President and CEO

The Board of Directors appoints the President and CEO and decides on the President's remuneration and other benefits.

The President and CEO is responsible for managing and developing Componenta's business in accordance with the Finnish Companies Act and the instructions given by the Board of Directors.

The President and CEO prepares and presents matters for consideration at Board meetings and implements the decisions of the Board of Directors. He reports to the Board of Directors on matters including the Com-pany's financial situation, its business environment and other major matters.

The President and CEO is the Chairman of Componenta's Corporate Executive Team and Extended Corpo-rate Executive Team.

The President and CEO's contract of employment may be terminated by the company by giving twelve months' notice and by the President and CEO by giving six months' notice. The President and CEO is not entitled to any separate compensation after giving notice or being given notice other than the salary and benefits agreed in the terms of notice and the additional pension in accordance with the principles of the paid up pension policy.

The salary of the President and CEO of Componenta is presented on the page ""Management Remuneration".

The President was entitled to the Group's share-based long-term incentive scheme. For the first earning period (2010) in the confirmed scheme for 2010 – 2012, the confirmed maximum number of shares for the President and CEO is 50,000 shares.

The President does not participate in the short-term incentive schemes.

The President and CEO as well as COO, acting as deputy for the President and CEO, have additional pension agreements of EUR 60,000 a year. The agreement includes old age pension after reaching the age of retirement, paid up pension policy rights if the employment of the insured is terminated before reaching the age entitling to old age pension as stated in the insurance policy, disability insurance, and life insurance for the duration of employment, of the paid up pension policy and of pension. The retirement age of the President and CEO is 63 years. If the company terminates the employment of the deputy to the President and CEO, the company is committed to paying the additional annual pension until the end of 2014.

The life insurance during the period of employment and the paid up pension policy defined in the additional pension agreement equals the amount of the insurance savings.