CONSENT AWARD

1. This is a reference under section 26(2) of the Act arising out of a trade dispute between the Union and the Company pertaining to the C.A.

2. The Court fixed four mention dates to enable parties to file in their respective pleadings and bundles of documents. The Court had at the same time encouraged parties to try to settle the dispute amicably. The Court then fixed five more mention dates to enable the parties to have time to negotiate.

3. On 26 September 2008, when the matter was called up for mention, the learned counsel for the Company handed over copies of the C.A. duly signed by the parties and prayed for a consent award be handed down. The Court notes that the C.A. also contains 2 letters of Undertaking and a Joint Agreement. In one of the letters of Undertaking, the parties had agreed to extend the C.A. upon its expiry for a further period of 24 months with effect from 1 January 2009 to 31 December 2010.

4. In the premises, and by consent of the parties, the C.A. shall be as hereby attached.

COLLECTIVE AGREEMENT

BETWEEN

STAEDTLER (MALAYSIA) BERHAD

(TEMERLUH, PAHANG)

AND

TIMBER EMPLOYEES UNION

PENINSULAR MALAYSIA

COLLECTIVE AGREEMENT

BETWEEN

STAEDTLER (MALAYSIA) BERHAD

AND

TIMBER EMPLOYEES UNION PENINSULAR MALAYSIA

ARTICLE 1: PARTIES TO THE AGREEMENT

This Agreement is made this on "19 SEP 2008 between STAEDTLER (MALAYSIA) BERHAD, No. 18, Jalan Industri, Temerluh Industrial Park, 28400 Mentakab, Pahang Darul Makmur, hereinafter called "THE COMPANY" on the one part and TIMBER EMPLOYEES UNION PENINSULAR MALAYSIA, No. 10A, Tingkat 1, Jalan AU 5C/14, &ang, Ulu Klang, 54200 Kuala Lumpur, hereinafter called "THE UNION" being a Trade Union of employees registered pursuant to Trade Union Ordinance 1959, on the other part

ARTICLE 2: LEGISLATION

Should any new legislation provide more favorable terms than those provided in this Agreement, then the terms of this Agreement shall change automatically without negotiations to provide the minimum benefits provided by such legislation.

ARTICLE 3: INTERPRETATION

Where any new terms exist in the current individual contract of service of the employees of the Company within the scope of this Agreement, which is in conflict with the provision of this Agreement, then the provision of this Agreement shall prevail.

ARTICLE 4: DURATION AND TERMINATION OF AGREEMENT

(a) This agreement shall take effect from 1st January 2006 and shall remain in force for a minimum period of three (3) years, expiring on the 31st December 2008 provided the Agreement shall continue m force thereafter until and unless superseded by a New Collective Agreement

(b) Either party may serve on the other not less man three (3) calendar months' notice in writing to negotiate a new collective agreement, but no such notice shall be given before 1st October 2008.

(c) In the event of the Agreement expired and the new Agreement has not been concluded then provision of this Agreement shall prevail until superseded by the new Collective Agreement

(d) During the period of this Agreement neither the Company nor the employees nor the Union shall seek to vary, modify, annul or add to any of its terms in any way whatsoever saved by mutual agreement or by operation of law.

In the event of both parties agreeing to vary any of the terms of the Agreement, both parties shall jointly deposit such variation of the terms of Agreement with the Industrial Court for its cognizance within one (1) month from the date of agreement on the said variation.

ARTICLE 5: RECOGNITION AND SCOPE

(a) The Company recognizes the Union as the exclusive collective bargaining agency in respect of and on behalf of such categories of employees who are eligible for membership thereof employed by the Company excluding the following:

(a) Managerial

(b) Executive

(c) Confidential

(d) Security

(b) The Company agrees to collect all Union dues from the members and remit to the Union Head Office, provided that written consent are received from members for the