AAZ MARKETING INC.

BALAI BELEN GARNET ST., RGA VILLAGE DACUDAO, BRGY. PONCIANO BANGOY, AGDAO DAVAO CITY
082- 228-4225

TO : ALL EMPLOYEES AAZ MARKETING INC.

SUBJECT: AAZ CODE OF CONDUCT AND DISCIPLINE

DATE:
Please be informed that the AAZ code of conduct shall be in effect starting March 26, 2021 .
All employees are required to familiarize themselves with the provision of the code.

For your guidance, please

Thank you!

GLYNN B. ALABA
HR HEAD
AAZ MARKETING INC

ALOYSUIS ZHANG
GENERAL MANAGER
AAZ MARKETING INC

THE CODE OF CONDUCT AND DICIPLINE

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The right of the AAZ Management to discipline its employee stems from management prerogative,
which is the right of the management to freely regulate all aspects of employment, including the
discipline and dismissal of employees.

The Code of Conduct and Discipline (the code) is a set of rules that determines the appropriate conduct
suitable for a professional working atmosphere in AAZ (The Company). The code will regulate and define
what is expected morally and ethically of an individual who has agreed to follow these rules as soon as
he commits to work for the Company. Likewise, the code will help the Company determine if a certain
action of an employee is subject to penalties.

This code of conduct does not conflict with labor laws of the Philippines. This code is also not all-
inclusive. Hence, for cases not found in this code, existing Philippine laws will apply.

DEGREE OF OFFENSE, PENALTIES AND POSITIVE MEASURES

MINOR OFFENSES- is an offensive which merits the issuance of a written reminder or carries a penalty of
one (1) working day suspension.

MODERATE OFFENSE- is an offense which carries a penalty of two (2) to five (5) working days
suspension.

MAJOR OFFENSE- is an offense which carries a penalty of five (5) to fifteen (15) working days suspension
or dismissal from service.

DICIPLINARY PENALTIES- are based on the degree of offense that may usually take the form of a written
reminders, suspension or dismissal from the service or employment.

REMINDERS- is a written statement of censure, rebuke or sharp scolding of a misbehavior employee.

SUSPENSION- is the period when a misbehavior employee is temporarily not allowed or permitted to
work.

DISMISSAL- is the permanent and involuntary separation of an employee from the service or
employment. It is the highest penalty that can be imposed against the misbehavior employee.

COACHING- is used by the Company to help an employee improve his behavior and performance on the
job. The discussion point and agreement are reduced in a coaching form and signed by manager
immediate disciplining authority and employee.

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 RULE 01: OFFENSES AGAINST PERSON

Every employee shall be guided by the highest degree of mutual respect, honesty and integrity in
dealing with co-employees. Any of the following acts is contrary to this rule and subject to disciplinary
actions:

Section 1: Insubordination- willful disobedient or intentional refusal of the employee to perform a lawful
or reasonable order of his superior.

First Offense- Moderate or Major (depending on the circumstances)

Second Offense- Major with the maximum penalty of Dismissal.

Section 2: Fighting, provoking a fight, threatening or causing physical injury to co-employees of officer
within company premises or during Company authorized functions.

First Offense- Moderate or Major (depending on the circumstances)

Second Offense- Major with the maximum penalty of dismissal.

RULE 02: OFFENSES AGAINST MORALS

Every employee shall maintain high moral standards of behavior and shall avoid indecent, lewd, and
immoral art which could give occasion for scandal or could be prejudicial to the image of the Company.
Any of the following acts is contrary to this rule and subject to disciplinary action:

Section 1: Conduct in violation of the common decency or morality which company premises or during
company authorized functions. This includes, but is not limited to, illicit relationship between employees
or between an employee and a business partner (a consultant, a supplier, or other persons) doing
business with the Company.

First Offense- moderate or Major (depending on the circumstances)

Second Offense- major with the maximum penalty of dismissal.

Section 2: Conviction by final judgment of any crime involving immorality or any crime the nature of
which renders the employee unfit for the position he holds, or conviction by final judgment of a crime or
offense punishable by imprisonment.

First Offense- Major with the Maximum penalty of dismissal.

Section 3: Any act of sexual harassment.

First Offense- Major with the maximum penalty of dismissal.

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Section 4: Knowingly giving false testimony or information during a Company investigation or any other
form of inquiry and making misleading report.

RULE 03: OFFENSE AGAINST WORK CONDUCT AND PRODUCTIVITY

Each employee shall perform his duties regularly with diligence and dedication to meet all standards of
works satisfactory. Any of the following acts is contrary to this rule and subject to disciplinary action:

Section 1: Drinking alcoholic liquor during working hours or within Company premises, except during
company authorized functions or reporting to work under the influence of alcoholic liquor or
intoxicating substances.

First Offense- Minor

Second Offense- Moderate

Third Offense- Major with the maximum penalty of dismissal.

Section 2: Gross and/or habitual neglect by an employee of his duties.

First Offense- Major

Section 3: Basic Monthly Quota to the Merchandiser

The merchandiser is required to hit the 70% basic monthly quota according to the management policy. If
the Merchandiser cannot comply his/her monthly quota, the following acts is contrary to his rule and
subject to disciplinary actions.

First Offense- Minor

Second Offense-Moderate

Third Offense- Major with the maximum penalty of dismissal.

RULE 4: OFFENSES AGAINST PROPERTY

Every employee shall exercise due care and protection over properties or assets that are owned,
operated, and/or managed by the Company, and are entrusted to the employees or over which he has
acquired access or possession whether or not directly related to his work, function, or duty. Any of the
following acts is contrary to this rule and subject to disciplinary action:

Section 1: stealing or attempting to steal any Company property.

First Offense- Major with the maximum penalty of dismissal.

Section 2: Offering or accepting bribes in the form of money or anything of value from Company
customers and suppliers, except for authorized solicitation as approved by the Management.

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First Offense- Major

Section 3: Dishonesty on reimbursement of expenses or willful tampering and altering of receipt is

found guilty will be considered a major offense.

1st Offense- Major or Dismissal

2nd Offense-Minor, Moderate or Major (depending on the circumstances)

Section 4: Gross negligence in the handling of Company property that led to damages or losses.
(Depending on the circumstances of the case, the offense can be classified as minor or major even on
the first offense. In General the following steps will be followed)

1st, 2nd, and 3rd Offense- Coaching

4th and 5th Offenses- Written reminder

6th, 7th and 8th Offenses- Minor

9th Offense- Moderate

10 Offenses- Major with the maximum penalty of dismissal.

PERIOD WITHIN WHICH TO FILE WRITTEN EXPLANATION OR ANSWER

Employee charged of an offense shall be given reasonable opportunity to file his written explanation or
answer.

Minor Offense: One-day period

Moderate Offense: Two-day period

Major Offense: Three day period.

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 AMENDMENT TO THE CODE

Management Prerogative. Any amendment to the code is a prerogative of the Management. As the
circumstances and demand of the operations of the Company warrant, amendment may be made.

Prepared By:

GLYNN B. ALABA
HR HEAD
AAZ MARKETING INC.

Approved By:

ALOYSIUS ZHANG
GENERAL MANAGER
AAZ MARKETING INC.
DATE: March 26, 2021

I have read, understood and accepted the condition stated in the code of conduct and discipline of AAZ
Marketing Inc as part of my employment with the Company.

Glenn D. Gomez .
Name of Employees
Date: March 26, 2021

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