Policies, Standards & Procedures for the Membership of the Board of Directors

(1)

ةرادﻹا سلجم ة وضع تاءارج و ياعمو تاسايس

Policies, Standards & Procedures for the Membership of the Board of Directors

(2)

ةرادﻹا سلجم ةيوضع تاءارجإو ريياعمو تاسايس

قيوستلاو ةماعلا تاقﻼعلاو نﻼعﻺل ةماهت ةكرش

Policies, Standards & Procedures for the Board Membership

Tihama Adver sing, Public Rela ons and Marke ng Company

) ةدام ١ فادهﻷا (

١ . تاسايس عضو ريياعمو

تاءارجإو

ةحضاو ةيوضعل

ةكرش ةرادإ سلجم ةماهت

تاقﻼعلاو نﻼعﻺل

ةماعلا

قيوستلاو

،(ةكرشلا) كلذو

ًاقيبطت ةحئﻻ ماكحﻷ

ماظنلاو تاكرشلا ماظن ماكحأ ةاعارم عم ةمكوح .يساسﻷا

Ar cle (1) Objec ves

1. se ng up clear policies, standards and procedures for the membership of Tihama Adver sing, Public Rela ons and Marke ng Company (the Company) Board of Directors in implemen ng the provisions of Corporate Governance Regula ons, taking into considera on the provisions of Companies Law and the Company’s Bylaws;

٢ . نأ سكعي نيوكت سلجم ةرادﻹا تاراهملا

تاءافكلاو

ةبولطملا

ذاختﻻ تارارقلا

ةبسانملا

ةيعوضومب

امبو

لضفأ وه ةحلصمل

ةكرشلا .

2. The composi on of the Board reﬂects the range of skills and quali es needed to take appropriate decisions objec vely in the best interest of the Company; and

٣ . نأ نوكت ةيلمع رايتخا نييعتو ءاضعأ ةرادﻹا سلجم

سكعت معدتو حلاصم ةكرشلا

اهيمهاسمو

3. The process of selec ng and appoin ng directors reﬂects and support the speciﬁc needs and interest of the Company and its shareholders.

) ةدام 2 ( تاحيشرتلا ةنجل ضيوفت تآفاكملاو

Ar cle (2) Nomina on and Remunera on Commi ee

Delega on

نم لجأ قيقحت فادهﻷا

،ةقباسلا ضوف سلجم ةرادﻹا

ةنجل تاحيشرتلا

تآفاكملاو

امك وه صوصنم

هيلع

يف هذه

،ةسايسلا

و راشي اهيلإ اميف دعب ) ةنجللا ( ،

ضعب تايلوئسملا

امب قفتي عم ةحئﻻ ةمكوح

تاكرشلا ةرداصلا

نع ةئيه قوسلا ةيلاملا .

In order to achieve the above objec ves, the Board has delegated certain responsibili es as provided in this policy to the Nomina on &

Remunera on Commi ee (“N&R Commi ee”) in line with Corporate Governance Regula ons issued by Capital Market Authority.

) ةدام 3 ( ةرادﻹا سلجم نيوكت

Ar cle (3) The composi on of the Board of Directors

١ . ًاقفو ماظنل ةكرشلا

،يساسﻷا

نوكتي سلجم ةرادإ

ةكرشلا نم ) ٧ ( ءاضعا ةدمل ﻻ ديزت نع ) ٣ ( تاونس

نكميو ةداعإ مهباختنا .

نوكيو ةيبلغأ ءاضعﻷا

نم

ريغ نييذيفنتلا

بجيو نأ ﻻ لقي ددع ءاضعﻷا

نيلقتسملا

نع ةثﻼث ءاضعأ .

1. As provided in the Company’s Bylaws, the Board of Directors composes of seven members for a term not exceeding three years and members may be re-elected. The majority of Board members shall be of Non-Execu ve Directors and the number of Independent Directors shall not be less than three Board members.

٢ . ةكرشلل يساسﻷا ماظنلا ماكحأ ةاعارم عم

سلجم نيعي

سيئرلل ًابئانو ًاسيئر هئاضعأ نيب نم ةرادﻹا و

نيمأ

نيب نم سلجملا هراتخي رس

نم وأ هئاضعأ مهريغ

.

2. The Board of Directors shall appoint one of its members a chairman, a deputy chairman and a secretary from among its members or otherwise;

(3)

٣ . ةنجللا موقت ةعجارمب

ةلكيه نيوكت و

ةرادﻹا سلجم

يرود لكشب نم دكأتلل

مجح عم هئاضعأ بسانت

ةعيبط و ةكرشلا اهطاشن

ةنجللا ىلع و ، يف

ام ءوض

مدقت نيعب ذخﻷا رابتعﻻا

و لاثتمﻻا تاميلعتلل

ةبجاو

و قيبطتلا يعسلا

لضفا قيقحتل

هيف امل تاسرامملا

اسمو ةكرشلا حلاصم ه

يم ه و ا تاهيجوتلا

ةيجيتارتسﻹا

ةرادﻹا سلجم هررق ام وحن ىلع .

3. The N&R Commi ee regularly reviews the structure and composi on of the Board to ensure that the number of the Board members and the Company’s nature and its size are appropriate. The N&R Commi ee shall, in the light of the foregoing, consider and comply with the applicable regula ons, and endeavor to apply best prac ces, which are in the best interest of the Company and its shareholders and the Company’s strategy direc ons as decided by the Board; and

) ةدام 4 ( سلجم ةيوضع ريياعمو طورش ةرادﻹا

Ar cle (4) Condi ons and Standards for the

Membership of the Board

طرتشي ف ي نم بغري حشرتلا ةيوضعل

سلجم ةرادﻹا

نأ نوكي نم يوذ ةءافكلا ةينهملا نمم رفوتت مهيدل

ةربخلا و ةفرعملا و ةراهملا و لﻼقتسﻻا

ماتلا . امب

هنكمي نم هسرامم

هماهم ةءافكب رادتقاو ًاقفو امل

تصن هيلع ةداملا ) ١٨ ( نم ةحئﻻ ةمكوح تاكرشلا .

ىلعو ةنجللا دنع رايتخا ،نيحشرملا

ةفاضإ ىلإ ام

مدقت نأ قبطت ريياعملا ةيلاتلا

:

A candidate wishing to be nominated to the Board shall be professionally capable and has the required experience, knowledge, skill and independence, which enable him to perform his du es eﬃciently in accordance with Ar cle (18) of the Corporate Governance Regula ons. In addi on to the above, the N&R Commi ee shall, upon selec ng candidates, apply the following standards:

١ . ﻻأ نوكي حشرملا دق قبس هتنادإ ةميرجب ةلخم

فرشلاب

و ،ةنامﻷا وأ

مكح هسﻼفإب وأ

ىرجأ يأ

تابيترت وأ ًاحلص عم

،هينئاد وأ ريغ حلاص

ةيوضعل

سلجملا ًاقفو يﻷ ةمظنأ وأ حئاول ةيراس

ةكلمملاب .

1. The candidate shall not be previously convicted of dishonesty or dishonor crime, bankrupt, made arrangements or concilia on with his creditors or unﬁt for the Board membership under any eﬀec ve laws or regula ons in the kingdom of Saudi Arabia;

٢ . ﻻأ ي نوك حشرملا لغشي ةيوضع

سلجم ةرادإ

رثكأ نم سمخ تاكرش اسم ه ةم ةجردم يف نأ

دحاو .

2. The candidate shall not be a board member of more than ﬁve listed joint stock companies at the same me;

٣ . ﻻأ رفاوتت يف حشرملا وضعك لقتسم يأ نم

ضراوع

لﻼقتسﻻا

بجاو ة قيبطتلا صوصنملا

يلع ه ا يف ةداملا ) ٢٠ ( نم ةحئﻻ ةمكوح

تاكرشلا .

3. The candidate as an independent director shall not have any issue that contradic ng with the issues aﬀec ng independence according to Ar cle (20) of the Corporate Governance Regula ons; and

٤ . ريغ وأ ةرشابم ةحلصم ةيأ حشرملل نوكي ﻻ نأ

ةرشابم يف

لامعﻷا و دوقعلا يتلا

باسحل متت

ةكرشلا نم هنأش نم لمع يأ يف كرتشي وأ

.ةكرشلا ةسفانم

دحأ يف ةكرشلا سفاني نأ وأ

يذلا طاشنلا عورف

ًاقبسم لصحي مل ام هلوازت

ةيعمجلا نم صيخرت ىلع .ةنس لك ددجي ةماعلا

5. Unless allowed with a prior permission from the general assembly of the Company (to be renewed annually), the candidate shall not have any direct or indirect interest in the contracts and business conducted for the Company and/or engage in any business that compete with the Company and/or in any of segment of its business.

(4)

) ةدام 5 ( حشرتلا نﻼعإ رشن

Ar cle (5) Publishing the Nomina on Announcement

١ . ىلع ةكرشلا مايقلا رشنب نﻼعإ دعوم حتف باب حشرتلا

ةيوضعل

سلجم ةرادﻹا يف عقوملا ينورتكلﻹا

قوسلل

،ةكرشلاو

ىلعو صاخشﻷا

نيبغارلا

يف حشرتلا

مدقتلا بلطب ه م لﻼخ ةدملا ةددحملا يف نﻼعﻹا ىلع نأ

لظي باب حيشرتلا

ًاحوتفم ةدمل ﻻ لقت نع ش ه ر نم

خيرات نﻼعﻹا .

1. The Company shall publish the nomina on Announcement for the Board membership in the websites of Tadawul and the Company. The persons wishing to be nominated shall submit their applica ons within the speciﬁed period in the announcement, provided that the nomina on period shall remain open for at least one month from

٢ . ىلع صخشلا

بغارلا يف حشرتلا ةيوضعل

سلجم

ةرادﻹا مدقتلا ةباتك بلطب حيشرتلا ةرادﻹ ةكرشلا ىلع

ناونعلا حضوملا

يف نﻼعﻹا قفو ددملا ديعاوملاو

و

ماكحﻷا صوصنملا

يلع ه ا يف ةمظنﻷا حئاوللاو

و

تاميلعتلا تاذ

ةقﻼعلا .

2. A person wishing to be nominated to the Board membership shall submit in wri ng a nomina on applica on to the speciﬁed address in the announcement in accordance with the periods, melines and provisions provided in relevant laws, regula ons and instruc ons;

٣ . بجي نأ لمشي بلط حيشرتلا

ىلع ام : يلي

3. The nomina on request must contain the

following:

١ ( ًافيرعت حشرملاب

نم ثيح هتريس ةيتاذلا هتﻼهؤمو

هتاراهمو

هتاربخو ةيلمعلا

.

1) An introduc on about a candidate in terms of his curriculum vitae, qualiﬁca ons, skills and prac cal experience;

٢ ( نايب ددعب و خيراوت سلاجم تارادإ تاكرشلا

اسملا ه ةم ةجردملا

و ناجللا يتلا ىلوت تيوضع ه . ا

2) Indicate the number and the periods of membership of the boards of listed joint stock companies of which the candidate has been a member; and

٣ ( اسملا تاكرشلاب نايب ه

ةم لازيﻻ يتلا ةجردملا

تيوضع ىلوتي ه

.ا

3) Statement of all the listed joint stock companies of which the candidate is s ll a member.

٤ ( حشرتملا ةيوضعلا عون حيضوت بجي

ل ه ءاوس ا

هسفن حشري حشرملا ناك

لقتسم وأ يذيفنت وضعك

ريياعملل ًاقبط

ةدراولا يف .تاكرشلا ةمكوح ةحئﻻ

4) Membership type shall be clariﬁed whether the candidate running as an execu ve member or a non-execu ve member or an independent member as per criteria provided in Corporate Governance Regula ons;

٥ ( لا وأ تاسسؤملا وأ تاكرشلاب نايب تانايك

يتلا

يف كرتشي اهترادإ

وأ اهتيكلم حشرملا و

سرامت

يبش ًﻻامعا ه

ا لامعأب .ةكرشلا

5) Statement of all companies, establishments or ins tu ons in which candidate is engaged in the management or ownership and func oning in business ac vi es similar to the Company’s;

٦ ( لغش هل قبس دق حشرملا ناك اذإ

سلجم ةيوضع

ةكرش ةرادإ ةمهاسم

،ةجردم

قفري نأ بجيف

ةرادإ نم انايب حشرتلا راطخإب

نع ةينعملا ةكرشلا

يف ىلوت ةرود رخأ ه

ا ًانمضتم سلجملا ةيوضع

:ةيلاتلا تامولعملا

6) Any nominee who is previously a board member in a listed joint stock company shall enclose with the nomina on no ce a statement from the company’s administra on on the last session in which he was a board member including the following informa on:

(5)

أ(

ددع تاعامتجا

يتلا ةرادﻹا سلجم

تمت

،ةرودلا تاونس نم ةنس لك لﻼخ

ددع و

رضح يتلا تاعامتجﻻا ه

ا و هصخشب وضعلا

هروضح ةبسن عومجمل

تاعامتجﻻا .

A) The number of board mee ngs which were held during every year of the term and the number of mee ngs a ended by the board member in person and his a endance percentage;

ب ( يف كراش يتلا ةمئادلا ناجللا ه

وضعلا ا

و

ددع و ،ةرادﻹا سلج نم ةنوكملا

تاعامتجﻻا

تدقع يتلا ه

كلت نم ةنجل لك ا

لﻼخ ناجللا

ةرودلا تاونس نم ةنس لك

ددع و

تاعامتجﻻا

رضح يتلا ه

ةبسن و ا

هروضح

عومجم ىلإ تاعامتجﻻا

.

B) The sub-commi ees of the Board in which the member par cipated, the number of the mee ngs held by each commi ee during every year of the term, the number of mee ngs a ended by the board member and his a endance percentage;

and

ج ( تققح يتلا ةيلاملا جئاتنلل صخلم ه

ةكرشلا ا

ةينعملا .ةرودلا تاونس نم ةنس لك لﻼخ

C) Summary of the ﬁnancial results achieved by the company during each year of session.

٧ ( ةئبعت جذومنلا مقر ) ٣ ( دعملا نم لبق ه ةئي قوسلا

ةيلاملا ) صاخلا ةريسلاب ةيتاذلا نيحشرتملل

ةيوضعل

سلاجم تارادإ تاكرشلا

اسملا ه ةم

ةجردملا يف

قوسلا ةيلاملا .(

7) Fill out the form No. (3), prepared by Capital Market Authority (CV of a candidate for membership of the Board of Directors of model listed company on the Saudi Stock Exchange); and

٨ ( ةحضاو ةروص قافرإ ةيراسو

لوعفملا نم لكل

لا ةقاطب ه ةينطولا ةيو ةقاطبو

ةلئاعلا و زاوج رفسلا

مقر ىلإ ةفاضﻹاب دارفﻸل ةبسنلاب

لاصتﻻا

.حشرملاب صاخلا

8) A ach a clear and valid image of na onal iden ty, family card and passport for individuals with the nomina on request and contact numbers for candidate.

) ةدام 6 ( ءاضعﻷا نييعتو رايتخا تاءارجإ

Ar cle (6) Procedures for Selec on & Appointment of

Directors

١ ( ىلوتت ةنجل تاحيشرتلا

تآفاكملاو ماهملا

ةيلاتلا :

1) The N&R Commi ee shall assume the following

du es:

١ . لابقتسا تابلط حشرتلا ةيوضعل

سلجم ةرادﻹا

ةعوفشم

تادنتسملاب

ةبولطملا

نم لك حشرم

ةحضوملاو يف

ةداملا ) ٥ ( ةرقفلا ) ٣ ( . هﻼعأ

1. Receiving the applica ons for Board membership accompanied by the required documents for each candidate as provided above in ar cle (5) paragraph (3);

٢ . ةعجارم تابلطلا

دكأتلاو نم اهئافيتسا

طورشلل

ةبولطملا

2. Reviewing the applica ons and ensuring all required condi ons are met;

٣ . زرف نيحشرملا

و داعبتسا نم مل رفاوتت يف ه م

طورشلا

،ةبولطملا

عم ةاعارم مدع داعبتسا نم

قبطنت يلع ه م ةرقفلا ) ٤ ( نم ةداملا ) ٤ ( هﻼعأ و

عفرلا سلجمل ةرادﻹا مت ه ًادي ضرعل كلذ ىلع

ةيعمجلا ةماعلا تيوصتلل .

متي مادختسا ةقيرط

تيوصتلا

يف باختنا سلجم ةرادﻹا قفو ةداملا

) ٣٤ ( نم ماظنلا يساسﻻا ةكرشلل

.

3. Sor ng candidates and excluding those who have not met the required condi ons, taking into considera ons that the commi ee shall report those whom paragraph (4) of ar cle (4) are applicable to them to the Board of Directors to be presented before the general assembly for vo ng. The cumula ve vo ng method shall be used in accordance with Ar cle (34) of the Company’s Bylaws; and

(6)

٤ . نيعب ذخؤي رابتعﻻا

ءاضعﻻا ددع ةبسن

نيلقتسملا

ريغو ًاقفو ةبولطملا نييذيفنتلا

ةحئﻻ ماكحﻷ

.تاكرشلا ةمكوح

4. The required percentage of the Independent and Non-Execu ve Directors must be in accordance with the Corporate Governance Regula ons.

٢ ( موقت ةنجللا عفرب جئاتن اهلامعأ اهتايصوتو

سلجمل

ةرادﻹا مت ه ًادي ضرعل ه ا ىلع ةيعمجلا ةماعلا دامتعﻼل .

2) The Commi ee shall report the results of its du es and its recommenda ons to the Board to be presented before the general assembly for approval.

) ةدام 7 ( نييعتلا باطخ

Ar cle (7) Le er of Appointment

بجي ديوزت عيمج ءاضعأ سلجم ةرادﻹا ددجلا

باطخب نييعتلا حضوي هيف ايلوؤسم ت

ه م و مهقوقح

طورشو نييعتلا

.

All new directors shall be provided with a le er of appointment se ng out their responsibili es, rights and the terms and condi ons of their appointment.

) ةدام 8 ( سلجملا يف رغاشلا زكرملا

Ar cle (8) Board Vacancy

اذإ رغش زكرم دحأ ءاضعأ سلجم ةرادﻹا متيف لمعلا

ماكحأب ةداملا ) ١٨ ( نم ماظنلا يساسﻷا

ةكرشلل نييعتل

ًاوضع ًاتقؤم .

If the posi on of a director becomes vacant, the provisions of Ar cle (18) of the Company’s Bylaws shall be applicable for the appointment of the temporary director.

) ةدام ٩ ( ريسفتلاو قيبطتلا

Ar cle (9) Implementa on & interpreta on

١ . متي قيبطت ريسفتو دونب ه ذ ه ةسايسلا امب ﻻ

ضراعتي

عم ماظنلا يساسﻷا

و يأ حئاول وأ

تاسايس

ىرخأ رقي ه ا سلجم ةرادﻹا و امب قفاوتي

عم ماظن تاكرشلا

و ةمظنأ ه ةئي قوسلا ةيلاملا و

حئاول ه ام ةيذيفنتلا .

1. This Policy shall be implemented and interpreted to the extent that not contradic ng the Bylaws or any other regula ons or policies approved by the Board and to be consistent with the Companies Law and the laws and regula ons of Capital Market Authority.

٢ . دصقي تاملكلاب

تاحلطصملاو

ةدراولا هذهب

تاسايسلا

و تاءارجﻹا

يناعملا ةحضوملا

يف

ةحئﻻ ةمئاق تاحلطصملا

ةمدختسملا

يف حئاول

ه ةئي قوسلا ةيلاملا و دعاوق ه ا و ةحئﻻ ةمكوح

تاكرشلا

ةرداصلا

نع سلجم ه ةئي قوسلا

ةيلاملا .

2. The terms and expressions provided herewith shall have the meaning as deﬁned in the Glossary of Deﬁned Terms Used in the Regula ons and Rules of the Capital Market Authority and the Corporate Governance Regula ons issued by the Board of Capital Market Authority.