Employee Handbook

Edition - 1st September 2020 , TEXCHEM Pa g e l j68



INTRODUCTION 6 PREFACE 6 ABOUT THIS HANDBOOK 7 OWNERSHIP OF HANDBOOK 8 COVERAGE 8 WELCOME NOTE 9 VISION, MISSION & CORE VALUES 10 BUSINESS VALUES QUANTUM LEAP 10 The DESIRED CORPORATE BEHAVIOR for all Texchemers 11 INTEGRITY PLEDGE 12 EMPLOYEE CORE COMPETENCIES DEFINITIONS AND INTERPRETATIONS 13 PART A COMPANY POLICY 1. QUALITY POLICY 14 2. OCCUPATIONAL SAFETY, HEALTH AND ENVIRONMENT (OSHE) 15 3. CORPORATE SOCIAL RESPONSIBILITY (CSR) 16 4. PERSONAL DATA PROTECTION 16 5. FREEDOM OF ASSOCIATION & EQUAL OPPORTUNITY 16 6. CODE OF CONDUCT AND ETHICS (CoCE) 17 7. CONFLICT OF INTEREST 17 8. ANTI CORRUPTION 20 9. ANTI HARASSMENT 20 10. WHISTLE BLOWER POLICY 20 PART B EMPLOYMENT 23 1. APPOINTMENTS 23 2. WORKING HOURS 3. FLEXI HOURS 24 4. SHIFT PATTERN 5. PUNCTUALITY 25 6. REST DAY 25 7. DRESS CODE AND UNIFORM 25 8. PROBATION PERIOD 25 9. CONFIRMATION 25 25 10. UPDATE OF PERSONAL PARTICULARS 11. BREACH OF CONTRACT 26 12. NOTICE OF TERMINATION 26 13. TRANSFER & SECONDMENT 27 Pa g e 2 l 68 27 27 27 28 28

14. INTRA-OFFICE MARRIAGE 29 15 . RETIREMENT AGE 29 16. PERFORMANCE GUIDE 29 17. JOB DESCRIPTION 29 18. EMPLOYEE GRADE LEVEL 30 19. PERFORMANCE REVIEW 31 20. SMART GOALS 32 21. PROMOTION 33 22. PERFORMANCE IMPROVEMENT PROGRAM 33 23. TALENT DEVELOPMENT 33 PART C COMPENSATION & BENEFITS 34 1. SALARIES 34 34 1.1 PAYMENT OF SALARY 34 1.2 STATUTORY AND OTHER DEDUCTIONS 34 1.3 ANNUAL SALARY INCREMENT 35 1.4 OVERTIME 35 1.5 SHIFT ALLOWANCE 35 1.6 CALL BACK ALLOWANCE 36 2. HOLIDAYS & LEAVE 36 2.1 PUBLIC HOLIDAY 36 2.2 SPECIAL HOLIDAY ANNOUNCEMENT BY FEDERAL/ STATE GOVERNMENT 36 2.3 ANNUAL LEAVE 37 2.4 HALF DAY LEAVE 38 2.5 UNPAID LEAVE 38 2.6 REPLACEMENT LEAVE 39 2.7 SICK LEAVE 40 2.8 PROLONGED ILLNESS 40 2.9 MARRIAGE LEAVE 41 2.10 MATERNITY LEAVE 41 2.11 PATERNITY LEAVE 42 2.12 EXAMINATION LEAVE 42 2.13 COMPASSIONATE LEAVE 42 2.14 CALAMITY LEAVE 2.15 ARMY TRAINING 42 3. REIMBURSEMENT OF EMPLOYEE EXPENSES 43 43 3.1 MILEAGE REIMBURSEMENT 43 3.2 TOLLS 43 3.3 TRAVEL POLICY 4. BONUS & INCENTIVE 47 , TEXCHEM Pa g e 3 l 68

5. MEDICAL/ PROTECTION 48 5.1 MEDICAL BENEFIT 48 5.2 OUTPATIENT MEDICAL TREATMENT 48 5.3 GROUP HOSPITALISATION & SURGICAL SCHEME 49 5.4 GROUP PERSONAL ACCIDENT 51 5.5 GROUP TERM LIFE 52 5.6 DENTAL CARE 52 5.7 HEALTH SCREENING BENEFITS 52 53 6. COMPASSIONATE 53 6.1 DEATH BENEFITS 53 53 7. AWARDS 54 7.1 SERVICE AWARDS 54 54 8. OTHER BENEFITS 54 8.1 PROFESSIONAL MEMBERSHIP SUBSCRIPTION 55 8.2 EDUCATIONAL ASSISTANCE PROGRAM 55 8.3 CAR LOAN INTEREST SUBSIDY 56 8.4 COMPANY ACTIVITIES 56 8.5 TRAINING AND DEVELOPMENT 56 57 PART D DISCIPLINE & GRIEVANCE 58 1. DISCIPLINE 58 2. EXAMPLES OF MISCONDUCT 59 3. DOMESTIC INQUIRY 61 4. DISCIPLINARY ACTIONS 61 5. GRIEVANCE 61 6. GRIEVANCE PROCEDURE 64 PART E FACILITIES 64 1. COMPANY ASSETS 64 2. E-MAIL, INTERNET, SOFTWARE LICENSE & MALWARE 3. BUILDING FACILITIES 64 64 3.1 SURAU 64 3.2 CAFETERIA 64 65 3.3 TOILET 65 3.4 M OTHER' S ROOM 65 3.5 SMOKING AREA 65 3.6 HOSTEL PART F GENERAL 1. CONFIDENTIAL INFORMATION 2. PUBLIC STATEMENT 3. BUSINESS CONDUCT Pa g e 4 l 68

4. MOONLIGHTING ACTIVITY 65 5. INVENTION & IMPROVEMENT 66 6. SOLICITATIONS 66 7. CONFIDENTIAL RECORDS 66 8. COVENANTS UPON TERMINATION AND/OR RESIGNATION AND/OR 67 CESSATION AGREEMENT 67 9. ENTERING INTO CONTRACTS AND AGREEMENTS ON BEHALF OF COMPANY , TEXCHEM Pa g e 3 l 68

INTRODUCTION PREFACE a) This Handbook shall be titled as \"Employee Handbook\" (hereafter referred as the \"Handb ook\"). This Employee Handbook is to provide general guidelines on policies and procedures for Texchem Operations in Malaysia, which are in addition to those stipulated in the Employee's employment contract. Employees are required to observe the terms and conditions and procedures stipulated in this Handbook at all times. b) The objectives of this Handbook are : • to provide guidance and a clear understanding of the terms and conditions and policies relating to employment; • to ensure the furtherance and protection of the mutual interest of the Company and Employees of the Company. c) Save for provisions expressed to the contrary, this Handbook shall apply to Employees of Texchem Group in Malaysia. For Employees Grade 9 and above, certain benefits are not stated in this Handbook and will be available separately. d) Notwithstanding the provisions of this Handbook, any existing benefits in cash or in kind provided by the Company in accordance with an Employee's terms and conditions of employment shall continue to be applicable to Employees enjoying such benefits as long as such benefits do not conflict with any legislation in force. In the event of any discrepancy between this Handbook and the terms in the Employee's Employment Contract, the Employee's Employment Contract shall prevail. e) For Employees subjected to Collective Agreement (CA), in the event of any dispute in the interpretation between this Handbook and the Collective Agreement, the Collective Agreement shall prevail. f) The Company reserves the right in its sole discretion to amend policies, programs and/or guidelines, including the contents of this Handbook, at any time, with or without prior notice. g) Where this Handbook refers to benefits provided by the Company, the description as contained in this Handbook are general and is solely for information. For full details of benefits and operating procedures, please contact the Human Resources (HR) Department . h) The terms and conditions and procedures sha ll, unless otherwise stated , be subjected to the provisions of Employment Act 1955 and its amendments, and any other relevant Government legislations and their amendments. (i) All Employees are to regularly keep themselves updated with the contents of this Handbook and all revisions henceforth. Pa g e 6 l 68

ABOUT THIS HANDBOOK This Handbook supersedes all previous Employee Handbooks. This Handbook shall be effective from 1st September 2020. This Handbook shall supplement the terms and conditions in the Employee's employment. However, it is not intended to provide exhaustive nor detailed description of the entire policies and procedures relevant to Employees. This Handbook shall be read in conjunction with other relevant documents, any updated and published policies, guidelines, Code of Conduct and Ethics, circulars/memos, etc, which relate to the terms and conditions of service for a comprehensive understanding and interpretation of the relevant policies and procedures. The contents of this Handbook are to be kept strictly confidential and are intended for reference by the Company and Employees only. Employees' right to access the Handbook shall cease upon leaving the Company. Where there is any doubt or query concerning the contents and the terms and conditions as presented in this Handbook, the Employee shall seek clarification/confirmation from the respective HR Business Partner. , TEXCHEM Pa g e 7 j68

OWNERSHIP OF HANDBOOK The information contained in this Employee Handbook is confidential and proprietary to Texchem. The information is for internal use only and may not be distributed outside of Texchem. Any use of the third-party contact information contained herein does not violate the Employee's obligation to keep the contents of this Employee Handbook confidential. The person to whom the Employee Handbook is issued shall be responsible for its safekeeping and shall return it to the Company upon resig nati on. COVERAGE The Terms and Conditions of Employment are applicable to and binding to permanent Employees of the Company operating in Malaysia. Although the policies in this Handbook have been written to be as comprehensive as possi ble, they are not deemed to be exhaustive. The Company reserves the right to modify, alter , suspend or discontinue any of the conditions of service included in the Terms and Condition of Employment without prior notice. Respective Company / Division may vary the benefits stated in this Handbook to suit their business or industry environment . Should there be any variation, the respective Company / Division's policies and guidelines shall prevail. Pa g e 8 l68

WELCOME NOTE Welcome to the Texchem family- the Employer of Choice ! In this Handbook you will find useful information about the Company, it's culture and management philosophies. It is our philosophy to ensure that our HR Policies are developed with great fairness and with the well-being of each Employee in mind. Employee welfare and development is our utmost priority. For new comers, as you begin your journey with the Company, it is important that you feel welcome and comfortable . We hope that you will be able to have a smooth transition into your new career . In Texchem, we encourage open communication whereby Employee engagement and communication between all levels are tran sparent. Should you need to clarify any information, your su pervisors, managers or the HR team will be able to assist you. Page 10168

VISION, MISSION & CORE VALUES Please refer to www.texchemgroup.com for the Group's Vision , Mission and Core Values. BUSINESS VALUES Texchem's Business Values : Sustainability We shall ensure business sustainability through continuous innovation, constant advancement, continuous process improvement and ensuring sustainable supply chain. Green We shall further enhance our green business practices such as effective waste management, water conservation, greening the supply chain and venturing into green businesses. Health and Safety We shall strive to build our reputation as a company that is associated with having high standards and safety regulations in the products produced and supplied. , TEXCHEM Pa g e 9 l68

QUANTUM LEAP Quantum LEAP Pride of Associati ending People Power Building a Solid People Foundation Quantum Leveraging Empl oyee Accelerated Part nership The Quantum LEAP mechanism was introduced to build a positive and competitive Employee partnership within the organisation's corporate culture. Under this umbrella, there are 3 focus areas i.e. Pride of Association, Transcending People Power and Building a Solid People Foundation. ■ Transcending People Power is about ordinary people doing extraordinary things. ■ Pride of Association refers to how each of us must be proud to be a part of the Texchem family. ■ Building a Solid People Foundation is how each of us must own our self-learning and development for continuous imp rovement. The 3 focus areas under the Quantum LEAP umbrella ties back to Texchem's Core Values of Innovation, Competency, Accountability, Empowerment and Empathy. All of these shall be the guiding principles that ensure Texchemers are aligned with the organisation's vision and goals and reflect the organisation and its Employees' culture , spirit and dedication in all that we do. , T EXCHEM Page 11168

The DESIRED CORPORATE BEHAVIOR for all Texchemers are: Team Orientation We should view each other as belonging to ONE company and not by different divisions, companies or departments. Aggressiveness Adopt an action driven culture and competitiveness. Ownership I Attention to Detail Let us take charge, be the driver and focus on follow-ups. Innovative and Risk Taking To think out of the box,continuously seek improvements and not be afraid to take calculated risks. Page 12 1 68

INTEGRITY PLEDGE TEXCHEM IS COMMITTED TO STRONGLY UPHOLD AND WE PLEDGE AS FOLLOWS : ,- I I I , T EXCHEM Page 13168

EMPLOYEE CORE COMPETENCIES Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins with the establishment of our Employee Core Competencies that we would like to strengthen in our Employees' competencies which is the foundation to a high performing team. Individual Continuous Learning - Shows eagerness to improve knowledge andskills. - Keeps abreast of new developments in technology/ business & in own occupation/ profession. - Actively participate in learning new ideas and concepts. Strive for Excellence - Ability to persevere. See through the jobs assigned till finish/ completi on. - Actively seeks to improve processes/ functions in his own area of work and throughout the Company. - Demonstrates professional competency and mastery of job assi gned. Interpersonal Effective Communication - Demonstrates effective and transparent communica ti on. Listens to others, correctly interprets messages from others and responds appropriately. - Asks questions to clarify, and exhibits interest in having two-way communica ti on. - Speaks and writes clearly and effectively . Contributing to Team Success - Places team agenda before personal agenda. Works collaboratively with colleagues to achieve goals. - Solicits input by genuinely valuing other team member's ideas and expertise; is willing to learn from other s. Business Be Customer Centric - Makes customers and their needs a primary focus. - Readily adjust priorities to respond to pressing and changing customers demand. Getting Things Done - Demonstrates strong commitment towards increasing company performance through continuous improvement and innovation. - Have strong sense of urgency to complete tasks. , TE XCHEM Page 17j68

Leadership Be Accountable - Is conscientious and efficient in meeting commitments, observing deadlines and achieving results. - Drive quality culture to work area or organisati on. Lead Within Organisation - Works collaboratively with colleagues to achieve organisational goals. DEFINITIONS AND INTERPRETATIONS The following definitions shall apply unless otherwise expressly stated in this Handbook: \"Texchem\" / \"Company\" means and includes Texchem Resources Berhad (\"TRB\"), a Company incorporated under the Companies Act 1965 and its subsidiaries, associated companies or affiliated companies. \"Employee\" means and includes persons appointed to serve the Company under Employment Agreement. \"CSR\" means Corporate Social Responsibility \"Collective Agreement\" means collective Employee union agreement with Company. \"Confirmed Employee\" means an Employee whose services have been confirmed in writing by the Company, upon completion of the probationary period. \"OSHE\" means Occupational Safety, Health and Environment. \"Human Resources Business Partner (HRBP)\" means the HR person responsible for aligning business objectives with Management and Employees in designated Division/ Company. \"Texchemer\" means an Employee of the Company. \"Salary\" means basic salary exclusive of all allowances. \"Allowances\" means an amount of money given regularly for a specific purpose. \"Service\" means an Employee's length of service with the Company, expressed in years, months and days, unless otherwise specified herein. \"Panel Clinic\" means any clinic appointed by the Company or any Government Clinic. \"Panel Hospital\" means any hospital appointed by the Company or any Government Hospital. Page 14 I 68

PART A COMPANY POLICY 1. QUALITY POLICY 1.1 We are committed to provide quality products, services and total customer satisfaction through continuous improvement. For detailed Quality Policy, kindly refer to respective companies. Employee shall observe the Quality Policy of their respective companies. 2. OCCUPATIONAL SAFETY, HEALTH AND ENVIRONMENT (OSHE) 2.1 As a multinational conglomerate, Texchem provides a working environment that promotes the physical and mental health & wellbeing of its workforce. We are committed to conduct our business in a safe, healthy and environmentally responsible manner through the observance of the following principles: P revention of injury, ill health and environmental degradation in all our activities, A dherence and compliance to applicable OSHE laws, regulations and other requirements, Setting and effectively communicating the OSHE policy to Employees, contractors and interested parties, Systematically improve our operations and policies to create a safer, healthier and more environmentally sustainable workplace. While employers have duties to ensure a safe working environment for Employees, Employees also have a role in ensuring their own health and safety, and that of people around them. Employees are to take reasonable steps to : • ensure their own health and safety; • ensure that nothing they do harms any other person. Employees have specific responsibilities to : • take all practicable steps to use protective equipment and to wear protective clothing provided by the Employer or by the Employee himself or herself; • not undertake work which is unsafe or which involves unsafe practices ; • make unsafe work situations safe or, if they cannot, inform their supervisor or manager; • know about and follow their workplace's health and safety practices and procedures, including reporting of work-related accidents, illnesses and injuries, and hazards; • co-operate with the monitoring of workplace hazards and Employees' health; , TE XCHEM Page 17j68

• co-operate to eliminate drug and alcohol use and abuse in the workplace by undergoing random test and testing based on reasonable suspicion for drug and/or alcohol; • comply with any improvement and prohibition notices issued for their workplace. 3. CORPORATE SOCIAL RESPONSIBILITY (CSR) 3.1 At Texchem, great emphasis is placed on CSR as the Company believes that each Employee can find greater meaning in their daily work life if each of us can contribute back to society through charity and voluntary work. CSR activities in Texchem are mainly initiated and driven by the Employees under Texchem's Cultural Ambassador Committee and supported by the Company. The Texchem's Cultural Ambassador Committee was formed for the purpose of Employee engagement through CSR programs as part of promoting the values of empathy among Texchemers. At Texchem, we would like you to practice empathy by building an enjoyable working environment through respect, trust, care and teamwork with your other Texchem colleagues; at the same ti me, we would like to build social consciousness among Texchemers and encourage each of you to extend a helping hand to the community. On the business front , each Division in Texchem conducts their business in ways that enhance society and the environment. 4. PERSONAL DATA PROTECTION 4.1 1 Introduction (a) Personal Data Protection Act 2010 (PDPA) came into force on 15 November 2013 . The objective of the PDPA is to provide protection and control over the way personal information is collected, stored and used. (b) The Company collects, stores and process personal information of an individual in accordance with the PDPA. 4.2 Definition Personal information may be any information which relates directly or indirectly to the Employee or Director, as long as it can \"identify\" the Employee or Director as an individual. Under the PDPA, personal information may also include sensitive information which relates to physical or mental health/condition, political opinion, religious belie,f offences and suchotherpersonal dataastheMinister ofCommunicationsandMultimedia mayprescribe. 4.3 Exemptions Any data requested for the administration of justice/legal proceeding/legal opinion/legal right, statutory requirement (government), and medical purpose undertaken by health professionals are exempted by the Act . Page 16168

4.4 Type/Kind of Personal Information Collected, Stored and Processed (a) The Company collects personal information which includes (but not limited to) name, age, gender, identification, passport, driving license number, bank account number/ details, telephone number, personal email address, home address, EPF, SOCSO, Income Tax numbers, family history/particulars/ information, details of education, past working experience, etc. (b) Personal data may be obtained from Employees via various sources such as application for employment form, present/current employment form, conflict of interest agreement and declaration of immediate family/relatives working in Texchem form, covenants upon termination and/or resignation and/or cessation agreement, health declaration form, salary crediting consent form, information stated in the resumes/ certificates and personal information in any other forms deposited during the course of employment with the Company. (c) The Company may also obtain personal information directly or indirectly from third party when conducting reference check on past employment or when dealing with Employment/Search Agencies. 4 .5 The Purpose of the Personal Information Collected The purpose for the collection, storage and processing of the personal data includes but is not limited to the followings: (a) Payroll processing and salary administration (b) Compensation and benefit administration (c) Disciplinary and grievance procedure (d) Industrial and Employee relations (e) Training and development (f) Succession planning and career development (g) Report and statistical data on human resources (h) Survey on Employee opinion, job satisfaction, salary and benefits (i) All other employment requirement and purposes related/associated with the above. 4.6 Transfer of Personal Information Outside of Malaysia The Company may transfer personal information to Companies overseas but such transfers are in line with the Employee's employment. The Company will ensure that Companies overseas keep the information confidential. 4.7 Disclosure of Personal Information to Third Party (a) The Company may disclose or transfer personal information to the auditors, banks and insurance companies for Company's financial reports, Employee/Company's banking facilities and Employee insurance coverage respectively. (b) The Company may also disclose personal information to any Clinic/Hospital and other organisation in line with the purpose stated in item 4.5. , TEXCHEM Page 19 j 68

(c) Personal information may be disclosed to other organisations in line with the Employees' services rendered to that organisati on. 4.8 Employee Obligation Employees are; (a) Responsible to provide accurate and full personal information to the Company for the purpose required in item 4.5. (b) Obliged to update the Company once the information submitted earlier becomes incorrect or outdated or should any new information emerge by contacting the HR Department of the respective Companies or by filling the updating of personal information form obtainable from the HR Department . 4.9 Rights to Access and Correct Personal Information (a) The Company will assist Employees to access his/her personal information in the Company's possession. (b) Employees may correct his/her personal information if they have a reason to believe that the information is misleadi ng, inaccurate, incomplete or outdated. (c) To access or correct his/her information as stated in (a) and (b), the Employee have to contact the Pers on-In-Char ge of Personal Data Protection from HR Department . 4.10 Storage of Personal Information (a) The Company will store personal information in the Personal files created for the Employee as well as in the HRManagement System. (b) The personal information shall be kept for the duration of the Employee's employment with the Company or so long as the relevant laws of Malaysia permit . 4.11 Consent of Employees (a) By providing personal information to the Company for the purpose of and in the manner described in this policy, the Employee have consented for the Company to collect, st ore, process, transfer and disclose his/her personal information. (b) Notwithstanding item (a) above, Employees are required to fill in the consent form (Form POPA 01) and return the duly completed and signed form to the Person-In-Charge of Personal Data Protection of respective HR Department . (c) Employees who have read, understood and acknowledge this Handbook shall be deemed to have consented . Page 18168

5. FREEDOM OF ASSOCIATION & EQUAL OPPORTUNITY 5.1 Texchem is committed to being an equal opportunity employer and to ensure that all Employees, job applicants are treated fairly and are not subjected to discrimination, bullying, harassment or victimisation in the workplace. Texchem aims to provide an environment in which Texchemers, customers , suppliers and other business partners are treated fairly and equitably irrespective of, amongst others, sex or sexual orienta ti on, race or ethnicity, age, disability and religion . Texchemers are to conduct themselves and the business activities of Texchem to facilitate these aims being achie ved. Texchem will compete effectively and fairly in the markets in which it operates. It will be ethical and responsible in the way it presents products and service s to it s customers , uses its market power and its pricing practice s. 6. CODE OF CONDUCT AND ETHICS {CoCE) 6.1 Please refer to www.texche mgroup.com for the Group's CoCE. 7. CONFLICT OF INTEREST 7.1 Objective The purpose of this policy is to establish a standard of conduct to ensure that Employees in the Company act in the best interests of the Company and maintain standards relating to conflict of interest . These standards are intended to enhance public confidence in the integrity of the Company and its Employees. 7.2 Employees of Texchem are expected to adhere to the highest standards of personal and professional integrity and shall protect the interests of Texchem. Personal gain shall not conflict with duty to Texchem. 7.3 Definition 7.3.1 Conflict of Interest (a) A situation where an Employee or his/her immediate relatives, or the organisation he/she represents has an interest in or has a direct or indirect competing interest with the Company's activities. This competing interest may result in the Employee being in a position to benefit from the situation or in the Company not being able to achieve a result in the best interest of the Company. (b) A conflict may arise where an Employee or his/her relatives is a party to a contract with the Company or has an interest in an enterprise, or is related to a person who is party to such a contract; or where an Employee receives payment by the Company for services rendered to the Company other than reimbursement for reasonable out-of-pocket expenses measured according to the Company's policies on expense reimbursement. Pag,e 20 I 6T8EXCHEM Page 19 j 68

(c) Conflict of interest also includes adherence to conduct , which is not keeping with the highest standards of personal and professional integrity and not protecting the interests of Texchem . 7.3.2 Immediate Family and Immediate Relatives (a) Immediate Family- Spouse, Children and Parents (b) Immediate Relatives - Gra ndparents, Brothers, Sist ers, Pare nts-in-Law, Brothers-in-Law and Sisters-in-Law 7.4 Conflict of Interest includes, but is not limited to the following situations: 7.4.1 Where an Employee's private affairs or financial interests are in conflict with their work duties, responsibilities and obligati ons, or result in a public perception that a conflict exists. 7.4.2 Which could impair the Employee's ability to act in the Company's interest. 7.4.3 Where the actions of an Employee would compromise or undermine the tru st, which the Company places in the Employee. 7.4.4 Assist private entities or persons in their dealings with the Company where this could result in preferential treatment to any person. 7.4.5 Directly or indirectly use, or allow the use of, Company property or information for anything other than officially approved ac tivi ti es. 7.5 Examples of Conflicts :- 7.5.1 If a potential conflict exists because of an Employee's and his/her immediate relative 's related interest in a matter, the Employee must inform their Supervisor immediately . 7.5.2 Acceptance of personal gifts beyond moderate courtesy, purchasing decisions for personal gain , and/or written public statements in conflict with Texchem. 7.5.3 Employee's immediate relatives and related firms and/or suppliers are not precluded from selling goods, mate rials, or services to Texchem provided this activity is consistent with generally accepted competitive commercial practices. 7.5.4 An Employee will not vote on, or participate in, any discussion about a resolution to approve a contract in which he/she or his/her immediate relatives have an interest, nor will an Employee approve and/or sign off on such circu mstances. 7.6 In the performance of their duti es, Employees must not: 7.6.1 Place themselves in a position of obligation to persons who might benefit or appear to benefit from special consideration with respect to Company busin ess; 7.6.2 Have a monetary interest that would conflict with the discharge of the duties owed to the Company;

7.6.3 Disclose, discuss, use, take advantage of, benefit or appear to benefit from the use of information not generally available to the public and which has been acquired during their official Company duties. 7.7 As a general guideline, moderate courtesy as per clause 7.5.2, is defined as follows :- 7.8 7.7.1 Any personal gifts with the value of RMlO0 and below. 7.9 7.10 7.7.2 Hampers are discouraged, however if it is already delivered by the vendor, the content of the hamper is to be distributed to the department staff. 7.11 7.12 Other than the above mentioned moderate courtesy gifts, all other gifts are not 7.13 acceptable. 7.14 Employees must submit a new form as and when there is a change of information provided in the previous submissions. Employees must disclose to the Management, in writi ng, any business, commercial or financial interest where such interest might be construed as being in real, potential or apparent conflict with their official duti es. The Employee's immediate family or relative may be involved with another Employer, volunteer activity, carry on a business, or receive remuneration from public funds provided that: 7.10.1 It does not interfere with the performance of the Employee's duties; 7.10.2 The Employee does not bring the Company into disrepute; 7.10.3 The Employee does not involve the use of Company premises, services, equipment or supplies to which the staff member has access by virtue of their employment, unless official authorisation is secur ed. Employees are required to consult the Management whenever they have any question as to whether a particular circumstance may place them in a conflict of interest. Persons who fail to comply with these standards during the course of their employment will be subject to such appropriate measures as may be determined by the Company including dismissal from employment. Persons who are terminated from the Company due to their failure to comply with these standards hereby acknowledge that the disclosure of confidential information will result in irreparable harm to the Company and the Company shall have the right to enforce its lawful rights and remedies against any offending person. Where an individual fail to disclose a conflict or an interest according to this policy or according to other laws or regulations in Malaysia, the Company reserves all rights it may have to deal with the contract, conflict and individual involved. Page , 22 I 6T8EXCHEM ,. TEXPCaHgeEM21 j 68

8. ANTI CORRUPTION 8.1 Texchem has a zero tolerance against all forms of bribery and corruption, and seeks to prevent bribery and corrupt practices from taking root in Texchem's opera ti ons . 8.2 2 Texchemers are prohibited from receiving, giving or promising payments including soliciting something of value which may influence the decisions or actions of a per son with position of trust within an organisati on. Texchem are committed to deal with business partner s and asso ciates in a fair, transparent and ethical manner. 8.3 Engaging in bribery will result in severe consequences for Texchemers and for Texchem. Texchemers may face dismissal, imprisonment and fine, and the Company may face damage to reputation, financial loss and other negative consequences. 8.4 If Texchemers have any doubt about the scope of applicable laws or the application of Texchem's policies concerning the fight against bribery and corrupti on , please contact our Group Legal Department immediately. 8.5 Plea se refer to Group HR Guideline : Anti-Corruption Policy and Procedures (Ref No. GHR 8.09) for policy and procedure s. 9.ANTIHARASSMENT 9.1 The Company strives to provide and maintain a work environment in which everyone is treated with dignity, decency and respect. The environment of the Company should be characterised by mutual trust and the absence of intimidation, oppression and exploit ati on. Employees should be able to work in a safe and stimulating atmosphere and all Employees have a right to work in an environment free from harassing conduct , including sexual hara ssm ent , retaliation and any other form of discrimination that is offensive , impairs morale, undermines the integrity of employment relationships and causes harm to the productivity, efficiency and stability of the organisati on. , TEXCHEM Page 23 I 68

10. WHISTLE BLOWER POLICY The Whistle Blower Policy is an extension of the CoCE. It is formulated to provide a mechanism for Employees to approach the Company regarding anyviolation of CoCE, unethical behaviour or fraud. Every Employee can report to the Company on any instances of such violation. 10.1 The Whistle Blower Policy guides Texchemers to approach Texchem regarding any violation of the CoCE, improper or unethical conduct or illegal activities. Every Texchemer can report to Texchem on any instances of such violation. 10.2 The Whistle Blower Policy ensures that Group HR Department (GHRD) will deal with any communication made in good faith (\"Protected Disclosure\") appr opriately. 10 .3 Whistle Blowers should submit all Protected Disclosure to the Head of GHRD, Division HRBP or Managing Director or Division President or President and Group Chief Executive Officer in writing or e-mail to ensure a clear understanding of the issue raised. 10.4 Whistle Blowers should act in good faith and must disclose his/ her identity in the letter or e-mail forwarding such Protected Disclosure, failing which the disclosure may not be investigated. 10.S If the Protected Disclosure involves the HRBP or Head of GHRD or Division President or President and Group Chief Executive Officer, the Whistle Blower is to report the matter directly to any one of the other 2 uninvolved parti es. 10 .6 The Head of GHRD or Group Internal Assurance and Consulting Department or lnvestigator(s) appointed by the President and Group Chief Executive Officer will be responsible to investigate/ oversee the investigations. All investigators are independent and they are required to conduct their investigation and analysis in a fair and objective manner. They are also required to uphold high legal and professional standards. 10.7 Texchem shall provide full protection to all Whistle Blowers. They will be 10.8 protected against any unfair labour/ employment practices . Texchem shall take necessary steps to minimise difficulties that the Whistle Blower may experience/ encounter because of the Protected Disclosure. The identity of the Whistle Blower shall be kept confidential. Whistle Blowers who made Protected Disclosure that were subsequently found to be false or reported otherwise than in good faith will lose the protection under the Whistle Blower Policy. In this aspect , Texchem has the right to take appropriate disciplinary action against the Whistle Blower. 10.9 9 The outcome of all investigations shall be presented to the Independent Directors of Texchem on a timely basis upon the conclusion of each investi gati on. 10.10 The Company whistle -blowing procedure is designed to make it easy for Employees to make disclosure, without fear of retalia ti on. Page 24 I 68

PART B EMPLOYMENT 1. APPOINTMENTS 1.1 All appointments shall be made by Employment Contract signed by a duly authorised officer of the Company and issued by the HR Department . 1.2 If at any time subsequent to the appointment of any Employee it is found that any statement entered in the application form is in any aspect untrue, the Employee will be liable to instant dismissal. 1.3 The Company shall only appoint Employee who has reached 18 years of age. Exceptions will only made under special circumstances for which the Company shall comply with provisions under the Children and Young Persons (Employment) Act 1966 ('CAYPEA') and its amendments. 2. WORKING HOURS 2.1 Employees are required to adhere to the working hours set by the respective Company. Employees are required to clock-in and clock-out based on attendance system adopted by respective Company to log attendance for each work day. The Company reserves the right to reschedule the working hours of an Employee at its discretion in accordance with the needs of the Company. 3. FLEXI HOURS 3.1 Flexible working time is provided to certain Grade Level of Employees; please follow your respective Company's working hours. The Management of respective Company may decide whether to implement or vary the time arrangement based on their Company's operational needs. 4. SHIFT PATTERN 4.1 Employees assigned to work on shift shall observe the shift pattern adopted by the Company. Please follow your respective Company's shift patterns. 5. PUNCTUALITY 5.1 All Employees are expected to be conscientious about punctuality and att endance. They are required to clock in when they come to work and clock out when they leave. An Employee will be considered absent from work if he/ she fails to do so. , TEXCHEM Page 25 I 68

6. REST DAY 6.1 All Employees shall be entitled to a rest day in each week as determined by the Company. Rest day shall be on Sunday or other days as determine by the Company. 7. DRESS CODE AND UNIFORM 7.1 Dress Code Employees should be neatly and properly dressed during working hours. Dress code is determined by the respective Company. Dress code for Employees at the Corporate HQ (Penang and Subang Jaya) Dress code for Employees at the Corporate HQ (Penang and Subang Jaya) Women Men Appropriate office attire with Long pants with long sleeve shirt. acceptable corporate look. Dress Covered formal office shoes with Blouse and skirt socks. Three (3) piece pants suit . Shoes with heels, open toed shoes To wear tie during official and or appropriate covered shoes. special company meeti ng/events. Employees from subsidiary Companies are required to follow this dress code if they visit/attend meetings in Corporate HQ (Penang). 7.2 Uniform Certain group of Employees are accorded uniform s. They are required to wear their uniform to work and keep their uniform clean at all times at their own expense. They shall strictly follow and observe the dress code regulations set by their respective Company. The Employee must return the uniform when the Employee resigns, failing which the Employee shall compensate the Company for the cost of the uniform. Page 26 I 68

8. PROBATION PERIOD 8.1 An Employee shall serve probationary period of three (3) months unless as otherwise stipulated in the Employee's Employment Contract . The Company reserves the right to extend the probation period or not confirm the employment if the performance of the Employee is not sati sfactory . 8.2 The Company may at its sole discretion extend the probationary period, for a period not exceeding three (3) months. In the event of any extension, the Employee shall be informed in writing of the extended probationary period. 8.3 On completion of the probationary period or any extended period thereof, the Company shall inform the Employee in writing of his/her confirmation in employment or terminati on. In the absence of such notification in writing, the Employee shall be deemed to be a probationer until informed otherwise in writi ng. 8.4 During the probationary period or any extended period thereof, either party may terminate the contract by giving to the other notice in writing or by payment of salary in-lieu of such notice. 9. CONFIRMATION 9.1 For new hires, regular performance appraisal will be conducted and the \"Appraisal During Probation Period\" form should be duly completed by the superior. 9.2 The Employee is only deemed confirmed upon the receipt of the confirmation lett er. In the absence of such notification in writing, the Employee shall be deemed to be a probationer until informed otherwise in writing. 10. UPDATE OF PERSONAL PARTICULARS 10.1 The Employee shall notify the Company of any change in status concerning family, address, telephone number or latest educational att ain ment. This is to enable the Company to maintain an up-to-date record in times of emergency and for proper insurance coverage and statutory compliance . 11. BREACH OF CONTRACT 11.1 An Employee who has been absent from work for more than two (2) consecutive working days without prior permission from the Company and without reasonable excuse or where there is reasonable excuse, has failed to inform or attempt to inform the Company at earliest opportunity of the excuse, shall be deemed to have breached his/her contract of service. The Company may terminate the Employee without notice. , TEXCHEM Page 27 I 68

12. NOTICE OF TERMINATION 12.1 The Employee's employment may be terminated at any time by either party giving notice in writing to the other or payment of salary in-lieu of such notice, without assigning any reasons whats oever. GEramdpeloLyeeveel Employee Cluster During Probation Upon Confirmation 1 - 13 Top Management 1 month 3 months Senior Management Management 14 - 19 Executive 2 weeks 2 months 20 - 23 Non-Executive 1 week < 5 years : 1 month 5 years & above: 2 months 12.2 The day on which the notice is given by the Employee shall be included in the notice period. 13. TRANSFER & SECONDMENT 13.1 The Company may, at its absolute discretion, transfer or second the Employee to any department, section or division within Texchem in Malaysia or outside Malaysia (currently as well as future subsidiaries, associated companies or affiliated companies). 13.2 The transfer or secondment is normally affected based on the business needs of the Company in ensuring optimum allocation and utilisation of the Company's manpower resources. 13.3 Transfer/secondment form an integral part the Employee's contract of service and therefore must be adhered to by the Employee. 13.4 A transfer/secondment may involve the followings: (i) Moving to a job specifying different responsibilities; and/or (ii) Additional responsibilities; and/or (iii) A change in the job grade, salary or benefits;and/or (iv) A change in workplace Page 28 I 68

14. INTRA-OFFICE MARRIAGE 14.1 Intra-Office marriage is not encouraged. Couples will have to decide which one of them should leave the Company in the event there is a conflict of interest. 15. RETIREMENT AGE 15.1 1 The retirement age for all Employees shall be sixty (60) years or in accordance with the Malaysian government statutory retirement age. 16. PERFORMANCE GUIDE Performance Measurement Guide Job Function Grade Level 8 Core Competencies KRA Continuous Lea d Within Lea rning Organisation Strive for Be Excellence Accou ntable Effective Getting Things Communication Done Be Customer Contributing to Centric Team Success Job Description Performance Development Review Innovation Competency Accountability Empowerment Empathy BusinessValues Passion 16.1 Performance Management is about aligning the organisational objectives with the Employee's job description and performance development review. 16.2 The emphasis is on improvement, learning and development in order to achieve the overall business strategy and to create a high-performance workforce. 17. JOB DESCRIPTION 17.1 Employee shall be assigned a Job Description by Supervisor. It is important that an Employee's Job Description reflects the job function that the Employee is currently assigned to. , TEXCHEM Page 29 I 68

18. EMPLOYEE GRADE LEVEL 18.1 Employees are clustered into the following job grade. Employee Grade Standard Job Titles Cluster Level Group Executive Chairman Group President & Group CEO 1 Group Deputy Chairman Group President & COO 2 Division President & CEO Division President & COO Top Group Chief Financial Officer Management Group Chief HR Officer Executive Vice President (Division) 3 Division COO Managing Director (A) Divisional Executive Director 4 Managing Director (B) Group Finance Director 5 Deputy Managing Director (A) Vice President (A) Deputy Managing Director (B) 6 Executive Director (A) Vice President (B) Senior Executive Director (B) Management 7 Director (A) Management Division Chief Financial Officer Executive Senior General Manager (A) Non Executive 8 Division Finance Director Director (B) 9 Senior General Manager (B) General Manager (A) 10 General Manager (B) Assistant General Manager 11 Senior Manager I 12 Senior Manager II 13 Manager 14 Assistant Manager 15 Senior Executive 16 Executive 17 Senior Officer 18 Officer 19 Junior Officer 20 Non-Executive 1 21 Non-Executive 2 22 Non-Executive 3 23 Operator *(A)/ (B) - Refer to GHRD for information on Company grouping. Page 3300I 68 , . TEXCHEM

19. PERFORMANCE REVIEW 19.1 Performance Development Review (PDR) encompasses past performance as well as Company expectations and development for the future. 19.2 The Company shall, from time to time, review the performance of all Employees in accordance with the performance appraisal system established by the Compan y. 19.3 The PDR comprises of 3 parts. Part (A) Job Performance In this section, the Employee's performance for the review period is measured against the superior's job expectations, Job Description (JD) and Key Results Area (KRA). Part (B) Core Competency There are 8 Core Competencies which is used to measure and develop Employees. Part (C) Learning and Development Knowing oneself is the first step to learning . This section captures Career Aspirations, Areas where the Employee wants to grow, Learning Effectiveness and KRAs for next performance period. 19.4 The 5 levels rating system is adopted for performance measurement as follows: Outstanding (OS) Good, solid performance and exceeds expectation/performance standard and able to work independent ly. Frequently demonstrates ability to surpass others and initiate new thinking to improve overall department operati ons . Stands out as an extremely valuable contributor to the Company. Exceed Expectation (EE) Consistently exceed expectation/performance standard with minimum supervision. Occasionally demonstrates ability to surpass others and initiate new thinking to improve overall department operations. Meet Expectation (ME) Consistently meets expectation/performance standard with minimum supervision. Below Expectation (BE) Occasionally meets expectation/performance standard but require regular or close supervision. Needs Improvement (NI) Unacceptable performance level which is below the minimum necessary to complete the functions of the job. Must significantly improve and sustain performance within a short period of time if the individual is to remain in the position. , TEXCHEM Page 31 j68

20. SMART GOALS 20.1 Goals are part of every aspect of business/life and provide a sense of direction, motivation, a clear focus, and clarify importance . By setting goals for yourself, you are providing yourself with a target to aim for. A SMART goal is used to help guide goal setti ng. SMART is an acronym that stands for Specific, Measurable, Attainable, Realistic, and Timely. Therefore, a SMART goal incorporates all of these criteria to help focus efforts and increase the chances of achieving that goal. SMART Goals s M A R T SPECIFIC MEASURABLE ATTAINABLE RELEVANT TIMELY Who,What, From and To How Worthwhile When Where,Why, When,Wh ch •Can the progress • Is the goal • Is the goal • There should be be tracked and reasonable worthwhile a time limit to • Define the goal measure the enough to be and will it meet complete the as much as outcome? accomplished? the company's goal possible with -How so? expectations no ambiguous • Make sure the -Set clear datelines language goal is not out of • Each goal should and milestones reach or below be consistant with -Who is involved standard other goals that • What needs to be performance have been accomplished established and • What are the fits to the overall requirements objectives of the •Where will it be company and done short term and long term goals • Why are we doing this • When it should be completed • Which relevant areas/scope 20.2 SMART goals are : Specific: Well defined, clear, and unambiguous. M easurable: With specific criteria that measure your progress towards the accomplishment of the goal. Attainable: Attainable and not impossible to achieve . Relevant: Within reach, realistic, and relevant. Timely : With a clearly defined timeline, including a starting date and a target date. The purpose is to create urgency. Page 32 I 68

21. PROMOTION 21.1 It is the Company's policy to promote from within the Company thus providing opportunities for continued career advancement. 22. PERFORMANCE IMPROVEMENT PROGRAM 22.1 A Performance Improvement Plan (PIP) is a document to give an Employee with performance issues the opportunity to succeed and to ensure our Employees meet the job performance requirement. 22.2 PIP is recommended for Employees who are either : ■ Rated as \"Below Expectation\" or \"Needs Improvement\" in their annual performance review. • Repeated poor performer. ■ Employees who have regressed during the year in performance 23. TALENT DEVELOPMENT 23.1 Texchem fosters a culture of continuous learning where the Employees of Texchem will get opportunities to enhance their learning and development through various learning opportunities such as classroom training, talks, seminars, on the job training, coaching etc ...The development will also focus on strengthening the desired competencies and behavioural traits . 23.2 \"You Own Your Own Development\" . The Employee's training needs are captured through our annual Performance Development Review. 23.3 Employees are encouraged to understand their own strengths and opportunities and work towards building the necessary desired competencies and behaviour to perform successfully at work. While the Company shall organise structured classroom training/seminars/talks, in the age of internet and industry 4.0, information and knowledge are readily available through many public channels. Employees are highly encouraged to pursue self-learning and improvement. , TEXCHEM Page 33 I 68

PART C COMPENSATION & BENEFITS Total rewards are the combination of the followings: 1. Salary 2. Allowances 3. Benefits 4. Non-financial rewards 1. SALARIES 1.1 PAYMENT OF SALARY 1.1.1 Salary will be credited into the Employee's account on the last working day of each month. 1.2 STATUTORY AND OTHER DEDUCTIONS 1. 2.1 The Company may make deduction from Employee's salary as per Section 24 of the Employment Act 1955. The Company shall make deduction from the Employee's wages and contribute to; (a) EPF in accordance with the EPF Act 1991. (b) SOCSO in accordance with the SOCSO Act1969. (c) Income Tax in accordance with the Income Tax Act 1967. (d) Employment Insurance System in accordance with the Employment Insurance System Act 2017 . (e) Any other deduction in accordance with the Malaysian statutory requirement as required from time to time. (f) Any other deduction i.e. zakat, PTPTN loan repayment, Tabung Haji , union fees, hostel, medical excess, etc. 1.3 ANNUAL SALARY INCREMENT 1.3.1 1 Salary increment shall be subjected to the Employee's satisfactory work performance determined by a performance appraisal system established by the Company, contribution of the Employee, the Company's financial position and at the absolute discretion of the Company. Page 34I 68 ,. TEXCHEM

1.4 OVERTIME 1.4.1 An Employee may be required to work overtime, as and when the need arises at the request of the Company and the Employee shall not unreasonably refuse to do so. 1.4.2 Overtime is computed every half an hour or an hour in excess of the normal working hours, depending on the Company's operati on. 1.4.3 Employees within the scope of the Employment Act 1955 (EA 1955), who perform overtime work with the prior permission of the Management, shall be entitled to overtime wages in accordance with the provision of the EA 1955. 1.5 SHIFT ALLOWANCE 1.5.1 The Company may pay Employees who are working on shift s. The allowance will no longer be applicable if an Employee is no longer working on shifts. 1.6 CALL BACK ALLOWANCE 1.6.1 Call back work is work outside an Employee's normal working hours and is not continuous to or an extension of the normal working hours or planned overtime work. 1.6.2 Call back normally applies to emergency and urgent situations such as machine breakdowns, calamities occurring in the plant, etc. 1.6.3 For the purpose of computing payment for such call back, the working hours shall be deemed to commence from the time the Employee reports for duty at the place of work. , TEXCHEM Page 35 I 68

2. HOLIDAYS & LEAVE 2.1 PUBLIC HOLIDAY 2.1.1 The GHRD shall prepare and circulate the list of both national and state holidays to be observed by the different states before the beginning of a new calendar year. 2.1.2 Should a Public Holiday falls on a Rest Day, the following day will be a paid Public Holiday. If two (2) public holidays fall on a working day, the working day and the next day shall be observed as holidays . If two (2) public holidays fall on Rest Day, the following two (2) working days shall be observed as holidays . 2.1.3 Any Employee who absents himself/herself from work on the working day immediately preceding or succeeding a public holiday or two (2) or more consecutive public holidays or any day or days substituted thereof without the prior consent of the Company and/or without reasonable excuse shall not be entitled to any holiday pay for that holiday(s) . 2.1.4 The other six (6) days of public holidays and on any day appointed as public holiday under section 8 of the Holidays Act 1951, the said public holidays will be substituted with another day or days within reasonable ti me. 2.2 SPECIAL HOLIDAY ANNOUNCEMENT BY FEDERAL/ STATE GOVERNMENT 2.2.1 1 If the State or Federal Government declares a sudden \"special holiday\", under Section 8 of the Holidays Act 1951, to celebrate a successful event or as a mark of respect for certain leaders in our country, Employees have to come to work and the Company will substitute another day. 2.3 ANNUAL LEAVE 2.3.1 Annual Leave shall be granted on a calendar year basis but leave is earned after each month of service is completed. 2.3.2 2 Confirmed Employees may apply leave they have earned . 2.3.3 3 Employees are not allowed to apply for leave (Advance Leave) which they have not earned . Years of Service Grade Level 10 to 23 Less than 5 year s 14 days/ year 5 year s or more 21 days/ year 2.3.4 4 The Company reserves the right to arrange or re-arrange the Emplo yee's Annual Leave in accordance with its operational and business needs. Page 36 I 68

2.3.5 The Employee is allowed to carry forward only fifty percent (50%) of his/her 2.3.6 yearly entitlement of Annual Leave entitlement to the following year but not 2.3.7 more than one (1) year. Any other unutilised leave entitlement of the year shall be forfeited at the end of that year. Application for Annual Leave, except for emergency cases, shall be submitted at least three (3) working days in advance and such leave application must be approved before the Employee goes on leave. The Employee shall be deemed to be absent from work in the event he/she goes on leave without obtaining the requisite approval. If an Employee intends to accumulate his/her Annual Leave for the purpose of pilgrimage to Mecca or travelling overseas, he/she shall submit his/her travel plan in writing to the Company latest by October for the Company to consider approving accumulation of his/her leave subject to the followings: 2.3.8 (a) The Employee must have served the Company for at least five (5) years. (b) Accumulation of Annual Leave is limited to three (3) years' entitlement . The accumulated leave shall be taken in full in the year immediately following the accumulation period. Failure to utilise the leave would result in its forfeiture. Employees shall apply Annual Leave, or if insufficient, Shutdown Unpaid Leave for compulsory Company/ Outlet shutdown . 2.3.9 Where the Employee's service is terminated for reasons of misconduct, the Employee's proportionate Annual Leave entitlement shall be forfeited. Emergency Leave 2.3.10 Annual Leave application which is applied lesser than 3 days in advance is considered as Emergency Lea ve. The Employee shall apply with relevant supporting documents. Approved Emergency Leave shall be deducted from the Employee's Annual Leave entitlement. The Company reserves the right to reject the Employee's leave application. 2.4 HALF DAY LEAVE 2.4.1 Half-day Leave is part of Annual Leave. 2.4.2 Half-day Leave is applicable to all Employees except Employees working on shifts or working in restaurants . 2.4.3 To apply for the Half-day Leave, leave must be submitted for approval at least three (3) working days before the date of the Half-Day Leave (unless for emergency cases). 2.4.4 Half-day Leave can be taken either during the first (1st) half or second (2nd) half of the working day. If flexible time is practiced, work hours needs to be fulfilled within the flexible time schedule. Half day equals to 50% of total working time. , TEXCHEM Page 37 I 68

2.4.5 Employee who uses the Company transport to work have to arrange for their own transport (coming or leaving the work place/office) if they are on Half- day Leave. 2.4.6 Similar to other types of leave, the Company has the discretion to allow or 2.4.7 reject the Half-day Leave requested or re-adjust the dates of the leave granted if circumstances in the Company warrant it. Due to the operational/business requirements, at the discretion of the Management, certain group of Employees may be excluded from this Half- day Leave policy. 2.5 UNPAID LEAVE 2.5.1 Employees have to apply three (3) days in advance for Unpaid Leave and it is up to the discretion of the Management to approve. 2.5.2 Employees who do not have sufficient Annual Leave shall apply for Shutdown Unpaid Leave during compulsory Company/ Outlet Sh utdown . 2.5.3 Bonus (contractual & non-contractual) will be deducted for Unpaid Leave taken. Bonus will not be affected if the Unpaid Leave applied is due to compulsory Company/ Outlet shutdown. 2.5.4 An Employee who is on continuous Unpaid Leave of thirty (30) days and above shall not be entitled to Off Day, Rest Day and Public Holiday pay for that period. 2.5.5 If an Employee is on Unpaid Leave for more than thirty (30) days in a year, that period of absence shall be disregarded for the purpose of computing his/her Annual Leave entitlement. 2.5.6 Employees who have tendered resignation and are serving their notice period cannot apply for Unpaid Leave to offset the notice period. 2.6 REPLACEMENT LEAVE 2.6.1 If Employees are travelling on Texchem's official purpose/Business Trips on their respective Company's Off Day (Saturday) or working day, they are not eligible for Replacement Leave. 2.6.2 Travelling on Rest Day (Sunday) or Public Holidays will be replaced on one (1) to one (1) basis and shall be credited to the Employees' Annual Leave. 2.6.3 Employees who are eligible for Replacement Leave are required to attach their approved travel documents to their respective HR Department/person-in-charge of leave record within one (1) week of their return from travel so that their annual leaves record can be updated. Page 38 I 68 ,. TEXCHEM

2.6.4 In order to be entitled for the Replacement Leave for Rest Day or Public Holiday, Employees must prove to their Head of Department that they were working on the respective Company's Rest Day or Public Holidays during their business trips . 2.6.5 The accumulated leave shall be taken during the year. Failure to utilise the leave would result in its forfeiture. 2.7 SICK LEAVE 2.7.1 All Employees shall , on production of a medical certificate from the Company appointed doctor (panel clinic) or Government Medical Officer , be entitled to paid Sick Leave as foll ows; Years of Entittlement of Sick Leave Service Without Hospitalisation Total < 2 years Hospitalisation 60 days 60 days 2 years to 14 days 46 days 60 days < 5 years 18 day s 42 day s 5 years or more 22 days 38 days 2.7.2 Where the Employee is entitled to both Hospitalisation and Non-Hospitalisation sick Leave in one (1) calendar year, the total number of days of entitlement to paid Sick Leave shall not exceed sixty (60) days in that calendar year. 2.7.3 If the Employee is certified by the Company appointed doctor (panel clinic) or Government Medical Officer to be ill enough to be hospitalised but is not hospitalised for any reasons whats oever, the Employee shall be deemed hospitalised. For example, infectious disease such as Chickenpox, Measles, etc can be considered hospitali sed. 2.7.4 Employee who is not well enough to report to work should inform the Company within four (4) hours from the commencement of scheduled work hour. Thereafter inform the Company if Sick Leave is granted by the Company appointed doctor (panel clinic) or Government Medical Officer , failing which he shall be deemed to absent himself from work without the permission of the Company and without reasonable excuse for the days which he is absent from work. The Company may take disciplinary action on the Employee for being absent . 2.7.5 Employee who is not granted Sick Leave must return to work immediately after completion of the medical examinati on. , TEXCHEM Page 39 I 68

2.8 PROLONGED ILLNESS 2.8.1 If an Employee's health deteriorates to such an extent that he/she is rendered physically or mentally incapable of performing his/her duties effectively and efficiently for which he/she was employed as a result of contracting tuberculosis, cancer, poliomyelitis, leukaemia or leprosy or any other incurable or prolonged sickness, he/she shall be granted Prolonged Illness Leave as follows; Years of Service Full Pay Half Pay Remarks 5 years < 10 years 3 months 3 months 10 years or more 6 months 6 months Inclusive of Off Day, Rest Day & Public Holidays 2.8.2 Prolonged Illness Leave shall only commence after the Employee has fully 2.8.3 utilised his/her Sick Leave (Hospitalisation and Non-Hospitalisation) and Annual Leave. For the purpose of Prolonged Illness Leave and medical board cases, doctor's certification is compul sory. 2.8.4 An Employee who has partially use Prolonged Illness Leave shall thereafter be entitled to the balance Prolonged Illness Leave. 2.8.5 If at the end of the Prolonged Illness Leave, the Employee is still found unsuitable to resume work and on the advice of the Company doctor, the Employee shall be discharged from the Company's employment. 2.9 MARRIAGE LEAVE 2.9.1 In the case of the first (1st) legal marriage of confirmed Employee, whether for the purposes of the Employee's registration or wedding ceremony, the Employee is entitled to Marriage Leave of four (4) workingdays. 2.9.2 The four (4) days leave can be split for registration (civil) and wedding ceremony (customary). This leave cannot be accrued or postponed for other purposes (eg. Honeymoon) . 2.9.3 The Employee shall submit a copy of his/her marriage certificate/ wedding invitation card with his/her leave application form. Page 38 I 68 ,. TEXCHEM

2.10 MATERNITY LEAVE 2.10 .1 Every female Employee shall be entitled to Maternity Leave for a period of sixty (60) consecutive days or in accordance with the Malaysian government statutory length of eligible period. 2.10.2 The female Employee shall be entitled to receive from the Company her salary for the period of her maternity if; (a) She has been employed by the Company at any time in the four (4) months immediately before her confinement; and (b) She has been employed by the Company for a period of, or periods amounting in the aggregate to, not less than ninety (90) days during the nine (9) months immediately before her confinement. 2.10.3 Maternity Leave with full pay is only for an Employee who at the time of confinement has less than five (5) surviving children. 2.10.4 A female Employee who is about to leave her employment and who knows or has reason to believe that she will be confined within four (4) months from the date upon which she leaves shall before leaving her employment notify her employer of her pregnancy and if she fails so to do, she shall not be entitled to receive any maternity allowance from the Company. 2.10. 5 Leave due to miscarriage prior to twenty-two (22) weeks of pregnancy shall be considered as Sick Leave and not Maternity Leave. 2.10. 6 A female Employee who is on Maternity Leave shall not be entitled to substitution of Public Holiday(s) which falls during the period in which she is on such Maternity Lea ve. 2.10 .7 A female Employee shall within a period of sixty (60) days immediately preceding her expected confinement notify the Company of the pregnancy and the date from which she intends to commence her Maternity Leave. If she commences such leave without so notifying her employer, the payment of maternity allowance to her may be suspended. 2.11 PATERNITY LEAVE 2.11.1 In the case of the birth of a legal child , the confirmed Employee is entitled to one (1) working day leave, up to a maximum of five (5) surviving children. 2.11.2 The leave will be granted on the day or the day immediately following the birth of the child . If such day falls on the Employee's Rest Day, Annual Leave or Public Holiday, then the workday immediately following such day would be the day of the Paternity Leave. Any other variation isnot permissible. 2.11.3 The Employee shall submit a copy of the birth certificate with his leave application form. Pag,e 4016T8EXCHEM Pa g e 41 j 68

2.12 EXAMINATION LEAVE 2.12.1 The Examination Leave is applicable for course(s)/ programme(s) which have been endorsed by the Man agement. 2.12.2 The Company may grant Examination Leave if the examination falls on a working day, irrespective of whether the examination is on or after working hours. 2.12.3 This benefit is for confirmed Employees only and shall be limited to five (5) working days per year. 2.12.4 Employees who have tendered resignation shall not be entitled to this benefit . 2.13 COMPASSIONATE LEAVE 2.13.1 The Company shall grant Compassionate Leave to confirmed Employ­ ees, in the case of death of immediate family and relative as follows; Death of No of Days (Per Year) Immediate Family 3 days (Parent, Spouse & Children) 1 days Immediate Relative (Grandparents , Parents-in-Law & Siblings) 2.13.2 The Employee shall attach a copy of the death certificate with the leave application form. Such leave granted must be utilised on or immediately succeeding the day of death or on funeral day. However, this leave can be utilised for prayers/ ceremonies not exceeding 30 days from day of death. 2.14 CALAMITY LEAVE 2.14.1 The Company shall grant two (2) working days per year as Calamity Leave to confirmed Employees in the case of natural disaster (eg. fire or flood ), which directly affects the home of the Employee. The Employee shall attach a copy of relevant report from the police, fire department or Penghulu with the leave application form. 2.15 ARMY TRAINING 2.15.1 An Employee shall be allowed to attend the Army training as per requirement of the law without any deduction in the Employee's pay and benefits. , TEXCHEM Page 49 I 68

3. REIMBURSEMENT OF EMPLOYEE EXPENSES 3.1 MILEAGE REIMBURSEMENT 3.1.1 Employees who use their own vehicle for an official duty shall be eligible to claim mileage reimbursement as per below table. Car Motorcycle RM 0.55/ km RM0. 20/ km 3.1.2 Mileage reimbursement for Employees accorded Car Allowance without petrol card will be at flat rate of RM0 .25 per kilometre . 3.2 TOLLS 3.2.1 Employees in Grade Level 19 and above are entitled to claim Penang Bridge Toll or Penang Ferry Toll for travelling to work. Prior approval must be obtained from the Management. 3.3 TRAVEL POLICY 3.3.1 Air Travel Entitlement- Domestic & International All air travel must be on economy class unless stated otherwise in the Employee's employment contract . 3.3.2 Employees must compare prices from budget airlines, full-fledged airlines and travel agents to purchase the flight ticket at the cheapest price. Hotel Accommodation - Domestic & International Any accommodation selected for the Employee should be conveniently located for the Employee to stay overnight on Company business. All arrangements in this regard shall be made by the respective Department Coordinator . Where more than one Employee (of the same gender) stays overnight on Company business, accommodation should be on a twin-sharing basis and only one Employee to make claim for accommoda ti on. If there's no availability of rooms as per Employees' entitlement, the Employee may be upgraded to the next Grade Level. Page 42 I 68 ,. TEXCHEM

3.3.3 Domestic Business Travel Domestic travelling subsistence allowance by Employee Grade Level are as follows; Employee Grade Level Malaysia (RM) 10-11 90 12-14 70 15- 23 so The subsistence allowance is claimable as follows; i. Travelling starts on or before 3.00pm 100% travelling starts after 3.00pm 50% ii. Travelling distance of above 100km from office is claimable This scheme is not applicable in the event of an Employee being sent for training ; or to provide tr aini ng, customer support , research work, sales, etc, for an extended period of more than five (S) working days at any location. For such cases, the Management can decide on the followings; i. Appropriate daily subsistence allowance and in any case should be lower than the standard subsistence allowance rates. ii. . Arrange suitable accommodation (other than in a hotel) or let the Employee arrange their own accommodation at an amount which is less than the hotel daily rates. The Company shall reimburse all parking fees, toll and ferry charges incurred by Employee during the course of official travel. 3.3.4 Oversea Business Travel All foreign travel must have the prior approval of the Management. The signed requisition must be forwarded to the Finance Department and a copy to the HR Department for recording purpose. This scheme is not applicable in the event of an Employee being sent for training; or to provide training, customer support, research work, sales, etc, for an extended period of more than five (5) working days at any location. For such cases, the Management can decide on the appropriate daily subsistence allowance and in any case should be lower than the standard overseas travel subsistence allowance rates. Travel and accommodation arrangements shall be made through the respective Department Coordinator. The staff in charge is responsible for securing reliable travel modes, hotel and make necessary travelling insurance coverage for the Employee. Page 4416 8

3.3.5 Travel Insurance Employees who travel on business domestically are covered by GPA. Travel insurance is not provided for local travel. Travel Insurance is provided to Employees on overseas business travel. The Employee who travels overseas must inform Texchem Risk Management on his/her travel details for Texchem Risk Management to purchase the insurance. 3.3.6 Passport and Visa The Company shall bear the passport fees for Employees who does not possess a valid passport at the time he/ she is required to travel overseas for official duty. Cost incurred relating to application of passport (e.g. photograph, application form, parking fees, mileage, petrol, toll claims, etc) are not claimable as the passport belongs to the Employee and can be used for their personal travel. Visa may be part of the requirement for overseas travel and has to be attached with the passport. As such the Company shall bear the cost for visa and handling charges including cost of photo. Employee should ensure the safekeeping of their passport and that it is valid throughout the entire journey. If an Employee is found to be careless and lost his/ her passport and travel documents, the Company may refuse to pay for the additional days he/ she has to stay behind, until the problems could be settled. 3.3.7 Clothing Allowance Clothing allowance are given to Employee who is required to perform duties in countries which experience weather of lesser than 12 degrees Celsius during their travel period. In special circumstances, the Management may approve on case-by case basis. Employees going on his/ her first official duty trip overseas shall be allowed to claim clothing allowance of RM750.00 and subsequently RMS00.00 at the interval of every two (2) years from the last claim. All claims have to be accompanied with receipts. 3.3.8 Claims on Hotel Charges and Expenses Reimbursement Hotel expenses claimable by Employee are for Room Rates only. For business purpose, Employee can claim the following items; a. Usage of hotel facilities (ie. Telephone, internet, fax and photocopy). b. Expenses arising from entertaining customers or business guests. c. Employees may claim appropriate and reasonable laundry and valet service. d. Transportation charges such as taxi, rail, etc are clai mable . Other expenses, such as mini bar, room service, meals, etc shall be at the Employee's own expenses. , TEXCHEM Page 45 I 68

3.3 .9 Employees are required to submit the Expenses Report using the appropriate form to the Company together with bills, receipts, tickets etc to substantiate claim, within two (2) weeks upon returning from the business t rip. 3.3.10 Charges for excess baggage should be absorbed by the Employees. 3.3.11 The subsistence allowance rate for overseas travel are as per below table. Employee Hotel Hotel Destination & Meal Expenses/ Allowance Grade Level (Star) Expenses J (¥) A(US$) B (US$) C(US$) E (€ Euro) 10- 12 3-4 13-14 2-3 Actual 11,000 80 60 50 80 15-19 2-3 20- 23 2-3 Actual 10,000 70 50 40 70 Actual 9,000 60 40 30 60 Actual 8,000 50 30 20 50 Destination Country Code Japan A B Argen tina, Bangkok, Can ada, Chin a, Hong Kong, Middle East, Russia, Seoul, C Taipei, USA Australia, Cambodia , Jakarta , Korea (except Seoul), Laos, Myan mar, New Zealand, Taiwan (except Taipei), Thailand (except Bangkok), Vietnam Bangladesh, Ceyshelles Island, India, Indonesia (except Jakarta , Batam & Bint an), Madag ascar, Malaysia, Maldives, Mauritius Island, Nepal, Pakistan, Phili ppines, Sri Lanka Europe Employee Phuket/ Hadyai/ Songkla Singapore/ Batam/ Hotel Grade Level Brunei Bintan (Star) & Southern Thailand (S$/ B$) 10-12 (S$) 3-4 13-14 (Baht) 70 3 15 - 19 45 3 20- 23 650 45 40 RMlO0 450 40 35 350 30 25 250 3.3.12 Employees travelling to destinations not listed above shall have to consult GHRD for the appropriate reimbursement rate. Page 4616 8

4. BONUS & INCENTIVE 4.1 The payment of bonus shall be at the absolute discretion of the Company. 4.2 For Employees who have not completed one (1) calendar year of service, payment of bonus shall be calculated on a pro-rated basis in accordance with the number of month s served by the Employee. 4.3 No bonus shall be paid to Employees who have tendered resignati on, except for contractual bonus which shall be prorated. 4.4 The Company reserves its right to suspend payment of contractual bonus to Employees in the event disciplinary action has been initiated against the Employee for misconduct. The payment of such bonus shall be granted to the eligible Employee if he has been discharged of such allegations of misconduct. 4.5 Bonus including contractual bonus will be deducted for Absent , Unpaid Leave and Unpaid Sick Leave taken in the year as follows; Description No of Days Equivalent Daily Salary Deducted from Bonus Absent (Unauthorised) 1 1 3 Unpaid Leave (Authorised) 1 2 Unpaid Sick Leave 1 (in excess of Sick Leave entitlement) , TEXCHEM Page 47 I 68

5. MEDICAL/ PROTECTION 5.1 MEDICAL BENEFIT 5.1.1 The Company will pay/reimburse the Employee for outpatient medical expenses incurred at the Company's panel clinic and cases referred by the panel clinic or Government Medical Officer for specialist treatment. Entitlement will be as per the limit set by the Company. 5.1.2 All specialist treatment (non-hospitalisation or hospitalisation) which is referred by the Company's panel clinic or Government Medical Officer requires approval from the Company before treatment, except for emergency cases (eg. accident cases) which requires immediate treatment. 5.1.3 In the event the specialist treatment involves surgery or hospitalisation, the expenses shall be subjected to the limitations and exclusions as stipulated in the Group Hospitalisation & Surgical Scheme (GHSS) undertaken by the Company. 5.2 OUTPATIENT MEDICAL TREATMENT 5.2.1 Employees should obtain medical chit from the respective HR Department prior to seeking consultation at the panel clinic. 5.2.2 Except for non-working days or emergency cases, the Employee can pay first then claim (with receipt) from the Company. Claims should be submitted to the HR Department within a month from the date of the medical receipt (or before 31 December of each year for December's claim) for approval before submission to the Finance Department for reimbursement. 5.2.3 Employees shall be eligible for outpatient medical expenses subject to a maximum of RM300.00 per visit at the Company's panel clinic. 5.2.4 Outpatient medical expenses at the Company's panel clinic are also extended to the family (spouse and children) of Employees in Grade Level 13 and above subject to the limit of RMlS0.00 per family per month. Children must be single and unemployed, age between 30 days to below 19 years. Age limit extended to 23 years for children studying fulltime. 5.2.5 For specialist treatment, referred by the panel clinic, the HR Department will issue Company Guarantee Letter for outpatient specialist treatment subject to entitlement as per 5.2.3 and 5.2.4. 5.2.6 Any medical expenses in excess of the limit as per 5.2.3 and 5.2.4 will be borne by the Employee. 5.2.7 Consultation fees incurred at non-panel clinic will not be reimbursed except for emergency cases. Page 4816 8