United Kingdom Germany Netherlands

Credential International

UNITED KINGDOM GERMANY NETHERLANDS

Amsterdam, 10th April 2002

Re: employer information on law amendment.

Dear Mr. Kang,

We would like to draw your attention to the following.

The social security system has been changing drastically! On 1 April 2002 the Improved Gate Keeper Act
will go into effect. In December 2001 the Labour and Care Act went into force. This letter is intended to tell
you about these changes of law and their consequences, with regard to your Sickness Benefit Insurance
and / or the Collective Invalidity Insurance (WAO-insurance).

Consequences of Improved Gate Keeper Act

The Improved Gate Keeper Act imposes to the employer and employee alike new responsibilities in the
event of long-term absenteeism of an employee.

The purpose of this law is the more rapid recovery of sick employees and their speedy return to the job. The
rights and obligations laid down in this law are not voluntary. If you, as employer, have not done enough to
promote reintegration of the employee, the Social Security Agency for Employee Insurance (UWV) may rule
that the obligation to pay wages be extended by up to 52 weeks. This extra period of the obligation to pay
wages is not covered by the Compulsory Health Insurance Act (Sickness Benefit Insurance). If an employee,
in turn, fails to cooperate with his speedy reintegration, you have the possibility to withhold (part of) his wages.
In the most extreme case the employee may even be dismissed. The appendix contains a list of the steps
that you, starting 1 April 2002, are required by law to follow from the time an employee reports in ill.

With the coming into force of this act a number of legal regulations must be met if the Compulsory Health
Insurance Act (Sickness Benefit Insurance) is to be invoked. These conditions are the following:

* employer and employee must do everything possible to ensure that the employee returns to his job

* employer and employee must cooperate with the reintegration process

* calling in the working conditions service on time

* having a plan of approach finished by the eighth week after the employee reported in sick

* notification of the UWV in the thirteenth week

* the drafting of a reintegration report

* providing suitable work for the employee or helping him to find suitable work with another employer

* in the event of a dispute, requesting a compulsory second opinion at the UWV

The consequences of the Labour and Care Act

List of your obligations as employer

Appendix Improved Gate Keeper Act

From reporting ill to reintegration (source: Ministry of Social Affairs and Employment)

Day 1 Your employee calls in sick. You report this on time to your working

conditions service (Arbodienst).

Week 6 The working conditions service advises You draw up in the case of threatened
within six weeks about the possibilities long-term illness a reintegration file.
of recovery and resumption of work, This file describes all the activities
when the period of absenteeism looks associated with the resumption of work,
as though it will be long. as agreed between you and your

employee. The working conditions
service manages the medical part of the
file.

Week 8 No later than the eighth week after your This plan of approach tells how the two
employee reporting in ill, you, together with of you will work together on the rapid
your employee, draw up on the basis of this recovery and return of your employee
advice of the working conditions service, a to the job, with specification of who
written plan of approach. monitors agreements and progress

(the so-called 'case manager'). You
evaluate this plan periodically together
with your employee and adjust it if the
evaluation(s) or the interim advice given
by the working conditions service
occasions it. The working conditions
service keeps track of the course of the
disability. This means that during the
first year of illness, the working
conditions service advises you as well
as your employee of any necessary or
useful interventions and modification of
the plan of approach.

Week 13 After thirteen weeks of illness you report your The UWV can give you information
employee's illness to the Social Security during the entire year of illness
Agency for Employee Insurance (UWV). about disability and reintegration.

You can also apply to this organisation
for a second opinion.

Month 8 In the eighth month of illness you draw up In this report you describe the efforts
together with your employee - should he that were made to help promote your
desire benefits under the Invalidity Insurance employee's recovery and return to work.
Act – a reintegration report on the basis The medical part of the reintegration
of the reintegration file that was compiled. report is drawn up by the working

conditions service.
The advice of the working conditions service
is therefore also included in this report.
You draw up this report no later than two
weeks before the (deadline of the)
application for benefits under the
Invalidity Insurance Act. You give a copy
to your employee. Your employee
includes this report with the application
for benefits under the Invalidity
Insurance Act submitted to the UWV. He
is required to do this within nine months
after reporting in ill.

Month 12 The UWV determines at the end of the As employer you are obliged from the
first year of illness on the basis of this report start of the illness to take measures
whether you and your employee have made to put your employee in a position
a sufficient effort to achieve his reintegration. to resume work or do other suitable
If this is not the case, there will be work. You are also obliged along
consequences for the employee or for you, with your employee to draw up,
the employer, depending on who failed to implement, evaluate and if necessary,
comply with the rules. adjust, a plan of approach.

Your employee has the same
obligations. You can hold him to them!
Should your employee fail without good
reason to comply, you can withhold his
wages or in the most extreme case,
dismiss him.

You and your employee can always request together to extend the waiting time for the benefits under the
Invalidity Insurance Act by one year. You are then required to continue paying his wage for the extended
period of fighting for these benefit payments. The extended waiting time can be shortened, by the UWV,
at your request or at the request of your employee.

Collective Invalidity Insurance Act

Consequences of Improved Gate Keeper Act

The Improved Gate Keeper Act imposes to the employer and employee alike new responsibilities in the event
of long-term absenteeism of an employee.

The purpose of this law is the more rapid recovery of sick employees and their speedy return to the job. The
rights and obligations laid down in this law are not voluntary. If you, as employer, have not done enough to
promote reintegration of the employee, the Social Security Agency for Employee Insurance (UWV) may rule
that the obligation to pay wages be extended by up to 52 weeks. This measure would also result in the payment
of the collective Invalidity Insurance Act supplementary insurance not going into effect after 52 weeks. If an
employee, in turn, fails to cooperate with his speedy reintegration, you have the possibility to withhold (part of)
his wages. In the most extreme case the employee may even be dismissed. The appendix contains a list of the
steps that you, starting 1 April 2002, are required by law to follow from the time an employee reports in ill.

With the coming into force of this act a number of legal regulations must be met if the collective Invalidity
Insurance Act supplementary insurance is to be invoked. These conditions are the following:

* employer and employee must do everything possible to ensure that the employee returns to his job

* employer and employee must cooperate with the reintegration process

* calling in the working conditions service on time

* having a plan of approach finished by the eighth week after the employee reported in sick

* notification of the UWV in the thirteenth week

* the drafting of a reintegration report

* providing suitable work for the employee or helping him to find suitable work with another employer

* in the event of a dispute, requesting a compulsory second opinion at the UWV

The consequences of the Labour and Care Act

This act went into force 1 December 2001. It provides that in the case of pregnancy and delivery leave of
absence the wage payment obligation in the case of illness ends 68 weeks after the first day of illness. Before
this act went into force the obligation to pay wages ended in all cases after 52 weeks. With the coming into force
of this new law the payments under the Invalidity Insurance Act can be applied for only sixteen weeks later than
previously. As a result, payments under the collective Invalidity Insurance Act supplementary insurance also
start sixteen weeks later. In most cases your Compulsory Health Insurance Act insurer will provide coverage for
this extra period. Without extra charges for it, the coverage of this insurance has been expanded to provide
security in these situations as well.

On the next pages is a list of your obligations as employer.

We trust that this has been of interest to you.

Yours faithfully,

Eickhoff de Lorme van Rossem B.V. & Credential International