A 2 0 0 0 0 3 0 0 8

S.E.C. Registration Number

M A X' S G R O U P , I N C .
( f o r me r l y P a n c a k e H o u s e , I N C . )

(Company's Full Name)

2 3 0 5 C H I N O R O C E S A V E N U E E X T .

M A K A T I C I T Y
(Business Address: No. Street City/ Town/ Province)

Rebecca R. Arago (632) 784-9000

Contact Person Company Telephone Number

1 2 3 1 0 6 any
SEC Form 17-C
Manual on Corporate Governance
Month Day Month Day
Fiscal Year Annual Meeting

Secondary License Type, If Applicable

CFD
Dept. Requiring this Doc. Amended Articles Number/Section

Total Amount of Borrowings

8 3
Total No. of Stockholders Domestic Foreign

To be accomplished by SEC Personnel Concerned

File Number LCU

Document I.D. Cashier

STAMPS
 MAX’S GROUP, INC.
doing business under the names and styles of
Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit

REVISED MANUAL ON CORPORATE GOVERNANCE

(as of 25 May 2017)

The Board of Directors and Management of Max’s Group, Inc. (doing business under the names and
styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit) (the “Company”), hereby
commit themselves to the principles and best practices contained in this Manual on Corporate
Governance (the “Manual”), and acknowledge that the same may guide the attainment of our
corporate goals.

1. OBJECTIVE

This Manual shall institutionalize the principles of good corporate governance in the entire
organization.

The Board of Directors and Management, employees and shareholders, believe that corporate
governance is a necessary component of what constitutes sound strategic business management and
will therefore undertake every effort necessary to create awareness within the organization as soon as
possible.

2. DEFINITION OF TERMS

a. Corporate Governance — the system of stewardship and control to guide organizations in fulfilling
their long-term economic, moral, legal and social obligations towards their stakeholders.

Corporate governance is a system of direction, feedback and control using regulations,

performance standards and ethical guidelines to hold the Board and senior management
accountable for ensuring ethical behavior — reconciling long-term customer satisfaction with
shareholder value — to the benefit of all stakeholders and society.

Its purpose is to maximize the organization's long-term success, creating sustainable value for its
shareholders, stakeholders and the nation.

b. Board of Directors — the governing body elected by the stockholders that exercises the corporate
powers of the Company, conducts all its business and controls its properties.

c. Management — a group of executives given the authority by the Board of Directors to implement
the policies it has laid down in the conduct of the business of the Company.

d. Independent director — a person who is independent of management and the controlling

shareholder, and is free from any business or other relationship which could, or could reasonably
be perceived to, materially interfere with his exercise of independent judgment in carrying out his
responsibilities as a director.

e. Executive director — a director who has executive responsibility of day-to-day operations of a part
or the whole of the organization.

Max’s Group, Inc.

(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
f. Non-executive director — a director who has no executive responsibility and does not perform any
work directly related to the operations of the Company.

g. Enterprise Risk Management — a process, effected by the Board of Directors, management and
other personnel, applied in strategy setting and across the enterprise that is designed to identify
potential events that may affect the Company, manage risks to be within its risk appetite, and
provide reasonable assurance regarding the achievement of the Company’s objectives.

h. PSE – Philippine Stock Exchange, Inc.

i. Related Party — shall cover the Company's subsidiaries, as well as affiliates and any person or
entity over which the Company exerts direct or indirect control or which exerts direct or indirect
control over the Company; the Company's directors; officers; shareholders and related interests
(DOSRI), and their immediate family members. For purposes hereof, “control” means: (a) the
power (whether directly or indirectly and whether by the ownership of share capital, the possession
of voting power, contract or otherwise) to appoint and/or remove all or such of the members of the
board of directors or other governing body of a person as are able to cast a majority of the votes
capable of being cast by the members of that board or body on all, or substantially all, matters, or
such analogous circumstances; and/or (b) the holding and/or possession of the beneficial interest
in and/or the ability to exercise the voting rights applicable to shares or other securities in any
person (whether directly or by means of holding such interests in one or more other persons)
which confer in aggregate on the holders thereof at least fifty-one per cent (51%) of the total voting
rights exercisable at general meetings of that person on all, or substantially all, matters.

j. Related Party Transactions or RPTs — a transfer of resources, services or obligations between a

reporting entity and a Related Party, regardless of whether a price is charged.

k. SEC - the Securities and Exchange Commission of the Philippines.

l. SRC - the Securities Regulation Code and its Implementing Rules and Regulations, as applicable.

m. Stakeholders — any individual, organization or society at large who can either affect and/or be
affected by the Company's strategies, policies, business decisions and operations, in general. This
includes, among others, customers, creditors, employees, suppliers, investors, as well as the
government and community in which it operates.

3. COMPLIANCE SYSTEM

2.1. Compliance Officer

2.1.1. To insure adherence to corporate principles and best practices, the Board of Directors
shall designate a Compliance Officer who shall hold the position of a Vice President or an
equivalent position with adequate stature and authority in the Company. The Compliance
Officer should not be a member of the Board of Directors and should annually attend a
training on corporate governance. He shall have direct reporting responsibilities to the
Chairman of the Board.

2.1.2. He/she shall perform the following duties:

• Ensure proper onboarding of new directors (i.e., orientation on the Company's

business, charter, articles of incorporation and by-laws, among others)

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • Monitor, review, evaluate and ensure compliance of the Company, its officers and
directors with the provisions and requirements of this Manual, rules and regulations
and all governance issuances of regulatory agencies;

• Appear before the SEC, when summoned in relation to compliance with this
Manual;

• Report to the Board if violations of the Manual are found and recommend the
imposition of the appropriate disciplinary action for further review and approval of
the Board;

• Identify possible areas of, monitor and control compliance risks and work toward
the resolution of the same;

• Ensure the integrity and accuracy of all documentary submissions to regulators;

• Collaborate with other departments to properly address compliance issues, which

may be subject to investigation;

• Ensure the attendance of board members and key officers to relevant trainings;
and

• Perform such other duties and responsibilities as may be provided by the SEC.

2.1.3. The appointment of the Compliance Officer shall be immediately disclosed to the
Securities and Exchange Commission on SEC Form 17-C. All correspondence relative to his
functions as such shall be addressed to said Officer.

2.2. Plan of Compliance

2.2.1. Board of Directors

Compliance with the principles of good corporate governance shall start with the Board of
Directors.

The Board shall be composed of directors with a collective working knowledge, experience
and expertise that is relevant to the Company’s industry or sector. It is the Board’s duty to
ensure that it has an appropriate mix of competence and expertise and that its members
remain qualified for their positions individually and collectively, to enable it to fulfil its roles
and responsibilities and respond to the needs of the organization based on the evolving
business environment and strategic direction.

It shall be the Board's responsibility to foster the long-term success of the Company and
secure its sustained competitiveness in a manner consistent with its fiduciary responsibility,
which it shall exercise in the best interest of the Company, its stockholders and other
stakeholders. The Board shall conduct itself with utmost honesty and integrity in the
discharge of its duties, functions and responsibilities.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.2.1.1. General Responsibility

A director's office is one of trust and confidence. He shall act in a manner

characterized by transparency, accountability and fairness. The Board members
should act on a fully informed basis, in good faith, with due diligence and care, and
in the best interest of the Company and all shareholders.

The Board should formulate the Company’s vision, mission, strategic objectives,
policies and procedures that shall guide its activities, including the means to
effectively monitor Management’s performance.

2.2.1.2. Specific Duties and Functions

To ensure a high standard of best practice for the Company, its stockholders and
other stakeholders, the Board shall:

• Implement a process of selection to ensure a mix of competent directors and

officers and adopt a policy on Board diversity, as to age, ethnicity, culture,
skills, competence and knowledge;

• Assess the performance of Management led by the President and control

functions led by their respective heads (Chief Risk Officer, Chief Compliance
Officer, and Chief Audit Executive);

• Develop a policy on board nomination, which shall encourage shareholders'

participation by including procedures on how the Board accepts nominations
from minority shareholders and shall promote transparency of the Board's
nomination and election process;

• Ensure and adopt an effective succession planning program for directors, key
officers and management to ensure growth and a continued increase in the
shareholders' value and adopt a policy on the retirement age for directors and
key officers as part of management succession and to promote dynamism in
the Company

• Oversee the development of and approve the Company's purpose, vision,

mission, business objectives and strategy, and monitor their implementation,
in order to sustain the Company's long-term viability and strength;

• Align the remuneration of key officers and board members with the long-term
interests of the Company and formulate and adopt a policy specifying the
relationship between remuneration and performance;

• Ensure that the Company complies with all relevant laws, regulations and
codes of best business practices;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • Establish corporate disclosure policies and procedures to ensure a
comprehensive, accurate, reliable and timely report to shareholders and other
stakeholders that gives a fair and complete picture of the Company's financial
condition, results and business operations, as provided under Rules 68 of the
SRC, Philippine Stock Exchange Listing and Disclosure Rules, and other
regulations such as those required by the Bangko Sentral ng Pilipinas (BSP),
as essential for comprehensive and timely reporting;

• Promote cooperation between the stakeholders of the Company and the

Company in formulating the Company’s strategic and operational decisions
affecting wealth, growth and sustainability;

• Adopt a policy informing the shareholders of all their rights;

• Adopt an internal control system, including setting up a mechanism for

monitoring and managing potential conflicts of interest of Management, board
members, and shareholders, and improve the Company’s Internal Audit
Charter;

• Oversee that a sound enterprise risk management (ERM) framework is in

place to effectively identify, monitor, assess and manage key business risks.
The risk management framework shall guide the Board in identifying
units/business lines and enterprise-level risk exposures, as well as the
effectiveness of risk management strategies;

• Conduct an annual self-assessment of its performance, including the

performance of the Chairman, individual members and committees. Every
three (3) years, the assessment shall be supported by an external facilitator;

• Place a system that provides, at the minimum, criteria and processes to

determine the performance of the Board, the individual directors, committees
with a feedback mechanism from the shareholders. The Corporate
Governance Committee shall oversee the evaluation process;

• Formulate and implement group-wide policies and procedures that would

ensure the integrity and transparency of Related Party Transactions and other
unusual or infrequently occurring transactions, particularly those which pass
certain thresholds of materiality;

• Disclose all relevant and material information on individual board members

and key executives, including the directors and key officers' qualifications,
share ownership in the Company, membership of other boards, other
executive positions, continuous trainings attended and identification of
independent directors, to evaluate their experience and qualifications, and
assess any potential conflicts of interest that might affect their Judgment, as
prescribed under Rule 12 Annex C of the SRC.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • Provide for a policy on disclosure of non-financial information, with emphasis
on the management of economic, environmental, social and governance
(EESG) issues of its business, which underpin sustainability. The Company
shall adopt a globally recognized standard/framework in reporting
sustainability and non-financial issues;

• Adopt a Code of Business Conduct and Ethics, which shall provide standards
for professional and ethical behaviour, articulate acceptable and unacceptable
conduct and practices in internal and external dealings, ensure proper and
efficient implementation and monitoring of compliance of the Code of
Business Conduct and Ethics, and adopt an anti-corruption policy and
program;

• Disseminate to the Board, senior management and employees and disclose

and make available to the public the Code of Business Conduct and Ethics
through the Company’s website;

• Establish a Board Charter that formalizes and clearly states the Board’s roles,
responsibilities and accountabilities in carrying out its fiduciary duties. The
Board Charter shall serve as a guide to the directors in the performance of
their functions and shall be publicly available and posted on the Company's
website;

• Establish policies, programs and procedures that encourage employees to

actively participate in the realization of the Company’s goal and its
governance, and that covers, among others: (1) health, safety and welfare; (2)
training and development; and (3) reward/compensation for employees,
encourages employees to perform better and motivates them to take a more
dynamic role in the Company; and

• Establish a framework for whistleblowing that allows employees to freely

communicate their concerns about illegal or unethical practices, without fear
of retaliation and to have direct access to an independent member of the
Board or a unit created to handle whistleblowing concerns.

2.2.1.3. Qualifications of a Director

• Holder of at least one (1) share of stock of the Company;

• He/she shall have attended a seminar on corporate governance conducted by

a duly recognized private or government institute and submitted a copy of
his/her certificate of attendance to the Compliance Officer;

• He/she shall be at least a college graduate or equivalent academic degree;

• Have sufficient experience in managing the business to substitute for such

formal education;

• He/she shall be at least twenty-one (21) years old;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • He/she shall have proven to possess integrity and probity; and

• He/she shall be assiduous.

In addition to the qualifications for membership in the Board required in relevant

laws, the Board may provide for additional qualifications which may include
practical understanding of the Company’s business, membership in good
standing in relevant industry, business or professional organizations, and
previous business experience.

2.2.1.4. The following shall be grounds for the permanent disqualification of a

director:

• Any person convicted by final judgment or order by the court, or competent

administrative body of an offense involving moral turpitude, fraud,
embezzlement, theft, estafa, counterfeiting, misappropriation, forgery, bribery,
false affirmation, perjury or other fraudulent acts;

• Any person convicted by final judgment or order by a competent judicial or

administrative body of any crime that: (a) involves the purchase or sale of
securities, as defined in the SRC; (b) arises out of the person's conduct as an
underwriter, broker, dealer, investment adviser, principal, distributor, mutual
fund dealer, futures commission merchant, commodity trading advisor, or floor
broker; or (c) arises out of his fiduciary relationship with a bank, quasi-bank,
trust company, investment house or as an affiliated person of any of them;

• Any person who, by reason of misconduct, after hearing, is permanently

enjoined by a final judgment or order of the SEC, BSP or any court or
administrative body of competent jurisdiction from: (a) acting as underwriter,
broker, dealer, investment adviser, principal distributor, mutual fund dealer,
futures commission merchant, commodity trading advisor, or floor broker; (b)
acting as director or officer of a bank, quasi-bank, trust company, investment
house, or investment company; (c) engaging in or continuing any conduct or
practice in any of the capacities mentioned in sub-paragraphs (a) and (b)
above, or willfully violating the laws that govern securities and banking
activities.

The disqualification should also apply if (a) such person is the subject of an
order of the SEC, BSP or any court or administrative body denying, revoking
or suspending any registration, license or permit issued to him under the
Corporation Code, SRC or any other law administered by the SEC or BSP, or
under any rule or regulation issued by the Commission or BSP; (b) such
person has otherwise been restrained to engage in any activity involving
securities and banking; or (c) such person is the subject of an effective order
of a self-regulatory organization suspending or expelling him from
membership, participation or association with a member or participant of the
organization;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • Any person adjudged by final judgment or order of the SEC, BSP, court, or
competent administrative body to have wilfully violated, or wilfully aided,
abetted, counselled, induced or procured the violation of, any provision of the
SRC, the Corporation Code, or any other law administered by the SEC or
BSP, or any rule, regulation or order of the SEC or BSP;

• Any person judicially declared as insolvent;

• Any person finally found guilty by a foreign court or equivalent financial

regulatory authority of acts, violations or misconduct similar to any of the acts,
violations or misconduct listed in the foregoing paragraphs; and

• Conviction by final judgment of an offense punishable by imprisonment for a

period exceeding six (6) years, or a violation of the Corporation Code,
committed within five (5) years prior to the date of his election or appointment.

2.2.1.5. Any of the following shall be a ground for the temporary disqualification of a
director:

• Refusal to fully disclose the extent of his business interest as required under
the SRC and its Implementing Rules and Regulations. This disqualification
shall be in effect as long as his refusal persists;

• Absence in more than fifty percent (50%) of all meetings, both regular and
special, of the Board of Directors during his/her incumbency, or any twelve
(12)-month period during said incumbency, unless the absence is due to
illness, death in the immediate family or serious accident. This disqualification
applies for purposes of the succeeding election;

• Dismissal/termination from directorship in any publicly-listed company, public

company, registered issuer of securities and holder of a secondary license
from the Commission for cause. This disqualification shall be in effect until
he/she has cleared himself/herself of any involvement in the cause that gave
rise to his dismissal or termination;

• If the beneficial equity ownership of an independent director in the Company

or its subsidiaries and affiliates exceeds two percent (2%) of its subscribed
capital stock. The disqualification from being elected as an independent
director is lifted if the limit is later complied with; and

• Judgments or orders that has not yet become final referred to in the grounds
for the permanent disqualification of directors.

An independent director whose beneficial equity ownership in the Company or

its subsidiaries and affiliates exceeds two percent (2%) of the subscribed
capital stock is temporarily disqualified from being a director of the Company,
until his/her beneficial equity ownership reverts to the two percent (2%) limit.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 The temporarily disqualified director shall, within sixty (60) business days from
such disqualification, take the appropriate action to remedy or correct the
disqualification. If he/she fails or refuses to do so for unjustified reasons, the
disqualification shall become permanent.

2.2.1.6. Duties and Responsibilities of a Director

A director shall have the following duties and responsibilities:

• To conduct fair business transactions with the Company and to ensure that
personal interest does not conflict with the interests of the Company;

• To devote time and attention necessary to properly discharge his duties and
responsibilities;

• To act judiciously;

• To exercise independent judgment;

• To have a working knowledge of the statutory and regulatory requirements

affecting the Company, including the contents of its Articles of Incorporation
and By-laws, the requirements of the Commission, and where applicable, the
requirements of other regulatory agencies.

• To observe confidentiality;

• To ensure the continuing soundness, effectiveness and adequacy of the

Company’s control environment;

• To attend and actively participate in all meetings of the Board, Committees,

and Shareholders in person or through tele-/videoconferencing conducted in
accordance with the rules and regulations of the SEC, except when justifiable
causes, such as, illness, death in the immediate family and serious accidents,
prevent them from doing so. In Board and Committee meetings, the director
shall review meeting materials and if called for, ask the necessary questions
or seek clarifications and explanations;

• To notify the Board before accepting a directorship in another company;

• To abstain from taking part in meetings when Related Party Transactions,

self-dealings or any transactions or matters on which he/she has a material
interest are taken up to ensure that he/she has no influence over the outcome
of the deliberations; and

• To disclose or report to the Company any dealings in the Company’s shares

within three (3) business days;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.2.1.7. To enable the Board to properly fulfil their duties and responsibilities,
management should provide directors with complete and timely information about
the matters in the agenda of the meetings. Directors should be given independent
access to management and the Corporate Secretary, as well as to independent
professional advice.

2.2.2. Board Committees

To aid in complying with the principles of good corporate governance, the Board shall
constitute Committees.

All established committees shall be required to have Committee Charters stating in plain
terms their respective purposes, memberships, structures, operations, reporting processes,
resources and other relevant information. The Charters shall provide the standards for
evaluating the performance of the Committees. It shall also be fully disclosed on the
Company's website.

2.2.2.1. Audit Committee

2.2.2.1.1. An Audit Committee shall be established to enhance oversight

capability over the Company's financial reporting, internal control system,
internal and external audit processes, and compliance with applicable laws
and regulations.

The Audit Committee shall have an Audit Committee Charter, which shall
include the Audit Committee's responsibility on assessing the integrity and
independence of external auditors and exercising effective oversight to review
and monitor the external auditor's independence and objectivity and the
effectiveness of the audit process, taking into consideration relevant Philippine
professional and regulatory requirements. The Charter shall also contain the
Audit Committee's responsibility on reviewing and monitoring the external
auditor's suitability and effectiveness on an annual basis.

2.2.2.1.2. The Audit Committee shall be composed of at least three (3) non-
executive directors, the majority of whom, including the Chairman, should be
independent. Each member must have the relevant background, knowledge,
skills, and/or experience in the areas of accounting, auditing or finance.

The Chairman of the Audit Committee shall not be the chairman of the Board.

2.2.2.1.3. Duties and Responsibilities

• Recommend the approval the Internal Audit Charter (IA Charter), which
formally defines the role of Internal Audit and the audit plan as well as
oversees the implementation of the IA Charter;

• Review the quarterly, Interim and Annual Financial statements before

their submission to the Board with particular focus on the following
matters:

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 1. Any change/s in accounting policies and practices
2. Areas where a significant amount of judgment has been exercised
3. Significant adjustments resulting from the audit
4. Going concern assumptions
5. Compliance with accounting standards
6. Compliance with tax, legal and regulatory requirements

• Prior to the commencement of the audit, discuss with the External Auditor
the nature, scope and expenses of the audit, and ensure the proper
coordination if more than one audit firm is involved in the activity to secure
proper coverage and minimize duplication of efforts;

• Review the disposition of the recommendations in the External Auditor's

management letter;

• Perform oversight functions over the Company’s Internal and External

Auditors. Ensure the independence of Internal and External Auditors, and
that both auditors are given unrestricted access to all records, properties
and personnel to enable them to perform their respective audit functions;

• Recommend to the Board the appointment, reappointment, removal and

fees of the External Auditor, duly accredited by the SEC, who undertakes
an independent audit of the Company, and provides an objective
assurance on the manner by which the financial statements shall be
prepared and presented to the stockholders;

• Evaluate and determine the non-audit work, if any, of the External Auditor,
and review periodically the non-audit fees paid to the External Auditor in
relation to their significance to the total annual income of the External
Auditor and to the Company’s overall consultancy expenses. The
Committee shall disallow any non-audit work that will conflict with his
duties as an External Auditor or may pose a threat to his independence.
The non-audit work, if allowed, shall be disclosed in the Company’s
Annual Report and Annual Corporate Governance Report;

• Monitor and evaluate the adequacy and effectiveness of the Company’s

internal control system, integrity of financial reporting and security of
physical and information assets. Well-designed internal control
procedures and processes that will provide a system of checks and
balances should be in place in order to (a) safeguard the Company's
resources and ensure their effective utilization, (b) prevent occurrence of
fraud and other irregularities, (c) protect the accuracy and reliability of the
Company's financial data, and (d) ensure compliance with applicable laws
and regulations;

• Oversee the Internal Audit Department, and recommend the appointment

and/or grounds for approval of an internal audit head or Chief Audit
Executive (CAE). The Audit Committee shall also approve the terms and
conditions for outsourcing internal audit services;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 • Establish and identify the reporting line of the CAE to enable him to
properly fulfil his duties and responsibilities. For this purpose, he shall
directly report to the Audit Committee;

• Review and monitor Management's responsiveness to the CAE's findings

and recommendations; and

• Coordinate, monitor and facilitate compliance with laws, rules and

regulations.

The Audit Committee shall perform the following functions, in lieu of a

Board Risk Oversight Committee:

a. Develop a formal Enterprise Risk Management Plan which

contains the following elements: (a) common language or register
of risks, (b) well-defined risk management goals, objectives and
oversight, (c) uniform processes of assessing risks and
developing strategies to manage prioritized risks, (d) designing
and implementing risk management strategies, and (e) continuing
assessments to improve risk strategies, processes and measures;

b. Oversee the implementation of the Enterprise Risk Management

Plan through a Management Risk Oversight Committee. The
BROC conducts regular discussions on the Company's prioritized
and residual risk exposures based on regular risk management
reports and assesses how the concerned units or offices are
addressing and managing these risks;

c. Evaluate the risk management plan to ensure its continued

relevance, comprehensiveness and effectiveness. The BROC
revisits defined risk management strategies, looks for emerging or
changing material exposures, and stays abreast of significant
developments that seriously impact the likelihood of harm or loss;

d. Advise the Board on its risk appetite levels and risk tolerance
limits;

e. Review at least annually the Company's risk appetite levels and

risk tolerance limits based on changes and developments in the
business, the regulatory framework, the external economic and
business environment, and when major events occur that are
considered to have major impacts on the Company;

f. Assess the probability of each identified risk becoming a reality

and estimate its possible significant financial impact and likelihood
of occurrence. Priority areas of concern are those risks that are
the most likely to occur and to impact the performance and
stability of the Company and its stakeholders;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 g. Provide oversight over Management's activities in managing
credit, market, liquidity, operational, legal and other risk
exposures of the Company. This function includes regularly
receiving information on risk exposures and risk management
activities from Management;

h. Report to the Board on a regular basis, or as deemed necessary,
the Company's material risk exposures, the actions taken to
reduce the risks, and recommends further action or plans, as
necessary

The Audit Committee shall also perform the following functions, in lieu of a
Related Party Transaction Committee:

a. Evaluate on an ongoing basis existing relations between and

among businesses and counterparties to ensure that all related
parties are continuously identified, RPTs are monitored, and
subsequent changes in relationships with counterparties (from
non-related to related and vice versa) are captured. Related
Parties, RPTs and changes in relationships should be reflected in
the relevant reports to the Board and regulators/supervisors;

b. Evaluate all material RPTs to ensure that these are not

undertaken on more favorable economic terms (e.g., price,
commissions, interest rates, fees, tenor, collateral requirement) to
such Related Parties than similar transactions with non-related
parties under similar circumstances and that no corporate or
business resources of the Company are misappropriated or
misapplied, and to determine any potential reputational risk issues
that may arise as a result of or in connection with the
transactions. In evaluating RPTs, the Committee may take into
account, among others, the following:

i. The Related Party's relationship to the Company and interest

in the transaction;
ii. The material facts of the proposed RPT, including the
proposed aggregate value of such transaction;
iii. The benefits to the Company of the proposed RPT;
iv. The availability of other sources of comparable products or
services; and
v. An assessment of whether the proposed RPT is on terms and
conditions that are comparable to the terms generally
available to an unrelated party under similar circumstances.
The Company shall have an effective price discovery system
in place and exercise due diligence in determining a fair price
for RPTs.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 c. Ensure that appropriate disclosure is made, and/or information is
provided to regulating and supervising authorities, as may be
required under relevant SEC and PSE disclosure rules, relating to
the Company's RPT exposures, and policies on conflicts of
interest or potential conflicts of interest;

d. Report to the Board of Directors on a regular basis, the status and

aggregate exposures to each Related Party, as well as the total
amount of exposures to all Related Parties;

e. Ensure that transactions with Related Parties, including write-off

of exposures are subject to a periodic independent review or audit
process; and

f. Oversee the implementation of the system for identifying,

monitoring, measuring, controlling, and reporting RPTs, including
a periodic review of RPT policies and procedures.

2.2.2.1.3. Any contract, agreement, transaction arrangement or dealing of the

Company with a director, officer or any Related Party, shall be entered into by
the Company on an arm’s length basis, and under such terms that inure to the
benefit and best interest of the Company and its shareholders as a whole,
considering relevant circumstances. All Related Party Transactions shall be
reviewed and approved by the Audit Committee. Material Related Party
Transactions shall be submitted for approval of at least a majority of the Board
of Directors.

2.2.2.2. Corporate Governance Committee

2.2.2.2.1. The Corporate Governance Committee (CG Committee) is tasked

with ensuring compliance with and proper observance of corporate
governance principles and practices. It shall be composed of at least three (3)
members, majority of whom shall be independent directors, including the
Chairman.

2.2.2.2.2. The CG Committee has the following functions and duties:

a. Oversee the implementation of the corporate governance framework and

periodically review the said framework to ensure that it remains
appropriate in light of material changes to the Company's size, complexity
and business strategy, as well as its business and regulatory
environments;

b. Oversee the periodic performance evaluation of the Board and its

committees as well as executive management, and conduct an annual
self-evaluation of its performance;

c. Ensure that the results of the Board evaluation are shared, discussed,
and that concrete action plans are developed and implemented to
address the identified areas for improvement;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 d. Recommend continuing education/training programs for directors,
assignment of tasks/projects to board committees, succession plan for the
board members and senior officers, and remuneration packages for
corporate and individual performance;

e. Adopt corporate governance policies and ensure that these are reviewed
and updated regularly, and consistently implemented in form and
substance;

f. Propose and plan relevant trainings for the members of the Board;

g. Determine the nomination and election process for the Company's

directors and have the duty of defining the general profile of board
members that the Company may need and ensure appropriate
knowledge, competencies and expertise that complement the existing
skills of the Board; and

The CG shall consider the following guidelines in the determination of the

number of directorships for the Board:
• The nature of the business of the companies which he is a director;
• Age of the director
• Number of directorships/active memberships and officerships in other
corporations or organizations; an
• Possible conflict of interest.

The optimum number shall be related to the capacity of a director to perform

his duties diligently in general.

h. Establish a formal and transparent procedure to develop a policy for

determining the remuneration of directors and officers that is consistent
with the Company's culture and strategy as well as the business
environment in which it operates.

Key considerations in determining proper compensation include the following:

(1) level of remuneration is commensurate to the responsibilities of the role;
(2) no director shall participate in deciding on his remuneration; and (3)
remuneration pay-out schedules shall be sensitive to risk outcomes over a
multi-year horizon.

For employees in control functions (e.g., risk, compliance and internal audit),
their remuneration is determined independently of any business line being
overseen, and performance measures are based principally on the
achievement of their objectives so as not to compromise their independence.

i. Provide in the Company’s annual reports, information and proxy

statements a clear, concise and understandable disclosure of the
Company’s policies and procedure for setting Board and executive
remuneration, including termination and retirement provisions;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.2.2.2.2. The CG Committee shall establish a Board Nomination and Election
policy, which shall encourage shareholders' participation in, including minority
shareholders, and promote transparency of, the nomination and election of
Board members.

The CG shall review, evaluate and monitor the qualifications of all persons
nominated to the Board, including whether candidates:

1) possess the knowledge, skills, experience, and particularly in the case

of non-executive directors, independence of mind given their
responsibilities to the Board and in light of the entity's business and
risk profile;
2) have a record of integrity and good repute;
3) have sufficient time to carry out their responsibilities; and
4) have the ability to promote a smooth interaction between board
members.

The CG shall assess the effectiveness of the Board’s processes and

procedures in the nomination, election or replacement of a director.

All nominations for directors to be elected by the stockholders of the Company

shall be submitted in writing to the Corporate Secretary at the principal office
of the Company not later than thirty (30) business days prior to the date of the
regular or special meeting of stockholders for the election of directors.
Nominations which are not submitted within such nomination period shall not
be valid. Only a stockholder of record entitled to notice of and to vote at the
regular or special meeting of the stockholders for election of directors shall be
qualified to be nominated and elected as director of the Company.

2.3.3. The Corporate Secretary

2.3.3.1. The Corporate Secretary is an officer of the Company’s and perfection in

performance and no surprises are expected of him. Likewise, his loyalty to the
mission, vision and specific business objectives of the corporate entity come with his
duties.

2.3.3.2. The Corporate Secretary shall be a Filipino citizen and a resident of the
Philippines.

2.3.3.3. Considering his varied functions and duties, he must possess administrative
and interpersonal skills, and if he is not the general counsel, then he must have
some legal skills. He must also have some financial and accounting skills and
working knowledge of the operations of the Company.

2.3.3.4. The Corporate Secretary shall be a separate individual from the Compliance
Officer, shall not be a member of the Board of Directors, and shall annually attend a
training on corporate governance

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.3.3.5. Duties and Responsibilities

• Be responsible for the safekeeping and preservation of the integrity of the

minutes of the meetings of the Board and its committees, as well as the other
official records of the Company;

• Work fairly and objectively with the Board, Management, stockholders and
other stakeholders and contributes to the flow of information between the
Board and management, the Board and its committees, and the Board and its
stakeholders, including shareholders;

• Attend all Board meetings, except when justifiable causes, such as illness,
death in the immediate family and serious accidents prevent him/her from
doing so, and maintain records of the same;

• Assist the Board in the conduct of their meetings;

• Keep abreast on relevant laws, regulations, all governance issuances,

relevant industry developments and operations of the Company, and advises
the Board and the Chairman on all relevant issues as they arise;

• Advise on the establishment of board committees and their terms of

reference;

• Inform members of the Board, in accordance with the by-laws, of the agenda
of their meetings;

• Perform required administrative functions; and

• Performs such other duties and responsibilities as may be provided by the

SEC

2.3.4. External Auditor

2.3.4.1. An External Auditor shall enable an environment of good corporate

governance as reflected in the financial records and reports of the Company. An
External Auditor shall be selected and appointed by the stockholders upon
recommendation of the Audit Committee.

2.3.4.2. The reason/s for the resignation, dismissal or cessation from service and the
date thereof of an External Auditor shall be reported in the Company’s annual and
current reports and disclosed to the regulators and the public through the Company’s
website and required disclosures. Said reports shall include a discussion of any
disagreement with said former External Auditor on any matter of accounting principles
or practices, financial statement disclosure or auditing scope or procedure. A
preliminary copy of the said report shall be given by the Company to the external
auditor before its submission.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.3.4.3. The External Auditor of the Company shall not at the same time provide the
services of an internal auditor to the same client. The Company shall ensure that other
non-audit work shall not be in conflict with the functions of the External Auditor.

The nature of non-audit services performed by its external auditor, if any, shall be
disclosed in the Annual Report to deal with the potential conflict of interest. The Audit
Committee shall monitor any potential conflict of interest situations, given the
guidelines or policies on non-audit services, which could be viewed as impairing the
external auditor's objectivity.

2.3.4.4. The Company’s External Auditor shall be rotated or the handling partner shall
be changed every five (5) years or earlier.

2.3.4.5. If an External Auditor believes that the statements made in the Company’s
annual report, information statement or proxy statement filed during his engagement is
incorrect or incomplete, he shall present his views in said reports.

2.3.4.6. The appointment, reappointment, removal, and fees of the external auditor
shall be recommended by the Audit Committee, approved by the Board and ratified by
the shareholders.

2.3.5. Internal Auditor

2.3.5.1. The Company shall have in place an independent internal audit function, that
provides an independent and objective assurance, and consulting services designed
to add value and improve the Company’s operations, which shall be performed by an
Internal Auditor or a group of Internal Auditors, through which its Board, senior
management, and stockholders shall be provided with reasonable assurance that its
key organizational and procedural controls are effective, appropriate, and complied
with.

2.3.5.2. The Internal Auditor shall report to the Audit Committee.

2.3.5.3. The minimum internal control mechanisms for management's operational

responsibility shall center on the Chief Executive Officer (CEO), being ultimately
accountable for the Company’s organizational and procedural controls.

2.3.5.4. The scope and particulars of a system of effective organizational and

procedural controls shall be based on the following factors: the nature and complexity
of business and the business culture; the volume, size and complexity of transactions;
the degree of risk; the degree of centralization and delegation of authority; the extent
and effectiveness of information technology; and the extent of regulatory compliance.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.3.5.5. The following are the functions of the internal audit:

a. Provide an independent risk-based assurance service to the Board, Audit

Committee and Management, focusing on reviewing the effectiveness of the
governance and control processes in (1) promoting the right values and
ethics, (2) ensuring effective performance management and accounting in the
organization, (3) communicating risk and control information, and (4)
coordinating the activities and information among the Board, external and
internal auditors, and Management;

b. Perform regular and special audit as contained in the annual audit plan and/or
based on the Company's risk assessment;

c. Perform consulting and advisory services related to governance and control

as appropriate for the organization;

d. Perform compliance audit of relevant laws, rules and regulations, contractual

obligations and other commitments, which could have a significant impact on
the organization;

e. Review, audit and assess the efficiency and effectiveness of the internal
control system of all areas of the Company;

f. Evaluate operations or programs to ascertain whether results are consistent

with established objectives and goals, and whether the operations or
programs are being carried out as planned;

g. Evaluate specific operations at the request of the Board or Management, as

appropriate; and

h. Monitor and evaluate governance processes.

2.3.5.6. The Company shall have a qualified Chief Audit Executive appointed by the
Board, who shall oversee and be responsible for the internal audit activity of the
organization, including that portion that is outsourced to a third part service provider.
Should the internal audit activity be fully outsourced to a third-party service provider, a
qualified independent executive or senior management personnel shall be assigned
the responsibility for managing the fully outsourced internal audit activity.

The following are the responsibilities of the Chief Audit Executive:

a. Periodically review the internal audit charter and present it to senior

management and the Board Audit Committee for approval;

b. Establish a risk-based internal audit plan, including policies and procedures,

to determine the priorities of the internal audit activity, consistent with the
organization’s goals;

c. Communicate the internal audit activity's plans, resource requirements and

impact of resource limitations, as well as significant interim changes, to senior
management and the Audit Committee for review and approval;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 d. Spearhead the performance of the internal audit activity to ensure it adds
value to the organization;

e. Report periodically to the Audit Committee on the internal audit activity's

performance relative to its plan; and

f. Present findings and recommendations to the Audit Committee and give

advice to senior management and the Board on how to improve internal
processes.

2.3.5.7. The Company shall have a separate risk management function to identify,
assess and monitor key exposures.

The risk management function involves the following activities, among others:

a. Defining a risk management strategy;

b. Identifying and analyzing key risks exposure relating to economic,

environmental, social and governance (EESG) factors and the achievement of
the organization's strategic objectives;

c. Evaluating and categorizing each identified risk using the Company's

predefined risk categories and parameters;

d. Establishing a risk register with clearly defined, prioritized and residual risks;

e. Developing a risk mitigation plan for the most important risks to the Company,
as defined by the risk management strategy;

f. Communicating and reporting significant risk exposures including business

risks (i.e., strategic, compliance, operational, financial and reputational risks),
control issues and risk mitigation plan to the Board Risk Oversight Committee;
and

g. Monitoring and evaluating the effectiveness of the organization's risk

management processes.

2.3.5.8. In managing the Company’s risk and management system, the Company shall
have a Chief Risk Officer, who is the ultimate champion of Enterprise Risk
Management and who has adequate authority, stature, resources and support to fulfil
his/her responsibilities, subject to the Company’s size, risk profile and complexity of
operations.

The Chief Risk Officer shall have the following functions, among others:

a. Supervise the entire ERM process and spearhead the development,

implementation, maintenance and continuous improvement of ERM processes
and documentation;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 b. Communicate the top risks and the status of implementation of risk
management strategies and action plans to the Board Risk Oversight
Committee;

c. Collaborate with the CEO in updating and making recommendations to the

Board Risk Oversight Committee;

d. Suggest ERM policies and related guidance, as may be needed; and

e. Provide insights on the following:

• Risk management processes are performing as intended;
• Risk measures reported are continuously reviewed by risk owners for
effectiveness; and
• Established risk policies and procedures are being complied with.

2.3.6. Independent Director

2.3.6.1. The Company shall have at least two (2) independent directors or such
number as will constitute twenty percent (20%) of the members of the Board but in no
case less than two (2).

The presence of independent directors in the Board is to ensure the exercise of

independent judgment on corporate affairs and proper oversight of managerial
performance, including prevention of conflict of interests and balancing of competing
demands of the Company.

2.3.6.2. Qualifications and Disqualifications

The Board shall ensure that its independent directors possess the necessary
qualifications and none of the disqualifications for an independent director to hold the
position.

Independent directors shall possess a good general understanding of the industry they
are in. They shall also possess the qualifications and stature that would enable them
to effectively and objectively participate in the deliberations of the Board.

An Independent Director refers to a person, who ideally:

a. Is not, or has not been a senior officer or employee of the Company unless there
has been a change in the controlling ownership of the Company;

b. Is not, and has not been in the three (3) years immediately preceding the election,
a director of the Company; a director, officer, employee of the Company's
subsidiaries, associates, affiliates or related companies; or a director, officer,
employee of the Company's substantial shareholders and its related companies;

c. Has not been appointed in the Company, its subsidiaries, associates, affiliates or
related companies as Chairman "Emeritus," "Ex-Officio" Directors/Officers or
Members of any Advisory Board, or otherwise appointed in a capacity to assist the
Board in the performance of its duties and responsibilities within three (3) years
immediately preceding his election;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 d. Is not an owner of more than two percent (2%) of the outstanding shares of the
Company, its subsidiaries, associates, affiliates or related companies;

e. Is not a relative of a director, officer, or substantial shareholder of the Company or

any of its related companies or of any of its substantial shareholders. For this
purpose, relatives include spouse, parent, child, brother, sister and the spouse of
such child, brother or sister;

f. Is not acting as a nominee or representative of any director of the Company or

any of its related companies;

g. Is not a securities broker-dealer of listed companies and registered issuers of

securities.

"Securities broker-dealer" refers to any person holding any office of trust and
responsibility in a broker-dealer firm, which includes, among others, a director,
officer, principal stockholder, nominee of the firm to the Exchange, an associated
person or salesman, and an authorized clerk of the broker or dealer;

h. Is not retained, either in his personal capacity or through a firm, as a professional

adviser, auditor, consultant, agent or counsel of the Company, any of its related
companies or substantial shareholder, or is otherwise independent of
Management and free from any business or other relationship within the three (3)
years immediately preceding the date of his election;

i. Does not engage or has not engaged, whether by himself or with other persons or
through a firm of which he/she is a partner, director or substantial shareholder, in
any transaction with the Company or any of its related companies or substantial
shareholders, other than such transactions that are conducted at arm’s length and
could not materially interfere with or influence the exercise of his independent
judgment;

j. Is not affiliated with any non-profit organization that receives significant funding
from the Company or any of its related companies or substantial shareholders;
and

k. Is not employed as an executive officer of another company where any of the

Company's executives serve as directors.

2.3.6.3. The Independent director shall serve a for a maximum cumulative term of nine
(9) years. After which, the independent director shall permanently be barred from re-
election as such in the same company, but may continue to qualify for nomination and
election as a non-independent director. In the instance that the Company wants to
retain an independent director who has served for nine (9) years, the Board shall
provide meritorious justification/s and seek shareholders' approval during the annual
shareholders' meeting, taking into account the need for progressive change in the
Board to ensure an appropriate balance of skills and experience.




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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 2.3.7. The Chairman of the Board and the President

2.3.7.1. The positions of Chairman of the Board and the President shall be held by
separate individuals and shall each have clearly defined responsibilities.

2.3.7.2. The Chairman, who is the head of the Board, shall have, among others, the
following roles and the responsibilities. He shall:

a. Make certain that the meeting agenda focuses on strategic matters, including the
overall risk appetite of the Company, considering the developments in the
business and regulatory environments, key governance concerns, and
contentious issues that will significantly affect operations;

b. Guarantee that the Board receives accurate, timely, relevant, insightful, concise,
and clear information to enable it to make sound decisions;

c. Facilitate discussions on key issues by fostering an environment conducive for

constructive debate and leveraging on the skills and expertise of individual
directors;

d. Ensure that the Board sufficiently challenges and inquires on reports submitted
and representations made by Management;

e. Assure the availability of proper orientation for first-time directors and continuing
training opportunities for all directors; and

f. Make sure that performance of the Board is evaluated at least once a year and
discussed/followed up on.

2.3.7.3. The President shall have the following roles and responsibilities. He shall:

a. Determine the Company’s strategic direction and formulate and implement its
strategic plan on the direction of the business;

b. Communicate and implement the Company’s vision, mission, values and overall
strategy and promote any organization or stakeholder change in relation to the
same;

c. Oversee the operations of the Company and manage human and financial
resources in accordance with the strategic plan;

d. Have a good working knowledge of the Company’s industry and market and keep
up-to-date with its core business purpose;

e. Direct, evaluate and guide the work of the key officers of the Company;

f. Manage the Company’s resources prudently and ensure a proper balance of the
same;

g. Provide the Board with timely information and interface between the Board and
the employees;

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 h. Build the corporate culture and motivate the employees of the Company; and

i. Serves as the link between internal operations and external stakeholders.

3. COMMUNICATION PROCESS

3.1. This Manual shall be available for inspection by any stockholder of the Company at
reasonable hours on business days.

3.2. All directors, executives, division and department heads are tasked to ensure the thorough
dissemination of this Manual to all employees and related third parties, and to likewise
enjoin compliance in the process.

3.3. An adequate number of printed copies of this Manual must be reproduced under the
supervision of the Human Resources Department, with a minimum of at least one (1) hard
copy of the Manual per department.

4. TRAINING PROCESS

4.1. An orientation program for first time directors of the Company shall be conducted, for at least
four (4) hours, and shall cover SEC-mandated topics on corporate governance and an
introduction to the Company’s business, Articles of Incorporation and Code of Conduct.

4.2. An annual continuing training for all directors shall be conducted for at least four (4) hours,
and shall cover courses on corporate governance matters relevant to the Company,
including audit, internal controls, risk management, sustainability and strategy.

5. SOCIAL RESPONSIBILITY

The Company shall ensure that its interactions serve its environment and stakeholders in a positive
and progressive manner that is fully supportive of its comprehensive and balanced development. It
shall promote a mutually beneficial relationship that allows the Company to grow its business, while
contributing to the advancement of the society where it operates

6. REPORTORIAL OR DISCLOSURE SYSTEM OF COMPANY’S CORPORATE GOVERNANCE

POLICIES

6.1. The reports or disclosures required under this Manual shall be prepared and submitted to the
Securities and Exchange Commission by the responsible Committee or officer through the
Company’s Compliance Officer and posted on the Company’ website.

6.2. All material information, i.e., anything that could potentially affect share price and which could
adversely affect its viability or interest of its stockholders and other stakeholders, shall be
publicly and timely disclosed. Such information shall include earnings results, acquisition or
disposal of assets, Board changes, related party transactions, shareholdings of directors
and changes in ownership.

6.3. Other information required by applicable rules and regulations of the SEC and PSE to be
disclosed shall likewise be disclosed.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 6.4. All disclosed information shall be released via the approved PSE procedure for company
announcements as well as through the annual report.

6.5. The Board shall commit at all times to fully disclose material information dealings. It shall
cause the filing of all required information for the interest of the stakeholders.

7. SHAREHOLDERS' BENEFIT

The Company shall treat all shareholders fairly and equitably, and also recognize, protect and
facilitate the exercise of their rights.

The Company recognizes that the most cogent proof of good corporate governance is that which
is visible to the eyes of its investors. Therefore, the following provisions are issued for the
guidance of all internal and external parties concerned, as governance covenant between the
Company and all its investors:

7.1. INVESTORS' RIGHTS AND PROTECTION

7.1.1. Rights of Investors/Minority Interests

The Board shall be committed to respect the following rights of the stockholders:

7.1.2. Voting Right and Right to Nominate

7.1.2.1. Shareholders shall have the right to nominate candidates, elect, remove and
replace directors and vote on certain corporate acts in accordance with the
Corporation Code.

7.1.2.2. Cumulative voting shall be used in the election of directors.

7.1.2.3. A director shall not be removed without cause if it will deny minority
shareholders representation in the Board.

7.1.3. Pre-emptive Right

All stockholders shall have pre-emptive rights, unless the same is denied in the Articles of
Incorporation, the By-Laws or an amendment thereto. They shall have the right to subscribe to
the capital stock of the Company. The Articles of Incorporation and/or the By-Laws shall lay
down the specific rights and powers of shareholders with respect to the particular shares they
hold, all of which shall be protected by law so long as they shall not be in conflict with the
Corporation Code.

7.1.4. Power of Inspection

All shareholders shall be allowed to inspect corporate books and records including minutes of
Board meetings and stock registries in accordance with the Corporation Code and shall be
furnished with annual reports, including financial statements, without cost or restrictions.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 7.1.5. Right to Information

7.1.5.1. The shareholders shall be provided, upon request, with periodic reports which
disclose personal and professional information about the directors and officers and
certain other matters such as their holdings of the Company’s shares, dealings with
the Company, relationships among directors and key officers, and the aggregate
compensation of directors and officers.

7.1.5.2. The minority and foreign shareholders shall be granted the right to propose
the holding of a meeting, and the right to propose items in the agenda of the meeting,
ahead of the scheduled Annual and Special Shareholders’ Meeting; provided, that the
items are for legitimate business purposes; and provided further, that in order for such
meeting to be called, it must be upon the instance of (i) the Board of Directors, or at
the request of shareholders representing a majority of the outstanding capital stock; or
(ii) the President, in accordance with Section 2 Article II of the Company’s By-laws.

7.1.5.3. The minority shareholders shall have access to any and all information
relating to matters for which Management is accountable for and to those relating to
matters for which Management shall include such information and, if not included,
then the minority shareholders shall be allowed to propose to include such matters in
the agenda of shareholders’ meetings, being within the definition of “legitimate
purposes”.

7.1.5.4. Notice of Annual and Special Shareholders’ Meeting shall be sent out at least
twenty-one (21) days before the meeting. Results of the votes taken during the most
recent Annual and Special Shareholders’ Meeting shall publicly be made available as
soon as practicable. In addition, the draft minutes of the Annual and Special
Shareholders’ Meeting shall be made available on the Corporation’s website as
soon as available.

7.1.6. Right to Dividends

7.1.6.1. Shareholders shall have the right to receive dividends subject to the discretion
of the Board.

7.1.6.2. The Company shall be compelled to declare dividends when its retained
earnings shall be in excess of 100% of its paid-in capital stock, except: (a) when
justified by definite corporate expansion projects or programs approved by the Board;
or (b) when the Company is prohibited under any loan agreement with any financial
institution or creditor, whether local or foreign, from declaring dividends without its
consent, and such consent has not been secured; or (c) when it can be clearly shown
that such retention is necessary under special circumstances obtaining in the
Company, such as when there is a need for special reserve for probable
contingencies.

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Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017
 7.1.7 Appraisal Right

The shareholders shall have appraisal right or the right to dissent and demand payment of the
fair value of their shares in the manner provided for under Section 82 of the Corporation Code
of the Philippines, under any of the following circumstances:

• In case any amendment to the Articles of Incorporation has the effect of changing or
restricting the rights of any stockholders or class of shares, or of authorizing preferences
in any respect superior to those of outstanding shares of any class, or of extending or
shortening the term of corporate existence;

• In case of sale, lease, exchange, transfer, mortgage, pledge or other disposition of all or
substantially all of the corporate property and assets as provided in the Corporation
Code; and

• In case of merger or consolidation.

7.1.8 It shall be the duty of the directors to promote shareholder rights, remove impediments
to the exercise of shareholders' rights and allow possibilities to seek redress for violation of
their rights. They shall encourage the exercise of shareholders' voting rights and the solution
of collective action problems through appropriate mechanisms. They shall be instrumental in
removing excessive costs and other administrative or practical impediments to shareholders
participating in meetings and/or voting in person. The directors shall pave the way for the
electronic filing and distribution of shareholder information necessary to make informed
decisions subject to legal constraints.

Stockholders should be encouraged to personally attend stockholders’ meetings. If they

cannot attend, they should be apprised ahead of time of their right to appoint a proxy.

8. MONITORING AND ASSESSMENT

8.1. Each Committee shall report regularly to the Board of Directors.

8.2. The Compliance Officer shall establish an evaluation system to determine and measure
compliance with this Manual. Any violation thereof shall subject the responsible officer or
employee to the penalty provided under Part 8 of this Manual.

8.3. The establishment of such evaluation system, including the features thereof, shall be
disclosed in the Company’s annual report (SEC Form 17-A) or in such form of report that is
applicable to the Company. The adoption of such performance evaluation system must be covered
by a Board approval.

8.4. This Manual shall be subject to quarterly review unless the same frequency is amended by
the Board.

8.5. All business processes and practices being performed within any department or business unit
of the Company that are not consistent with any portion of this Manual shall be revoked unless
upgraded to the extent compliant.

- 27 -
Max’s Group, Inc.
(doing business under the names and styles of Pancake House, Maple, Dencio’s, Kabisera ng Dencio’s and Singkit)
Manual on Corporate Governance
Revised - as of 25 May 2017