EMPLOYEE MEMORANDUM #__________ 17 August 2012 To From Thru Subject : : : : MR.

PETER ARANCES Sales Executive -206-3 Human Resources Department Darius E. Castro Finance & Admin NOTICE TO EXPLAIN

This is to formally inform you that you are being charged of violation of Art. 282 of the Labor Code of the Philippines specifically on the following grounds: 1. Serious Misconduct; (Improper conduct of tampering or falsifying Official Receipt with OR No. 6316 which is willful in character and of such grave nature that transgressed some established and definite rule of action in relation to your work as Sales Executive). 2. Fraud and Willful breach by an employee of the trust reposed in him by his employer; and (Tampering or falsification of official receipt with OR No. 6316 is a breach of legal duty, trust, or confidence justly reposed to you by your superiors) 3. Dishonesty-Analogous to No. 2, which grounds if proven are tantamount to termination of employment. Details of which are as follows: On _______________________, you submitted a liquidation of your hotel accommodation at Alfonso Pensionne where you stayed for the period of 5 days from May 14 to 18 in connection to your work as Sales Executive wherein you______________________________________. Based on the official receipt that you presented with OR no. 6316 dated May 18, 2012, you incurred Hotel Accommodation expenses amounting to Two Thousand Four Hundred Pesos(P2,400.00). The amount of P2,400.00 as Hotel Accommodation expenses is not a reasonable amount upon assessment of previous incurred expenses on hotel accommodation; hence, we conducted an initial investigation. Upon the initial investigation on the validity of the receipt you presented, we asked Alfonso Pensione to provide us a copy of the same official receipt with OR No. 6316 that was given to you. We found out that there is a discrepancy as to the amount between the official receipt you presented to the company which amounts to P2,400.00 and the official receipt furnished to us by Alfonso Pensione which amounts to P695.00. The discrepancy as to the amount is P1,705. Copies of the official receipt you submitted to the company and the official receipt furnished to us by Alfonso Pensione are attached and marked herein as Annexes A and B, respectively. Because of the foregoing, a reasonable inference could be made that you tampered or falsified official receipt no. 6136. In this regard, please explain in writing within five (5) days from receipt hereof why no disciplinary action shall be taken against you in relation to the above-mentioned alleged chronic and deliberate infractions of tampering or falsifying Official Receipt with OR no. 6136. Your failure to submit a written explanation as to the discrepancy of the amount in the two official receipts shall be deemed a waiver of your right to be heard. As a result, we shall be constrained to decide on this matter based on the evidence on record. Further, this is also to inform you that due to the gravity of the said offenses, tampering of Company records, and in consideration of your position as a Sales Executive, we are putting you on preventive suspension effective from__________________________. Moreover, in view of this on-going case, we would like to communicate to you that your presence is highly requested for an Administrative Hearing on ________________________________________________________ where you shall be given the opportunity to be heard and to answer the charges against you with the assistance of a counsel or representative of your choice, if you so desire. You are also reminded to present or bring with you any evidence that will help clear your name in this case. Please make yourself available on the said date to shed more light on the case. Your failure to appear before the Committee shall mean that you have waived your right to present your side of the case and that the Committee shall be constrained to make the appropriate decision regarding this matter based on the evidence presented. For your utmost guidance and strict compliance. _______________ Senior HR Officer Noted by: _____________________ HRD Manager Received by: __________________________ (Name of Employee) ______________________ Date & Time