K A I Z E N E X E C U T I V E R E S O U R C E S M A N A G E M E N T C O R P. • C L I E N T : P E I C H ( L U N A R X ) Employee Attendance, Performance & Corrective Action Policy Alituntunin sa Pagdalo sa Trabaho, Sapot sa Disiplina, at Inaasahang Katungkulan Ayon sa Batas ng Paggawa EXECUTIVE HR & COMPLIANCE STATEMENT This policy establishes statutory compliance under the Labor Code of the Philippines (P.D. 442, Art. 297) and DOLE Department Order No. 147-15. Previous operational practices—such as automatic summary suspensions or immediate terminations without written Notice to Explain—are officially repealed. All disciplinary sanctions shall strictly follow statutory administrative due process (the "Twin-Notice Rule"). 1. STATUTORY DUE PROCESS WORKFLOW (DOLE D.O. 147-15) Step 1: First Written Notice (Notice to Explain - NTE) Issued within 24–48 hours of infraction detection. States exact facts, dates, reports involved, and company policy violated. Gives employee a mandatory period of at least five (5) calendar days (120 HOURS) to submit a written explanation. Informs them of possible administrative sanctions. Step 2: Administrative Hearing / Conference Conducted when requested or required by factual disputes. Gives employee full opportunity to present evidence and witnesses. Employee may be accompanied by a legal counsel or representative. Preventive suspension (max 30 days) applies ONLY if continued presence poses a serious, imminent threat to company assets/safety. 2. CORE LEGAL DISTINCTIONS: GROSS VS. HABITUAL NEGLIGENCE Under Article 297(b) of the Labor Code, valid dismissal requires that negligence be both Gross AND Habitual, except in extraordinary single incidents resulting in severe operational collapse or massive financial damage. Gross Negligence (Mabigat na Pagpapaimbabaw): The total absence of care or manifest intent to disregard explicit duties (e.g., abandoning a store delivery, failing to submit stock count leading to complete inventory loss). Habitual Negligence (Paulit-ulit na Pagpapaimbabaw): Repeated failure or pattern of neglect over time (e.g., multi-week late submission of reports, chronic unexcused tardiness/absences despite multiple warnings). Ordinary Negligence / First-time Lapses: Handled through progressive discipline (Written Warning → Written Reprimand) accompanied by structured retraining and coaching. 3. STANDARDIZED ATTENDANCE & REPORTING RULES Absence Without Official Leave (AWOL): Any unexcused absence without prior approval or notice within 2 hours prior to shift start. AWOL for 1–2 days triggers an NTE for unexcused absence. AWOL of 5 consecutive business days with written demand to report constitutes Abandonment of Work. Critical Delivery-Day Absences: Absences on designated store delivery days cause severe operational disruption and constitute aggravated neglect. First offense warrants a Formal Written Warning + 1-Day Suspension upon completion of NTE due process. Kaizen & Lunarx HR Governance Document — Statutory Policy 2026 Page 1 of 3

4. CORRECTIVE ACTION MATRIX & PROGRESSIVE DISCIPLINE WORKFLOW All penalties listed below are applied only after issuance of NTE and evaluation of written explanation. Progressive escalation resets every 12 rolling months unless otherwise specified. OFFENSE CATEGORY 1ST OFFENSE 2ND OFFENSE 3RD OFFENSE 4TH OFFENSE / ULTIMATE Unexcused Absence / Unauthorized Day-off Shift WRITTEN WARNING Coaching session 1-DAY SUSPENSION Formal Reprimand 3-DAY SUSPENSION Final Notice TERMINATION Gross & Habitual Neglect Delivery Day AWOL / Absence (Critical operational day) 1-DAY SUSPENSION Strict Warning 3-DAY SUSPENSION Final Written Warning TERMINATION Gross Neglect / Insubordination — Late Weekly / Inventory Report (1st - 2nd occurrence) WRITTEN WARNING Remedial Training 1-DAY SUSPENSION After multiple follow-ups 3-DAY SUSPENSION Administrative Review TERMINATION Habitual Neglect of Duty Chronic Inventory Non- Submission (Affecting audit & stock) 1 TO 3 DAYS SUSP. Audit Review 5-DAY SUSPENSION Final Administrative Warning TERMINATION Breach of Trust / Gross Neglect — Performance Quota Non- Attainment (Substandard Output) PIP PHASE 1 (30 DAYS) Coaching & Assessment PIP PHASE 2 (30 DAYS) Re-evaluation & Support WRITTEN WARNING Final PIP Review TERMINATION Incompetence / Gross Neglect Abandonment of Work (5+ consecutive days AWOL) TERMINATION PROCESS Return to Work Order + Notice of Decision — — — 5. OPERATIONALIZATION OF PERFORMANCE QUOTA MANAGEMENT Legal Requirement for Termination due to Quota Failure: Quota failure alone is not an automatic ground for immediate termination under Philippine jurisprudence unless it is proven that: 1. The quota was reasonable, fair, achievable, and communicated in writing to the employee prior to evaluation. 2. The employee was given a standard Performance Improvement Plan (PIP) period (minimum 30–60 days) with documented coaching. 3. The failure to reach quota stems from negligence, lack of effort, or incompetence, rather than external factors (e.g., supply chain failure, market disruption). Inter-Company Escalation Procedure: Kaizen HR and Peich (Lunarx) operational heads must conduct bi-weekly quota alignment meetings. If an employee fails to hit quotas for two consecutive quarters despite PIP support, formal administrative proceedings under Art. 297 shall commence. Kaizen & Lunarx HR Governance Document — Statutory Policy 2026 Page 2 of 3

6. BUOD NG ALITUNTUNIN SA WIKANG FILIPINO (PURE BUSINESS FILIPINO) GABAY SA PAGDALO, PAGTATRABAHO, AT HUSTONG PROSESO NG DISIPLINA (D.O. 147-15) 1. Karapatan sa Hustong Proseso (Due Process): Hindi maaaring magpataw ng agarang suspensyon o pagtatanggal sa trabaho nang walang pormal na Notice to Explain (NTE). Ang bawat empleyado ay mayroong hindi bababa sa limang (5) araw upang magpaliwanag sa pamamagitan ng sulat. 2. Pagliban nang Walang Paalam (AWOL): Ang hindi pagpasok nang walang aprubadong leave o abiso sa loob ng 2 oras bago ang shift ay ituturing na AWOL. Ang pagliban sa mga kritikal na araw ng Delivery Date ay may mas mabigat na parusa dahil sa epekto nito sa operasyon ng sangay at kumpanya. 3. Pagkahuli sa Pagsumite ng Report: Ang huli o hindi pagpasa ng Inventory at Weekly Reports ay direktang nakakaapekto sa pamamahala ng kumpanya. Ang paulit-ulit na paglabag pagkatapos ng mga babala ay ituturing na Habitual Neglect na maaaring humantong sa suspensyon o pagpapatalsik. 4. Target sa Benta at Quota (Performance Quota): Ang hindi pag-abot sa quota ay dadaanan sa Performance Improvement Plan (PIP) at coaching. Kung walang pagbabago sa kabila ng pagsasanay, isasagawa ang administrative review ayon sa batas. 7. INSTITUTIONAL GOVERNANCE & SIGN-OFF By signing below, the management of Kaizen Executive Resources Corp and Peich (Lunarx) certify that this policy supersedes all prior verbal or written memo procedures. The employee acknowledges receipt and full comprehension of these rules. Kaizen Management / HR Head Signature over Printed Name Date: ________________________ Peich (Lunarx) Authorized Official Signature over Printed Name Date: ________________________ EMPLOYEE ACKNOWLEDGMENT & RECEIPT (KATIBAYAN NG PAGTANGGAP) Aking pinatutunayan na natanggap at naunawaan ko ang mga alituntunin sa pagdalo, disiplina, at proseso sa ilalim ng Batas ng Paggawa. Ako ay nangangakong susunod sa mga pamantayan ng Kaizen Corp at Peich (Lunarx). Employee Signature over Printed Name Position / Assigned Store: ____________________ Date Received _________________ Kaizen & Lunarx HR Governance Document — Statutory Policy 2026 Page 3 of 3