SKF in INDIA TRANSFER EXPENSES POLICY (Version 4 July 1, 2010)

OBJECTIVE These rules have been framed with a view to standardize the entitlement / procedures for employees of SKF in India, who are transferred from one place to another and in the process have to change their city of stay. APPLICABILITY Transfer Expenses are paid to all management cadre employees who have to move cities. EFFECTIVE DATE These rules become effective from July 1, 2010. TRAVEL TRANSFER All employees will be entitled to travel expenses for self and immediate family (spouse and children only) as per norms of the Domestic Travel Policy as applicable to their grade. TRANSPORT CHARGES FOR PERSONAL EFFECTS - TRANSFER This reimbursement will cover cost of crating charges, transportation, insurance, octroi, loading and unloading and all other charges, subject to producing the documentary evidence. For Work Levels 1 to 5, reimbursement of cost of transportation of personal effects will be at actuals. Three Quotations from Transporters, will have to be forwarded to the concerned Purchase Office for their approval. The payment will be done directly to the Transporter. TRANSPORT CHARGES FOR PERSONAL VEHICLE TRANSFER Based on the distance, company will pay the Petrol and incidental expenses of the Vehicle @ Rs.6.50/- per km. in case of 4 wheelers. Reimbursement of Local Travel by own 2 wheeler @ Rs. 2/- per km for Work Levels 4 & 5. TRANSIT ARRANGEMENTS TRANSFER All management cadre employees on joining the Company from an outstation location or being transferred from one location to another can stay in Hotel or Company Guest House. Wherever provided, they have to stay in Company Guest House. The duration of stay in the Guest House

cannot be more than 30 days and the same can be split between the two locations. In case of Hotel stay the same cannot be for more than 30 days and again can be split between the two locations. DONATIONS TRANSFER In the event of the employee having children going to school and in the event of his / her having to pay donations to secure admission in the school, then on submission of relevant proof the company will reimburse the same subject to a cap of 2 months Basic Salary of the employee per child. DOUBLE ESTABLISHMENT TRANSFER In the event of the employee having to move in the middle of the year (school term) on account of which he / she will not be in a position to move his / her family, then he / she will be entitled to the following benefits till the completion of the academic term (April of the concerned year) 1. One return trip to where his family is based (as per his / her domestic travel entitlements) at the end of every quarter. Please note that the same applies only for every completed quarter and not part thereof. 2. At Grade Level 4 & 5 an amount equivalent to Rs.10,000/- till the completion of the academic year. At locations where the company has a Guest House the company can provide the same and then the payment will no longer be applicable. 3. At Grade Level 2 & 3 an amount equivalent to Rs.15,000/- per month till the completion of the academic year. At locations where the company has a Guest House the company can provide the same and then the payment will no longer be applicable. 4. At Grade Level 1 accomodation will be provided by the company. 5. In case the employee is transferred to Mumbai location, then the above amounts will be double. Please note that all the above apply only till the completion of the immediate academic year. Post that if the employee on his own opts to retain his family at the original place, he / she will not be entitled to any benefits. In special circumstances on account of education of children the double establishment allowance can be extended to a maximum of 2 years if the children are studying in critical years like 9th to 12th. SPECIAL ALLOWANCE TRANSFER In the event of an employee getting transferred to another location at the same level as she / he is currently then the employee will be paid a Special Allowance equivalent to the Double Establishment allowance for a period of 3 years under the following circumstances.

1. The city to which the employee is moving is a higher category city that his / her current city. 2. The employee is moving to a new factory location. For the purpose of this policy the cities are classified as Category 1 : Mumbai Category 2 : Delhi, Chennai, Bangalore, Hyderabad and Kolkatta Category 3 : Ahmedabad and Pune Category 4 : Other Locations. In the event of the employee getting promoted during the 3 year period then the Special Allowance will stop from the date of promotion. In case an employee is moved to Category 1 city, then Special Allowance will be twice that of the Double Establishment allowance. The special allowance will not apply in cases where the employee initiates the transfer for personal reasons. LEAVE TRANSFER A Special Leave of 5 days will be allowed for the purpose of packing and crating of household effects and for the period of journey from one location to another. INCIDENTAL EXPENSES - TRANSFER All employees are entitled to one time payment, as given below, to take care of Sundry Expenses of incidental nature for which bills cannot be maintained / kept. This is to cover all minor expenses, which the employee may incur. Work Level 4 and 5 2 and 3 1 Amount Rs. 10,000/Rs. 15,000/Rs. 25,000/-

Vithal Nayak Director HR