PERSONNEL POLICY

& PROCEDURE

MANUAL

Version 1.001

MCB Asset Management Company Limited

Use and Maintenance of the Manual

Philosophy behind the Structure

MCB Asset Management Company Limited (MCB AMC) is a growing business, accordingly this manual is intended to be a living document, meant to evolve and grow with the company as it moves towards its vision. Policies may need to be amended from time to time to enable the company to keep pace with changing market practices or to reflect internal shifts in direction. The growth of the company may also necessitate the addition or deletion of certain policies or benefits.

The structure of the manual has been designed to permit maximum flexibility in this regard. There is provision to incorporate policy amendments within the existing framework of the manual such that the overall ‘shape’ of the document does not deviate substantially from its current form.

Structure

The paramount consideration is to allow flexibility for future changes and the other prime objective of the design is ease of reference. The manual articulates the company’s underlying values and principles, which govern how it conducts business.

MCB AMC human resource philosophy is also elucidated, together with its view of the partnership between the employees and the company as an ongoing commitment and its determination to strengthen this bond by providing an open and equitable working environment.

In addition, the importance of having a Human Resource Policy Manual, which formally documents the principles and policies adopted, is explained.

The manual has been divided into various components such that a viewer would be able to locate an item of reference with relative ease. It comprises of four distinct segments which provide the overall framework of the manual; these are outlined as follows:

1. User Guide

The logic of the structure adopted as well as continuing guidance for upkeep of the manual is expounded upon here. The presentation of the manual has been organized in an easy to access and logical format. The narration, notations and illustrations all have a specific purpose which would play an important role in the maintenance of this document.

This section sheds light on access and guardianship parameters, as well as detailing the authorities and related responsibilities of ongoing maintenance of the manual.

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2. Table of Contents

The table of contents provides at a glance a visualization of the framework adopted. There is a comprehensive listing of all the individual sections with page numbers for easy reference.

3. Policies and Practices

Each policy is built around five broad components. A brief explanation of these is presented as follows:

- Summary of the Policy

Some of the policies will have a summary. The summary is useful for policies which are largely concerned with benefits that are objective and quantifiable. This section is structured in a tabular format to provide a quick reference to the viewer at a glance. It is essentially outlines the entitlement and its limits for various grades of employees.

- Statement of Intent

A statement of intent precedes the descriptive section of each policy. The purpose is to define the core thought behind the policy so that it may be interpreted in the correct context and that decision making authorities can be facilitated.

- Eligibility

Where applicable, this section articulates the categories of employees that qualify for a certain benefit, based on their gender, grade, years of service or other qualifying criteria.

- Entitlement

Overall limits for a perquisite and entitlements within different cadres are defined within this section. In certain cases unusual situations and ensuing changes in entitlements are also articulated in this section.

- Dispensation and Practice

A prescribed process or procedure for the dispensation of an employee benefit (where applicable) makes up the content of this section. Usually the approval discretions and authorities are also laid out here.

4. Formats

This section comprises of sample formats of all the standard forms and application documents which are used for effective and organized documentation of the human

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resource process as it applies to each individual. Some examples include the leave application form, job description format, performance appraisal form etc.

Maintenance of the Manual

As stated earlier, the human resources policy manual is a ‘living’ document, meant to keep pace with MCB AMC’s growth. Ongoing amendments and additions of policies will entail the need for an effective procedure for maintenance and upkeep of the manual.

Maintenance

Amendments and additions may only be approved by the Exception Committee (see Exception Committee). Once a policy amendment has been approved and is ready to be incorporated in the manual, the responsibility will shift to the Head of Operations. In order to advise staff of specific changes, he/she will issue circulars to the custodians of the manual, along with a copy of the amended policy for review. This circular should be returned to the Head of Operations with the initials of all employees within each department to ensure that proper dissemination of this information has occurred. The Head of Operations will then ensure that the amendment is incorporated into all the copies of the manual. It will be crucial that the amendment is assigned the proper numbering and is dated accurately, as prescribed in the earlier paragraphs of this section.

Exception Committee

Although every attempt has been made to anticipate all situations requiring formalized policies, circumstances may arise which are not covered in the manual or a situation may warrant deviations from the stated policy. These cases will be resolved by a decision taken by the Exception Committee in order to prevent the appearance of prejudice or bias which may occur if the decision is taken by any one individual.

The Exception Committee will comprise the incumbents of the same Management Committee namely:

- Chief Executive Officer- Chief Investment Officer- Head of Operations- CFO / Company Secretary- Head of Marketing- Head of HR or any other representation from HR (if, any)

These five (6) individuals may review the facts of an unusual situation affecting an employee and make an independent decision regarding its outcome. This is a fair and impartial process which will ensure that any resolutions reached have wider acceptability among the employees.

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Confidentiality

This policy manual is the property of MCB AMC for the exclusive use of its employees to facilitate understanding of the rights, responsibilities and obligations in their employment relationship with the company. Under no circumstances should it be removed from the office premises, or copied with a view to disseminating the information contained herein to outsiders.

Employees have an obligation to respect this element of confidentiality regarding the manual and its contents.

Copyright

This manual has been created by MCB Asset Management Company Limited for the exclusive use of its management and employees. Any reproduction, distribution, sale or use of this material for any purpose other than outlined above, without the express written authorization of MCB AMC is strictly prohibited.

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PERSONNEL POLICY

AND PROCEDURE

5

Table of Contents

POLICY PAGE NO.

Employment Policy 12 -19Statement of Intent 12Job Description Document 12Recruitment 13Selection Procedure 13Internal Selection 13External Recruitment 13Appointment 14Probationary Period 14Notice Periods 14Transfers 14Trainings 15Succession Planning 15Hours of Work & Public Holidays 16Retirement 16Exit Policy 16Personal Information and Privacy 17Attendance Register 17Employee Recognition Tools 17Dress Code 18Safety & Security 18Personal Telephone Calls/E-Mail 18Variations to Terms of Employment 19Equal Opportunity Employment 19Authority 19

Compensation Policy 20-22Statement of Intent 20Compensation 20Payment of Salary 20Salary Advances 20Deductions from salary 20Promotions Salary Reviews 21Year-End Evaluations 21

Vehicle Policy 23-26Summary 23Statement of Intent 24Eligibility 24Entitlement (Vehicle & Process) 24Initial Registration / Insurance & Taxes 25Repair & Maintenance Expenses 25

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Withdrawal of Company Vehicle 26Cessation of Service 26

Cell Phone Policy 27-29Summary 27Statement of Intent 28Entitlement and Eligibility 28Equipment 28Connection Charges/Security Deposit 28Insurance 28Settlement of Bills 29Employee Responsibilities 29Replacement & Disposal 29Cessation of Service 29

Leave Policy 30-34Summary 30Statement of Intent 31Eligibility 31Annual Leave 31Annual Leave Schedule 31Minimum Leave Requirement 31Advance Annual Leave 32Annual Leave Accumulation and Encashment 32Alternate Saturdays Off 32Sick Leave 32Prolonged Illness 32Maternity Leave 32Paternity Leave 33Hajj / Umrah Leave 33Iddat Leave 33Leave With out Pay / Extraordinary Leave 33Leave Preparatory to Retirement 34Overstay of Leave / Unauthorized Absence 34Mode of Applying for Leave 34

Subsidized Loans 35-44Housing Finance - Summary 35Car Finance - Summary 36

Eligibility 37

Housing FinanceEntitlement 38Purpose of the Finance 39Repayment 39

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Number of Loans 39Renewal 39Additional conditions 40Disbursement 40

Purchase of Plot 40Purchase of a constructed house / apartment 40

Documentation 40Insurance 41Municipal Taxes 41Permissions for Various Transactions 41Cessation of Service 42

Car FinanceEligibility 43Entitlement 43Repayment 43Renewal 44Documentation 44Disbursement 44Cessation of Service 44

Provident Fund 45Statement of Intent 45Details of Provident Fund 45Provident Fund Loans 45

Hospitalization Benefits 46-47Statement of Intent 46Eligibility 46Entitlement 46Scope of Coverage 47Dispensation Process 47

Travel Policy 48-53Statement of intent 48Approval for Travel 48Eligibility 48Air Travel 48Travel by Train 49By Road 49

Boarding & Lodging ArrangementsPersonal Arrangements 50Company provided Accommodation 50Daily Expense Allowance 51

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Transportation Allowance 51Overseas Travel 52Laundry & Dry-Cleaning 52Telephone Calls 52Entertainment 52Training Related Travel 52Advance against Traveling 53Approval Authority 53

Group Insurance (Life) 54

Disciplinary Policy 55-60Statement of Intent 55Scope of Policy 55Conduct and Performance Expectations 55

Inadequate Performance 55Absenteeism and Tardiness 55Misconduct 56Gross Misconduct 56

Suspension from Work 56Option to be represented 56Stages of the Disciplinary Procedure 56

Formal Oral Warning 57Written Warning 57Letter of Charge / Final Written Warning 57

Principles for the Disciplinary Procedure 59

General 61-62Personal Finances 61Outside Employment 61Communicating with the Media 61Employment of Relatives 61Use of MCB AMC Computer Resources 62Discipline 62Obligation after Employment 62

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Annexure 64-77‘A’ Job Description Document 64‘B’ Performance Evaluation Form 66‘C’ Appointment Letter 71‘D’ Confirmation Letter 73‘E’ Anticipated Annual Leave Schedule 74‘F’ Leave Application 75‘G’ Travel Allowance Request Form 76‘H’ Gift Report Form 77

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POLICIES

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Employment Policy

Statement of Intent

MCB AMC’s most important assets are its people, capital and reputation. It is the people of MCB AMC who make the organization unique and define its reputation for excellence and professionalism.

MCB AMC will always strive for excellence and believes that continuous improvement must be fostered as an integral part of its organizational culture. The Company is committed to provide an open and honest work environment that enables every employee to reach the highest possible level of professional and personal fulfillment. In return, it expects that every employee will put forth maximum effort towards the performance of their jobs and the achievement of the Company’s goals.

The primary aim is to build MCB AMC from within, promoting and rewarding people on the basis of performance alone. MCB AMC’s ability to continually identify, recruit, develop and motivate our most precious resource in an increasingly competitive marketplace will be its greatest strength.

MCB AMC’s human resource philosophy is its defining conviction in this regard. It acts as a guideline that helps to highlight and clarify the Company’s various aspirations, objectives and ethical parameters.

Job Description Document

MCB AMC recognizes that the cornerstone of a meaningful employment relationship with each individual employee is a clear description of responsibilities and performance objectives. The manner in which these are documented impacts on every aspect of employment with the Company and therefore merits greater analysis.

This objective is fulfilled by a job description document, which is a formalized statement of the responsibilities, duties and qualifications of a job based on information obtained through an objective job analysis. Its purpose is to identify a specific job with clarity and precision and to describe its scope and content. It should be as accurate, concise and complete as possible. It is important to bear in mind that the document describes the position and the skills and qualifications needed to satisfy that position; it is not meant to describe the incumbent.

MCB AMC maintains updated job descriptions (refer to Annexure A) for each position in the organization. The document aims to measure and record the three critical elements of the job, namely:

- Know-How, which refers to the sum total of all skills necessary for acceptable performance including educational qualifications and relevant experience.

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- Problem Solving, the requirement of the position to function independently and takedecisions.

- Accountability, the quantum of impact or contribution made by a job to the overallorganizational objectives.

A job description document is prepared whenever a new position is established and a grade level is assigned following the job evaluation process (refer to Compensation Policy). This is an invaluable management tool and is a prerequisite for effective recruitment and selection (refer to Recruitment), an equitable compensation structure (refer to Compensation Policy), meaningful performance evaluations and forecasting training needs.

Recruitment

MCB AMC’s recruitment decisions are based upon a careful selection process in order to determine the individual best qualified for the position to be filled.

Wherever feasible, recruitment and selection will be made as a first preference internally, based on the availability of suitable candidates. External candidates will come as a second preference through advertisements, search agencies, market contacts, universities/institutes etc.

Selection Procedure

The Company’s normal method of selection will be interview based. The Department Head shall discuss the selection procedure with the Chief Executive when the vacancy first arises. Due consideration will be given to appropriate testing (aptitude/ability) if the position warrants. Each applicant will be considered on the basis of his/her skills, knowledge and abilities.

Internal Selection

If an internal candidate is selected to fill the vacancy, both Department Heads affected shall agree on a date of transfer. It may fall at the end of a four (4) weeks ‘notice period’ or before.

If the candidate is successfully appointed to a higher graded position, it is at the Company’s discretion, depending upon relevant skills and experience to promote the individual on appointment. Or alternatively, management may elect to delay promotion until completion of a suitable training period, so that the employee is performing fully at the appropriate level of the new post.

External Recruitment

In the event that an external candidate is being considered, he/she would be required to provide comprehensive information via an employment application. An offer of employment would be subject to the receipt of satisfactory employment and personal references.

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The Company may also require proof of original certificates pertaining to academic or professional qualifications. Subsequent discovery that a candidate has provided false or misleading information may lead to a withdrawal of an offer of employment or if employment has already commenced, disciplinary action up to and including dismissal.

Appointment

On commencement of employment, all new employees will be provided with a formal letter of appointment (refer to Annexure C) which will be co-signed by the CEO/ Head of the Department and Head of Human Resource outlining their basic terms and conditions of employment.

As soon as possible after joining, a new employee will be briefed about his/her responsibilities performance objectives, Company’s procedures and systems and other relevant administrative matters.

Probationary Period

Confirmation of an employee after appointment is preceded by a probationary period of six (6) months. The probationary period should be regarded as an extension of the selection process and will be utilized for close observation and evaluation of the employee’s performance in the role assigned to him/her as well as the behavioral attributes related to the position. It will be used to determine whether an employee demonstrates the ability and qualifications necessary for service with MCB AMC.

The probationary period may be waived, reduced or extended at the sole discretion of the management. Extension in probationary period must be seen as an exception that expresses management dissatisfaction on performance of that employee, if unable to meet defined expectations, could face termination at the end of this period, or earlier.

On satisfactory completion of the probationary period, the employee will be confirmed in his/her employment with the Company (refer to Annexure D).

Notice Periods

During the probationary period, either party can terminate employment without assigning any reason, subject to a notice period of fifteen (15) days, or payment/surrender of basic salary in lieu of the same.

Following confirmation, the notice period requirement will be three (3) months written notice from either side. Adjustment of un-availed annual leave is permissible for this purpose; however, management may waive or reduce the period at its own discretion in case of unusual cases.

Transfers

It is the management’s discretion to transfer an employee from one department to another if business conditions or employee’s skill merit such an arrangement.

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The services of an employee may also be transferred to any branch/office within Pakistan or abroad, or any associated/sister concern, whether existing or established in the future, at management’s discretion. If such transfer is affected at the request of the employee, then the relocation expenses will be borne by the employee. If the transfer is at behest of the management company, then the expenses will be borne by the company. In such cases, the limit will be up to one salary of the employee or such amount at the discretion of the CEO.

Training

MCB AMC will support reasonable initiatives to improve the technical and professional know how of its employee. Every effort will be made to create a conductive environment in the company to let employees learn from their superiors and also through formalized training courses.

In-house training sessions will be conducted where trainers from within the organization’s talent pool or outside industry experts will be invited to polish the skills of staff members. Employees who appear for Chartered Financial Analyst programs will be able to claim their fee back upon successfully passing the exam.

For external courses, approvals will be granted to employees on case by case basis after looking at their training needs and the relevance of the training course. The recommendation of immediate supervisor will be must before the application is forwarded to the CEO for approval. An employee will be eligible for a maximum of two (of which not more than one could be out of country visit) training courses/seminars/conferences during an accounting year. This limit will not apply on short (not exceeding 1 day events), inter-city courses.

The company will bear the expenses of the training exercise, including course fee, travel and boarding and lodging (see travel policy for more details). However, in cases where the cumulative training expense is more than 50% of the employee’s gross salary, the amount will be initially booked as an advance and will be written off in equal installments over the next six months.

I f an employee leaves prior to the written off period, he/she will be required to pay the remaining advance amount back to the company.

Succession Planning

Succession planning is an essential tool used by MCB AMC to develop people for future management positions and to focus on employees with high potential. Consistent performers who demonstrate flexibility and adapt well to the dynamic business environment will find the best opportunities for developing their career with MCB AMC. Other factors affecting career development will include; professional qualifications, experience, training, ability and aptitude and the availability of suitable vacancies within the Company.

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Retirement

The normal retirement age for male employees is sixty (60) and female employee is fifty five (55) years. However, employees who complete thirty (30) years of service with MCB AMC may apply for early retirement.

Exit Policy

Employees who resign from the service of MCB AMC will be required to serve the requisite notice period as per their employment contract. This notice period can be relaxed in exceptional cases by the CEO upon recommendation from the relevant departmental head. Out-going employees may adjust their unutilized annual leaves in the notice period if their request for grant of leave is accepted by their supervisor.

All out going employees will be required to surrender all office property in their possession to their immediate superior and ensure that all pending work is complete or appropriately assigned to another individual. The HR department will be responsible to ensure that out-going employee has to obtained clearance from the head of department, HR and Office Administration before his/her case is submitted for clearance of dues to finance department.

If an employee leaves during probationary period and the company had booked a car or any other asset for him/her, the booking will be cancelled and any cancellation charges will be recovered from the employee.

Hours of Work & Public Holidays

Employees are responsible for good attendance and punctuality. Employees are expected to abide by the existing working hours of the MCB AMC which are as follows:

Sunday

Monday to

Thursday Friday

Saturday

Off Days09:00 a.m. to 5:30 p.m.

(Lunch & Prayer Break: 1:30 to 2:30 p.m.)09:00 a.m. to 5:30 p.m.

(Lunch & Prayer Break: 1:00 to 3:00 p.m.)9:00 a.m. to 1:30 p.m.

The management has a right to change the working hours without any notice or without assigning any reason.

The office timings during the month of Ramadan would be announced before the commencement of the holy month each year. On occasion it may be necessary for employees to work beyond these hours, on weekends or on public holidays to meet business or operational requirements.

Regular attendance is essential to the Company’s efficient operation and is a necessary condition of employment. Employees should report to work as scheduled and on time.

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Sunday is a closed paid holiday. All employees will be entitled to gazetted public holidays, as announced by the Federal Government of Pakistan.

Personal Information and Privacy

All personal information provided to MCB AMC will be kept confidential and used purely for the maintenance of personnel records, payroll and benefit administration, provident fund scheme and routine human resource planning and career development purposes.

Employees should provide accurate and up to date personal information and notify the Company about changes to any of the following:

- Home address and telephone number- Marital status- Legal name- Dependant details- Emergency contact details- Next of kin- Professional qualification- Membership in a professional organization

Attendance Register

All employees are requested to sign the Departmental Attendance Register, manually or electronically. The aim is to have the times of arrival duly noted. This is to ensure proper record keeping and ease of reference. The Register should also be signed with a notation of the arrival times if an employee comes into the office on a holiday.

MCB AMC immensely values time, and thus emphasis is laid on punctuality. Employees coming after 9:30 am will be marked late. Two late arrivals in a week will result in deduction of one annual leave. Employees coming after 12 noon will be marked absent unless there has been a prior notification of late arrival to their immediate supervisor and the supervisor agrees to mark it as late arrival instead of an absence.

Employee Recognition Tools

MCB AMC follows a policy of actively taking steps to maintain and enhance levels of motivation and commitment of employees. These include but are not limited to:

* Service Excellence Awards

Employees who demonstrate true service excellence in dealing with either internal or external customer, either for a specific project or on a consistent basis, may be eligible for a service excellence award/letter, at management’s discretion.

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* Long Service Awards

MCB AMC values staff loyalty and commitment. To this end, employees who have completed continuous service will qualify for an award as follows:

One Umrah ticket at the end of five (5) years of service and the same at the end of each subsequent five (5) year period.

In addition, the Company sponsors sporting activities for employees to foster camaraderie and team spirit and organizes social events, which gives employees from different departments an opportunity to interact in a casual atmosphere.

Dress Code

Employees should be aware that their attire is a reflection of their professionalism as well as that of the organization. A professional business appearance together with a high standard of personal hygiene is expected of all employees.

An appropriate dress code for men includes at the very least dress trousers, collard shirt and dress shoes. The management however, has the discretion of allowing on a case to case basis, shalwar kameez with waistcoat on Fridays. Dress shoes are a must with any dress code; sandals and other types of foot wear are strictly prohibited.

Employees should be conservatively dressed, neat and well groomed while on duty. Employees may opt for smart casual dress code on Saturdays but clothing of informal nature, for example jeans, collarless T-shirts, sneakers etc., is not acceptable office attire.

Safety & Security

MCB AMC believes in creating and maintaining a healthy environment for its employees. Smoking is strictly prohibited within the premises of MCB AMC.

The Company is also committed to ensuring a safe and secure working environment for all employees and visitors. Every effort will be made to ensure office equipment and all safety devices are in proper working condition.

Employees have an equal obligation to adopt safe working practices and to familiarize themselves with the emergency procedures in case of fire or other emergency requiring evacuation. In addition, employees are strictly forbidden from bringing any firearm on Company’s property.

Personal Telephone Calls/E-Mail

MCB AMC understands that it is occasionally necessary to attend to personal matters during office hours. However, employees should restrict their personal use of telephones upto 50 local calls per month. On exceeding this limit, the excess calls and outstation calls would be charged

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from their salary. And also should restricts their personal use of computers at the workplace and only use these for urgent and unavoidable issues.

E-Mails received through MCB AMC’s mail facilities are considered company property and may be opened as deemed appropriate. Employees should avoid having their personal mail addressed to the Company. Storage and dissemination of immoral, unethical and objectionable material, including texts with racial and/or sexual content, is strictly forbidden. Violators could face severe disciplinary action, including demotion or termination of employment.

The Company may grant internet access to those employees who need this facility to perform their duties. However, employees are expected to use this facility responsibly unethical and objectionable material and on-line trading/betting on the Internet is strictly forbidden. Violators could face severe disciplinary action, including demotion or termination of employment.

Variations to Terms of Employment

At any time, MCB AMC may need to alter the terms and conditions of employment, including the duties and responsibilities of an employee. The employee may be required to undertake reasonable duties, other than those for which he/she was originally hired. Any such changes will be communicated in writing with suitable amendments to the job description document. A change in a position’s duties and responsibilities does not necessarily dictate a change in the position’s pay level if similar skills, knowledge, and level of responsibility continue to apply.

Equal Opportunity Employment

MCB AMC is committed to ensuring that all staff is treated fairly and with dignity, and that no discrimination or harassment occurs in the workplace.

The Company is an equal opportunity employer, which means that it is the aim of all their policies and procedures to ensure that all decisions made in relation to appointments, promotions, transfers, training opportunities and performance assessments are made entirely on the basis of merit alone. The objective of the policy is to ensure that no applicant or employee is discriminated against on the grounds of race, nationality, ethnic/social origin, religious or political beliefs, age, gender, marital status, disability or family responsibilities. All human resource decisions are made by utilizing objective standards based on the individual’s qualifications and experience as they relate to the particular job vacancy.

Authority

All appointments, confirmations, promotions or internal transfers will require the final approval of the Chief Executive Officer.

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Compensation Policy

Statement of Intent

MCB AMC pursues a compensation philosophy of establishing and maintaining consistency and equity within the organization as well as aligning its overall remuneration policies with the marketplace. It believes in attracting and retaining talent through a combination of monetary and non-monetary rewards and incentives. Accordingly, MCB AMC places itself amongst the better paymasters within the industry and continuously endeavors to improve the level of job satisfaction of its employees through learning, development and making MCB AMC the best place to work.

Compensation

In order to formulate and establish a competitive compensation structure, MCB AMC evaluates its remuneration package viz. a viz. competitors and aligns compensation to the market on regular basis. The market survey findings represent average remuneration offered by major players in the market for various jobs and are interpreted in terms of MCB AMC’s size and structure.

Payment of Salary

Salary is paid monthly in arrears and is deposited by direct credit transfer to the employee’s bank account. Payment is generally made by the 28th day of each month.

Salary Advances

As Company policy, salary advances are not granted. Exceptions would be in situations where an employee is expected to be out of station on annual leave when salaries are normally credited, and does not anticipate returning before the first of the following month. Other unusual situations would also be given due consideration, purely on the merit of the situation.

Deductions from Salary

The salary payable is subject to statutory deductions (e.g. income tax and provident fund deductions). In addition, the following deductions may be made from the salary:

- For repayment of loans, salary advances etc.- For adjustment of any over payment.- For an employee’s unauthorized absence from duty or leave without pay.- Upon termination of employment where annual leave taken exceeds the pro-rate

entitlement.- Any losses, deductions or damages due to employee.- Any other legitimate deductions.

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Promotions Salary Reviews

Salaries are normally reviewed each year with effect from July first, following the performance appraisal process. All increases are awarded on the basis of merit and are paid entirely at the discretion of the Company. MCB AMC reserves the right to amend the review date in future if required.

Promotions are done once a year after the completion of annual evaluation exercise and are effective from the time they are announced. In order to be eligible for the promotion to the next grade, employees must have performed well in their current grade for at least two years, should not have any disciplinary action initiated against them in the last two years and should not have a “C” or below grade in the last two evaluations. The management can relax these rules under exceptional circumstances.

For promotions up to SVP grade, the CEO along with departmental head or an EVP/SEVP will be authorized to make the necessary recommendations. For promotions above SVP grade, recommendations of at least two directors, one of them being the CEO, will be required.

All MCB AMC employees have an equal opportunity for promotion based upon their performance; qualifications and demonstrable merit. However, it is imperative to recognize that promotion is not a function of seniority alone. All promotions are entirely at the discretion of the management and all decisions will be final.

Year-End Evaluations

In order to assess the contribution of each employee towards the organization and to help employees assess their development needs and strengths, MCB AMC has a policy to conduct a thorough year end evaluation. This is an important exercise with ramifications on promotions, salary revisions, bonus payments and personal development and hence should be treated very seriously.

This exercise entails a full 360 degree approach where each employee will be assessed by atleast three people, including his sub-ordinates, peers and supervisors. Employees can choose to conduct a self-evaluation for discussion purposes but it will not have any weight in the grading exercise. The Evaluations will start in June every year and will progress as under:

• Each permanent employee (either confirmed or not) who has completed six months of service will be evaluated.

• Each employee will have an appraisal manager who will choose his/her appraisers - one of whom must be his/her immediate supervisor.

• The names of appraisers will not be disclosed at any level and to anyone. However, it is the duty of the appraisal manager to maintain a record of all evaluation forms and share all the grades with the employee if he/she asks for details.

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• The appraisal manager will summarize the three evaluations for each employee and conduct an appraisal interview. The employee and his/her immediate supervisor must be present in that interview.

• The employee shall also determine his/her goals and development needs for the next year in consultation with the supervisor during this exercise.

• The whole exercise should be completed by end July with each employee signing his/her evaluation form and agreeing on next year’s targets/goals and other deliverables.

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VEHICLE POLICY

ELIGIBILITY

Chief Executive OfficerSenior Executive Vice President

Executive Vice President

Senior Vice President

Vice President

Repair & Maintenance

Insurance & Taxes

Cessation of Service

Policy Summary

ENTITLEMENT / DESCRIPTION OF BENEFIT PAGENO.

Vehicle Monthly Fuel Limit

As per employment contract As per employment contractLease rentals up to PKR 1.7 mil financing and 600 Litresinterest free booking advance of PKR 0.3 mil 24

Lease rentals up to PKR 1.36 mil financing and 450 Litresinterest free booking advance of PKR 0.24 mil

Lease rentals up to PKR 1.0625 mil financing and 260 Litresinterest free booking advance of PKR 0.1875 milLease rentals up to PKR 0.85 mil financing and 230 Litresinterest free booking advance of PKR 0.15 mil

According to entitlement 25

Company’s responsibility 25

Employees may purchase the assigned vehicles at Net Book Value, provided the vehicle is 26over three (3) years old calculated from the date of purchase.

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Vehicle Policy

Statement of Intent

MCB AMC provides vehicles to certain members of management as a key component of their overall compensation package. The provision of this benefit is in line with the Company’s remuneration philosophy of utilizing a competitive emolument package to attract and retain critical talent.

The principal criterion in determining eligibility is the appropriate recognition of an individual employee’s position based on his/her skills, experience and market practice. Alternatively, vehicles may be assigned where mobility is a requirement of the daily business functions of a position.

Eligibility

Permanent employees of MCB AMC outlined in the entitlement section below are eligible for getting vehicle lease payments. In some instances, lateral entrants to the specified positions may be provided this facility even before confirmation.

If the company decides to give a vehicle to an employee and already has a relatively new car (less than one year old and driven less than 15,000 kms) in good working condition, a new car will not be booked and the existing car will be offered to the employee.

Entitlement and Process

The entitlement for vehicles and related fuel limits is outlined in the following table:

Position Vehicle Fuel Monthly Limit

CEO As per employment contract As per employmentcontract.

SEVP Lease rentals up to PKR 1.7 mil financing and interest free 600 Litresbooking advance of PKR 0.3 mil

EVP Lease rentals up to PKR 1.36 mil financing and interest free 450 Litresbooking advance of PKR 0.24 mil

SVP Lease rentals up to PKR 1.0625 mil financing and interest 260 Litresfree booking advance of PKR 0.1875 mil

VP Lease rentals up to PKR 0.85 mil financing and interest free 230 Litresbooking advance of PKR 0.15 mil

Every employee who is eligible under the above mentioned criteria will be required to make a request to the HR department for the grant of this facility. The HR department will then forward his case to the departmental head and eventually to the CEO for final approval.

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The booking advance will be given as loan and will be recovered over a period of five years from the employee. The booking advance loan will be payable in full immediately if the employee leaves the company - whether through resignation or termination. The company reserves the right to adjust the outstanding loan amount from any payment due to the employee.

The lease rentals will be paid to the employee every month with salary and will be prorated for any incomplete month. The car will be in employee’s name unless decided otherwise by the company. No lease rentals will be due once an employee leaves the organization.

Employees who have been provided company maintained cars will revert to the lease rental policy when they move to the next grade or after completion of the 5 year tenor of their cars, whichever is earlier.

Initial Registration / Insurance & Taxes

MCB AMC is responsible for the initial registration of the vehicle and provide insurance coverage and for payment of all taxes. However, the employee also has an obligation to ensure that these requirements are met and payment deadlines are adhered to.

Repair & Maintenance Expenses

The Company will bear the repair and maintenance expenses incurred on the vehicle till such time the ownership will remain with the Company. If the maintenance expense in one year remains under the maximum limit allowed it can be carried forward to the subsequent years, provided the maintenance expense does not exceed the total limits allowed for five years. A log of total expense incurred will maintained by Administration Department.

Before formally accepting the vehicle, the employee should examine it carefully and report any fault or defect.

Position EntitlementChief Executive Officer To be maintained by the CompanySenior Executive Vice President Rs. 40,000 p.a.Executive Vice President Rs. 30,000 p.a.Senior Vice President Rs. 25,000 p.a.Vice President Rs. 20,000 p.a.

Tyre change after every 30,000 kms for all vehicles.

Withdrawal of Company Vehicle

In case of company provided vehicles, a vehicle assigned to an employee is subject to withdrawal at the sole discretion of the Company, in case of abuse of the privilege. Abuse may include repeated accidents due to bad driving, the vehicle not being maintained at an acceptable standard, unauthorized usage etc.

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Cessation of Service

In case of cessation of service (other than summary dismissal) the employee can exercise the option to purchase the vehicle at market value, provided that he/she has completed three (3) full years of service. Market value will be determined by Administration Department by calling in three quoted from the authorized dealers, the average price of the three quotes will be considered the market value.

In the event of summary dismissal due to misconduct, the employee will not be entitled to avail this option.

The Company has the right to amend the vehicle policy as and when it deems necessary.

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CELL PHONE POLICY

ENTITLEMENT

Chief Executive OfficerSenior Executive Vice President

DESCRIPTION OF BENEFIT

Equipment Monthly Bill LimitBlack Berries / PDA Company responsibilityBlack Berries / PDA Rs. 8,500/= or actual whichever lower

Policy Summary

PAGE NO.

Executive Vice PresidentSenior Vice President

Vice PresidentConnection Charge/Security Deposit

Insurance & Taxes (if any)Replacement Period

Black BerriesBlack Berries

CEO’s discretionCompany’s responsibility Company’s responsibility Not before 3 years

Rs. 5,500/= or actual which ever lower 28Rs. 3,000/= or actual whichever lower Rs. 2,000/= or actual whichever lower

282829

Monthly BillingDisposal

EligibilityCessation of Service

Company’s responsibility / entitlement 29Option to purchase at written down value in the Company’s books 29upon completion of three (3) years.VP & above / need-based eligibility to employees 28Option to purchase, provided phone set is at least one (1) year old 29calculated from the date of purchase.

Monthly bill limits may be altered at the CEOs discretion

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Cell Phone Policy

Statement of Intent

Cell Phones and cell phone allowances are provided to senior executives of the Company to enable them to remain in touch with their respective offices, thereby, promoting smooth functioning of the business. If applicable, the cell phone allowance is mentioned in the offer letter of employees and is dispensed as part of salary every month.

On top of the allowance, the company has a policy to provide e-mail access to senior employees via Blackberry service. Under this service, the company provides a blackberry set (once in two years), sim card/connection and pays for the line rental (blackberry package), including taxes every month. All requests for blackberry connection need to be endorsed by the CEO.

Entitlement and Eligibility

The entitlement for cell phone facility is as follows:

- Departmental Heads- All other eligible employees, determined by the CEO/Management on need basis.

Equipment

MCB AMC provides maximum flexibility to employees in choosing a mobile telephone set to suit their individual preference. An employee may purchase a set of his/her choice and the Company will reimburse this cost, up to the sanctioned limit. If the cost of the set exceeds this limit, the concerned employee would be responsible for the additional monies. The telephone set remains the property of the Company. MCB AMC encourages employees to purchase a telephone set within the established limit. The asset would be recorded in the Company’s books at the actual price or the authorized limit whichever is less.

Connection Charges/Security Deposit

The Company will be responsible for all charges related to the activation of connection for a telephone line, which will be in the Company’s name. The specific payment package chosen for each individual employee will depend on the expected usage and pattern of calls to be made.

The security deposit or the under written assurance for credit limit required for the connection, if applicable, will be the responsibility of the Company.

Settlement of Bills

The company will reimburse the monthly bill up to the maximum limit allowed as per each employee entitlement. For blackberry service, employees will get an additional payment equal to blackberry’s line rental, including taxes. Any expense exceeding the entitled limit will be borne by the employee.

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Employee Responsibilities

Employees should exercise diligence in their use of this facility. The priority should be to always use land lines wherever possible and at all times when the employee is in office.

Replacement & Disposal

Mobile telephone sets will normally not be replaced before three (3) years calculated from the date of purchase.

When the telephone set is due for replacement, the employee will have the option of purchasing the set at the written down value in the Company’s books.

Cessation of Service

Upon Cessation of Service all outstanding bills over and above the entitlement must be settled by the employee immediately. In case, of any dues kept pending, the company has the right to settle the outstanding amounts by deducting from any and all dues which may be payable to the employee of the Bank. The balance if any will be recovered from the employee concerned. If more than one year old, the cell phone will not be recovered from the employee upon leaving the service

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LEAVE POLICY Policy Summary

ENTITLEMENT DESCRIPTION OF BENEFIT PAGE NO.

Annual Leave 30 calendar days for each completed year of service 31Sick Leave 12 days 32

Alternate Saturdays Off Off schedule will be decided by the respective HOD’s 32Accrued Leave Can be carry forward up to 60 days 32

Maternity Leave 90 days (twice during the entire length of service with the Company) 33Paternity Leave 7 days (twice during the entire length of service with the Company) 33

Hajj / Umrah Leave 30 days / 7 days leave once during the entire length of service 33Iddat Leave 130 days for a female employee 33

Retirement Leave 30 days prior to date of retirement 34Leave without pay In exceptional circumstances 34

Minimum Continuous Annual Leave 7 days uninterrupted leave during each calendar year. 31Requirement

Eligibility All confirmed Employees 31

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Leave Policy

Statement of Intent

MCB AMC appreciates the importance of rest and recreation for the well being of all employees in order to benefit the employee both physically and mentally. It also recognizes that there may be contingencies arising from illness and unforeseen eventualities that requires the employee to be temporarily absent from duty. The Company allows a leave of absence to the employee in such situations and to cater the requirements, MCB AMC has the following Leave policy.

Eligibility

All confirmed employees are eligible to avail leave in accordance with the policies contained in this manual. Employees appointed during the year will be entitled upon confirmation on a prorata basis, calculated from the date of appointment.

Annual Leave

All Employees are entitled to thirty (30) calendar days of annual leave with pay in a year, for each completed year of service. When public holidays or weekends (Sundays) fall within the leave period requested, they shall be included as part of leave.

Annual Leave Schedule

All employees should submit anticipated annual leave schedules (refer to Annexure E) to their Department Heads at the beginning of each year in order to streamline and effectively accommodate their varying leave requirements.

If an employee’s requested leave cannot be accommodated, he/she should be advised as soon as possible and asked to submit revised dates. Leave should be scheduled in such a way that it does not hamper the normal operating efficiency of the department.

It is important to note that an accepted leave schedule does not imply approval of the requested period of leave. Although every effort would be made to adhere to the departmental leave schedule, unexpected operational requirements may necessitate postponements. A completed leave application Form (refer to Annexure F) should be submitted for approval at least two (2) weeks in advance prior to the anticipated start of the leave period.

Minimum Leave Requirement

Annual leave may be availed at one time or may be divided and availed at various times during the year, subject to appropriate approvals. Assuming earned eligibility, employees are required to take one period of annual leave equivalent to fifteen (15) working days uninterrupted leave, during each calendar year. Deviation from mandatory requirement will be allowed only in exceptional circumstances and with the approval of respective Departmental Head or where other prolonged absences (sickness, maternity leave etc.) fulfill this requirement.

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Advance Annual Leave

Annual leave shall not normally be granted in advance. The exception would be in the case of newly confirmed employees who have not completed a full year of service. Advance annual leave allowed in such case would not exceed seven (7) days and would be approved solely at management discretion.

Annual Leave Accumulation and Encashment

The intent and purpose of policy is defeated if annual leave is not availed each year. Therefore, carry over of leave is discouraged under normal circumstances. Under exceptional circumstances that warrant carry over of leave, a maximum of up to fifteen (15) calendar days can be carried over to subsequent year. However, once the employee has accumulated sixty (60) days of leave, future leave accumulation will not be allowed and any leave accruing over sixty (60) days will automatically lapse.

Encashment of accrued annual leave will not be allowed.

Alternate Saturdays Off

In lieu of casual leave all employees will be allowed alternate Saturdays off. The alternate Saturday off schedule / roster will be decided by the respective Head of Department at the beginning of the year with a copy given to HR.

Sick Leave

Employees are entitled to leave during illness, up to maximum of twelve (12) calendar days during a year. Sick leave can neither be accumulated nor encashed. Sick leave in excess of entitlement will be treated as leave without pay, except in case of prolonged illness. Any employee who is absent for more than two consecutive days on account of sick leaves must submit a doctor’s certificate.

Prolonged Illness

In cases of prolonged/serious illness, including conditions arising from an accident and supported by a medical reports and certificates, extending beyond the normal entitlement for sick leave, the balance of annual leave will be adjusted against the absence. In case the illness continues after all the leaves have been utilized, the employee would be allowed leave with full pay for a maximum of three (3) months. During this time, the employee should provide regular updates to management on his/her medical prognosis and make every effort to return to work as soon as possible.

At the end of this time, the employee would be allowed a sabbatical leave of absence for a maximum of six (6) months. This would be unpaid leave during which no benefits would accrue to the employee. Approval of such leave will be at the management’s discretion. Whilst every

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effort would be made to accommodate an employee upon his/her return to work, it is understandable that positions cannot be left vacant indefinitely in an ongoing business. Accordingly, in case of prolonged illness, it may be necessary for the Company to make temporary or permanent arrangements to fill the ailing employee’s position. Therefore, situations may arise where a suitable position is not available for the employee upon his/her return.

Maternity Leave

Maternity leave will be available for female employees for a maximum of ninety (90) days, twice during the entire length of service with the Company. Paternity Leave

Paternity leave will be available to male employees of the Company for a maximum of seven (7) working days, twice during the entire length of service with the company.

Hajj / Umrah Leave

Pilgrimage leave is available to employees for performing Hajj. For performance of hajj, the Company allows up to thirty (30) days. Hajj leave may be availed only once during an employee’s entire length of service with the Company.

For performance of Umrah a maximum of seven (7) days leave will allowed once during the entire length of service.

Iddat Leave

In case of demise of a female employee’s spouse, leave of absence is sanctioned up to a maximum of one hundred and thirty (130) days leave, which will also fulfill the religious requirement of the period of iddat.

Note: In case of demise of a male employee’s spouse, leave of absence of up to fifteen (15) days may be allowed to the employee in order to allow him sufficient time to adjust to the tragic loss and to make necessary arrangements in the household for children and other dependants.

Leave With out Pay / Extraordinary Leave

Leave without pay is not a matter of right but may be considered in exceptional circumstances such as unusual family obligations or unforeseen situations. It will only be granted, once the employee has exhausted all other accrued leave.

No leave or other benefit will accrue during leave without pay.

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Leave Preparatory to Retirement

Employees attaining the retirement age of sixty (60) years (fifty five (55) years for female) or having completed thirty (30) years of continuous service and opting for early retirement are eligible to avail leave preparatory to retirement to the extent of one (1) month immediately prior to retirement, in order to allow sufficient time to organize and prepare for this significant event in life.

Overstay of Leave / Unauthorized Absence

Employees overstaying their sanctioned leave except under circumstances that are deemed beyond their control (for which satisfactory explanation / evidence must be provided) shall not be paid salary for the period of overstay. Any deliberate or intentional overstay, without reasonable justification, would render an employee liable to disciplinary action.

Employees are expected to be present at their place of work and contribute all their energies towards fulfilling their duties during normal working hours. Any unauthorized absence from work may result in a deduction from salary and / or disciplinary action.

Unauthorized absence from work for a continuous period of ten (10) working days (including absence in the case of leave applied for but not granted), or when overstayed for the same period after expiry of sanctioned leave, may as per management discretion, constitute grounds for disciplinary action which may lead to summary dismissal.

Mode of Applying for Leave

The employee’s line manager has the authority to approve or deny all leave requests after consultation with his/her own immediate supervisor, subject to work exigencies. Applications for all kinds of leave of absence should be made on the prescribed leave Application Form (Annexure ‘F’) as far in advance as possible. Where circumstances for absence could not be foreseen the form must be completed immediately on resumption of duties. The completed application form should be submitted with proper documentation (wherever required) to the approving authority.

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HOUSING FINANCE Policy Summary

ENTITLEMENT ENTITLEMENT / DESCRIPTION OF BENEFIT PAGE NO.

Chief Executive Officer Rs. 15.0 millionSenior Executive Vice President Rs. 15.0 million

Executive Vice President Rs. 12.5 millionSenior Vice President Rs. 10.0 million

Limits Vice President Rs. 7.50 million 38Assistant Vice President Rs. 5.00 million

Officer Grade I Rs. 4.00 millionOfficer Grade II Rs. 3.00 millionOffice Assistant Rs. 2.00 million

Eligibility Employees having completed minimum 1 years of service 38

Repayment Period Maximum of 240 monthly installments 39

No. of Loans Only one (1) Housing Finance facility during the entire service tenure 39

Cessation of Service Entire amount becomes payable 42

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CAR FINANCE Policy Summary

ENTITLEMENT DESCRIPTION OF BENEFIT PAGE NO.

Maximum Amount / Entitlement Rs. 2,000,000/- for purchase of car43

Restrictions Car in Company’s name till repayment of entire loan 43Re payment Maximum of 60 monthly installments 43

Eligibility - All confirmed employees.- Minimum service period : 1 years 43

Purpose Purchase of car 43

Cessation of Service Entire loan becomes payable immediately 44

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Subsidized Loans

Statement of Intent

MCB AMC is cognizant of intrinsic human desire to secure one’s future. Accordingly the Company’s compensation philosophy caters to the essential need of asset building through the provision of subsidized loans for housing and motor vehicle.

However it is important to make clear that the purpose is not to provide an opportunity for staff to enrich themselves at the expense of such facilities.

For the purpose of the foregoing, MCB AMC provides the facility of four types of loans to its employees:

a. Housing Finance b. Car / Motor Cycle Finance c. Advance Salary

Eligibility

MCB AMC has complete discretion over granting of loans to its employees and the management reserves the right to restrict the facility or amend it at any time.

Only full time, permanent employees who have been in continuous employment with the company for at least one year are eligible to apply for these loans. CEO has the authority to relax these conditions in special cases.

All loan applications need to be forwarded by the departmental head and finally approved by the CEO. Where financing is arranged through an agreement with MCB Bank, any conflict in MCB AMC’s policies with the bank’s policies will be resolved by giving preference to the bank’s policy.

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Housing Finance

MCB AMC offers housing finance under an agreement with MCB Bank. The bank’s policy is followed while determining the amounts, tenor, repayments and other details. The mark up rate is equal to the rate charged by MCB Bank to its employees plus a premium of 50 basis points.

Confirmed MCB AMC employees with an overall continuous service of at least one (1) years are eligible to avail the Housing Finance.

Lateral entrants with a minimum of three (3) years of professional experience are eligible to avail the Housing Finance.

Refinancing the existing loans of lateral entrants is also an option exercised by the Company, provided the finance amount falls within the Company’s prescribed limit for a respective grade.

The Housing Finance / Refinance facility may not be claimed as a matter of right and management may exercise discretion when allowing such facility. MCB Bank or MCB AMC may refuse any loan which does not fulfill the credit criteria laid down for disbursement of such loans.

Entitlement

The housing finance limits are mentioned in the table below. These limits can be modified from time to time at the Company’s discretion. Moreover, in case of existing property, the entitlement will be restricted to 80% of assessed fair Market Value.

Grade Limit

Chief Executive Officer Rs. 15.0 millionSenior Executive Vice President Rs. 15.0 million

Executive Vice President Rs. 12.5 millionSenior Vice President Rs. 10.0 million

Vice President Rs. 7.50 millionAssistant Vice President Rs. 5.00 million

Officer Grade I Rs. 4.00 millionOfficer Grade II Rs. 3.00 millionOffice Assistant Rs. 2.00 million

Note: Irrespective of finance entitlements tabulated above, at any point in time during service the total deductions on account of finance repayments should not exceed fifty percent (50%) of the employees net salary, including the finance applied for. This also includes loans availed by any other financial institutions and the employee will be asked to disclose all loans outstanding in his name and sign a declaration to that effect.

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Purpose of the Finance

The Housing Finance facility may be granted for any of the following purposes:

a) Purchase of a plot of land (up to 50% of entitlement or assessed value whichever is lower) and construction of a house thereon. Construction must commence within 18 months of the draw down date.

b) Purchase of a constructed house / apartment.

c) Construction of a house on a plot of land which the employee or his / her spouse is already the owner, lessee or allotee.

d) For home improvement, home upgrades, construction, renovation when the entitlement limit of the employee increases as a result of promotion to a higher grade.

Repayment

The Housing Finance facility is repayable over the remaining years of service of employee with the Company or 240 monthly installments whichever is lower from the date of disbursement in case of purchase of house. Where construction of the house is concerned, the first installment of finance commences one (1) year after the draw down date.

Number of Loans

Only one (1) Housing Finance facility may be availed by an employee during the entire service tenure. This does not affect the additional loan taken on account of promotion to higher grade.

Renewal

As employees are promoted to higher grade their entitlement limit increases. The employee can avail differential by either:

- Paying the previous loan and executing fresh documents for new house; or- If the assessed value of the existing property is sufficient to cover the revised entitlement,

the employee may avail the differential by applying for home upgrades such as additional construction or renovation.

For home improvement the loan will be sanction against an approved estimated cost and the disbursement will take place progressively on the submission of actual bill.

Note: Employees will be allowed renewals thrice during entire service.

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Additional conditions

Employees are required to execute a Memorandum of Deposit of Title Deeds to create mortgage over the property to be finance in favor of the Company. All documents will require prior legal clearance from the Company’s legal council.

The forced sale value of the property to be purchased has to be assessed by the Company’s approved architect / appraiser at the expense of the employee.

In case where the Company employs both husband and wife, the housing finance can be availed by both on the same property, provided the fair market value of the property offered as security is more than the combined loan entitled entitlement.

Disbursement

The disbursement of finance shall be subject to completion of the relevant documents. One approval, the disbursements of the finance will be as follows:

Purchase of Plot

Up to 50% for purchase of plot upon submitting a valuation certificate, a certificate of non-encumbrance, vetting of the property documents as per Company’s legal department and advance (Biyana) payment as per sale agreement or any other documents as required by the Company.

The remaining finance amount will be disbursed in three (3) equal installments as follows:

(i) For making advance payment for starting the construction work

(ii) Upon completion of plinth level

(iii) On completion of the structure for financing the finishing

Purchase of a constructed house / apartment

In case of purchase of a constructed house / apartment, the disbursement will be released through pay order made for accounts payee or the seller at the time of sale deed after obtaining all necessary documentation / charges forms.

Full particulars of the property are to be given on payment order and particulars of the same are to be mentioned in the sale deed. Payment order will be delivered at the time of execution of the sale deed, lease deed or sub-lease deed before the sub registrar.

Documentation

Standard documentation of the Housing Finance facility includes:

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- Mortgage deed in case where facility is allowed through registered mortgage- Memorandum of Deposit of Title Deeds in case where facility is allowed through equitable

mortgage- Letter of lien for Staff Provident Fund Trust- Power of Attorney- Demand Promissory Note- Original property documents along with details of previous owners- Any other documents required by the Company

In addition to the above, following documents are also required to be submitted:

Constructed House1. Lease Deed2. Sale Deed or Conveyance

Deed3. Search Certificate4. Valuation Certificate / Bill

of Quality, from Company’s Architect

5. Approved building plan / map 6. Permission to mortgage

favoring MCB-AMC from KMC/KCA/DHA

7. Property tax challan for current year

Open Land1. Allotment Letter2. Possession Certificate. 3. Transfer Order4. Lease Deed5. Approved building plan 6. NOC from KDA/KMC

Or Cantonment board7. Valuation certificate from

Company’s architect

Apartment1. Sub lease2. Sale Deed3. NOC from builder 4. Permission to mortgage

favoring MCB-AMC from leasee

5. Approved building paln 6. Property tax challan for

the current year7. Valuation certificate from

company’s architect8. Possession for

Confirmation of apartment

All documents will be vetted by the Company’s legal Department and kept in safe custody of the Company.

Insurance

As an additional benefit of this policy, the Company will arrange mortgage insurance coverage on behalf of employees to cover the outstanding house finance.

Municipal Taxes

Payments relating to ground rent, municipal and other levies, taxes, rates and other dues payable in respect of land and / or the building or any services connected therewith, shall be the sole responsibility of the employee.

Permissions for Various Transactions

The employee shall not, except with the prior written permission of the Company, sell mortgage, gift, exchange or otherwise transfer or encumber the land, buildings and other constructions until

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he / she has repaid in full the principal sum of the finance together with the accrued mark-up and / or other dues applicable, if any.

Cessation of Service

In the event of the employee’s services are terminated for any reason from the Company, outstanding finances with accrued mark-up will become payable immediately. The Company will deduct the outstanding loan amount from any monies that are payable to the employee on account of terminal benefits, salary, retirement dues or others. A signed declaration of the above is to be obtained from the employee as part of pre-condition to the finance being sanctioned.

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Car Finance

MCB AMC offers car finance under an agreement with MCB Bank. The bank’s policy is followed while determining the amounts, tenor, repayments and other details. The mark up rate is equal to the rate charged by MCB Bank to its employees plus a premium of 50 basis points.

Eligibility

All confirmed employees after completing one (1) years of full time service with the Company, shall become eligible for the Car Finance facility.

Lateral entrants with a minimum of three (3) years of professional experience are also eligible to avail the Car Finance facility.

It must be understood that this facility may not be claimed as a matter of right and management may exercise discretion when allowing such facility. MCB Bank or MCB AMC may refuse any loan which does not fulfill the credit criteria laid down for disbursement of such loans.

The Car will be in the lender’s name till such time the entire Finance is repaid.

Entitlement

Grade Limit

CEO-SEVP Rs. 2.0 millionEVP-SVP Rs. 1.5 millionVP-AVP Rs. 1.0 million

Officer Grade I-II Rs. 0.75 million

For purchase of a used car, the model should not be older than three years. The employee shall pay 10% of the cost of the vehicle in case of a new car and 20% in case of a used car.

Repayment

The Car Finance facility is repayable in a maximum of 60 monthly installments. Repayment of Car Finance shall commence immediately, following month after disbursement of the finance.

In case where an employee’s remaining years to retirement do not allow for a repayment schedule spread over 60 equal monthly installments, the recovery shall be so regulated that the advance is fully recovered at least 12 months before the retirement of the employee.

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Renewal

Employees will be allowed to avail Car Finance after every five (5) years from the date of the first disbursement of the previous facility, subject to adjustment of previous Finance along with up dated markup, if any. The car financing can be availed for a maximum of three times during the entire length of the service.

Documentation

Standard documentation for a Car Finance facility will comprise of the following:

- Letter of hypothecation of vehicle before purchase- Letter of undertaking for the joint ownership of the vehicle- Letter of hypothecation of vehicle after purchase- Letter of undertaking for Staff Provident Fund Trust- Demand promissory note- Copy of the registration documents- Any other documents required by the Company

However the Company may require additional documentation if considered necessary, in its sole discretion.

Insurance

MCB AMC is responsible for providing insurance coverage of the vehicle.

Disbursement

The payment of loan shall be subject to completion of the relevant documents or suitable undertaking to this effect. Disbursement of the loan may be made in lump sum or in installments to suit the requirements of each case.

Cessation of Service

In the event of separation from service for any reason, the entire amount of the loan will become payable immediately. The Company will deduct the outstanding loan amount from any monies that are payable to the employee on account of terminal benefits, salary, retirement dues or others. A signed declaration of the above is to be obtained from the employee as part of precondition to the finance being sanctioned.

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Provident Fund

Statement of Intent

MCB AMC commitment to its employee’s well being extends to recognizing the importance of retirement planning and to identify ways to promote greater opportunities for savings for its employees. One such initiative is the Provident Fund Scheme in which MCB AMC’s monthly contribution to the employees account is an important component of its overall remuneration package.

Details of Provident Fund

MCB AMC manages an approved Staff Provident Fun Scheme. Under this scheme, employees who have successfully completed their probationary period with the Company, upon confirmation become members of the Staff Provident Fund.

Equal contributions to the fund are made by the employee and the Company at the rate of 8.33% of each employee’s monthly basic salary. The employee has the option of contributing a larger percentage of his / her basic salary each month (maximum up to 15%), however the Company’s contribution will be limited to 8.33%. The Fund will invests in Government securities, shares open ended funds, TFC’s, Bond and other best available options.

Upon separation from service after completing three (3) years the employee, or in the event of the employee’s demise his / her nominated beneficiary, receives both the employees own as well as the Company’s contribution, together with the profit thereon. If an employee resigns or in the event of demise before completion of three (3) years his / her nominated beneficiary will receive only the employee’s contribution. All rights and obligations of the Fund members are defined in the Staff Provident Fund Trust Deed, available for reference with the Human Resources Department.

Provident Fund Loans

All employees who are members of the Fund and have completed three (3) years of service with the Company are eligible to apply for a loan from the Provident Fund Scheme. The maximum amount that may be borrowed under this scheme is the amount of the employee’s own contribution to the Provident Fund.

This loan is governed by the rules and regulations of the Staff Provident Fund Scheme, details of which may be obtained from the Human Resources Department.

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Hospitalization Benefits

Statement of Intent

MCB AMC regards its employees as its most valuable resource and is concerned about their and their family’s health and well being. The Company recognizes hospitalization benefits that give employees the peace of mind to focus on their job functions without having to worry about financial risks in the event of hospitalization. Hospitalization coverage forms an integral component of the total rewards package offered by MCB AMC in keeping with its stated compensation philosophy of offering a balanced and competitive remuneration package in order to attract and retain talent.

To this end, MCB AMC has instituted a hospitalization and maternity benefits plan by arranging for medical cover through leading insurance companies.

Eligibility

All confirmed employees and their spouse and dependant children (son and daughter up to the age of 23 years and 28 years respectively, who are unmarried) are covered under the Company’s Hospitalization Benefits Policy.

Entitlement

The entitlement for various grade levels is as under:

Position Insured Sub-Limit forRoom Rent/day

EmployeeChief Executive Officer Spouse As per employment contract

Children

SEVP/EVP EmployeeSpouse A

ChildrenSVP/VP Employee

Spouse AChildren

EmployeeAVP Spouse

Children B

OGI/OGII / OGIII & Office EmployeeAssistants Spouse C

Children

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Scope of Coverage

Please refer to your medical insurance policy for up-to-date material on scope of coverage.

Dispensation Process

Upon confirmation, each employee will be required to provide information to the Insurance Company on the particulars of their immediate family (spouse and dependant children) and to continue to notify the Company of any changes that may occur over time.

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Travel Policy

Statement of intent

MCB AMC aims to provide employees traveling on company business with a reasonable level of comfort in their boarding and lodging arrangements at the lowest possible cost to the organization. Being mindful of the resources expended, travel should only be considered as an option when alternative modes of communication for conducting business (e.g. tele-conferencing, electronic mail) are considered impractical or in effective.

The principal intent of the travel policy is that employees who incur travel expenses as a result of the required business travel should neither gain nor loss personal funds as a result of such travel.

Approval for Travel

Employees should fill out the travel request form and get it signed by their supervisor. For domestic travel, the form needs to be approved by an SEVP or above grade employee. For international travel, it should be approved by CEO.

Eligibility

All Company employees proceeding on approved travel either for company’s business or for training are eligible for re-imbursements as per terms of this policy.

Air Travel

The entitlement for air travel undertaken by employees is detailed in the following table.

Position Domestic International InternationalTravel Travel for Travel for

Business Training

Chief Executive Officer Business Business BusinessSenior Executive Vice President Business Business Business

Executive Vice President Business Business EconomySenior Vice President Economy Plus Economy Economy

Vice President Economy Plus Economy EconomyAVP and below Economy Economy Economy

All reservations for air travel should be made through the office and the approved travel agencies. Requests for reservations should be forwarded to the Human Resource Department as early as possible by submitting an approved travel request form prior to departure to ensure sufficient time for making suitable arrangements, but in any case not later than four (4) days before the anticipated date of travel.

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In case of non-availability of seats in the Economy Class and if the travel plans cannot be altered, approval may be granted for an upgrade from the travel approving authority. In case an employee is traveling with a senior colleague, the class of travel will be the same as that of the senior colleague. This is only true if both of them are traveling in the same flight.

Where air travel is not an option, executivestransportation.

Travel by Train

Grade EntitlementExecutives (AVP & above) A/C Sleeper Officers Lower A/C

By Road

/ officers can use the following modes of

If the only option of travel is by road then for VPs and above the preferred mode will be the use of Company provided car. Where Company provided car can not be used, the Company will arrange rented cars for VPs and above. However, AVPs will be required to take prior approval from their immediate supervisors which will be given on a case to case basis. For Senior Officer and below, road travel can be via personal car / hired taxi / public transport, and the reimbursement of fuel expenses would be as follows:

Entitlement Assistants to Senior Officer (If using personal car or hire taxi) Rs. 15 per kilometer Traveling by Coach / Public Transport At actual

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Boarding & Lodging Arrangements

Personal Arrangements

Boarding will only be allowed if the employee is required to stay overnight. If employees choose to arrange for their own accommodation, they are entitled to a per diem allowance, as outlined in the table below. The Daily Allowance would be in lieu of hotel accommodation, meals, incidentals and any other expenses incurred as a result of the travel.

Position Domestic InternationalTravel-Per Diem Travel-Per Diem

Chief Executive Officer Rs. 5000 US$ 500Senior Executive Vice President Rs. 4000 US$ 400

Executive Vice President Rs. 3000 US$ 350Senior Vice President Rs. 3000 US$ 300

Vice President Rs. 2500 US$ 275Assistant Vice President Rs. 2000 US$ 200

OG I and below Rs. 1500 US$ 100

Company provided Accommodation

MCB AMC has negotiated corporate rates with quality hotels in most of the cities where business travel may be required. After travel dates have been finalized, reservations should be made centrally through the office in order to ensure proper rates and credit billing. List of approved hotel in selected cities is attached (Refer to Annexure J)

Grade EntitlementCEO - VP Actual room rent of 5 star hotelsAVP - OG I Actual room rent of 4 star hotels.OG II and below Actual room rent of 3 star hotels

Note: The above is only the room rent entitlement. Hotel room service or mini-bar charges are not allowed. Meals and other incidentals must be paid from the per diem allowance. They will form a ceiling for actual room rents in the current year and will be regularly updated.

Note: 1. Women employees, who are not entitled to a 5-star hotel, will be accommodated in a

hotel which is not less than 4-star standard.

2. CEO and SEVP are entitled to get a room on the Executive Floor

3. All others to get standard rooms

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Rates for hotels will be negotiated by Administration Department

Daily Expense Allowance

Employees will be entitled to a daily allowance to cover for expenses incurred on meals and minor incidental expenses during the course of their stay. These are outlined in the table below.

Position Domestic InternationalTravel-Per Diem Travel-Per Diem

Chief Executive Officer Actual bills US$ 350Senior Executive Vice President Actual bills up to Rs. US$ 300

3,500 Executive Vice President Actual bills up to Rs. US$ 250

3,000 Senior Vice President Actual bills up to Rs. US$ 200

2,500 Vice President Actual bills up to Rs. US$ 200

2,500 Assistant Vice President Actual bills up to Rs. US$ 100

1,500 OG I and below Actual bills up to Rs. US$ 75

1,000

Note 1. For international travel, per diem allowance will be given prior to the journey. Domestic

per diem allowance will be reimbursed against presentation of actual bills upon return. All such expenses need to be approved by the CEO.

Transportation Allowance

For VP and above the Company will provide rented cars for transportation to and from the airport / training centers / seminar halls etc. for cities other than the city of residence. All such arrangements should be made through Administration Department. However, for AVP and below transportation expenses will be reimbursed where actual receipts are provided. Where bills are not available the transportation charges will be allowed at Rs.15/= per km.

Employees who have been provided with a company car are not entitled to claim transport charges from their residence to the airport and back except for the flights departing or arriving during late nights. Where possible and available, the Company’s pool car and driver can be called.

Reimbursement will generally not be made for travel from the airport to the hotel and back, as most hotels offer a pick and drop service and this facility should be utilized. However, this will

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be an admissible expense if personal arrangements for lodging have been made or if hotel in the city of travel does not have this arrangement.

Employees are expected to utilize the vehicles available, if any, at the company office in the city being visited. If this is not possible, transportation expenses for travel within the city may be reimbursed.

Overseas Travel

The per Diem entitlements are applicable for short trips only. Short trip is defined as five or less days, which means that Daily Allowance can be claimed for a maximum of five days only.

For long trips lasting more than five days, special approval is required for per diem allowance. The recommendation must come from the respective Departmental Head and forwarded to CEO for approval.

Laundry & Dry-Cleaning

Employees are entitled to utilize the laundry, Ironing charges and dry-cleaning facilities at the hotel if their total travel time exceeds two nights. The overriding principle when incurring expenditures of this nature should be that they are reasonable and necessary.

Telephone Calls

Employees should be mindful of the high cost charged by hotels for telephone usage. All long distance telephone calls should be made from the company’s office, wherever possible. Unless nominal, phone charges will not be reimbursed by the company.

Entertainment Expense

In the course of business travel if clients or guests had been entertained, re-imbursement of entertainment expense must be claimed by mentioning the name of the client or any other guest in the details column of the expense claim form. (See appendix for the format). The original bills must be attached with the expense claim form.

Training Related Travel

For training visits abroad such as seminars, courses etc, where accommodation and all meals are provided by the training organizers, the Daily Allowance entitlement will be as follows

Grade EntitlementChief Executive Officer US$ 200SEVP - EVP US$ 150SVP - VP US $100AVP - OG I US $ 75OG II and below US $ 50

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Where only accommodation is provided by the training organizers and meals are not provided for, in all such cases 50% of Daily Allowance would be allowed to officers and executives up to SEVP level. For CEO the Daily Allowance would remain unchanged at US$ 200.

Advance against Traveling

An employee traveling on Company’s business is permitted to draw advance to meet his / her traveling expenses. The advance amount will be equivalent to the entitled per diem allowance by the Company. However, all training advances will be processed through Human Resources.

Approval Authority

Before the commencement of all business travel, proper approvals should be in place through the Travel Authorization Form (refer to Annexure G). No expenses or allowances will be paid if the travel is not properly authorized by the relevant authority.

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Group Insurance (Life)

S.no. Benefits1 On Death (Due to Any cause)

2 On Accidental Death (Additional)

3 On Permanent Total Disability (Accident)

4 On Permanent Partial Disability (Accident)5 On Temporary Total Disability (Accident)6 On Permanent Total Disability (Natural)

7 On Diagnosis of Terminal Illness

Amount Insured48 times gross monthly salary Maximum of Rs. 10 Million

48 times gross monthly salaryMaximum of Rs. 10 Million

48 times gross monthly salary Maximum of Rs. 10 Million

As per schedule100% of gross monthly salary 48 times gross monthly salary Maximum of Rs. 10 Million

50 % of Life sum insured, subject tomaximum of Rs. 500,000.

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Disciplinary Policy

Statement of Intent

MCB AMC believes in promoting fairness, transparency and consistency within its human resource policies. The Company aims to promote behavior in terms of acceptable standards amongst all its employees in order to foster an organizational culture defined by excellence and professionalism.

The Disciplinary Policy has been developed to provide a framework within which improvements in performance and conduct can be managed. Its primary aim is to ensure that employees are aware of the standards expected of them in the work place and to assist management in implementing and maintaining discipline with fairness and consistency.

Scope of Policy

The Disciplinary Policy is applicable to all MCB AMC employees. It is the policy of the Company to ensure that all employees are aware of the contents of the policy and related procedure is not contractually binding on the Company, MCB AMC’s human resource philosophy dictates that it will normally be followed, wherever possible. For the avoidance of doubt, however, employees should have no contractual expectation that this will automatically be the case.

Conduct and Performance Expectations

Breaches of MCB AMC’s standards of conduct or required performance, which could justify disciplinary action, tend to fail into four major categories:

1. Inadequate Performance

After receiving on-the-job training, employees are expected to achieve and maintain performance standards that are satisfactory for the job concerned. These performance standards are defined as part of the Company’s performance management process. Consistent failure to achieve stated job objectives could lead to disciplinary action.

2. Absenteeism and Tardiness

In the event that an employee has an unacceptably high level of absence, has regular patterns of absence or is consistently late for his / her assigned work schedule, action may need to be taken.

Unauthorized absences should be investigated immediately by the line manager and the employee asked to provide an explanation. If the evidence or explanation provided is unsatisfactory, it should be dealt with as a misconduct issue under the disciplinary procedure.

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3. Misconduct

Any deliberate or reckless breach or non-observance of MCB AMC’s rules and policies may constitute misconduct. Alternatively, lapses in the expected standards of reasonable behavior and conduct may also be considered as misconduct. Examples include but are not limited to:

- Failure to carry out management instructions, written or oral.- Deliberate or careless breach of the Company’s policies.- Any act or threat of physical violence or abusive behavior towards either

people or property.- Bullying or harassment.- Intimidation or incitement of others to disorder or disobedience.- Engaging in immoral behavior and / or sexual harassment.

This list is not exhaustive and other instances of behavior may also constitute misconduct, at the discretion of management.

Misconduct outside the Company (e.g. conflict of interest, immoral / unlawful activities) may also render the employee liable to disciplinary action and would certainly do so if this constituted a criminal offence involving dishonesty.

4. Gross Misconduct

Acts that constitute gross misconduct are those that result in a serious breach of the Company’s rules, policies and standards of behavior or the law of the land. In addition, persistently failing standards of a less serious nature, for which formal warnings have already been given, may also constitute gross misconduct.

The following examples of gross misconduct are not ranked in order of importance and the list is not exhaustive:

- Theft, fraud and deliberate falsification of records.- Deliberate damage to or misuse of the Company’s equipment and

resources, including abuse of the e-mail or telephone systems or access tointernet sites (e.g. pornographic or gambling sites).

- Serious and willful insubordination.- Taking or giving bribes or any illegal gratification.- Bringing the Company’s name into disrepute or acting in a manner

harmful to the Company’s interests.- Serious incapability whilst on duty brought on by alcohol, illegal drugs or

other substances.- Serious negligence which causes or might cause unacceptable loss,

damage to property or injury to others.- Serious breach of confidence, including insider dealing in securities.

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- A deliberate and serious breach of employment policy, policies andprocedures.

- Absence without approved leave for more than ten (10) working days.- Conviction for an offence, which the Company considers is detrimental to

its reputation, or considers, may adversely affect relationships of the Company with both employees and / or clients.

Suspension from Work

If circumstances dictate, careful consideration will be made as to whether a suspension from work may be requiring, while investigations are carried out. This suspension is not part of the disciplinary action, and should not be construed as such, and the suspended employee will continue to be paid and will retain all associated terms and benefits.

The suspension will be for a maximum of four (4) continuous days at any one given time. However, the suspended employee must be available to attend the office for disciplinary meetings.

Option to be represented

Employees have the option to represented by a colleague during the third stage (refer to Stage 3 - Letter of Charge / Final Written Warning below) of the disciplinary procedure. This individual will participate in all inquiries, if any, that may be conducted to investigate the disciplinary issue at hand at this stage.

Employees should inform the line manager that they wish to be represented and the identity of the individual. Although employees may nominate a colleague of their choice for this purpose, they should bear in mind that it may not be appropriate to insist on being represented by a person who may have a conflict of interest.

Stages of the Disciplinary Procedure

These are three stages in the formal disciplinary procedure.

It is advisable that an initial discussion with an employee to ascertain the problems and possible causes for the shortcomings in standards of behavior take place before issuing warnings. The formal procedure will normally be used only when informal discussions have failed to resolve matters, or when the misconduct is of a serious nature and requires immediate investigation and action.

Depending on the nature of the misconduct or failure in performance the disciplinary procedure may be enacted at any stage. Dismissal will not normally be an option in the event of a first breach of discipline unless the infraction is very serious. However, the Company has discretion over which stage of the procedure to initiate in any given circumstance and an employee should have no expectation that all stages will be followed in order.

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Stage 1 - Formal Oral Warning

When a disciplinary matter arises, the Human Resources Department should establish the facts promptly, and if appropriate, obtain any witness statements.

Once the evidence has been presented to the incumbent a formal oral warning may be given to the employee as Stage 1 of the disciplinary procedure. The reasons for the warning should be clearly outlined together with the conduct or performance improvement required.

The Human Resources Department will prepare a written record of the meeting. This record should be signed by the employee and a copy of this record included in the individual’s personal file. The employee’s signature on this record does not indicate agreement with the action taken; it only acknowledges receipt of the corrective action. If the employee refuses to sign the corrective action, it should be noted that a copy was given to the employee but he / she refused to sign.

Stage 2 - Written Warning

If performance or conduct has not improved to the required standard then the procedure will move to stage 2. If the alleged misconduct or performance issue is more serious, then the disciplinary procedure may be initiated at stage 2. In the event of the latter situation, there will be an appropriate inquiry to verify the allegations at this stage. If the inquiry results prove the infraction, the Human Resources Department in consultation with the Line Manager / Departmental Head, will issue a written warning to the employee which will detail the transgressions, stipulate the improvements required, provide time frames, as well as give an indication as to the likely penalty if there is no satisfactory improvement.

The employee should acknowledge the letter in writing and a copy placed in the personal file.

Stage 3 - Letter of Charge / Final Written Warning

This will apply where an employee:

(a) has received a written warning for misconduct or inadequateperformance and it is alleged that conduct of performance remains unsatisfactory; or

(b) is alleged to have committed a serious breach of law or ofstandards of conduct and behavior expected of Company’s employees; or

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(c) is alleged to have committed a serious breach of theCompany’s rules and / or policies.

At this stage, the employee will be issued a letter of charge detailing the alleged misconduct and given an opportunity to present his / her case in writing. Based on the evidence presented and if needed an inquiry may be conducted, co headed by the Human Resources In charge and an impartial member of the management team appointed by the Chief Executive Officer. The inquiry team will include the Line Manager, the concerned employee and the employee’s representative, if any.

If the findings of the inquiry exonerate the employee, no further action to the detriment of the employee will be taken. If however, the allegation is proven, the Line Manager in consultation with the Departmental Head will have discretion over whether to:

(a) take no further action and declare the matter closed; or

(b) issue a final written warning, which will include a stipulation offurther action which may lead to dismissal from service if there is no satisfactory improvement; or

(c) recommend downgrading the employee, with an appropriate reduction in salary and associated terms and benefits; or

(d) recommend dismissal of the employee without notice.

In the case of dismissal, the employee will be given a letter of dismissal detailing the reasons for the dismissal, and any other circumstances that apply.

Principles for the Disciplinary Procedure

- MCB AMC will ensure that each case is investigated as fully as circumstances permit before any action is taken.

- At every stage of the procedure, the reasons behind the disciplinary actionwill be fully explained.

- The employee will be given sufficient time to present his / her case andexplain any mitigating circumstances.

- The employee will have the option of being represented by a colleague atstage 3 of the proceeding.

- Written records of each stage of the disciplinary procedure will be maintained and retained in the employee’s file.

- All disciplinary proceedings, witness statements and records will be kept confidential, subject to any legal or regulatory requirements binding on the Company.

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Where allegations of misconduct or inadequate performance prove to be unfounded on investigation, all written material relating to the matter will be removed from the files. The employee will be immediately reinstated (if suspended) and thereafter will not be discriminated against or suffer any detriment as a result of such allegations having been made.

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GENERAL

Personal Finances

MCB AMC expects all its employees to conduct their own personal financial affairs with a high degree of integrity. Employees must use business-like judgment so that the Company’s reputation is not compromised. Employees are strongly discouraged to borrow money from or lend money to colleagues.

Outside Employment

No other employment or occupation, paid or unpaid, or any personal business venture, should be entered into by any employee without the prior written approval of the Chief Executive Officer.

A service by employees in a voluntary capacity for charitable organizations does not require approval if there is no conflict with their work, and such service is encouraged. If an employee is a trustee or director of a Company or a partner in a firm, the arrangements for dealings by the trust, Company or partnership in question must be approved in advance by the Chief Executive Officer.

Communicating with the Media

As a general rule, employee should not talk to media representatives, give interviews and write anything pertaining to the company or its operations. Unauthorized contact with the media or any public agency is a serious offence.

If an employee wishes to write any article or give an interview that may be construed as representing MCB AMC’s position, prior written approval must be obtained from the Chief Executive Officer or a director in case of CEO’s absence. All contact with media should be reported to the Company immediately and must remain within the bounds of approval.

Employment of Relatives

MCB AMC permits the employment of relatives of employees provide they do not directly supervise, control or influence the work of one another and have no responsibility for the other’s performance evaluations, salary recommendations and disciplinary actions.

The above restrictions are in place in order to eliminate any actual or potential conflict of interest in the exercise of the above authorities.

All such relationships should be disclosed in writing to the Human Resources Department at the time of recruitment of the relative. A relative is defined as follows: husband, wife, child, parent, brother, sister, parent-in-law, brother / sister-in-law, son / daughter-in-law as well as individuals residing in the same household.

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Use of MCB AMC Computer Resources

Use of MCB AMC computer resources is strictly limited to business requirements. Employees should be aware that emails are not confidential and may be accessed for monitoring purposes. Any breach of IT security protocol which involves private business use or unsuitable material will be a disciplinary matter.

Employees will be accountable for all activities created under their password. Unauthorized use of a password will be treated as gross misconduct.

Discipline

MCB AMC will follow a zero tolerance policy with regards to personal dealings if they in any way endanger the reputation of MCB AMC. If employees’ dealings breach the letter of spirit of these rules, they will render themselves to disciplinary action, which may include instant dismissal.

MCB AMC reserves the right to require an employee to reverse a deal at his / her own expense if it has been affected in breach of any part of these rules.

Obligation after Employment

As discussed earlier, during the course of their employment, employees might obtain confidential information with regard to MCB AMC’s business or the business interests of Company clients. Upon cessation of employment, employees will have a moral obligation to be bound by the following restrictions:

o For a period of three months after cessation of service, an employee may not without MCB AMC’s prior written consent, on their own account or on behalf of any other entity, canvass or solicit business from any client of the Company, in respect of the services provided by MCB AMC.

o Upon separation from service, employees should not use or disclose any confidential information concerning MCB AMC’s business, which may have been acquired by them during the course of their service.

o Upon separation from service, employees should not solicit employment interest or poach any of the Company’s permanent or contractual employees for a period of twelve months after they have left MCB Asset Management Company’s payroll.

o Employees may not at any time after separation from service use any of MCB AMC’s corporate, trading or other names of the Company to suggest that they are then connected with the Company and they must not behave in any way that may suggest they have such a connection.

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ANNEXURE

63

Annexure ‘A’

Job Description Document

The following template has been designed to solicit information that would be helpful to someone trying to understand the nature, scope or purpose of your position. If you feel that the template does not offer sufficient flexibility to capture the essence of your role, please attach additional information.

Job Title:

Job Family:

Department/Location:

Contents Agreed by Line Manager: (Name & Signature)

I. Summarize your role in the Organization

II. Outline the dimensions of your role by quantifying the work/business volume handled by yourposition. Use last year’s figure as supporting date.

III. Indicate the minimum educational / professional qualification, formal training and practical

experience required to satisfactorily perform the functions of your role.

Academic Professional Formal Training

Practical Experience

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Job Description Document

IV. Highlight the most important components / functions of your job in order of priority and also

indicate the time allocation to each these functions.

Job Accountabilities Time Performance Measure(Briefly explain 4 to 5 main Allocated (list 2 to 3 key objectives of each

accountabilities of your role) (%age of) accountability area.)

V. Describe the authority permitted to your position by indicating which decisions you are

expected to make and which you are expected to recommend.

Decisions Expected Recommendations Expected

VI. List the titles of individuals, departments and organizations with whom you have the most

frequent contact. This should include contacts both inside and outside the company.

Contact’s Job Title Department Organization Purpose

65

Annexure ‘B’

PERFORMANCE EVALUATION FORM FOR THE PERFORMANCE YEAR

EMPLOYEE NAME EMPLOYEE'S FUNCTIONAL TITLE

EMPLOYEE NUMBER DEPARTMENT

GRADE (OG1, VP etc) CITY

BASIC PAY AS OF JUNE 30, 200_ DATE OF JOINING

QUALIFICATION

ACADEMIC PROFESSIONAL

LEAVE AVAILED DURING PERIOD UNDER REVIEW

PL PL BALANCE

OTHER LEAVE LEAVE WITHOUT PAY

NAME OF APPRAISER APPRAISER'S FUNCTIONAL TITLE & GRADE

DATE OF APPRAISAL PERIOD COVERED

RATING SCALE

Performance significantly below standard in a number of critical aspects,immediate warning and rectification needed

Performance slightly below standard; requires improvement in one or more critical areas of job

Performance meets standards in all important aspects of the job

Performance well above standard in many important aspects; usually exceeds normal expectation

Outstanding or Exceptional performance in most areas of the job

E = Below 40

D = 41-55

C = 55-70

B = 71-85

A = 86-100

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FUNCTIONAL TITLE

JOB DESCRIPTION

PART A : COMPETENCIES CONTRIBUTING TO PERFORMANCE (50% WEIGHTAGE)

Leadership : Displays leadership qualities; motivates and builds teams. For 1 Officers: Able to rally those around him/her as well vendors and outside parties.

Decision making: Able to take effective and timely decisions in handling everyday 2 work situations

Relevant Knowledge & Technical Expertise: Has an appropriate level of business3 awareness, experience, knowledge and skill required by the job

4 Customer Focus : Aware of the importance of customer needs

5 Teamwork: Effective as a team member and willing to assist other staff

Communication: Able to clearly communicate with others verbally and in written6 form

7 Planning & Organizing: Plans ahead and demonstrates good personal organization

8 Time Management : Efficient management of time on the job

Analytical & Reasoning Skills: Able to handle and interpret data, identify key9 issues, resolve problems and derive solutions

Initiative : Able to come up with ideas to improve business and work practices10 where opportunity arises

Amount of direct supervision or guidance required: Sufficiently confidentand able to operate competently without an ongoing need for close

11 supervision

Knowledge & Skills : Possesses basic skill and knowledge to perform the relevant12 functions

13 Behavior with superiors, colleagues and subordinates

14 Responsibility & Commitment: Efficient disposal of work

15 Attendance & Punctuality

Name :

Employee Number : 0

Rating

From 1-100

Total RatingsPART A

PLEASE SUPPORT WITH CRITICAL INCIDENTS IN CASES WHERE EMPLOYEE HAS BEEN RANKED EITHER BELOW 40 OR OVER 85 ON THE RATING SCALE

67

Name : Employee Number : 0

PART B : PERFORMANCE RATING (50% WEIGHTAGE) Ratin

g from 1-100

Goal Financial Goals:1: - Did the assessee meet budgetary goals/performance

standards - Did the assessee help others in meeting their goals - Did the assessee contibute towards managing costs and improving efficiency

Goal Operational Efficiency:2: - Adhere to efficiency standards for the department

- Service the clients with zero error within prescribed turn aroundtime

Goal Processes & Controls:3: - Ensure compliance with all internal and regulatory policies /

procedures- Did the assessee contibute towards improving andstrengthening the procedures

Goal Client Management:4: - Targets :

1. Did the assessee meet the client service and retention targets

2. Has the assessee shown enough drive and motivation to meet targets

- Service : 1. Did the assessee understand the demands and

needs of clients 2. Has the assessee build up a decent franchise

value with clients?

Goal Service to internal clients and franchise value:5: - Did the assessee provide adequate support to other

departments and those dependent on him/her - Did enough to build alliances with outside parties and promoted the franchise

TOTAL WEIGHTED PERFORMANCE RATING - PART B 0

PLEASE SUPPORT WITH CRITICAL INCIDENTS IN CASES WHERE EMPLOYEE HAS BEEN RANKED EITHER BELOW 40 OR OVER 85 ON THE RATING SCALE

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Employee Name: Employee Number:

Needs Immediate Improvement Marginally meets standard Meets Standard

Below 40 41-55 56-70

OVERALL PERFORMANCE OF STAFF MEMBER

Total Rating of Competencies x 0.5Competencies (50%) No. of Competencies Considered

Total Rating of Performance x 0.5Performance Rating (50%) No. of goals scored

OVERALL RATING (Performance Rating) + (Competency Rating)

PART C : TRAINING & DEVELOPMENT PLAN

IDENTIFIED TRAINING NEEDS

COMMENTS ON ANY EXTRA ORDINARY ACHIEVEMENTS

DISCIPLINARY ACTION, IF ANY

COMMENTSAPPRAISER (MANAGER)

Above Standard Exceptional

71-85 Over 85

NAME: SIGNATURE DATE :

APPRAISEE (EMPLOYEE)

NAME: SIGNATURE DATE :

NEXT SENIOR LEVEL OF APPRAISING MANAGER

NAME: SIGNATURE DATE :

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GOAL STATEMENTS FOR THE YEAR 2006 Fill as many needed. Minimum of 3 goals

required

EMPLOYEE NAME EMPLOYEE NUMBER

FUNCTIONAL TITLE PLACE OF POSTING

GRADE REPORTS TO

Weightage % GOAL 1 :

Indicate relevant key performance measures (Quantity, Quality, Timeliness, Cost, Revenues, Communications, Others…… ) GOAL 2 :

Indicate relevant key performance measures (Quantity, Quality, Timeliness, Cost, Revenues, Communications, Others…… )

GOAL 3 :

Indicate relevant key performance measures (Quantity, Quality, Timeliness, Cost, Revenues, Communications, Others…… ) GOAL 4 :

Indicate relevant key performance measures (Quantity, Quality, Timeliness, Cost, Revenues, Communications, Others…… ) GOAL 5 :

Indicate relevant key performance measures (Quantity, Quality, Timeliness, Cost, Revenues, Communications, Others…… )

APPRAISER (MANAGER)

NAME: SIGNATURE DATE :

APPRAISEE (EMPLOYEE)

NAME: SIGNATURE DATE :

70

Annexure ‘C’

Appointment Letter

Ref. No. Date

LETTER OF EMPLOYMENT

Dear Mr. / Ms. ________________,

1. Thank you for your employment interest in MCB Asset Management Company Limited (hereinafter referred as “MCB AMC” or the “Company). In terms of authority vested in me by the Company, I am pleased to offer you a position with the Company as _________________ in our __________ Grade at ____________ level.

2. The commencement date of your contract shall be the day you actually join the employer’s job location. At present, this date is expected to be XXXX.

3. Your assignments will be at MCB AMC head office in Karachi. However, it is a pre-requisite for the employment with the Company that all employees agree that while their appointment us to a specific office, the Company has a right to post an employee to any of the Company’s offices within Pakistan or abroad, where his/her services may be required.

4. Your appointment is also subject to the Company receiving a full medical report certifyingfitness for employment and satisfactory references.

5. Your appointment will be according to the Company’s Staff Service Rules currently inforce. You will entitled to

• Medical Benefits as per Company’s Policy • Participation in the Company’s Employees’ Provident Fund as soon as this fund is

launched • The monthly remuneration payable to you shall be as follows:

Basic Salary House Rent Utilities Any Other benefit

Gross Salary

The Company may revise employee salary package from time to time based on (Company’s/your) performance.

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Appointment Letter

6. The remuneration package does not include any and all income taxes applicable in Pakistan and the above stated Remuneration Package Clause 5 will be subject to the income tax laws of Pakistan.

7. You will be placed on probation for a period of six months. This probationary period can be extended or reduced at the discretion of the Company. The services of an employee can be terminated at any time during the probation period. The provident fund deductions will be applicable upon confirmation of service with the Company.

8. Should you wish to terminate your employment with the Company, you will be required to give three month’s written notice in advance of the last working date, failing which you will be required to make payment equivalent of three month’s gross emolument that you were receiving from the Company at the time of notice. Similarly if the Company wished to terminate your employment with or without any reason, it will give you three month’s notice in advance, failing which it will make similar payment in lieu thereof.

9. The Company’s Service Rules are subject to revision/modification at the Company’sdiscretion.

10. The retirement age for personnel is currently 60 years.

11. It is a condition of your employment that you will not divulge any information relating to the Company or any of its constituents or employees received by you in the course of your employment. Also while you are in the employment of the Company you shall not be entitled to accept any other employment.

12. You are expected to follow the Company’s policies, rules and regulations set forth from time to time. Please read and duly sign the enclosed Statement of Ethics.

13. You are requested to submit all the requisite documents/references to Human Resource Management Group at least three days prior to your date of joining as per instructions attached.

14. Please note that any statement given by you and information provided by you, if found to be incorrect or in case of failure on your part to comply with any of the above terms of appointment, will render your services liable to termination without any notice or any salary in lieu thereof.

(Name) Chief Executive Officer/ Head of the Department Head of Human Resource

I agree with the terms conditions mentioned above.

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Annexure ‘D’

Confirmation Letter

Ref. No. Date

Dear Mr. / Ms. ________________,

Subject: Confirmation of Your Appointment as ______________________________

I am pleased to inform you that with effect from XXX, you will be a permanent employee of the Company and will be entitled to all the benefits reserved for that cadre.

Please refer to your appointment letter for primary rules governing your employment as well as MCB AMC Human Resource Manual to acquaint your self with your rights and responsibilities during and after employment at MCB AMC. Please refer queries to your line manager or Human Resources Department who should be able to answer them from you.

I sincerely hope that you will keep up with your good performance and set even higher benchmarks. I wish you a long and fulfilling career at MCB Asset Management.

Yours faithfully,

(Name) Chief Executive Officer

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Annexure ‘E’

Anticipated Annual Leave Schedule

To be completed by all staff members within a department:

Department Name PeriodName of Staff Location

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31July August September

October November December January February March April May

Signature (Dept. Head) Date

Signature (Approver) Date

Note: Please refer to the MCB AMC Leave Policy in the Human Resource manual for details regarding eligibility, entitlement and other rules governing leave.

Distribution & Filing: • Original to be retained by Human Resources for leave record & salary processing

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Annexure ‘F’

Leave Application

Date: ____________

Name: ________________________________________ Designation: ____________________________

Period of Leave applied for:

For _______ day(s) From: ______________ to ____________ (including holidays)

Purpose of Leave

Address during long leave

Signature of Applicant

Leave record position:Available

LFA Applicable: Yes / No

Supporting Documents, if any

During my absence ___________________ will be responsible for taking care of my work responsibilities and I will hand over the necessary material and information to him/her.

Signature of Person Taking Over

Requested Balance

Recommendations/Remarks: ______________________________________________________

Approved Not Approved

Head of Department / CEO

Note: Please refer to the MCB AMC Leave Policy in the Human Resource Manual for details regarding eligibility, entitlement and other rules governing leave.

Distribution & Filing: • Original to be retained by Human Resources for leave record & salary processing • Copy of approved application to staff member for personal record.

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Annexure ‘G’

Travel Allowance Request Form TRAVEL ALLOWANCE REQUEST FORM

To be completed by employee

Name:_____________________________________________________

Date of Travel Mode Payment

Designation:_____________________________

Date:

Hotel stay Hotel stay Payment Traveled to of

From To Travel Self Co. Y N From To Self Co.

SUMMARY OF CLAIMAmount

To be paid toTravel fare Travel Agent

Allowance

Hotel To be paid to Hotel

Misc. To be reimbursed by the clientOthers To be paid to Rent a Car Travel Hotel Stay

Total Y N Y N

Remarks, if any:

Payment Required

Travel Agent

Hotel

Employee

Signature of Employee Approved / Not Approved

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Annexure ‘H’

Gift Report Form

To be completed by the applicant

Full Name Designation Department

Description of Gift Approx. Value PKR Received From3 OccasionItem

Current1

Cumulative2

Current1

Cumulative2

1. Approximate value of the current gift item received.2. Total accumulated value of all gifts received from a respective party including current gift.3. Please state name of the organization as well as the person.

Approval comments by the line manage (if any) & disposal instructions.

Signature (Proposed) Date (Signature (Approved)

Note: Please refer to the MCB AMC Business Code of Conduct in the Human Resource Manual fordetails regarding acceptance of gifts.

Distribution & Filing:

• Original to be retained by Human Resource for record in employees personal file.• Copy of approval to staff member for personal record.

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