EMPLOYEE HANDBOOK - portal.megaworldcorp.com · PURPOSE These rules and regulations are established for promoting efficiency in the operation of the business. They are prescribed

EMPLOYEEHANDBOOK

TABLE OF CONTENTS

PAGE TITLE

BASIC INFORMATION01 Letter from the Chairman and President02 Purpose, Scope and Commitments03 Brief History07 Corporate Thrust and Quality Policy08 Mission Statement08 EmploymentClassification09 Business Ethics and Conduct14 BasicEmployeeBenefitsandServices22 EmployeePrivileges23 Employee Rewards24 EmployeeMovements

CODE OF DISCIPLINE25 Rationale26 DefinitionofDisciplinaryterms27 ManagementPrerogativeandEmployee’sRights27 Schedule of Discipline30 How to Reprimand31 Habitual Deliquency

DICIPLINARy POLICIES32 OffensesagainstAttendaceandPunctuality34 TimekeepingOffenses35 Offenses Related to Job Performance37 OffensesagainstProperty38 OffensesagainstHealth,SecurityandSafety40 OffensesagainstHonesty41 OffensesagainstProperConductandBehavior44 OffensesagainstSolicitationandAcceptanceofGifts

EMPLOYEEHANDBOOK

Revised as of May 2013

LETTER FROM THE CHAIRMAN AND PRESIDENT

WELCOME TO MEGAWORLD!

Workingtogetherasateamisagratifyingexperience.Thespiritofcooperation,thecollectiveefforts,dedicationandhardworkareevidentlycontributorytotheCompany’sprogress.TheCompany continues to be one of the leaders in the industry because of its human resources whohavecontributedtheirskills,talentsandresources.

More importantly, the core values of excellence, integrity, customer service, teamwork,concern for people, and loyalty are believed to have strengthened the bond betweenMegaworldanditshumanresources.Weshallworkhandinhandtowardsthesuccessfulinternalizationofthesevaluesintoyoursystem.

This handbook therefore aims to:

*ProvideyouwithbasicinformationaboutMegaworld.

*Respondtoqueriesyoumayhaveduringthecourseofyouremployment.

*Capturethemoresignificantpolicies,rulesofconduct,fringebenefitsand privileges,theopportunitiesandservicesyoucanavailof,andyourresponsibilities.

Thishandbookonlyhighlightsthemoreimportantpoliciesanddoesnotcoverindetailallthe Company’s regulations. However, it should provide answers tomany questions thatmayariseduringyouremployment.TheCompanyrulesandregulationsprovidethebasicstandardsofbehavioraswecarryoutourworkandaswerelatetooneanother.ItwillalsoenableustounderstandandknowbettertheCompany,itsorganizationandexpectations.

It is our hope that you will do your best towards achieving our common goals. It takescollectivewillandefforttorealizetheseexpectations.

Weurgeyoutogooverthishandbook.Incaseyouhavefurtherquestions,pleaseconsultyourimmediatesuperiorortheHumanResourcesDepartment.

WelookforwardtoyourlongandfruitfulstayatMegaworldCorporation!

ANDREW L. TAN

EMPLOYEEHANDBOOK

Revised as of May 2013 PAGE 01 of 45

PURPOSETheserulesandregulationsareestablished forpromotingefficiency in theoperationofthebusiness.Theyareprescribedtoregulatenotonly therelationsbetweenemployees,but also the relations of management and the public. It is also intended to providedocumentationof theCompany’s systemof rules and regulationsdealingonpersonneltransactions.Tothisend,theCompanyreservestherighttoamend,deleteoraddcertainprovisionsasmaybenecessary.

SCOPEAll employees are enjoined to review and familiarize themselves with these rules andregulations and strictly observe its instructions. Ignorance of the rules and regulationsshouldnotbeconsideredasavalidexcuseforviolations.

DepartmentHeadsandManagersareexpected toexercise full responsibility, consistencyanddiscretioninimplementingtheserulesandregulations.

COMMITMENTSMegaworldCorporationbelieves in itspeople - their individuality, theircapabilities, theircreativeinstincts,theirdreamsandtheirdedicationtoproductiveworklife.OurCompanyhasstrongconvictionsontheindividualplayingacentralroleintheCompany’sprogress.With this belief, our Company commits to:

• Appoint only the most qualified individual blending the requirements of the position andtheindividual’sexperience,talentsandcapabilities.

• Provide the individual an opportunity for growth through carefully planned andmanagedtrainingprograms.

• Compensate its people justly in accordance with work requirements, individual performanceandindustrystandards.

• Developacareerpath for the individual toencourageandpreparehim forpositionsof higherresponsibility.

• Provide an atmosphere of productivity and congeniality through peaceful, safe and orderlyworkingfacilitiesandconditions.

• Give priority to present employeeswhenever job opportunities arise in theCompany’s organization.

• Develop a system of rewards and discipline under the principles of human justice, equity,cooperationanddedication.

• Provide wholesome and cordial relationship between employees through educational andleisureprogramsandactivities.


BRIEF HISTORy OF MEGAWORLDThe Company, founded by Mr. Andrew L. Tan, was incorporated and registered withSecuritiesandExchangeCommissiononAugust24,1989.ItwaslistedonthePhilippineStockExchangeonJune15,1994.

The Company commenced its operations with the construction of a residential condominium in theGreenhills area ofManila. In 1994, the Company expanded its operations, takingadvantageofincreaseddemandandeconomicstability.

TheprincipalbusinessactivityoftheCompanyispropertydevelopmentforsaleandpropertyinvestmentforrentalpurposes.

Sinceitsincorporation,theCompanyhasestablishedastrongtrackrecordasadiversifieddeveloper in the upper and middle-income property market. Its portfolio of projectsencompassesverticalofficeandresidentialdevelopments, townhousecommunities,hotelandmixed-usedevelopmentsandsubdivisionprojects.Through itsaffiliate,EmpireEastLand Holdings, Inc., Megaworld is also involved in medium-cost township communitydevelopmentsmostlyinSouthernLuzon.

The company anchors its staying power and buoyant performance even in a challengingbusiness environment on its solid grasp of the propertymarket’s evolving requirementsat any given time. This market-attuned vision informs its highly strategic land bankingactivities, its carefully conceptualized projects, aggressivemarketing andproactive after-salesservice.

AmongtheCompany’scompletedandon-goingdevelopmentsare:

EASTWOODCITY 1800Eastwood 1880 Eastwood Citibank Citywalk 1 Citywalk 2 Citywalk 3 CyberOne Eastwood Corporate Plaza EastwoodExcelsior(Tower1-2) EastwoodLaFayette(Tower1-3) EastwoodLeGrand1 EastwoodLeGrand2 EastwoodLeGrand3

EMPLOYEEHANDBOOK


Eastwood Mall Eastwood Park Residential Suites EastwoodParkview1&2 EastwoodRichmondeHotel(EastwoodParkHotel) E-CommercePlaza GlobalOne GrandEastwoodPalazzo(Tower1-2) IBMPlaza ICITE(EastwoodSchool) OlympicHeights One Central Park OneEastwoodAvenue1 OneEastwoodAvenue2 OneOrchardRoad(Tower1-3) Technoplaza 1 Technoplaza 2

MCKINLEYHILL 1CampusPlace 8CampusPlace(TowersA-C) 8/10UpperMcKinley(8UpperMcKinleyA) 18/20UpperMcKinley(8UpperMcKinleyB) Commerce&IndustryPlaza EmperadorStadium(McKinleyFootballField) McKinleyGardenVillas1(Towers1&2) McKinleyGardenVillas2(Towers3&4) McKinleyGardenVillas3(Towers5-8) McKinleyHillVillage MorganSuitesExecutiveResidences(Towers1-3) One Upper Mckinley OneWorldSquare(McKinleyCorporatePlaza) Piazza(McKinleyCommercialCenter) ScienceHub(Towers1-4) StamfordExecutiveResidences(Towers1-3) TheVeniceCanalMall TheVeniceLuxuryResidence(Towers1-7) TheWoodridgeResidence ThreeWorldSquare(WorldFinancePlaza) TuscanyPrivateEstate(Clusters1-8) Two World Square VeniceCorporateCenter Viceroy(Tower1-4)


NEWPORTCITY 101NewportBlvd/SavoyHotel(Residential&Hotel) 150NewportBoulevard 81NewportBoulevard/NewportSquare(Residential&BPO) Marriott Hotel Maxim’sHotel&Casino NewportBelmontHotel NewportEntertainment&CommercialCenter ParksideVillas(Cluster1-7) ResidentialResortatNewportCityPhase1 ResidentialResortatNewportCityPhase2 ResidentialResortatNewportCityPhase3 The Palm Tree 1 The Palm Tree 2

FORBESTOWNCENTER 2ForbesTownResidences 8 Forbes Town Road ForbeswoodHeights(Towers1-6) ForbeswoodParklane(Towers1-2) TheBellagio1 TheBellagio2 TheBellagio3

MANHATTANGARDENCITY ManhattanHeights(TowersA-D) ManhattanParkwayResidence(Towers1-3) ManhattanParkviewResidence(Towers1-3) ManhattanPlaza(Towers1-8)

CITYPLACE Chinatown1(LuckyPlazaI)–CityplaceMall Chinatown2(LuckyPlazaII)–CityplaceMallAnnex Chinatown Belmont Hotel CityplaceBinondo–TowerA CityplaceBinondo–TowerB NoblePlace

BONIFACIOUPTOWN OneUptownResidences Uptown BPO Uptown Parade Uptown Parksuites UptownPlace&Mall Uptown Ritz

EMPLOYEEHANDBOOK



McKINLEYWEST MckinleyWestVillage

MAKATI GreenbeltChancellor GreenbeltExcelsior GreenbeltHamilton GreenbeltMadison GreenbeltParkplace GreenbeltRaddisson One Central One Lafayette Square Paseo Centre PaseoHeights PaseoParkview1&2 PetronMegaPlaza The Manhattan Square The Salcedo Park The World Centre Three Central Two Central Two Lafayette Square

QUEZONCITY CorinthianHills El Jardin Del Presidente 1 El Jardin Del Presidente 2 GolfhillGarden GolfHillsTerraces1 GolfHillsTerraces3 GovernmentOfficeBuilding KentwoodHeights NarraHeights White Plains Terraces

SANJUAN 8WackWackRoad GilmoreHeights GreenhillsHeights OneBeverlyPlace WackWackHeights

PARANAQUE AmbassadorHillsVillage BrentwoodHeights Sheraton Marina SherwoodHeights

ILOILO IloiloBPO1(Phase1) IloiloBPO2(Phase2) IloiloCentralParkResidentialVillage IloiloConventionCenter IloiloFestiveWalk1A(Phase1) IloiloFestiveWalk1B(Phase2) IloiloFestiveWalk2B IloiloMallAnnex MarriottCourtyardHotelIloilo MegaworldCenterMall One Madison Place RichmondeHotelIloilo RichmondeTower-Iloilo

CEBU 8NewtownBoulevard(Cluster1-4) OneManchesterPlace(Towers1-3) One World Center OnePacificResidence(TowersA-C) PacificWorldTower Two World Center

OTHERS Bayshore Residential Resort JusmagReplication TheRichmondeHotel–Ortigas

CORPORATE THRUSTTorespondeffectivelytochangingconsumerneedsandtomaintainaproductimprovementprograminordertoincreasemarketshare.

Tocontinueaggressivepursuitofresidentialdevelopmentcoveringallmarketsegments.

CORPORATE VALUESMegaworldCorporationbuildsandstrengthensaculture thatvalues integrity,hardworkandexcellence.

QUALITy POLICyWe, atMegaworld Corporation, commit to provide the utmost satisfaction to clients bydeliveringproductsofthehighestquality.Tofacilitatethisobjective,weshall:

• Undertakedevelopmentsthatascertaintheneedsofthemarket,andwhichatthesame time,reflectthespiritofinnovation.

EMPLOYEEHANDBOOK


• Identifyandprovidetheneedsofourclientsthroughcontinuousresearchanddevelopment.

• Continuouslyupgradetheskillsofourkeypeopletoenhancetheirlevelsofproductivity andcompetitiveness.

• OperatewithinadefinedqualitymanagementsystembasedonISO9001.

• Ensureconstantimprovementineveryaspectofthebusiness.

Every employee of Megaworld Corporation is required to understand, implement andmaintainourqualitypolicy.

MISSION STATEMENTSTo Our StockholdersMegaworld pledges to live up to your trust and expectations through a consistentlyoutstandingperformancegearedtodeliverearningsandgrowth. It iscommittedtorepayyour long-term investment of capital in the Company with unrelenting efforts to builda legacyofprofitability thatwillbenefityouandthenextgenerationthroughacontinuedappreciationinsharevalues.

To Our CustomersMegaworldaimstoensureyourutmostsatisfactionthroughhighqualityproductsconceivedin thespiritof innovationandbornoutofcontinuousresearchanddevelopment. Itgivesprioritytothecontinuousupgradingoftheskillsandexpertiseofitskeypeoplesothattheycanprovideyouwithserviceofthehighestquality.

To Our EmployeesMegaworldendeavorstobeaCompanywhereyoucanbuildalong-termfulfillingcareer.Itwillshapeacorporateculturethatvaluesfairness,promotesteamworkandproductivityandensuresjobsecurityandadvancementasarewardforloyaltyandperformance.

EMPLOyEE CLASSIFICATIONContractual EmployeeAContractualEmployeeisonewhoishiredtoperformaspecificjobforaspecifiedperiodoftime.ContractualEmployeesarenoteligibleforanyemployeebenefits.

Project EmployeeA Project Employee is one whose employment has been fixed for a specific project orundertaking, the completionor terminationofwhichhasbeendeterminedat the timeofhis engagement orwhere thework or service to be performed is seasonal in nature andthe employment is for the duration of the season. Like Contractual Employees, ProjectEmployeesarenoteligibleforanyemployeesbenefits.


Probationary EmployeeAProbationaryEmployeeishiredtofillaregularpositionintheCompanybutmustundergoatrialperiodofsix(6)months,duringwhichhemustprovetotheCompany,andtheCompanywill determine whether or not, he is qualified for regular employment. The Company,however,may reduce the six-month probationary period if it feels that the probationaryemployeehasalreadymetthestandardsrequiredtoqualifyasaregularemployee.

TheProbationaryEmployeeshallbeinformedofthecriteriatobeconsideredinevaluatinghisperformancewhileonprobation.Beforetheprobationaryperiodends,theimmediatesuperior shall apprise and determine whether or not the probationary employee has the capacity,aptitudeandinteresttoqualifyforregularemployment.

TheCompanyreservestherighttoterminateanddispensewiththeprobationaryemployee’sservicesanytimeduringtheprobationaryperiodforunsatisfactoryperformance,justifiablecauseorwhensaidemployeeviolatescompanyrulesandregulationswhichcallsforsuchaction. Probationary Employees are not eligible for any employees benefits except forHealthInsuranceandasprovidedherein.

Regular EmployeeARegularEmployeeisonewhobythenatureofhisjobperformstasksthatarenecessaryor desirable in the usual business or trade of the Company and who has satisfactorily completedtheprobationaryperiod.Nevertheless,someemployeesmaybehiredasregularemployeeswithoutneedofundergoingtheprobationaryperioddependingonthejoblevel,natureofwork,recommendationoftheimmediatesuperiorandapprovaloftheDivisionHeadconcerned.

ARegularEmployeeisentitledtoallbenefits,rightsandprivilegesgrantedbytheCompanyasstatedinthishandbookandotherofficialdocumentsissued/servedsuchasinterofficememoandappointmentletter.

BUSINESS ETHICS AND CONDUCT• WorkingDaysandHours

EMPLOYEEHANDBOOK


RegularworkingdaysarefromMondaystoSaturdays,andregularofficehoursarefrom8:30a.m. to5:30pmduringweekdays(Mondays toFridays)withaone-hourlunchbreakand8:30a.m.to12:30p.m.duringSaturdays.Thelunchbreakmaybestaggeredinsomeworkareas(especiallythosewhicharedirectlyhandlingclients)sothatworkisneverleftunattendedandthatqualityserviceisprovidedevenduringlunch breaks. Coffee breaks are 15minutes in themorning and 15minutes in theafternoon.Coffeebreakinthemorningmaybetakenanytimebetween10:00a.m.to11:00a.m.andcoffeebreaksintheafternoonmaybetakenanytimebetween3:00p.m.to4:00p.m.Thebreakperiodisprovidedtogivetheemployeerespitefromhiswork.Thus,itshallbeusedfortakingquickandlightrefreshmentsandnotforindulginginheavymealsorinprolongedidlechatter.

Good work habits are important in the development of a person both personally andprofessionally.Aconstantmodeofbehaviorreflectsone’sattitudeandvaluestowardswork.

Attendanceandpunctualityarenotmeretimerecords.Theyarereflectiveofyourworkhabits that affect yourperformance. In recording your attendanceandpunctuality andregistering your daily working periods, we use the finger scan system (which can bechanged by the Company from time to time). Recording of yourwork periods is yourresponsibility. Excellent attendance and punctuality records are duly recognized. Onthe otherhand, specific sanctions are appliedwhen absences and tardiness gobeyondacceptablestandards.

Tardinessshallmeanreporting late forworkat theprescribedtime.Theemployeesareallowedagraceperiodoften(10)minutesaftertheofficialtime-inof8:30a.m.Tardinessofoneandhalf(11/2)hoursbeyondthestartoftheregularworkinghoursoratime-inof 10:01 a.m. shall already be considered as half day. Tardiness shall be automaticallydeducted from the salaryof the employeeon thepayperiod immediately following themonththetardinesswasincurred.Tardiness inexcessoffour(4)timesinamonthwillsubjectanemployeetodisciplinaryaction.

Undertimeshallrefertoleavingtheofficebeforetheendofofficialregularworkinghours.AnyemployeewholeaveshisworkbeforetheendoftheregularworkinghourswithoutproperauthorizationofhisDepartmentHeadorimmediatesuperiorshallbesubjecttodisciplinaryaction.Allundertimesincurredshallbedeductedfromthesalaryoftheemployee.

Absencesare failure to report forworkundervarying reasonsandcircumstances.Allabsencesmust have the approval of the immediate superior/DepartmentHead to beconsideredofficialandforittobechargeabletotheVacation/SickLeavecreditsoftheemployee. All absences or leavesmust be reported by his immediate superior to theHuman Resources Department for proper monitoring and immediate execution ofactionneeded.Areasonableperiodoftimeisallowedbeforetheunauthorizedand/orunexcusedleaveisconsideredAbsencewithoutOfficialLeave.

Overtime work means work rendered in excess of the regular working hours uponauthorizationoftheimmediatesuperiororDepartmentHead.Asamatterofpolicy,itshallbediscouragedanddisallowedexceptinemergencycasesorwhenoperationalexigenciesdemandsuchservicestoberendered.AllOvertimeworkshouldbeadequatelysupervisedandrenderedproperly.AllRankandFileemployeesareentitledtoOvertimePay.

• AttendanceandPunctuality

• Tardiness

• Undertime

• Absences

• Overtime


OfficeAttireandUniformsAllregularmaleandfemaleemployeesarerequiredtoweartheprescribeduniformswhenreporting forwork fromMondays to Fridays, except Saturdays. For those based inHeadOffice,thefollowingareprohibitedasofficeattireduringweekdays:maong,promotionalandcollarlessshirts,T-shirts, sneakers, rubbershoes, sandals,boatshoes, sleeveless, slippers,shorts,plungingneckline tops,mini skirts, spaghetti strap, tube, sporty jackets andotherruggedwear.Ontheotherhand,thefollowingareprohibitedasofficeattireforSaturdays:Sports Attire such as shorts, leggings/cycling shorts. Exemptions from the use of theprescribedofficeattiremaybeallowedonlyforjustifiablereasonsandshouldbereplacedwithaproperbusinessattireifemployeewillnotdofieldwork.DepartmentHeadsshallimplementdisciplinarysanctionsforanyviolationontheuseoftheprescribeduniformorattire.

WearingofID(IdentificationCard)Forpurposesofidentificationandsecurity,allregular,probationary,contractualandprojectemployees of the Company shall be issued an identification card (ID) in the prescribeddesign,formandsubstance.TheseIDcardsarenon-transferableandmustbesurrenderedto the Company thru Human Resources Department upon the employee’s resignationortermination.NoclearanceshallbeissuedtoaresigningemployeeunlesstheIDcardisreturned.Intheeventthatanemployeehaslosthis/herIDpriortoitssurrendertoHumanResourcesDepartment,theemployeewillhavetosubmitadulynotarizedAffidavitofLoss.TheIDcardmustbewornatalltimeswithintheCompanypremises.

OfficeDecorumAllemployeesoftheCompanyareexpectedtodispensetheirday-to-dayfunctionswiththehighest level of ethical standards, courtesy and respect to theCompany as an institutionof integrity and service, to the officers of theCompany, to their co-employees and to thecustomers/clientsoftheCompanyandthegeneralpublic.

Employeesshallconduct their functions in theirrespectiveworkareaandshallnotcauseunduedistractionand interferencebyengaging inunnecessaryconversationandthe like.Workshouldbeaccomplishedasquietlyaspossiblewithoutgeneratingunnecessarynoiseanddisturbance.

OfficialBusinessEmployeesareexpectedtoconducttheirworkwithintheboundsoftheirrespectivedutiesandresponsibilities,designatedauthoritiesandfunctionsrelatedtothebusinessobjectivesoftheCompany.Unofficialbusinessandpersonalmattersshouldbehandledandconductedoutsidetheofficepremisesandafterofficehours.

EMPLOYEEHANDBOOK


ConductTowardsClients,CompanyOfficersandCo-employeesPromptattentionandcourtesy toourclientsand thepublicshouldbeobservedatalltimes. All employees should develop and maintain the desire to serve and promotethe spirit of courtesy and professionalism along with our time-honored objective ofrenderingfastandefficientservicetoourclients.

Clientsshouldbegivencourteous,promptandefficientattentionanddirected to theproperdepartmentwheretheirneedscanbeadequatelyserviced.

The proper relationship between a superior and his subordinates is one based on mutual respectandsincerity.Insubordination,disrespect,discourtesy,insultoruseoffoullanguagetowardanyco-employee,superiorormemberofmanagementshallnotbetolerated.

Use of Company’s ResourcesEmployees shouldobservediscretion in theuseof the supplies, equipmentand facilities.Keepinmindoureffortstoeliminateunnecessaryconsumptionandwastefulpractices.

Good HousekeepingAt the end of the day’swork, it is a good habit to keep all books, records and officesupplies properly secure. Desks have to be cleared and locked to ascertain that noconfidentialmaterialsareleftexposed.Also,importantdocumentsmustbeputinsidetherecordsvaultattheendofeachday.

LeavingWorkplaceDuringOfficeHoursDuring working hours, an employee, without prior permission from his immediatesuperior, isnot allowed to leavehisplaceofwork, loiter aroundor spend some timeawayfromhis/herjob/placeofwork.Employeeshavingoccasiontoleavetheirplaceofworkforanylengthoftimeshouldadvisetheirimmediatesuperioroftheirwhereaboutsandprobabletimeofreturn.

Safety and Security MeasuresEvery employee should develop an awareness of the Company’s safety and securityprograms. You owe it to yourself, your family and your fellow employees to strictlyadhere to safety rules and to report any unsafe conditions or practices within Company premises.Forthispurpose,theCompanyiscommittedtoprepareasafetyandsecurityprogramfordisseminationtoallitsemployees,whichshallbeupdatedandrevisedtomeetthechangingdemandsandconditions.Training,reminders,programsandothermeanswillbeconductedfromtimetotimetoinstillawarenessofthevalueofsecurityandsafetyintheCompany.

It is strictly prohibited to be under the influence of liquor, intoxicants, or narcoticswhileonthejob,orwhileyouarewithinCompanypremises.


Report of Losses, Violations and Untoward IncidentsEveryemployeeshall immediately reportverballyor inwritinganyviolationsof the rulesandregulations, lossesofcash,securities,etc.,discourtesytoCompany’sclients,andanyuntoward incident when any of these come to his direct knowledge. Reports should bemade to theDepartmentHead,who in turnwill request for an appropriate investigationanddisposition.DocumentsfoundintheCompanypremisesshouldbeturnedovertotheHumanResourcesDepartmentforsafekeepingandfinaldisposition.

Personal FinancesPartofyourresponsibilitytoyourselfandyourfamilyistobeabletocopewithyourfinancialobligations. Employees are advised not to over-extend their finances and incur debtsbeyondtheircapacitytopay.“Loansharks”whopreyontheirco-employeesaresubjecttodisciplinaryaction.

Personal InformationThe Human Resources Department acts as the custodian of all your personal records and keepsyourfilesuptodate.AnemployeeshouldimmediatelynotifytheHumanResourcesDepartmentinwritingifever: - Youchangeyourhomeaddressortelephonenumber - Youlegallychangeyournameorcivilstatus - Youchangeyourbeneficiary - Youhaveanadditiontooradeathinthefamily - Youchangethenameofthepersontobecontactedincaseofanemergency - Yourincometaxexemptionschange - Youhavecompletedpostgraduatestudies,anyspecialcourseorseminar,orifyouhavepassedanygovernmentorprivateexamination,sinceyourdateof employment - Youreceivedanyawardrelatedtoyourprofessionandwouldadduptoyour credentialsoranyformofrecognitionthatwouldbringhonortothecompany Thisinformationisneededforupdatingrecords,issuingcertifications,processingclaimsandbenefits,andotherpurposes.

Solicitations and DonationsSolicitations and donations unduly burden everyone because they are difficult to refuseespecially if theycomefromco-employees.Furthermore,suchactivitiesassellingtickets,peddlingmerchandise,andbetting,arestrictlyprohibitedastheyinterferewithyourworkand the work of your fellow employees. Such activities may be referred to the HumanResourcesDepartmentforproperaction.

EMPLOYEEHANDBOOK


Policy on Gifts

Inanyeventoroccasion:No employee may solicit or accept any gift, regardless of the value from any suplier,contractor or businesspartner.However, if it’s not practical to return the gift/s fromabusinesspartner,suchgift/sshouldbeturnedovertotheOfficeofthePresident.EmployeesarerequiredtoaccomplishtheAcceptanceofGiftDisclosureForm.

All employees are prohibited from using their authority or position to favor a supplieror contractor. Should any supplier/contractor or business partner has any relationshipwhetherbybloodordealingstoanybodyworkinginthecompany,aNoticeofDisclosureaddressed to the immediate superior stating the relationship of the employee to thesupplierorcontractorshouldbesubmittedpriortobusinesstransactions.

Perishable/edible items including food coming from business partners shall also becoveredbytheAcceptanceofGiftDisclosureForm.

EMPLOyEE BENEFITS AND SERVICESTheguidingphilosophybehindtheCompany’sbenefitsprogramistoreasonablyassistthe employee and his family in providing for their economic security. The Companyis interestednotonly inyour joboutput,butalso inyouasanindividual,andinyourpersonalandprofessionalwell-being.Benefitsareprimarilydesignedtoenableyoutoprovideforcontingencies.

This program, however, is not intended to cover all your needs and requirements.Itcomplementswhatthegovernmentoffersbywayofsocializedbenefits.

SocialSecuritySystem(SSS)BenefitsandServicesThe Company pays 60% SSS contribution credited to the employee while the employee pays 40% of the SSS contribution. This, however, may be changed by the issuedguidelinesofSSS.PleasefindbelowsomeofthebenefitsandservicesprovidedbySSS:

• SicknessBenefits Adailycashallowancepaidforthenumberofdaysamemberisunabletoworkdueto sicknessorinjury.

• MaternityBenefits Adailycashallowancegrantedtoafemalememberwhowasunabletoworkdueto childbirthormiscarriage.


• DisabilityBenefits Acashbenefiteitherinmonthlypensionorlumpsumpaidtoamemberwhocanno longerworkduetodisability.

• SalaryLoan Aloanintendedtomeetamember’sshorttermcreditneeds.

• Retirement Acashbenefiteitherinmonthlypensionorlumpsumpaidtoamemberwhocanno longerworkduetooldage.

• DeathBenefits Acashbenefiteitherinmonthlypensionorlumpsumpaidtothebeneficiariesofa deceasedmember.

Pleasebereminded,however,thattheabovebenefitsandservices,aswellasotherbenefitsandservicesoftheSSS,canonlybeavailedsubjecttotherulesandregulationsoftheSSSandifrequirementsaresubmitted/filedproperlyandontime.Employeesarethusremindedtoberesponsiblefortheirownaccount/requirementstoavoidanyformofdelayorproblemsinavailingsuchbenefits.

PAG-IBIG/HomeDevelopmentMutualFund(HDMF)BenefitsandServicesThe Company pays 50% Pag-ibig contribution credited to the employee while theemployee pays 50% of the Pag-ibig contribution. This, however,may be changed bythe issuedguidelines ofPag-ibig/HDMF.Please findbelow someof the benefits andservicesprovidedbyPAG-IBIG:

• Multi-PurposeLoan Ashort-termfinancialassistancegiventoPag-ibigmembersforthefollowingpurposes:

a.MinorHomeImprovement

b.Livelihood

c.Medical

d.Education

e.PurchaseofApplianceandFurniture

f. OtherNeeds

EMPLOYEEHANDBOOK


• CalamityLoanProgram A financial assistance given to Pag-ibig member whose place of residence has been declaredunderaStateofCalamity.

• HousingLoan Aloanintendedtofinancethemember’spurchaseand/orconstruction/alterationof aresidentialunit.

Pleasebereminded,however,thattheabovebenefitsandservices,aswellasotherbenefitsandservicesofPAG-IBIG/HDMF,canonlybeavailedsubjecttotherulesandregulationsoftheSSSandifrequirementsaresubmitted/filedproperlyandontime.Employeesarethusremindedtoberesponsiblefortheirownaccount/requirementstoavoidanyformofdelayorproblemsinavailingsuchbenefits.

Night Shift DifferentialQualified employees shall be paid a night shift differential of 10% of his regular hourlyrate foreachhourofworkperformedbetween10:00p.m. to6:00a.m. the followingday.Employeeswhorenderedovertimeworkfrom10:00p.m.to6:00a.m.shall,inadditiontoovertimepay,beentitledtothecorrespondingnightshiftdifferentialforallhoursworked.

OvertimePayRank and file employees who are duly authorized to render overtimework shall receiveovertimepayinaccordancewithlaw.

Holiday and Rest Premium PayRankandFileemployeeswhoaredulyauthorizedtorenderovertimeworkonaholidayorarestdayshallbeentitledtoapremiumpayontopoftheirbasepayinaccordancewithlaw.

HealthBenefitsandServices• Dental,MedicalandHospitalizationBenefits


TheCompany’smedicalplanprovidesforthedental,hospitalizationandconsultationbenefitsoftheemployeesuptothemaximumlimitsallowed,basedontheemployee’srank,which are not payable under theNationalHealth Insurance Act of 1995. Themedical and hospitalization benefits are granted to all regular and probationaryemployees immediately upon hiring through the Company’s designated HealthMaintenanceOrganization (HMO) ormedical/health insurer. Any other treatment/servicesnotincludedintheagreementoftheCompanyandthechosenHMOshallbeforthepersonalaccountofandbepaidbytheemployee.

TheCompanyprovidesdental, andmedical andhospitalization coverage to aqualifiedemployee’sfirstqualifieddependent thru theCompany’sdesignatedHMO.Thehealthplanofthecovereddependentisthesameasthatoftheemployee’s.

AllregularandprobationaryemployeesshallundergoanannualphysicalexaminationthruthechosenHMOtoensurehealthoftheworkforceatthestartoftheyear.Thefollowingarethemedicalexaminationsconductedduringannualcheck-ups:

AllofficersfromtheSeniorManagerleveltothePresidentareentitledtoundergoanout-patientExecutiveCheck-upconductedbytheCompany’sdesignatedHMO.

VacationLeavesareprovidedbytheCompanytogranteveryemployeearespitefromworkinordertobringrenewedvigor.

TheannualVacationLeavecreditsgiventoregularemployeesarebasedontheiryearsofserviceintheCompany.Thenumberofentitledleavecreditsfollowthisschedule:

EmployeeLeaves• VacationLeave

YearsofService EntitledVLwithpayPerYear 1to4years 15daysVL/year 5to10years 17daysVL/year 11to15years 19daysVL/year 16to20years 21daysVL/year 21yearsandup 23daysVL/year

AvailmentofVacationLeaveissubjecttoapprovalofemployee’simmediatesuperiorand/ordepartmentand/ordivisionhead.TheunusedVacationLeavecredits for everyyearofregularemploymentarecumulativeandconvertibletocashuponresignationorretirementoftheemployee.Thecompanyreservestherighttoconvertanyand/orallunusedVacationLeavesatanytime.

• Dental,MedicalandHospitalizationCoverageforOneDependent

• AnnualPhysicalExamination

Completephysicalexamination Eyecheck-upElectroCardioGraph(ECG)Stoolexam ChestX-ray HepaScreeningUrineexam BloodTest

• AnnualExecutiveCheck-up

EMPLOYEEHANDBOOK



• SickLeave

• EmergencyLeave

• MaternityLeave

• PaternityLeave

• SoloParentLeave

• FuneralLeave

Sickleaveisaprivilegethatanemployeecanavailofonlyingenuinecasesofsickness.Sick leavesareprovided toemployees inorder topreventadislocationof theirearningcapacityintimesofillnessesandrelatedcases.Aregularemployeewithatleastone(1)yearofservice isentitledtoaSickLeavebenefitconsistingof leavewithpayforfifteen(15)workingdaysperyear.Thefifteen(15)daysofSickLeaveforeveryyearofregularemploymentareconvertibletocashyearlyifunused.ThecompanyreservestherighttodeferconversionofanyunusedSickLeavecredits.

EmergencyLeaveTheCompanygrantsallregularemployeesthree(3)daysofEmergencyLeavewithpayperyear toenable themtoattendtoseriousandurgentmatters.Theemployeemayavail of theEmergencyLeaveonly if the employeehasalreadyusedupallhisentitled Vacation and Sick Leave credits. The unused Emergency Leave is non-cumulativeandisnotconvertibletocash.

MaternityLeaveAsmandatedby law,all femaleemployeesshallbeallowed, inaddition to theavailablevacationandsick leavecredits, to takeauthorizedandexcusedmaternity leaveof sixty(60)dayswithoutpay fornormaldelivery and seventy-eight (78)dayswithoutpay forcaesarian,abortionormiscarriagedeliverybutonlyforthefirstfourchildren.

PaternityLeaveAsmandatedbylaw,allmarriedmaleemployeesshallbeallowedtotakeseven(7)daysleavewithpayforthefirstfourdeliveries(includingchildbirth,miscarriage,orabortion)ofthelegitimatespousewithwhomheiscohabiting.

SoloParentLeaveAsmandatedbylaw,anysoloparentemployeewhohasrenderedserviceofatleastoneyearshallbeallowedtotakeseven(7)daysleavewithpayeveryyeartoenablehim/hertoperformparentaldutiesandresponsibilitieswherephysicalpresenceisrequired.TheexistingVacationLeaveprovidedby theCompanyshallbeconsideredcompliancewiththerequirementofthelaw.

FuneralLeaveAll regularemployeesshallbeentitled to the following leavecreditswithpayuponthe death of:

Spouse,Child -5days Parent,BrotherorSister -3days

The Company shall provide the abovementioned Funeral Leave credits for employeesto enable them to attend to familymatters during bereavement or death in one of theemployee’simmediatefamilymembersreferringtospouse,child,parentsand/orsiblings.

BereavementAssistanceTheCompanygrantsBereavementAssistancetoallregularemployeesincaseofdeathofaparent/spouse/child.Thisassistanceisextendedtothebereavedemployeestohelpthemdealwithfuneralcostsandotherrelatedexpenses.

Theamountofbereavementassistanceisasfollows: Level FinancialAssistance RankandFiletoSupervisors PhP5,000.00 AssistantManagersandup PhP10,000.00

Allregularandprobationaryemployeesareentitledtomealallowanceswithcertainlimitsdependingonthepositionorlevel. Mealallowancesareprovided toemployees tosubsidize theirmealexpensesduring theirfieldworkassignments.

GiftCertificates(McDonald’s/SohoTeaHouse)OnethousandPesos(P1,000.00)worthofGiftCertificatesfromMcDonald’sorSohoTeaHousearegiventoallregularemployeeseveryquarteranduponregularizationofnewemployees.

Christmas GiftIn the spirit ofChristmas, theCompanygrantsP3,000worthofGiftCertificates to allregularemployeeswhichmayberedeemedatretailestablishmentslocatedinpropertiesownedoroperatedbytheCompany.

UniformsSubjecttoguidelines,allregularRankandFile,SeniorRankandFile,AssistantSupervisors,SupervisorsandSeniorSupervisorsareentitledto5completesetsofuniformwhichwillbeusedinreportingforworkfromMondaytoFriday.TheCompanyuniformsshallbemadebytheofficiallycommissionedseamstress/tailorandshallbeprocessedbythedesignatedUniformCommittee.

EMPLOYEEHANDBOOK


Car PlanExecutives andofficers of the companywhoare at least aSeniorManager levelwho arealready regular employeesmay avail of a Car Plan at the following limits subject to theguidelinesoftheCompany’sCarPlanProgram:

Level CarLimit SeniorManager PhP750,000 AssistantVice-President PhP850,000 SeniorAssistantVice-President PhP950,000 VicePresident PhP1,150.000 FirstVice-President PhP1,300.000 SeniorVice-PresidentPhP1,450.000 ExecutiveVice-PresidentPhP1,600.000

Statedcarlimitsaresubjecttochangetomeetcurrentmarketrate.

Housing ProgramTheobjectiveoftheCompany’sHousingPlanProgramistoprovidedecentandaffordablehousingtoallemployeesoftheCompanyanditssubsidiaries,therebyenhancingproductivity,boostingmoraleandfosteringdedicationandloyaltyamongemployees.

The Company extends a housing loan to its regular employees and offers substantialdiscountstothosewhoservedtheCompanyforanumberofyears.ThediscountisbasedonthelevelandthenumberofyearsofservicerenderedintheCompany.

EmploymentLevel Tenure Discount Rank and File 3 years 25% discount Dept.HeadtoDiv.Manager 21/2years 30%discount AVPtoPresident 2years 35%discount

Life InsuranceLifeinsuranceisdesignedtolessenthefinancialburdenoftheemployee’sbereavedfamilyintheeventoftheemployee’sdeath.

Allregularemployeesareautomaticallycoveredwithagrouptermlifeinsurancewherethedeath coverage of an employee is equivalent to the employee’s onemonth current salarymultipliedbythenumberofyearsservedbutinnocaselowerthanthefollowing:


Level InsuranceBenefit RankandFile 200,000.00 AssistantSupervisor 250,000.00 Supervisor 300,000.00 SeniorSupervisor 350,000.00 AssistantManager 400,000.00 Manager 450,000.00 SeniorManager 500,000.00 AssistantVice-President 600,000.00 SeniorAssistantVice-President750,000.00 Vice-President 950,000.00 FirstVice-President 1,250,000.00 SeniorVice-President 1,500,000.00 ExecutiveVice-President 1,750,000.00

Retirement PlanThis isanon-contributoryretirementtrustfundthataimstorewardemployeeswhohavecompetentlyandloyallyservedtheCompany.

Membership in the Plan shall be automatic for all officers and regular employees of theCompanyandwillcommenceretroactivelyonthedatewhentheemployeestartedworkingfortheCompany.

• NormalRetirement

• EarlyRetirement

• LateRetirement

EMPLOYEEHANDBOOK


TheNormalRetirementDateofamembershallbethefirstdayofthemonthcoincidentwithornextfollowinghis60thbirthday.

Amembermay elect to retire with the consent of the Company prior to his normalretirementdateprovided thathe is at leastfifty (50) years old andhehas completedatleastfifteen(15)yearsofCreditedService.Creditedservicewouldmeancontinuousserviceexcludingleavestakenbeyondwhatisnormallygivenperyearnamelyvacationand sick leaves and leaves provided in certain cases namely Emergency, Maternity/Paternity/SoloParentand/orFuneralLeave.

AmemberwhoisallowedbytheCompanytocontinuetoworkonacase-to-caseandyearlyextensionbasisbeyondhisnormalretirementdateuptoagesixtyfive(65)shallcontinuetobeamemberofthePlanuptohisLateRetirementDate.TheLateRetirementDateofamembershallbethefirstdayofanymonthafterattaininghisNormalRetirementdatebutnotbeyondage65.

Financial Assistance• CompanySalaryLoan

EMPLOyEE PRIVILEGESTraining ProgramsUpondiscretionofManagement, employeesmaybe sent to trainingprograms to furtherenhance their skills and increase their technical know-how.Employeeswhoattend thesetrainingprogramsshallbeboundbyacontractdependingonthecostofthetraining.TheCompany recognizes the importance andneed for systematic and sustained training anddevelopment. Inthismanner,we intendtomaintainandimproveourpresentoperationalstandardsofexcellence.Throughtrainingprograms,workshopsandseminars,weseektoencouragetheadvancementofeveryindividualatMegaworld.

To determine the training programs to be prepared for the employees, Training NeedsAnalysisisconductedannuallybytheHRD.

Company-SponsoredActivities

• SummerOuting


TheCompanyshallprovidefinancialassistanceintheformofcashadvancestoregularemployeesduetoemergencyreasonssuchascalamity,educationalrequirements,deathin the family and medical/hospitalization of an employee and/or his/her immediate family members.Thecashadvanceshallbepayablevia semi-monthly salarydeductionovera6-monthperiodwithout interestora12-monthperiodwithminimal interest.AregularemployeewhohasnoexistingloanwiththeCompanyandhasnotavailedtheBankSalaryLoaniseligibletoavailofacashadvanceuptothefollowinglimits:

RankandFile PhP10,000.00 Supervisor PhP15,000.00 Manager PhP20,000.00 AVP PhP40,000.00

TheCompanysponsorsayearlysummeroutingforallitsemployees.Thesummeroutingisayearlyactivity toproviderelaxationandestablishbetter rapportandcamaraderieamong itsemployeesacrossall levelsanddepartments. It isawholedayactivityheldout-of-townwhereteambuildingexercisesareincorporated.

• CompanyAnniversary

• ChristmasParty

MembershipinOrganizationUpondiscretionofmanagement,theCompanymaysponsorthemembershipofanemployeewithprofessionalorganizationsandassociationstohelpestablishhis/hernetworkandbuildalliesthatwouldhelptheCompanyinpromotingitsbusiness.

License RenewalUpondiscretionofmanagement, theCompanymayshouldertheexpensesforrenewalofprofessional licenses and Professional Tax Receipt of its professionals such as CertifiedPublicAccountants,CivilEngineers,Lawyers,etc.toensurethatprofessionalqualificationsand credentials of employees meet the current standards to become globally aware andcompetitive.

EMPLOyEE REWARDSRegularizationIncreaseProbationary employees who are given a performance rating of at least 80% uponregularizationmaybeentitledtoasalaryadjustmentsubjecttomanagement’sapproval.

Annual General IncreaseGeneralincreases,subjecttomanagement’sdiscretion,aregrantedtoallregularemployeeseveryyear,providedtheemployeegarnersaperformanceratingofatleast80%.

Merit IncreaseEmployees who are promoted/elevated shall be entitled to a merit increase subject tomanagement’sapproval.Thegrantofmeritincreasecoincideswiththeannualincrease.

EMPLOYEEHANDBOOK


TheCompanyholds its foundingdaywith itsemployees,every3rdSaturdayof June tocelebratethemomentousandsignificantyearsofitsexistenceinthepropertydevelopmentandrealestateindustry.

TheCompanycelebratestheYuletideSeasonbysponsoringanannualChristmasParty,which is usually a year-end gathering of all its employees where employees show offtheir talent in singing,dancing, actingandother skills suchas eventmanagement andproduction.

Perfect Attendance Quarterly BonusAllregularRankandFileandSupervisoryemployeeswhoarealwayspunctualinreportingfor work and do not avail of the grace period, did not incur any excused or unexcusedabsences and undertime, and did not commit any violation of the Company’s rules andregulationsduringathreemonthperiodshallbeentitledtothePerfectAttendanceQuarterlyBonusamountingtoPHP1,000.00*.

*Maybeadjustedtomeetcurrentdemands.

ServiceAwardsTheCompany shall recognize the long and loyal services of its employees by presentingthemwithserviceawardsastokenoftheCompany’sappreciation.Allserviceawardsshallbegivenduring theCompany’sAnnualChristmasParty.Anemployeewith the followingnumberofcontinuousyearsofserviceshallqualifyfortheServiceAwards:

Five(5)yearsofservice Ten(10)yearsofservice Fifteen(15)yearsofservice Twenty(20)yearsofservice Twenty-Five(25)yearsofservice

ServiceAwardforemployeeswhohaverendered25years(andevery5yearsthereafter)ofserviceinthecompanyshallreceiveaplaqueand120%ofcurrentmonthlysalarypayablein80%cashand20%RichmondeGCs/itsequivalent

BonusesAmid–yearandaChristmasbonusmaybegiventoallregularemployeesoftheCompanyandmaybegranteduponthediscretionofthePresidentbasedonthefinancialperformanceoftheCompany.

EMPLOyEE MOVEMENTSTransfersManagementhastheprerogativeto transferemployeestootherdepartments/divisionstoprovideassistancetodepartments/divisions/groupsneedingit.Transfersshallbefacilitatedby the HRD upon receipt of formal advice and approval of the concerned and affectedDivisionHeads.


PromotionsPromotionsofofficersandemployeesarebasedontheoutcomeofanoverallperformanceevaluation conducted for such purpose. The factors considered for promotion are one’smeritoriousperformance,servicerecord,anddevotiontoduty,aptitude,efficiency,personalinitiativeandloyalty.Employeesareprohibitedtoseektheaidoftheirrelativesorfriendsforthepurposeofsecuringpromotionsinrankorsalary.

ResignationsAn employeewhowishes to resign from theCompany should give duewritten notice tohisimmediatesuperiorat leastone(1)monthor30calendardaysinadvancepriortotheeffectivityoftheresignationtoallowenoughtimetolookforhis/herreplacementandfortheproperturnoveroftasksandaccountabilities.

SuchnoticepriortheeffectivityoftheresignationisnecessarytoavoidunduestraintotheoperationsoftheCompanyresultingfromresignations/suddenvacancies.Theprescribedperiod for tendering a notice of resignation may be waived on a case-to-case basis butwithprior clearance from theDepartmentHead.Anexit interviewshallbe conductedbytheHumanResourcesDepartmenttodeterminethecauseoftheresignationandtosolicitinformationanddatamutuallybeneficialtotheemployeeandtheCompany.

CODE OF DISCIPLINERationaleOn-the-jobconductofemployeesisamajorfactoraffectingthegrowthofanyorganization.Safety,productivity,andemployer-employeerelationsareatstake.

Fromchildhoodonwards,everyoneissubjecttoandrecognizesvariousformsofdiscipline.Itcanbuildrespectandconfidenceoritcanleadtonearanarchy.Itistheresponsibilityofmanagementtoimposetheproperdisciplineandensurethatitsucceeds.Accordingly,itisobviousthatawrittenpolicyondisciplineandformalproceduresarebothnecessary.Thegoal,inmostcases,istoprotectboththeoffenderandtheinterestoftheemployer.

The failure of many employers to establish or to follow a standard, appropriate and workable employee disciplinary policy have caused themmanyunfavorable and costly experiencessuchasaccusationsofunfairlaborpracticeandtime-consumingandcostlyadministrativeorcourthearings.Therefore,managementshouldbealerttothelong-termresultoffailuretoestablishaworkabledisciplinarypolicy.

However,managementmustalsoensurethatdisciplinarypoliciesarefairandrespecttherightsof theemployee.Employeesdonotrespect favoritism,unfairness,or inconsistencyin discipline. Nor do they appreciate, like or respect a loosely run organization with nodiscipline.Employeeswhoknowwhattheycanandcannotdo,orwhoknowtheirrightsandprivileges,arebettersatisfiedonthejob.Theydonotrespectnorappreciateadisciplinarypolicythatistootoughortoolax.

EMPLOYEEHANDBOOK


Anyinfractionormisdemeanorincurredbyanemployeehasacorrespondingpenalty,whichmay range from light to heavy depending on the gravity, magnitude and/orfrequencyofoccurrenceasprescribedinthisCodeofDisciplineandapplicablelaws.

Dependingon thegravity andmagnitudeof theoffense, its effect ordamage to theCompany, the employees, the business, and to the public, offenses may warrant either averbalwarning,writtenwarning,suspensionfromwork,ordismissal.

A VERBAL WARNING or REPRIMAND is a warning/reminder given by animmediatesuperiortotheerringemployeeforhisact(s)and/orbehavior(s)affectingotheremployees,thecompany,itsresources,andtheendresultstobusinessinterest.Thisisdocumentedintheformofminutestoserveasaproofthattheverbalwarningwasservedandthattheemployeewasmadeawareonhowto improvehisbehavior.Repetition of the same offensewhichwarrants a verbalwarning shall be penalizedwithaheavierpenaltyasprescribedherein.

AWRITTENWARNING isa formaldocument thatnotifies theerringemployeeofhis/her infraction and stipulates that a repetition of the same offense can lead to the nextheavier penalty.Thewrittenwarning shall be issuedby theHumanResourcesDepartment (HRD) through the employee’s superior and should be received andsignedbytheerringemployeeandreturnedtoHRD.

SUSPENSION is themandatory absence fromworkwith a consequence of loss inpay for the duration of the prescribed suspension period due to the gravity and/orfrequencyoftheoffenseasprovidedunderthisCodeofDiscipline.

PREVENTIVE SUSPENSION is the mandatory absence from work for a limitedperiodoftimeimposeduponanemployeeonaccountoftheongoinginvestigationofthe offense committed, which offense poses serious or imminent threat to life, security and/orpropertyoftheCompanyoranyemployee.

DISMISSAListheterminationofemploymentandtherebyputsanendtotheemployer-employeerelationshipbetweentheCompanyandtheerringemployee.

The superior concernedmust file any reported infraction immediatelywithin forty-eight (48) hours from the commission, omission and/or discovery thereof to thePersonnel andAdministrative Services of theHRDwith their respective commentsandrecommendation.AnyemployeemaylikewisedirectlyfilewiththeHRDareportconcerninganinfractionorviolationofthisHandbookand/orCodeofDiscipline.

DefinitionofDisciplinaryTerms1.

2.

3.

4.

5.

6.

7.


8. The Department Head shall ask the employee involved to explain his/her side in writing twenty four (24) hours from receipt of memo issued by the HRD. Failure to comply would lead to a presumption of the waiver of his right to be heard.

MANAGEMENT PREROGATIVE AND EMPLOYEE’S RIGHTS1. Management reserves the right to issue working guidelines, rules and regulations in the future which may supersede, amend, alter, change and/or render obsolete any or part or most of all listed rules and regulations herein within legal boundaries of the Constitutional Rights, Labor Code and all applicable existing laws through executive memoranda.

2. The Company shall have the right to exercise all decisions and take such actions as it may deem necessary, to enforce and implement this Code of Discipline and the Rules and Regulations of the Company including new issuances and those that have been amended, altered and/or changed.

3. Management shall exercise the RIGHT AND PREROGATIVE TO DISCIPLINE all employees. In such exercise, a thorough and careful investigation of all facts and circumstances pertinent to the infraction shall be done with DUE PROCESS with the objective of deciding on the merit of the case.

4. Management may TRANSFER any employee from one department to another or from one division to another in the interest of the business. Such decision, after due process has beenexercised,isfinalandexecutory.

5. Any employee who fails to abide by or deliberately does not follow these Rules and Regulations and/or commits a violation of the Code of Discipline, and other rules and regulations and applicable laws shall be imposed with the appropriate disciplinary action.

6. All employees shall have the right to be heard by the management with due process and all other rights as provided and guaranteed under existing laws.

SCHEDULE OF DISCIPLINEPolicy StatementCompany rules and regulations shall be enforced fairly and consistently. Violations of Company rules and regulations shall result in one or more of the following disciplinary actions depending on frequency, seriousness and circumstances of the offense. The employee suspected to have committed an infraction shall be given the opportunity to present his side. If found guilty, he will be penalized with the appropriate disciplinary action in accordance with the Code of Discipline.

EMPLOYEEHANDBOOK


a. Verbal Warning

1. Prior to the Verbal Warning, the management shall give the employee the chance to explain his/her side regarding the offense committed. However, whenimmediateactionisnecessary,orwhenallthefactsarenotavailable,the immediatesuperiormayimposepreventivesuspensionwithoutpayuponthe employee foraperiodnot toexceed30dayspending investigationwhen the continuingpresenceof the employeeposesagraveand serious threat to the Companyand/oritspropertiesandemployees.

2. Theemployeeshallbeaskedtoexplaininwritinginnotlessthan24hoursupon receiptofnoticetoexplainhis/hersideofstory.

3. Afterallfactsaregathered,thecasewillbereviewedbytheimmediatesuperior, theHRHeadandtheDivisionHeadconcerned.

4. Theemployeemaycalledforameetingwiththeimmediatesuperior,HRHead andDivisionHeadduringwhichhewillbegivenachancetostatehissideand presentevidenceinsupportofhisdefense.

5. Afteradecisionhasbeenreached,theimmediatesuperiorshallreviewthefacts ofthecase(includinganysupportingdocumentssuchasrecords,files,etc.)in privatewiththeemployeeconcerned.

6. The immediate superior shall ensure that the employee clearly understands what action shall be taken andwhat disciplinary sanction shall be served if repetitionofthesameoffenseoccurs.

7. Theimmediatesuperiorshouldkeeparecordoftheverbalwarningandfurnish a copy of theminutes of the counseling/reprimand toHRD for filing in the employee’s201file.

b. Written Warning

1. Followsteps1to4underVerbalWarningabove.

2. Afteradecisionhasbeenreached,theimmediatesuperiorwillreviewthefacts of thecase (includinganysupportingdocuments suchas records,files, etc.) withtheemployeeinvolved.


3. Theimmediatesuperiorwillreviewthewarningmemowiththeemployee.The VerbalWarningwhichwasdocumentedandsignedbytheemployeeconcerned shallberetrievedandpresentedagaintotheemployeeasreference.

4. The immediate superior shall ensure that the employee clearly understands what action shall be taken andwhat disciplinary sanction shall be served if repetition of the same offense occurs, which shall be stated in the Written Warningserved.

5. The Written Warning shall be prepared by the HRD duly signed by the Immediate Superior. It will be served on the employee through his/her immediatesuperiorandreceivedbytheemployeeconcernedasshownbyhis/ hersignatureontheWrittenWarningmemo.

c. Suspension from work without pay


2. After a decision has been reached, the immediate superior,HRHead and concerned Division Head shall advise the employee immediately thru a memo with the recommended dates of suspension so as not to hamper the workflow of the concerned department. The immediate superior needs to makesurethatthetasksofthesuspendedemployeeshallbecovered.

d. Termination


2. Aftertheinvestigation,andtheCompanydeterminesthatterminationisthe appropriatepenaltyprovidedundertheCodeofDiscipline,theemployeeshallbe informedthereofandthereasonsforsuchdecision.

3. Theterminationofanemployeeforrepeatedminorviolationsmustbepreceded byformerpriorverbalandwrittenwarnings.

4. AwrittenrecordshallbemadebytheHumanResourcesDepartmentofallthe factsandthedecisionreachedandfiledinthe201oftheconcernedemployee.

EMPLOYEEHANDBOOK


HOW TO REPRIMAND1. This is subject to a conclusive finding that the employee in fact committed a violationorinfraction.

2. A reprimand is best administered in private – whenever possible – and is best administeredwithoutrancor.

3. Thereshouldbealittletimelagbetweentheoffenseandthereprimand.Thiswould require that the violation is sufficiently explained and established. The employee shouldbegiven thechance toexplainhisside. It isbest tofirst listen to thereason beforemetingoutpunishment.

4. Thepolicycoveringtheoffenseshouldbeexplained(orread) to theemployee.Any explanationmustbeweighedinthelightofthepolicystatementandthereasonbehind thepolicy.Thedegreeofpunishmentwillbebasedontheoffensecommitted,number oftimescommitted,offensesinvolvedandtheseriousnessoftheactionasestablished intheCodeofDiscipline.

5. The offense and corresponding punishment should be carefully explained to the employee.Attimes,aformalhearingmaybenecessarytocomeupwithacomprehensive decision.Awrittenstatement(evenfollowinganoralreprimand)accompaniedbythe reason/findingsinsupportthereofisalwaysnecessary.

6. Sufficient copies of the written warning should be prepared so that the following partiesmayhaveacopy:thedisciplinedemployee,theemployee’simmediatesuperior, andtheHRD.Acopyofthewarningshouldberetainedintheemployee’s201file.

7. Aprintedacknowledgementofreceiptofthewarningmustbesignedbytheemployee onthesanctionmemoorcounselingminutes(forVerbalWarning).

8. When an employee continues to disregard company rules and disciplinary action, where an offense is repeated, or for misconduct serious enough for termination onthefirstoffense,theemployeeshallbegivenawrittenmemoindicatingtheoffense committed and the reason for the termination in accordance with the Code of DisciplineoftheEmployeeHandbook.

9. Thereshouldbereferencetopreviousdisciplinarysanctionreceivedbytheemployee andthefindingsinsupportthereof.Theterminationmemoshouldalsospecifywhen theterminationistobeeffective.


10. For conductwhich is not serious enough for discharge on the first offense, it is desirable toconsider lesserpenaltiessuchasverbalwarning,writtenreprimand, ordisciplinarylayoff/suspension.

11. The employee should always be told verbally and through a written warning that a commission of a similar incident will result in a more serious type of disciplinary sanctionuptoandincludingdischarge.

HABITUAL DELINQUENCy1. Management reserves the right to impose amore severepenaltyon employeeswho have committed similar offenseswithin a givenperiod of time, indicatinghabitual delinquencyontheirpart.

2. Anemployeewhoreceivesawrittenwarningforthethirdtimewithinaperiodofsix (6)monthsfromthedateofthefirstwarningwasserveduptothedateofcommission oftheoffensewhichleadstothethirdwrittenwarningshallbeSUSPENDEDfora periodofTHREE(3)dayswithoutpayinadditiontothethirdwrittenwarning.

3. Anemployeewhoreceivesawrittenwarningforthefourthtimewithinaperiodofsix (6) months from the date the first written warning was served up to the date of commissionoftheoffensewhichleadstothefourthwrittenwarningshallbesuspended foraperiodofFIVE(5)dayswithoutpayinadditiontothefourthwrittenwarning.

4. Anemployeewhoreceivesawrittenwarningforthefifthtimewithinaperiodofsix(6) months from the date the first written warning was served up to the date of the commissionoftheoffensewhichleadstothefifthwrittenwarningshallbeDISMISSED fromwork.

5. AnemployeewhoreceivedTENWRITTENWARNINGSwithinaperiodofTWELVE (12) MONTHS from the date the first warning was served up to the date of the commissionoftheoffensewhichleadstothetenthwrittenwarningshallbeDISMISSED fromwork.

6. AnemployeewhoreceivesapenaltyofSUSPENSIONfortheTHIRDTIMEwithina periodofTHREE(3)MONTHSfromthedate thefirst suspensionwasservedup to the date of commission of the offense which leads to the third suspension shall, instead ofservingthesuspension,beDISMISSEDfromwork.

7. AnemployeewhoreceivesapenaltyofSUSPENSIONfortheFIFTHTIMEwithina periodofONEYEARfromthedatethefirstsuspensionwasserveduptothedateof the commission of the offensewhich leads to thefifth suspension shall, instead of servingthefifthsuspension,beDISMISSEDfromwork.

EMPLOYEEHANDBOOK


DISCIPLINARy POLICIESOFFENSES AGAINSTS ATTENDANCE AND PUNCTUALITyPolicy on Attendance1. Employeesareexpectedtoreportforworkregularlytoensureasmoothworkflow.

2. Anemployeemustinformhisimmediatesuperior,notlaterthan10:00o’clockinthe morning,shouldhebeunabletocomeforwork.

3. Anemployeeshouldsecurehissuperior’sapprovalifhewouldleavehisworkstation foranyvalidreason.

4. To monitor attendance, the Company distinguishes between authorized and unauthorizedleaves.

a. AuthorizedandExcusedLeaves Anemployeeabsentinghimselffromworkmustsecurepriorpermissionfromhis superior or head on the day of the absence not later than 10:00 o’clock in the morningtomaketheleaveauthorized.However,theemployee’sabsencemaybe considered justified if there are legitimate and compelling reasons for failure to givenotice.Leavesareconsideredexcusedforlegitimatereasonsandauthorized whentheproperproceduresforleaveavailmentareobserved.

b. UnauthorizedandUnexcusedLeaves Leaves are considered unauthorized when the proper procedures for leave availmentarenotobserved.However, if thereasonsareaccepted,thenitmaybe consideredexcused.Otherwiseitisunexcusedand,therefore,unauthorized:

1. SimpleCaseofabsence-unauthorizedandunexcusedleavefor1-2days.

2. Excessiveabsences–unauthorizedandunexcusedleavefor3-5days.

3. AbandonmentofworkorAbsenceWithoutLeave(AWOL) –unauthorized andunexcusedleaveformorethan5daysorwhenthereisaclearindication oftheintentoftheemployeenottoreturntowork.

4. Expirationofleave–Employeeswhofailtoreturntoworkimmediatelyafter the expiration of their approved leaves shall be considered to have taken anunauthorizedleave,providedthatsuchfailureisnotduetolegitimateor compelling reasons. Employees are required to notify his/her immediate superioratleastone(1)daybeforetheyaresupposedtoworkiftheycannot reportasscheduled.


OFFENSES AGAINST ATTENDANCE

SCHEDULE OF PENALTy OFFENSES ViolationsWithina12-MonthPeriod 1 2 3 4 51. SimpleCaseofAbsence VW WW 3S 5S D

2. ExcessiveAbsences 5S D

3. AbandonmentofWork/AWOL D

Policy On Punctuality1. Anemployeewhoreportsforworkorpunchesinlaterthantheofficialtimeshallbe consideredtardyforthatday.

2. Agraceperiodoften(10)minutesisgrantedafterwhichacorrespondingdeduction fromsalarywillbeimposed.

Tardiness deduction is computed based on the total number of minutes/hours late or onthefollowingscheduleofdeductions,whicheverishigher.

SCHEDULEOFDEDUCTIONS Minutes Tardy Fine 8:41-9:00 P20 9:01-9:30 P30 9:31-10:00 P40 10:01 and up half day

3. Excessivetardinessshallmean:

a. Beinglateforworkforatotaloftwohundredsixty(260)minutesormoreinone month. Incomputing forexcessive tardiness, theofficialworkingtimeshallbe usedasthereckoningpoint;or

b. Beinglateformorethanfour(4)timesinonemonth

4. The above disciplinary sanctions shall apply likewise to tardiness in reporting for workafterlunch,mealorcoffeebreaks.

EMPLOYEEHANDBOOK


OFFENSES AGAINST PUNCTUALITy

SCHEDULE OF PENALTy OFFENSES ViolationsWithina12-MonthPeriod 1 2 3 4 5ExcessiveTardiness VW WR 3S 5S D

TIMEKEEPING OFFENSES

OFFENSES SCHEDULE OF PENALTy ViolationsWithina12-MonthPeriod 1 2 3 4 5

1. Falsifyingtimecardsoranyother D timekeepingrecords.

2. Knowinglyreceivingsalaryorallowances D inanyformbyvirtueoffalsifiedtimecards, vouchers,receiptsorthelike.

3. Givingfalsereasonforbeingabsentorlate. 3S 5S D

4. Usinganotheremployee’stimecardto D recordone’sattendanceoranother employee’sattendance.

5. Theemployeeforwhosebenefittheforegoing D prohibitedactiscommitted,orwhobenefits orhasbenefitedthereby,ifanyofthe prohibitedactsisdonewithhisknowledge, consentoracquiescence.

6. Failuretoreportacaseoffalsifyingtimecards D oranytimekeepingrecordsoftheemployee whowillnotbenefitfromtheforegoing prohibitedact.

7. Failureformorethan3timesorrefusaltouse 3S 5S D theFingerscansystemortopunchtimecards (forcardpunchingemployees).


OFFENSES RELATED TO JOB PERFORMANCE

OFFENSES SCHEDULE OF PENALTy 1 2 3 4 5

1. Sabotageordeliberateactswhichcause D orresultindamageorlosstocompany property, equipment and products intended todisruptorwiththeobjectiveor disruptingoperations.

2. Industrialandotherformsofespionage, D directly or indirectly committed by the givingof,supplyinganddisclosingto unauthorized persons or the competitors classifiedtradesecretsandotherconfidential materials, information, data or documents relatingtoCompany’soperationswithout authorityorproperauthorization.

3. Blatantdisregardofordeviationfrom D established controls and other policies and procedureincludingbutnotlimitedtothe care, custody and/or use of Company property,fundsorequipment.

4. Acceptingdirectlyorindirectlyany D sumofmoney,offer,promiseand/orgift inconsiderationofanyactpertainingto one’swork.

5. Insubordinationorrefusaltoobey 15S 30S D legitimateinstructions.

6. Negligenceorgrossinefficiencyinthe VW WW 3S 5S D performance of duties without any loss to the company other than delay/disruption ofworkflow.

EMPLOYEEHANDBOOK


OFFENSES SCHEDULE OF PENALTy 1 2 3 4 57. Negligenceorgrossinefficiencyinthe performance of duties, which resulted tolosstotheCompany. a.minorloss WW 3S D

b.majorloss Suspension to Dismissal depending onthegravityoftheoffenseandthe loss sustained by the Company. Withoutprejudicetoindemnification of damages.

8. Wastingtime,loafing,loiteringor VW WW 3S 5S D leavingplaceofworkduringworking hours without permission from his immediatesuperior.

9. Sleepingduringworkinghoursor WW 3S 5S D malingeringtoevadeassignedwork.

10. Willfulholdingback,slowingdown, 5S 15S D hinderingorlimitingworkoutputor inducingorencouragingfellow employeestodoso. 11. Failuretowearprescribedwork VW WW 3S 5S D uniformorattirewhenonduty.

12. FailuretowearprescribedIdentification VW WW 3S 5S D CardwithintheCompanypremises.

13. Forimmediatesuperiors,clearabuseof 5S D status,power,judgementordiscretion.

14. Forsupervisorsormanagers,failureto WW 3S 5S D disseminate Company policies, work rules, workproceduresandthelike.toemployees overwhomheexercisessupervision.



15. Forimmediatesuperiors,failureto WW 3S 5S D preventorreportanyviolationof this Code and of other work rules andworkprocedures.

OFFENSES AGAINST PROPERTyAllpenaltiesforoffensesagainstpropertyshallbeservedwithoutprejudicetotherecoveryofdamagesagainsttheerringemployee.


1. WillfuldamageofanyCompanyproperty D or unauthorized destruction and/or defacingofofficeandconstructionproperty.

2. Malversationofcompanyfunds,theftofany D Company property or acquisition of such propertyunderfraudulentorfalsepretenses.

3. RemovalofCompanypropertywithout properauthorization.

a. withoutcausingdamageorloss 15S 30S D totheCompanyorinjuryto employeesorthirdparty. b. causingdamageorlossto D theCompanyandinjuryto co-employeesorthirdparty

EMPLOYEEHANDBOOK



4. CarelessnessorimproperuseofCompany materials, equipment which resulted to wastageorlosstocompany: a. minorloss 5S 10S 15S D

b. majorloss D

5. Anyactofvandalismthatdamages,deforms 5S 10S 15S D or destroys Company property or property of othersinsidetheofficepremises.

6. UsingCompanyvehicleforpurposesother 5S 15S 30S D thanwhatwasoriginallyintendedunless otherwisegivenpermissionbytheAdmin.Head orhisdesignee.Theerringemployeeshallthen beheldliableforanyinjurytoitspassengersor damagetoCompanyvehiclecausedby unauthorizedtripusingthesaidvehicle.

7. Recklessdriving,resultingtoaccidentwhere 5S 15S 30S D athirdpartyhasbeeninjuredorwherethe vehiclehewasdrivinghasbeendamaged.

8. UnauthorizeduseofCompanyvehicleduring D whichanaccidenthappenedresultingininjury ofpassengersordamagetothevehicleorloss ofCompanyproperty.

OFFENSES AGAINST HEALTH, SECURITy AND SAFETyOFFENSES SCHEDULE OF PENALTy 1 2 3 4 5

1. Failureorrefusaltocomplywith VW WW 3S 5S D the health or medical requirements oftheCompany.



2. Deliberatelyconcealingasuspected WW 3S 5S D communicablediseaseorailment.

3. Willfuldisregardofdirectivesrelative VW WW 3S 5S D to cleanliness and orderliness such as littering,leavingsoileddishesonthetableor sink,orleavingcomfortroomsdirtyafteruse.

4. LoaningoutanIDtoaco-employeeor,third 5S 15S 30S D personnotconnectedwiththeCompany.

5. Unauthorizedcarryingorillegalpossession D offirearms,explosivesandotherdeadly weapons and/or paraphernalia within Companypremises.

6. BeingChargedwith/Convictionofacrime Suspension to Dismissal depending onnature/kindofcrimeandon damageand/orprejudicecaused to the Company. 7. Forcingentryintotheofficeduring 3S 5S D officehoursornon–officehours.

8. Unauthorizedopeningofanother’slocker, 3S 5S D draweroroffice.

9. Willfuldisobediencetosafetyinstructions VWtoDdependingongravity inconnectionwiththeemployee’swork. oftheoffenseanddamageand/or prejudice to the Company.

10. Failuretoimmediatelyreportthe VWtoDdependingongravity occurrence of an accident or the presence oftheoffenseanddamageand/or ofanunsafecondition. prejudice to the Company.

EMPLOYEEHANDBOOK


OFFENSES AGAINST HONESTyOFFENSES SCHEDULE OF PENALTy 1 2 3 4 5

1. Theft/pilferageofCompanyproperty D orofpersonalpropertyofco-employees orthirdpersonsintheCompanypremises.

2. Borrowingmoney/goods/merchandise D fromcustomersorborrowingCompany funds/assets/propertyfromco-employees tocoverupforanomaliesandother offensescommitted.

3. Solicitingand/orborrowingmoney/ D goods/merchandisebythemanagement staff(managersandsupervisors)from their subordinates/staff for personal orunofficialuse.

4. Fictitioustransactions;falsifications D of Company records, data, documents, invoicesorreports.

5. Misappropriationorembezzlement D ofCompanyfunds.

6. Withholdingoffundsduetothecompany; D kitingofcollectionsorCompanyfunds: unmeritedorshortremittanceofcollections.

7. Non-issuanceorwrongfulissuanceof D invoicesand/orreceiptsandcommercial documentstodealers.

8. Forgery,misuseorabuseordefalcation D ofFunds.

9. Engagingprivatelyinbusinessthat D tendstocompetewiththeCompany.



10. Usingcompanyfunds/assetsfor D personalorunauthorizedpurpose; orunauthorizedwithholdingoffunds orproperty.

11. Conspiringorconnivingwith,ordirecting D otherstocommitanyoftheforegoing.

OFFENSES AGAINST PROPER CONDUCT AND BEHAVIOROFFENSES SCHEDULE OF PENALTy 1 2 3 4 51. Horseplayorotherunrulyconductwhich causesortendtocausedisorder;disruptwork; annoy,vex,createscandalordisturbance within the Company premises: a. didnotcausedamagetoCompany WW 2S 3S D propertyornolossisincurred.

b. whereCompanypropertywas 5S D damagedorlossisincurred;or injuryiscausedtoco-employees orthirdpersonwithoutprejudice torecoveryofdamagesagainst theerringemployee.

2. Drinkingalcoholicbeverageorliquor 5S 15S 30S D and/ordrunkennessinreportingtowork orduringworkinghours(includingfield assignmentsandCompanyactivities)

EMPLOYEEHANDBOOK



3. Drugpushingorpossessionofprohibited D drugsand/ortheirderivativesincluding sellingorpossessionofmarijuana,opium, heroin, shabu, ecstasy and others of similar natureand/orreportingforworkunderthe influenceofsuch,unlessprescribedfor therapeutic purposes and under normal dosageonly.

4. Fighting/provokingorinstigatingafightor inducingotherstofightwhethercommitted withinacalendaryearornot.

a. Duringworkinghoursoroff-duty D timewithinCompanypremises.

b. Duringworkinghoursoutside D Companypremises.

c. Duringoff-dutytimeoutsidethe 15S D Companypremisesdueto,arising from, or as a consequence of work relatedcauses.

5. Willfulordeliberateinjurytosuperiorsand D otheremployeesdueto,arisingfrom,asa consequenceof,orforwork-relatedcauses withinoroutsideCompanypremises.

6. Causinginjurytosuperiors,co-employees andthirdpersonsdueto,arisingfrom,oras aconsequenceofnegligenceorimprudence within or outside company premises

a. minorinjury WW 3S D

b. majorinjury Suspension to Dismissal depending ongravityoftheoffenseandinjury withoutprejudicetoindemnification of sustained damages



7. Actsofgravedisrespect,useoffoullanguage 15S D orsignsand/orchallengingtoafightorfist cuffand/orgivingorwritingordersthreats againstanysuperior,subordinateand/orpeer, whether or not such is in the course or as a consequenceof,duetoorarisingfrom work-relatedcauses,duringoffice/working hoursoroff-dutytime,withinoroutside Companypremises.

8. Creatingintriguesagainstanother 3S 15S 30S D employee/s which tends to cast dishonor, discreditorcontemptuponthelatter.

9. Immoralconductorindecentacts;sexual D activitiescarriedoutwithincompanypremises; solicitationofsexualfavorsbysuperiors, department heads or somebody with authority fromsubordinatesorco-employees;(regardless ofemploymentstatus,levelandposition)acts oflasciviousness;asdefinedinthepenalcode andR.A.7877orrulesandregulationson sexualharassment.

10. Unauthorizedposting,distributing,drawing 15S D and/orpostingonCompanypremises,obscene and/orsubversivematerials,pictures/graffiti; orpostingdestructionortamperingof, removingfrom,theCompanybulletinboards any printed drawn, written or published material without authorization or authority and/orotheractsofvandalism.

11. Gamblingorengaginginagameofchance D orsolicitingbets,lendingmoneyforuseto such,duringworkinghours(includingfield assignmentsandcompanyactivities)or withincompanypremises.

EMPLOYEEHANDBOOK



12. Plantingevidenceagainstanotheremployee D forthepurposeofundulyimputingacrimeor acommissionofanoffenseunderthisCode.

13. Intentionallycausingpersonalinjuryto D anotherpersonduringworkinghours (includingfieldassignmentsandcompany activities)orwithintheCompanypremises.

14. Actsofgrossdiscourtesytoanyperson, 3S 5S D orallyorphysically,directlyorindirectly.

15. Insulting/threateningwithbodilyharm,or 15S 30S D showingwillfuldisrespectforasupervisor oranyofficer.

16. Forsupervisors,borrowingmoneyfrom WW 3S 5S 10S subordinatesdirectlyorindirectly.

17. Onthepartofthesuperior,deliberately 5S D condoning,toleratingorparticipatingin anoffensecommittedbyasubordinate.

OFFENSES AGAINST SOLICITATION AND ACCEPTANCE OF GIFTSOFFENSESSolicitation from any supplier, VW WW 3S 5S Dcontractor or business partner

FailuretosurrendergiftstotheOfficeof VW WW 3S 5S DthePresidentforproperdisposition.

Failure to disclose relationship VW WW 3S 5S Dwithasupplierorcontractor.


EMPLOYEEHANDBOOK

DATERECEIVED:

DEPARTMENT/DIVISION

RECEIVEDBY:

SIGNATUREOVERPRINTEDNAME

EMPLOYEENUMBER


ACKNOWLEDGEMENT(Employee’sCopy)

IacknowledgethatIhavereceivedtheEMPLOYEEHANDBOOKandunderstooditscontents.IherebycommitmyselftocomplywiththeCompany’srulesandregulations,thecorepurposeandvaluesthatwestrivetoachieveandthepoliciesthatgovernouractivities.

Furthermore,IpromisetosurrendertheHandbooktotheHumanResourcesDepartmentoritsdulyauthorizedrepresentativeattheendofmyemploymentwiththefirm.

DATERECEIVED:

DEPARTMENT/DIVISION

RECEIVEDBY:

SIGNATUREOVERPRINTEDNAME

EMPLOYEENUMBER

ACKNOWLEDGEMENT(PleaseforwardthiscopytotheHumanResourcesDepartmentforfilinginemployee’s201File)

IacknowledgethatIhavereceivedtheEMPLOYEEHANDBOOKandunderstooditscontents.IherebycommitmyselftocomplywiththeCompany’srulesandregulations,thecorepurposeandvaluesthatwestrivetoachieveandthepoliciesthatgovernouractivities.

Furthermore,IpromisetosurrendertheHandbooktotheHumanResourcesDepartmentoritsdulyauthorizedrepresentativeattheendofmyemploymentwiththefirm.