to act in accordance opinion expressed by the representative body, this body right to a further meeting with the competent organ of view to seeking agreement. In the case of a meeting organised with the select committee, members of the representative body who represent employees directly concerned by the measures in question shall also to participate. The meetings referred to above shall not affect the prerogatives competent organ.

(d) The parties present at the information and consultation meetings agree as to how to conduct the procedure during the said case of disagreement then the parties should conduct alternately and establish the procedure thereof. Before any meeting with the competent organ of representative body or the select committee, where necessary in accordance with the third subparagraph of paragraph entitled to meet without the representatives of the competent being present.

(e) Without prejudice to regulation 11, the members of the body shall inform the representatives of the employees of its subsidiaries and establishments of the content and outcome information and consultation procedures.

(f) The representative body or the select committee may experts of its choice.

(g) In so far as this is necessary for the fulfilment of their members of the representative body shall be entitled to training without loss of wages. The costs of the representative body shall be borne by the SE, which shall provide the body’s members with the financial and material resources needed to enable them to perform their duties in an appropriate manner. particular, the SE shall, unless otherwise agreed, bear the cost of organising meetings and providing interpretation facilities and the accommodation and travelling expenses of members of the representative body and the select committee. However the obligation the SE to cover the expenses of any experts engaged by the special negotiating body or the representative body is limited to those of one expert only. Standard rules for participation

Employee participation in an SE shall be governed by the following the case of an SE established by transformation, if the rules of a Member State relating to employee participation in the administrative or supervisory body applied before registration, all aspects of employee participation shall continue to apply to the SE. Paragraph (b) shall apply mutatis mutandis to that end. other cases of the establishing of an SE, the employees of the SE, its subsidiaries and establishments and]or their representative body shall have the right to elect, appoint, recommend or oppose the appointment a number of members of the administrative or supervisory body of the SE equal to the highest proportion in force in the participating companies concerned before registration of the SE. none of the participating companies was governed by participation rules before registration of the SE, the latter shall not be required to establish provisions for employee participation. The representative body shall decide on the allocation of seats within the administrative or supervisory body among the members representing the employees from the various Member States or on the way in which the SE’s employees may recommend or oppose the appointment of the members of these bodies according to the proportion of the SE’s employees in each Member State. If the employees of one or more Member States are not covered by this proportional criterion, the representative body shall appoint a member from one of those Member States, in particular the Member State of the SE’s registered office where that is appropriate. Every member of the administrative body or, where appropriate, of the supervisory body of the SE who has been elected, appointed or recommended by the representative body or, depending on the circumstances, by the employees, shall be a full member with the same rights and obligations as the members representing the shareholders, including the right to vote.