EMPLOYEE HANDBOOK

Paxica Brand Management Corp.

 PART I

EMPLOYMENT PROCESSES

HIRING & SELECTION

A) EMPLOYMENT CLASSIFICATION

The Company hires employees depending on the job requirements and working arrangement, as indicated below:

1. PROBATIONARY EMPLOYMENT. An employee who is hired for a regular position shall undergo a
probationary period of not more than six (6) months, during which time their work performance and other
employment considerations shall be assessed and, on the basis of satisfactory performance, shall be made
regular employees. A probationary employment contract containing the terms and conditions of the
engagement as well as the job description is issued to the newly-hired employee. Likewise, said employee is
given an orientation with regard to the work standards of the Company as well as his assigned duties and
responsibilities.

2. REGULAR EMPLOYMENT. Prior to or at the end of the probationary period, an employee who successfully
met the standards and other employment considerations and who passed the probationary status, is
appointed regular employee of the Company

3. CONTRACTUAL / TEMPORARY EMPLOYMENT. An employees contracted by the Company to render

special services for a specified period of time such as relieving an employee on maternity leave, hiring
temporary personnel during peak seasons.

4. ON-THE-JOB TRAINEES (OJTs). Students who are required by their school to render a specific number of
hours in compliance with curriculum requirements for actual on-the-job training with different companies in
order to gain actual skills and working experience for possible future employment.

B) MANPOWER REQUESTS

It shall be the policy of the Company that all hiring shall require an approval from the Management to ensure that all
hiring are part of the Table of Organization/Organizational Chart and of the approved budget for the year.

C) INTERNAL JOB POSTING

The Company may conduct internal job posting procedures to give chance to its existing employees to signify interest
and apply for vacant position before resorting to external hiring for the required cases.
It shall be Management’s prerogative to determine qualifications and suitability of internal job candidates/applicants to
its existing positions. Management retains the right to directly hire from outside the company if it deems that nobody
from the company qualifies for its existing vacancies.

D) HIRING PROCESS

The Company shall undertake recruitment processes to properly identify and tap the best possible candidate for its
existing vacancies.

E) PRE-EMPLOYMENT REQUIREMENTS

Job candidates, who shall be considered for hiring, shall be requested to submit pre-employment requirements in
order to:

1. To assure the candidate’s identity.

2. To determine the employee’s character and ensure that he/she has no criminal records or pending criminal
case.

3. To determine past records with previous employers

The list of pre-employment requirements shall be provided on or before the joining date of the newly-hired employee.
The newly-hired employee is given thirty (30) days to complete the requirements. Failure to do so may result to non-
regularization of his/her employment.

F) EMPLOYMENT VERIFICATION & BACKGROUND CHECKING

The Company may conduct employment verification with the newly-hired employee’s previous employer to ensure
accuracy of information provided such as position, salary information, duration of employment, reasons for leaving,
records of past performance and to check if the employee left the company with good records.

G) PERFORMANCE APPRAISAL REVIEW DURING PROBATIONARY PERIOD

A newly-hired employee shall undergo a maximum of six (6) months probationary period during which time progress of
the employee’s performance shall be reviewed and assessed every two (2) months. The employee shall be given the
results of his/her performance evaluation within three (3) days from the date of evaluation.

H) REGULARIZATION

An employee who successfully passes the probationary period shall qualify for regularization.

A regular employee shall be entitled to company benefits, subject to entitlement requirements of specific benefits.
PERSONNEL MOVEMENT

A) TRANSFER OF EMPLOYEES

Management reserves the right to temporarily transfer an employee to other positions, departments, offices or areas
of operations that it deems most beneficial to the company or if needed by the exigencies of its operations, provided
there is no demotion in rank or diminution of salary or benefits. Thus, transfer to another position of the same level or
higher than the current position may be initiated by the Company.

An employee, who is temporarily transferred to a higher position or is required to discharge temporarily the duties and
responsibilities pertaining to that higher position, is not entitled to a promotion nor to an adjustment in salary.
However, exceptional performance may, at the discretion of the Company, be rewarded with a bonus or an allowance
may be given during the temporary assignment.

In principle, a transfer cannot be disobeyed by the employee as it may be used as insubordination (disobeying a lawful
order of the employer) and can be a ground for termination. This is the difference between a promotion and a transfer,
a promotion can be refused by the employee but a transfer must be followed.

Permanent transfer to another position may also be at the instance and upon the request of the employee subject,
however, to the following considerations:

1. The position where the employee wishes to be transferred is vacant;

2. The employee is qualified for the position; and
3. The employee is acceptable to the department/ division where he/she wishes to be transferred.

In cases of transfers initiated by the Management, the reason and need for the transfer shall be explained fully to the
employee affected.

B) JOB ROTATION

The Company may engage its employees into job rotation program to make for well-rounded knowledge and skills of
employees in line with its succession planning programs.

C) PROMOTION

As part of the Company’s developmental plan, deserving employees are given the opportunities to grow with the
Company and occupy higher positions.

All promotions within the Company are subject to the discretion of the Management.
The Company reserves its right to engage the services of any new employee for any position regardless of the tenure
of the employees already employed within the Company.

In the event of promotion within the Company, though, the employee shall be given an offer of promotion in writing,
stating the terms and conditions of the employee’s new designation. Acceptance of the offer in writing should be
made within one (1) week from the first day the higher position was formally offered. Acceptance of this offer by the
employee shall supersede any and all previous agreements between the Company and employee.

Where no acceptance is made within the prescribed period, the offer may be made to another qualified employee.
However, if the Company determines that the exigencies of the operations and the best interest of the entire Company
requires it, a lateral hire from outside the Company may be made.

Alternatively, an employee who applies for a higher position shall, if deemed necessary, undergo a maximum
probationary period of three (3) months with no extension. If he fails, he shall revert to his former position.

TERMINATION OF EMPLOYMENT

A) RESIGNATION

An employee who wishes to resign from the Company shall be required to file a resignation letter addressed to his/her
immediate supervisor, copy furnished HRD, stating therein the reason for resignation, which shall take effect at least
thirty (30) days upon filing. This is to allow the company sufficient processing time to recruit and train a suitable
replacement for the position. In the event the employee fails to render the notice period, the employee is liable to pay
the damages in the amount of fifty thousand Philippine Pesos (PhP50000). Management, however, reserves the right
to shorten/extend the notice as it deems appropriate.

Terminal leaves are not granted as a matter of policy because it renders the notice requirement nugatory and
meaningless. Thus, an employee serving the notice period, will not be allowed to go on leave except for medical
emergency situations. In such case, the employee will be required to submit relevant supporting documents which will
be subject to validation .An employee who remains on leave without authorization for three or more days while serving
notice period will be considered as AWOL and will be subject to applicable disciplinary action.

In most cases, the last working day and the separation date are one and the same. However, there may be cases
when the last working day is different from the separation date. This happens when the end of the notice period of the
employee falls on his/her rest day. In such cases, last working day refers to the last day the employee is paid his daily
rate (basic pay + allowances, etc.) while separation date refers to the date the employee is no longer an employee of
the company in which case, his/her other benefits shall also be ceased.

An employee who resigned from work shall turn over all property and monetary accountabilities with the HRD.
Likewise, he/she shall be required to accomplish the clearance form, which can be secured from HRD.

To be cleared of any accountability with the Company, the resigning employee shall:

i) turn-in to HRD all items and supplies issued to him/her for his/her use while in the Company’s employ,
such as:
 1. Keys to drawers, lockers and office equipment;

2. Unused office supplies;

3. Employee Handbook;

4. Office ID;

5. Working papers and correspondence files;

ii) return all other Company property; and

iii) settle any outstanding account with the Company.

Processing of clearance will have to be undertaken by the employee on or before the effectivity of his resignation.

After all the above matters have been settled, the employee will be issued his/her clearance papers, and will receive
his/her last pay, together with his/her earned but un-availed leaves and proportionate 13th month pay (net of all his/her
advances/loans), if any. If his loans or advances are more than the amount due him, no clearance will be issued until
he settles his outstanding accounts. A promissory note may be required to be submitted by the resigning employee,
together with a collateral, if deemed necessary.

B) TERMINATION FOR JUST CAUSE

In accordance with the law, the Company may terminate the employment of an employee on the following grounds:

1. Serious misconduct or Willful disobedience by the employee of the lawful orders of his/her employer or
representative in connection with his/her work;

2. Gross and Habitual Neglect by the employee of his/her duties;

3. Fraud or willful breach by the employee of the trust reposed in him/her by his/her employer or duly
authorized representative;

4. Commission of a crime or offense by the employee against the person of his/her employer or any
immediate member of his/her family or his/her duly-authorized representative;

5. Violation of the provisions of this Handbook; and

6. Other causes analogous to the foregoing.

In addition, a probationary employee can also be terminated due to his/her failure to qualify in accordance with the
standards of the Company made known to the employee at the time of his/her engagement.

The Company adheres to the procedure to be observed in cases of termination for just cause, consistent with its Code
of Discipline, as discussed here under:

1. Notice to the Employee to Show Cause

A written notice must be served upon the employee specifying the ground/s for his termination and providing the
employee a period of at least two (2) days but not exceeding seven (7) days within which the employee can explain
his/her side.

2. Hearing and/or Conference

The Company shall schedule a hearing/conference within five (5) days from its receipt of the employee’s written
explanation. During the hearing/ conference, the employee concerned, with his/her legal counsel, if he/she so desires,
is given an opportunity to respond to the charge, elaborate and/or clarify matters he/she raised in his/her written
explanation and to present his/her evidence or rebut the evidence against him/her. The Company is also given the
opportunity to make clarificatory questions during the hearing.

3. Notice of Termination of the Employee

Within forty eight (48) hours from the conduct of the hearing, a written notice shall then be served to the employee
indicating that, upon due consideration of all the circumstances, grounds have been established to justify the sanction
indicated or the termination of his employment. The termination shall take effect within ten (10) days from receipt of
the termination notice by the employee concerned.

An employee who is terminated for just causes from work shall turn over all property and monetary accountabilities
with the HRD on the day the termination is served. Likewise, he/she shall be required to accomplish the clearance
form, which can be secured from HRD. Processing of clearance will have to be undertaken by the employee on the
effectivity of his/her termination. All compensation and benefits due to the employee shall only be released once the
employee has been cleared from all property and monetary accountabilities with the company.

C) RETIREMENT

Retirement is a type of separation wherein an employee, upon reaching the retirement age as defined by the local
labor law, retires from the Company.

Under Article 287 of the Labor Code, as amended by RA 7641, the compulsory retirement age is set at 65 years old
while the optional retirement age is 60 provided that the employee has rendered at least 5 years of service in the
Company.

An employee who has retired is entitled to a retirement pay equivalent to at least one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one whole year.

D) DEATH OF AN EMPLOYEE

Separation upon death occurs in the unfortunate event of an employee’s demise while in the services of the company.

In case of death of employee, the HRD should be notified of such incident, who will then undertake the necessary
actions to assist the family of said employee. Proceeds of all benefits entitlement, including last salary shall be paid to
the legal beneficiaries of the former employee, upon submission of the necessary documents such as death
certificate, marriage contract, etc.

E) TERMINATION FOR AUTHORIZED CAUSES

Termination for authorized causes is a type of separation initiated by the company due to redundancy, retrenchment,
installation of labor-saving devices, business cessation, or due to an employee’s disease whose continued
employment is prohibited by law or prejudicial to the employee’s health as well as the health of other employees.

Termination for authorized causes requires the Company to provide a written notice to the employee and to the
appropriate Regional Office of the Department of Labor and Employment (DOLE) at least thirty (30) days before the
effectivity of the termination specifying the ground(s) for termination.

In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive the equivalent of one
(1) month pay or one (1) month for every year of service, whichever is higher.

In cases of retrenchment, business cessation or due to an employee’s disease whose continued employment is
prohibited by law or prejudicial to the employee’s health as well as the health of other employees, the employee is
entitled to receive the equivalent of one (1) month pay or one-half (1/2) month pay for every year of service,
whichever is higher.

An employee serving the notice period under this type of separation, will be allowed to go utilize their vacation leave
credits to provide them opportunities to find another organization. Sick leave credits cannot be utilized for the same
reason.

An employee who is terminated from this type of separation shall turn over all property and monetary accountabilities
with the HRD on the effectivity of their termination. Likewise, he/she shall be required to accomplish the clearance
form, which can be secured from HRD. Processing of clearance will have to be undertaken by the employee on or
before the effectivity of his termination. All compensation and benefits due to the employee, including the required
separation pay, shall only be released once the employee has been cleared from all property and monetary
accountabilities with the company.

PART II

HOURS OF WORK

A) OFFICIAL WORKING DAYS AND HOURS

1.1 The Company follows a six (6) day working week which may include Saturday and/or Sunday, subject to at least
one (1) rest days being provided to the employees in a span of seven (7) days

The working hours are defined as eight (8) hours per day.

The working hours exclude the one hour break for lunch which is provided every day.

An employee may be required to render additional hours of work on rest days or holidays, at the discretion of the
Management. The employee required to do so shall be entitled to premium pay and/or holiday pay in accordance with
the rates as provided by the Labor Code of the Philippines.

Work schedule and timings may vary across the company, and all employees are expected to adhere to their work
schedule/ shift defined for their respective team.

1.2 For the drivers they have six (6) working days in a week which may include Saturday and/or Sunday, subject to at
least one (1) rest days being provided to the employees in a span of seven (7) days.

The working hours are defined as twelve (12) hours per day.

The working hours may include the one hour break for lunch which is provided every day.

B) ATTENDANCE POLICIES

The Company expects its employees to report for work on time in accordance with their official working schedule.

Further, the Company adopts the flexible work policy as a means to facilitate a supportive and productive work
environment that is responsive to the changing professional and personal needs of the workforce. This arrangement
provides alternative work options to all employees of the Company, regardless of classification, for when they do
business. The core business hours defined above is from:

For admin and Receptionist: 9am to 6pm/ 10am to 7pm

For the housekeeping: 6am-3pm/12pm to 9pm/9pm to 6am

and all employees are expected to render the working hours defined above; however the company shall give the a 15
minutes grace period.

In case of any non-adherence to working hours and the flexible work policy by the employee, corrective action may be
initiated as per the Company’s Code of Discipline. Moreover, should the Company find abuse on the flexible work
policy, it may withdraw the adoption of such arrangement at any given time.
 C) TARDINESS

Tardiness shall mean reporting for work past the official working time.

An employee is allowed only ten (10) excused tardiness a year, reckoned from the first working day of the calendar
year. However, if an employee is required by the Company to be at a specific place outside the office prior to his
official starting time, he is not considered tardy.

For every excused or unexcused tardiness incurred by the employee, a corresponding salary deduction shall be made
equivalent to the actual time covered by the excused/unexcused tardiness. This is simply based on the principle of
“no work”, “no pay”. Apart from this, the following schedule of penalties shall apply to unexcused tardiness incurred
during one year period.

Offense (No. of Tardiness) Penalty

1st Offense Verbal Warning

2nd Offense Written warning

3rd Offense 2nd Written warning

4th Offense DISMISSAL

Tardiness cannot be compensated or offset with overtime work.

D) UNDERTIME

Under-time shall mean leaving one’s work before the end of the official working time. The Company discourages its
employees from going under-time, unless it is extremely necessary and emergency in nature.

Under highly exceptional cases, and only upon securing proper approval from Management, an employee may be
allowed to leave before the end of official working time, for any of the following valid reasons:

1. Emergency cases such as medical or immediate family concerns, or

2. Other valid reasons shall be determined on a case-to-case basis, which should not affect the operations of the
company.

Management reserves the right to disapprove under-time requests, as it deems appropriate. No employee under any
circumstances is authorized to go on under-time on his own, without securing proper approval

E) ABSENCES
Absences shall mean failure to report for work during official working days. An employee who will not be able to report
for work shall be required to notify his immediate superior at least two (2) hours before the shift.

An employee who intends to go on leave of absence shall be required to secure approval at least two (2) week before
the intended leave of absence.

An employee who went on sick leave shall be required to file an application for leave within twelve (12) hours upon
reporting for work.

The following shall be considered as unauthorized or unexcused absences:

1. Failure to inform the immediate superior of her/his absence two hours prior to his shift.
2. Failure on the part of the employee to observe the filing requirement for leave of absence.
3. Failure of employee to report for work on any working day without prior approval of the Company
4. Under-time without prior approval of the Company.
5. Failure to return to work after expiration of authorized leave of absence
6. Misrepresentation of the reason for the absence.
Unauthorized or unexcused absence cannot be applied against unused leave credits and is automatically deducted
from the employee’s pay. This is apart from the imposition of disciplinary action on the employee.

The following schedule of penalties shall be applied for any unauthorized or unexcused absence committed within a
period of one (1) year:

Category “A” Offense Penalty

(Cumulative but non-consecutive absences)

1st Offense (1 absence) No penalty

2nd Offense (2 absences) 1st Written Warning

3rd Offense (3 absences) 2nd Written Warning

4th Offense (4 absences) 5 days Suspension

5th Offense (5 absences) 10 days Suspension

6th Offense (6 or more absences) DISMISSAL

Category “B” Offense Penalty

(Cumulative but consecutive absences)

1st Offense (2 absences) 5 days Suspension

2nd Offense (3-5 absences) 10 days Suspension

3rd Offense (6 or more absences) DISMISSAL

 F) MEAL BREAKS

An employee shall be entitled to the following meal breaks:

1. Morning Shift Brunch– thirty (30) minutes

2. Afternoon Shift Lunch –thirty (30) minutes
3. Night Shift Dinner - thirty (30) minutes

G) OVERTIME RULES & REQUIREMENTS

The Company shall allow an employee to render overtime to finish important tasks which cannot be completed within
eight (8) hours duty and so as not to hamper the operations of the company, provided the following conditions are
met:

1) All overtime work shall require prior overtime authorization, duly approved by the Management. Overtime work
rendered without the duly approved overtime authorization shall not be compensable.

2) An employee shall be required to complete the eight (8) hours regular duty before they can be allowed to
render overtime.

H) WORK DURING HOLIDAYS/ REST DAYS.

The employee may also be required to report during his/her scheduled rest days or legal holidays or special holidays
based on business requirements, at the discretion of the Company. An employee working during his/her rest day/s or
holidays are entitled to premium pay and/or holiday pay in accordance with the rates provided in the applicable law
and the Company policy as discussed hereunder.

I) OVERTIME, REST DAY & HOLIDAY PAY COMPUTATION

An employee working on extended hours is entitled to overtime pay. The overtime pay rate is calculated as an
enhance percentage of the hourly basic pay (not including allowances). Hourly rate is computed as: (basic pay/26
working days)/8.

For the purposes of overtime pay computation, the employee would be paid proportionately for the time he/she has
worked beyond the eight (8) hours of regular work.

The employee is eligible for additional payout for overtime work depending on the type of day he/she is required to
report/ extend:
 First 8 Beyond 8
Type of Overtime hours hours

Regular Overtime - 125%

Special Holiday or Rest Day 130% 169%

Special Holiday on Rest

Day 150% 195%

Legal Holiday 200% 260%

Legal Holiday on Rest Day 260% 338%

J) NIGHT SHIFT DIFFERENTIAL

For work shift timings between 10pm to 6am, the employee is entitled to a night differential pay of not less than 10% of
his/her regular hourly rate. Hourly rate is computed as: (basic pay/22 working days)/8.

Night differential pay may also differ depending on the type of day the employee rendered the night shift.

Type of Overtime First 8 Beyond 8

hours hours

Regular Overtime 10% 137.50%

Special Holiday or Rest Day 143% 185.90%

Special Holiday on Rest Day 165% 214.50%

Legal Holiday 120% 286%

Legal Holiday on Rest Day 286% 371.80%

K) PAYROLL CUT-OFF

The Company observes the following payroll cut off:

 PAYROLL CUT-OFF DATE PAY-OUT DATE

26th of the previous month to 10th of current 15th of the month

month

11th to 25th of the current month End of the month

L) OFFICIAL BUSINESS TRIPS

The official time in and out of all employees shall be registered thru the biometrics machine. Employees who go out on
official business and who have no official time in or time out on specific dates shall file for an exception approval of all
dates he/she was out on official business every end of the week and submits the same for payroll purposes.

M) WORK SUSPENSION

In the event work has to be suspended due to floods, typhoons and similar calamities, the following rules shall apply:

1. Only announcements or declarations from the Company, the Office of the President or Malacañang
shall be recognized as official.

2. If the announcement suspending work is issued the day before, or before the start of office hours, the
employee who does not report for work shall be excused and paid his/her regular rate chargeable
against his/her accrued or future leave credits.

3. If the employee has already reported for work and the announcement suspending work is made
before or during office hours, the employee who goes home after the announcement shall be excused
and paid his/her regular rate chargeable against his/her accrued or future leave credits.

4. If an employee is specifically requested to work after the announcement was made, his/her pay shall
be as follows:

i. for work that is less than eight (8) hours – regular rate plus 25% premium pay;

ii. for work rendered beyond eight (8) hours – regular rate plus 25% premium pay and
regular overtime rate.

An employee who is requested to work must be authorized by the Company, otherwise, he/she will not
receive the above pay.
 5. If an employee reports for work after the announcement is issued and he/she is requested to stay on
and work, his/her tardiness up to the time of announcement will be excused. His/her pay for the time
thereafter shall be in accordance with the preceding provisions.

PART III

COMPANY RULES & REGULATIONS

A) COMPANY ID
The Company issues company IDs to ensure that only authorized personnel can be allowed access inside the
company premises.

1. All employees shall be required to wear company-issued ID at all times within the company premises.

1. Lost IDs must be reported immediately to HRD so that a replacement card can be made and issued.

1. Employees shall not be allowed to tamper or alter the company ID card in anyway.

B) DRESS CODE

All employees should adhere to the professional image of the Company and are expected to wear appropriate
clothing, including company ID while in the work premises during working hours. Wearing slipper inside the office is
prohibited.

C) EMPLOYMENT OF RELATIVES

Management may give opportunities for job employment to relatives of employees, provided they will not be reporting
directly with each other.

1. A relative is a person who is related by blood or marriage, or whose relationship with the employee is similar
to that of persons who are related by blood or marriage.

1. Immediate family members include spouse, in-laws, step relatives, domestic partner, parent, child or stepchild,
sister or brother.

1. Relatives of employees may only be hired if they will not be working directly for or supervising a relative,
and/or if they are working in different departments.

1. No special treatment shall be extended to relatives and immediate family members. They will be treated as
professionals.

1. Special cases may arise in which case employment is determined at the discretion of Management.

D) EQUAL EMPLOYMENT OPPORTUNITIES

The Company is an equal opportunity employer and makes employment decisions on the basis of merit. We want to
have the best available people in every job. Therefore, the Company does not discriminate, and does not permit its
employees to discriminate against other employees or applicants because of race, color, religion, sex, sexual
orientation, gender identity or expression, pregnancy, marital status, national origin, citizenship, veteran status,
ancestry, age, genetic characteristic, or any other consideration made unlawful by applicable laws.

E) OPEN DOOR POLICY

In order to encourage open communication, feedback and discussion about matters of importance to employees, the
company adopts an “Open Door” Policy, whereby every manager is available to every employee for any concern.

F) LOSS OF COMPANY PROPERTIES

Employees may be issued certain tools, equipment or gadgets in order to perform the job. These items belong to the
company but are placed in the employee’s care and custody. The employee shall be held accountable for any damage
or loss of these properties.

G) USE OF OFFICIAL COMPANY LOGO

To maintain a consistent brand entity and enhance marketplace recognition, the company’s official logo shall be the
only logo to be used on all communications representing the company, both internal and external.

H) COMPETITION & FAIR DEALING

The Company commits to a fair dealing and competition in all its business transactions and ensures that employees
adhere to this standard.

1. Avoid taking unfair advantage of anyone through manipulations, concealment, abuse of privileged information,
misrepresentation of material facts, or any unfair dealing practice.

1. Deal fairly with the Company’s customers, service providers, suppliers, competitors and employees.

1. Avoid making false and misleading statement or representation to anyone about the company, its customers,
competitors, suppliers and trade partners.

1. Avoid reciprocal dealing (x-deal or barter of some trade ) with a prospective supplier or trade partner.

I) CONFLICT OF INTEREST

We all must avoid conflicts of interest. A conflict of interest exists when a personal interest or activity interferes or
appears to interfere with the duties that you perform at, or owe to the Company. A conflict of interest may
unconsciously influence even the most ethical person and the mere appearance of a conflict may cause an
employee’s acts or integrity to be questioned.

J) NON-DISCLOSURE & CONFIDENTIALITY

All employees shall be required to keep all information in strict and utmost confidence and shall not disclose in any
manner whatsoever any such information to any person or entity, including but not limited to: intellectual and
proprietary or confidential information owned by or licensed to the Company.

All employees shall strictly abide by all other restrictions on the use and disclosure of such information which the
Company may establish from time to time.

K) HARASSMENT & REPORTING PROCEDURE

The most productive and satisfying work environment is one in which work is accomplished in a spirit of mutual trust
and respect. Harassment is a form of discrimination that is offensive, impairs morale, undermines the integrity of
employment relationships and causes serious harm to the productivity, efficiency and stability of our organization.

Harassment in employment, including sexual, racial, and ethnic harassment, as well as any other harassment
forbidden by law, is strictly prohibited by the Company. Employees who violate this policy are subject to discipline,
including possible termination.

Grievance Procedure

Any employee who believes he or she is being harassed, or any employee, who becomes aware of harassment,
should promptly notify his or her supervisor. If the employee believes that the supervisor is the harasser, the
supervisor's supervisor should be notified. If an employee is uncomfortable discussing harassment with his or her
supervisor, the employee should contact HRD.

Upon notification of a harassment complaint, a confidential and impartial investigation will be promptly commenced
and will include direct interviews with involved parties and where necessary with employees who may be witnesses or
have knowledge of matters relating to the complaint. The parties of the complaint will be notified of the findings and
their options.

Non-retaliation

This policy also expressly prohibits retaliation of any kind against any employee bringing a complaint or assisting in
the investigation of a complaint. Such employees may not be adversely affected in any manner related to their
employment.

Disciplinary Action
The company views harassment and retaliation to be among the most serious breaches of workplace behavior.
Consequently, appropriate disciplinary or corrective action, ranging from a warning to termination, can be expected.

L) GOOD HOUSEKEEPING

Employees are expected to keep their working area neat and clean, and use the services and facilities provided
appropriately. Employees are encouraged to report to the Management any repairs or improvements that may be
required.

Deliberate destruction of or negligence in caring for office equipment shall be penalized accordingly.

M) PERSONNEL RECORDS / UPDATING

The company keeps a personnel file on each employee. The contents of an employee's file, except for letters of
reference and certain other limited kinds of information, are open for his or her inspection, upon request, at reasonable
times. An employee may request and receive from the company a copy of anything in his or her file that has been
signed by them. Employees may contact HRD if they wish to review their personnel file or to make copies of
documents signed by them.

N) BLOGGING & SOCIAL MEDIA

Blogging and social media websites shall be kept strictly personal. At no time shall the company-related information
be dispersed or discussed, without proper approval from Management.

O) INTERNET USAGE POLICIES

Use of the Internet by employees is permitted and encouraged where such use supports the goals and objectives of
the business. However, access to the Internet is a privilege and all employees must adhere to the policies concerning
Computer, Email and Internet usage.

Violation of these policies could result in disciplinary and/or legal action leading up to and including termination of
employment. Employees may also be held personally liable for damages caused by any violations of this policy.
 P) VOICE MAIL, EMAIL & COMPUTER FILES

Company provided voice mail, E-mail and computers are to be used for business purposes only, and may not be used
for personal business. These systems are maintained by the company in order to facilitate company business.
Therefore, all messages sent, received, composed and/or stored on these systems are the sole property of the
company.

Company computers should not be used to access online databases or Internet services unless such access is for
work related purposes. The company understands that on occasion, employees may need to conduct personal
business using computing resources. Such use must be limited to break time and does not excessively use computing
and network resources.

Employees are prohibited from using passwords without prior company authorization and registration. The existence
of a password on voicemail, email or computer systems is not intended to indicate the messages or other
communications will remain private.

Employees are prohibited from loading any software onto a company provided computer where such action would
violate the software license. Employees are prohibited from loading any software onto a company provided computer
without the express approval of their manager or supervisor.

The email system should not be used to send (upload) or receive (download) copyrighted materials, trade secrets,
proprietary information, or similar matter without prior authorization from the company.

TRAVEL & EXPENSES POLICY

The Company recognizes the need for employees to periodically travel away from the area on Company business and
related matters/activities. These activities include but are not limited to visits to other Company sites, service
providers, trade shows, sales meetings, conferences, and seminars. This policy establishes uniform requirements and
guidelines for travel authorizations and expense authorizations/reporting.
 PART IV

COMPENSATION AND OTHER COMPANY BENEFITS

SALARIES

Salaries are paid semi-monthly, in accordance with the provisions of the Labor Code. The employee’s net pay is
directly credited to his/her account with the bank where the Company has a payroll account.

13TH MONTH PAY

The Company grants payment of 13th month pay towards the end of the year as prescribed by labor laws. Pursuant to
the said law, this benefit is one-twelfth (1/12) of the employee’s salary for the year. An employee shall not be entitled
to a 13th month pay, unless he/she has served the Company for at least one (1) month during the applicable year.

The 13th Month Pay is computed as: (Total amount of basic pay paid) x 12
number of months of the employee

SOCIAL SECURITY SYSTEM

The Social Security System (SSS) provides a package of benefits in the event of death, disability, sickness, maternity,
and old age. Basically, the Social Security System (SSS) provides for a replacement of income lost on account of the
aforementioned contingencies.

The monthly contribution of an employee is based on his/her compensation. (Please see table hereunder for the SSS
2018 Contribution Table).

Range of Gross Employer Employee’s Total Employee Total

Monthly Share Compensation Employer Share Contribution
Compensation Program Contribution

1,000-1,249.99 73.70 10.00 83.70 36.30 120.00

1,250-1,749.99 110.50 10.00 120.50 54.50 175.00

1,750-2,249.99 147.30 10.00 157.30 72.70 230.00

2,250-2,749.99 184.20 10.00 194.20 90.80 285.00

2,750-3,249.99 221.00 10.00 231.00 109.00 340.00

3,250-3,749.99 257.80 10.00 267.80 127.20 395.00

3,750-4,249.99 294.70 10.00 304.70 145.30 450.00

4,250-4,749.99 331.50 10.00 341.50 163.50 505.00

4,750-5,249.99 368.30 10.00 378.30 181.70 56000

5,250-5,749.99 405.20 10.00 415.20 199.80 615.00

5,750-6,249.99 442.00 10.00 452.00 218.00 670.00

6,250-6,749.99 478.80 10.00 488.80 236.20 725.00

6,750-7,249.99 515.70 10.00 525.70 254.30 780.00

7,250-7,749.99 552.50 10.00 562.50 272.50 835.00

7,750-8,249.99 589.30 10.00 599.30 290.70 890.00

8,250-8,749.99 626.20 10.00 636.20 308.80 945.00

8,750-9,249.99 663.00 10.00 673.00 327.00 1,000.00

9,250-9,749.99 699.80 10.00 709.80 345.20 1,055.00

9,750-10,249.99 736.70 10.00 746.70 363.30 1,110.00

10,250-10,749.99 773.50 10.00 783.50 381.50 1,165.00

10,750-11,249.99 810.30 10.00 820.30 399.70 1,220.00

11,250-11,749.99 847.20 10.00 857.20 417.80 1,275.00

11,750-12,249.99 884.00 10.00 894.00 436.00 1,330.00

12,250-12,749.99 920.80 10.00 930.80 454.20 1,385.00

12,750-13,249.99 957.70 10.00 967.70 472.30 1,440.00

13,250-13,749.99 994.50 10.00 1,004.50 490.50 1,495.00

13,750-14,249.99 1,031.30 10.00 1,041.30 508.70 1,550.00

14,250-14,749.99 1,068.20 10.00 1,078.20 526.80 1,605.00

14,750-15,249.99 1,105.00 30.00 1,135.00 545.00 1,680.00

15,250-15,749.99 1,141.80 30.00 1,171.80 563.20 1,735.00

 15,750-over 1,178.70 30.00 1,208.70 581.30 1,790.00

EMPLOYEE’S COMPENSATION PROGRAM

The Employees’ Compensation Program (ECP) is a government program designed to provide a compensation
package to public and private sector employees or their dependents in the event of work-related sickness, injury,
disability, or death.

PHILHEALTH BENEFITS

The National Health Insurance Program (NHIP), formerly known as Medicare, is a health insurance program for SSS
members and their dependents whereby the healthy subsidize the sick who may find themselves in need of financial
assistance when they get hospitalized.

The Philippine Health Insurance Corporation or PhilHealth is the mandated administrator of the Medicare program
(now known as NHIP) under the National Health Insurance Act of 1995 (Republic Act 7875).

Effective January 2018, unless otherwise adjusted, the monthly contribution of an employee shall be at the rate of
2.75% computed straight based on the monthly basic salary, to be equally shared by the employee and the Company,
based on the table below:

Basic Monthly Salary Employer Share Employee Share Total Monthly

Premium

10,000.00 and below 137.50 137.50 275.00

10,000.01-39,999.99 137.51-549.99 137.51-549.99 275.02-1,099.99

40,000-over 550.00 550.00 1,100.00

PagIBIG FUND

Being a member of the Pag ibig Fund (also known as HDMF or Home Development Mutual Fund) is a mandatory
requirement for all employees covered by the SSS and GSIS, private employees, household helpers, seafarers, OFW
and those who are listed below.

MATERNITY LEAVE AND OTHER BENEFITS

Any pregnant female employee who has paid at least three (3) months contributions for the last twelve (12) months
immediately preceding the expected date of delivery or complete abortion or miscarriage and has given notification to
SSS within the first month of pregnancy, up to a maximum of four (4) pregnancies, shall be entitled to maternity leave,
as provided for under the SSS Law and its implementing rules and regulations, to wit:
 Caesarean Section 78 calendar days

Normal Delivery &

Miscarriage 60 calendar days

During the maternity leave, SSS grants a daily cash allowance equivalent to 100% of average daily salary credit (not
actual daily salary) multiplied by applicable number of ML days (the “SSS Maternity Benefit”). The average daily salary
credit is based on a table provided by SSS.

A) In case of delivery

The employee shall receive the SSS Maternity Benefit before she goes on maternity leave. Such benefit shall not be
considered as cash advances for internal purposes but shall be the Company’s compliance with the SSS requirement.
Therefore, this shall not be deducted from the employee’s salary.

Upon reporting back for work or within one (1) month thereafter, the employee must submit to the HRD a copy of the
birth certificate of the child and the operating room record (for caesarian operation) to enable the Company to claim
reimbursement from the SSS. Should the employee fail to comply with the requirements resulting in the Company’s
failure to claim for reimbursement, the amount equivalent to the SSS Maternity Benefit shall be deducted from the
employee’s succeeding salaries.

B) In case of abortion/miscarriage

The employee shall receive the SSS Maternity Benefit upon approval by the SSS of the Sickness Notification Form.
This SSS Maternity Benefit shall not be considered a cash advance for internal purposes but shall be the Company’s
compliance with the SSS requirement. Therefore, this shall not be deducted from the employee’s salary. Upon
reporting back for work or within one (1) month thereafter, the employee shall submit a medical certificate and the
operating room record to enable the Company to claim reimbursement from the SSS. The SSS Maternity Benefit shall
be deducted from the employee’s salary for succeeding miscarriages within the year or if the employee fails to submit
her medical records.

C) In case of reporting for work before the expiration of the maternity leave

As a general rule, no employee shall be allowed to report back for work prior to the exhaustion of her maternity leave.
However, should the exigencies of the service require the recall of an employee from her maternity leave, the
employee must submit to HRD a certification from her OB-Gynecologist that she is fit to work. In this case, the
Company shall give its written approval for the recall.

The employee who is required to report for work earlier than the expiration of her maternity leave shall be paid her
salary for the actual work performed.

Once the employee presents copies of the requirements needed by the SSS, the Company shall advance maternity
benefit allowance in full, within thirty (30) days from the filing of maternity leave application.
PATERNITY LEAVE

Paternity Leave entitles every married male employees company-paid leave for seven (7) working days with full pay,
consisting of basic salary and all allowances and other monetary benefits, for the first four (4) deliveries, miscarriages
or abortion of his lawful spouse with whom he is cohabiting.

The employee shall notify his immediate supervisor of the pregnancy and expected date of delivery of his lawful
spouse. Employee must submit a copy of 1) Marriage Certificate and 2) Ultrasound Report of the legal spouse.

Paternity leave may be applied two (2) weeks before, during or two weeks after child birth or miscarriage of the lawful
spouse, provided that the total number of days shall not exceed seven (7) working days for each delivery.

After availment of the paternity leave benefit, the employee must submit within fifteen (15) days a copy of the birth
certificate of the newly-born child, acknowledging paternity therein, or medical certificate in case of miscarriage or
abortion.

PARENTAL LEAVE FOR SOLO PARENTS

In accordance to Republic Act 8972, any solo parent or individual left alone with the responsibility of parenthood, as
defined by law, shall be granted by the Company parental leave of not more than seven (7) working days every year in
addition to leave privileges under existing labor laws. This benefit allows a solo parent to perform parental duties and
responsibilities where physical presence is required.

The Solo Parent leave shall be provided to the employee, provided that:

1. He/she has rendered at least one (1) year of service, whether continuous or broken;
2. He/she has notified his/her employer that he/she will avail himself /herself of it, within a reasonable period of
time; and
3. He/she has presented to his/her employer a Solo Parent Identification Card, which may be obtained from the
Department of Social Welfare and Development office of the city or municipality where he/she resides.

MAGNA CARTA (SPECIAL LEAVE) FOR WOMEN

In accordance to Republic Act 9710,all female employees shall be entitled to a special leave benefit, maximum of two
(2) months with full pay based on gross monthly compensation following surgery due to gynecological reasons.

To be eligible, female employees must have rendered continuous aggregate employment of at least six (6) months for
the last twelve (12) months. Availament of leave benefit is in accordance to List of Surgical Operations for
Gynecological Disorders which includes estimated period of recuperation.

A female employee who may need to use this leave shall inform her immediate supervisor at least two (2) weeks prior
to her scheduled operation. She will be required to submit medical certifications to support her leave application.
LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN

In accordance to Republic Act 9262, victims of violence against women and children, as defined therein, shall be
entitled to take a company-paid leave up to ten (10) days in addition to other paid leaves under existing labor laws,
which can be extended as the need arises, as specified in the prosecution order issued by the barangay or the court.
Employee is required to submit certification from the barangay chairman or barangay councilor or prosecutor, that an
action relative to the matter is pending.

In the event that the leave benefit is not availed of, it shall not be convertible to cash and shall not be cumulative.

VACATION, EMERGENCY & SICK LEAVE CREDITS

An employee is entitled to five (5) days of paid leaves. Credits are earned on a pro-rata basis starting from the month
of joining of the employee, and eligible for use upon regularization. Leave credits can be used for vacation, sick and
emergency purposes.

In addition, unused leaves cannot be converted into its cash equivalent.

In cases where the Company would require an employee to forego a scheduled leave, the employee shall be paid the
cash value of such leave, unless the same is rescheduled and taken within the year.

Any unexcused absence incurred outside the scheduled leave will be treated as absence without official leave
(“AWOL”) and the corresponding salary deduction and penalty shall be imposed.

An employee who absents with or without prior notification cannot assume that simply on his/her say so, the absence
is automatically charged against his/her leave credits. The Company shall exercise its discretion to consider the
absence as chargeable to leave credits, excused absence but not chargeable to leave credits, or AWOL depending on
the justification.

EMERGENCY LEAVE

In case an employee is unable to report for work for emergency reasons including, among others, sudden illness,
he/she is not only required to call the Company, but in addition, he/she must also advise the Company of:

a. his/her pending work;

b. location of papers, documents and other materials that he/she is handling; and

c. any verbal instructions previously conveyed to him/her by his/her superior/s.

Emergency leave shall be charged to the employee’s leave credits, if any, otherwise, the same shall be without pay.

Before or immediately after going on emergency leave, the employee is required to submit to the Company a written
excuse indicating therein with sufficient particularity the reason for the emergency leave. When the employee has a
record of excessive absences, or the alleged reason appears doubtful, the Company can inquire into, and assess the
validity of the reason to determine whether or not the employee should be excused.

PART VI

CODE OF DISCIPLINE & DUE PROCESS PROCEDURES

PROGRESSIVE DISCIPLINE

The Table of Discipline follows the principle of progressive discipline—that is a stiffer disciplinary action is applied
every time the same violation is committed by the employee. While it is corrective in nature, the employee is expected
to improve his compliance and prevent the same violation from being committed.

TABLE OF DISCIPLINARY SANCTION

Occurrence of
Severity of Offences Description Offense Disciplinary Penalty Validity Period

1st Offense Verbal Warning

2nd Offense Written Warning

6 Months
Minor Disciplinary
Class I Final Written
Lapses
3rd Offense Warning

Not
4th Offense Dismissal Applicable

1st Offense Written Warning

1 Year
Final Written
Class II Misdemeanour 2nd Offense Warning

Not
3rd Offense Dismissal Applicable

Final Written Not

1st Offense Warning Applicable
Class III Misconduct
Not
2nd Offense Dismissal Applicable
 Not
Class IV Grave Offenses
1st Offense Dismissal Applicable

RESPONSIBILITIES

Immediate Superior

1. To report to HRD any violation committed by an employee

2. To implement corresponding action, with the assistance of HRD
3. To counsel employee/subordinate who committed the violation and encourage them to take corrective action
to prevent the same violation from happening again

HRD

1. To document all disciplinary sanctions

2. To assist the Managers/ Supervisors in the correct interpretation of company policies, as well as Code of
Discipline
3. To monitor on the progress of the employee
4. To assist the immediate superior in counselling the employee

DUE PROCESS PROCEDURES

Upon learning a violation committed by the employee, Management shall take the following due process procedures:

1. Immediate Superior reports thru an Incident Report the employee’s violation to HRD within twenty-four (24)
hours upon discovery of the violation.

2. HRD reviews the report, and if found appropriate, issues necessary notice of explanation letter (“NTE”) to the
employee. HRD may, at its discretion, decide to not pursue to a formal case to the employee. When that
happens, a verbal discussion will just happen between HRD, the employee concerned and the immediate
supervisor.

3. In cases when the employee refuses to acknowledge receipt of the NTE, a witness who can be any employee
of the company, shall witness that the notice is being served but employee refused to acknowledge receipt
thereof.

4. In such case, HRD should write “refusal to acknowledge receipt of the notice as witnessed by” then indicate
name and signature of the witness, including date and time the notice is served.

5. Employee is given at least two (2) days but not exceeding seven (7) days to comply with the written
explanation to explain why no disciplinary action should be taken against him/her.

6. Employee submits the written explanation within the required period to HRD.

7. If no explanation was received after the deadline, HRD issues a Notice of Disciplinary Action (“NDA”) and
effects corresponding sanction. Note that further investigation and administrative hearing(s) may be
conducted to ensure fairness in the decision-making process.
 8. An NDA is issued to the Employee, duly acknowledged and received by the employee.

9. For cases involving suspension, the immediate superior schedules the suspension immediately upon
issuance of the NDA. The schedule of suspension should be viewed as a penalty, so it is important that it is
immediately issued so the employee will feel the effect of his violation immediately upon commission thereof.
This should not drag as it lessens the effectiveness of the sanction. It goes without saying that “Justice
delayed is justice denied.” Same with disciplinary action, it should be effected close to the date of violation so
effect should be immediately felt by the employee concerned.

10. For record purposes, a duplicate copy of the notice is maintained in the employee’s 201 file.

MULTIPLE OFFENSES/VIOLATIONS

In cases where an employee has violated two or more offenses/violation at the same time, the higher sanction shall
applied.

GRIEVANCE PROCEDURE:

In case of disagreement on the disciplinary action interpretation or implementation, the following level of hierarchy
shall be observed to elevate the matter. Once it reached the President, the decision shall be decided as final and
executory.

1st Level - recommendatory

1. Immediate Superior

2. Department Head

3. HRD

2nd Level – final and executory

President

EMPLOYEE AGREEMENT FORM

The employee acknowledges that he/she has been given the opportunity to read and fully understands the
foregoing conditions set forth in this Employee Handbook. Employee also acknowledges that he/she has been given
a copy of this handbook for his/her personal file. Employee agrees to abide and be bound by all policies and
procedures set forth herein.
 This handbook shall be governed by and construed under Philippine law and shall not be modified in whole or
in part except by an agreement in writing signed by the parties hereto. It shall inure to the benefit of successors of the
Company by way of merger, consolidation or transfer of substantially all the assets of the Company. In case any one
or more of the provisions or part of a provision contained in this manual shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision
or part of a provision of this agreement, but this agreement shall be construed as if such invalid or illegal or
unenforceable provision or part of a provision had never been contained herein. If any term, time, or area set forth in
this manual shall be deemed to be excessive by a court of competent jurisdiction, such term or area shall not thereby
be rendered invalid, but shall be interpreted to be the maximum time or area which shall to the court seen reasonable
under the circumstances. The waiver of the breach of any term or condition of this agreement shall not be deemed to
constitute the waiver of any other or subsequent breach of the same or any other terms or conditions.

I, ________________________________________, an employee of the PAXICA BRAND MANAGEMENT

CORP., have received this Employee Handbook on this day _______________________, and agree to be bound by
all the terms contained herein.

___________________________________

(Signature of Employee Above Printed Name)