[Date]

[Name of Employee]
[Residential Address]
[Residential Address]

Dear Mr./Ms. ______________,

REGULAR EMPLOYMENT AGREEMENT

(RANK AND FILE 1)

We are pleased to inform you that your application for employment with Funtastic
International, Inc. has been approved under the terms and conditions set forth in this
Employment Agreement, and its annexes, which are incorporated herein by reference and is
an integral part hereof.

1. Employment Date

Your employment will commence on [Date]

2. Position and Duties

2.1 Subject to the terms of this Agreement, you are hereby engaged as [Position] of the
Company. Your duties and responsibilities are outlined in the attached Annex A.

2.2 You represent and warrant that you are and will be qualified, competent, and willing
to perform your duties and responsibilities to the best of your abilities and in
accordance with the requirements of the business of the Company throughout the
term of your employment with the Company.

2.3 You hereby recognize the right and prerogative of the Company to change your
duties and responsibilities according to the Company's needs.

3. Probationary Period

3.1 You will be on probation, and your probation period will be, for a period of not
more than one hundred (180) days from the Start Date, which period will end on
[Date].

3.2 Your employment is conditioned upon your submission of the pre-employment

requirements outlined in the attached Annex B.

3.3 During the probationary period, your employment may be terminated at any time if
you fail to meet the performance standards and guidelines for regularization set
forth in the attached Annex C.

3.4 You hereby acknowledge that it is the sole prerogative of the Company to evaluate
your performance and decide whether you are qualified to become a regular
employee.
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3.5 Without prejudice to the provisions of Section 3.3 above, your employment during
the probationary period may also be terminated in accordance with Section 12
below.

4. Salary and Benefits

4.1 For all services rendered to the Company, you will receive a gross salary of
[Amount] per month or a daily salary rate of [Amount].

4.2 Subject to the terms hereof, your salary will be payable on the 15th and last day of
the calendar month.

4.3 You will be eligible to receive 13th month pay as provided by law, which will be
paid to you on or before the 24th of December of each calendar year and, pro-rated
according to the number of months of service during the year, provided you have
rendered service for at least one (1) month during said year.

4.4 Benefits arising from social security legislation will be expressed as a percentage of
your monthly salary credit. Social Security, PhilHealth and Pag-IBIG and any other
compulsory contributions will be based on the prevailing schedule of contributions
issued by relevant government agencies.

5. Discretionary Benefits

5.1 The Company may from time to time, and at its sole discretion, provide you with
certain benefits other than those mandated under relevant laws.

5.2 You agree and acknowledge that, unless you are informed in writing that a benefit
or item of compensation will be provided by the Company on a regular basis, any
and all payments or benefits received by you in relation to or during your
employment with the Company is a discretionary benefit, which you have no right
to demand from the Company.

6. Leave Benefits

6.1 Upon the completion of at least one (1) year six months of service with the
Company and the Company’s confirmation that you have met the performance
standards and guidelines for regularization in accordance with this Agreement, you
will be entitled to the leave credit below per calendar year, pro-rated based on your
date of employment:

Sick Leaves 5 Days

6.2 Your unused sick leaves are commutable to cash at the end of the year.
Furthermore, you will be eligible for other mandatory leave benefits provided by
law.

7. Working Hours

7.1 You acknowledge and accept that the Company has adopted, and has complied with
relevant administrative and legal requirements for adopting, a compressed
workweek arrangement. Under the compressed workweek arrangement, regular
working days in the Company are Monday to Friday, and regular work hours begin
at 8:30 a.m. and end at 7:00 p.m. for a total of 47.5 hours in a workweek. You agree
and acknowledge that the Company will have the sole prerogative to opt out of the

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 compressed workweek arrangement at anytime, and to revise your work schedule
based on the needs of the Company.

7.2 At times, and as work exigencies may require, you may be required by the
Company to work in excess of or outside Normal Working Hours, as necessary to
perform your duties and responsibilities. By signing this Agreement, you consent to
render work outside the Normal Working Hours, including overtime work,
whenever required by the Company such as in the event of any business need or
circumstances.

7.3 You understand and agree that overtime pay and any other premium pay for work
rendered outside Normal Working Hours will be paid only if such work is expressly
requested or approved in advance, as the case may be, by your supervisor or
manager, and you will be legally entitled to such additional pay subject to relevant
provisions under Philippine law.

7.4 You understand and agree that you may be placed in a work pool or on reserve
status due to lack of service assignment after the expiration or termination of the
company’s contract with clients, or due to the temporary suspension of company
operations or due to valid relief from the current place of work and there is no work
assignment available. However, if after six (6) months that you are placed in a work
pool or on reserve and the company cannot provide work or give an assignment,
you shall be separated from service and shall be entitled to separation pay in
accordance with the Labor Code.

7.5 You understand and agree that the principle of “No Work, No Pay” shall apply in
case no work is rendered.

8. Rest Day

Subject to the terms of this Section 8, you will have one (1) rest day per week, the
schedule of which will be determined by the Company.

9. Holidays

The Company observes all statutory holidays. However, because of the nature and
business needs of the Company, some flexibility may be demanded including
working on public holidays.

10. Reimbursements

Subject to the terms hereof, the Company will reimburse all monies, which have
been reasonably incurred by you in the course of your employment with the
Company and in the performance of your duties and responsibilities, provided that
the guidelines and procedures for incurring expenses have been observed.

11. Company's Policies and Procedures

11.1 During your employment with the Company, you agree to and will comply with the
Company's policies and procedures that may be put in place from time to time by
the Company.

11.2 The Company may adopt, vary or rescind these policies from time to time in its
absolute discretion and without any limitation (implied or otherwise) on its ability
to do so.

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11.3 You further agree that it is your responsibility to make yourself aware of any and all
Company policies, rules and regulations, whether printed, posted, available
electronically or in any other form of communication.

12. Termination of Employment

12.1 Your employment may be terminated by the Company, subject to due process, for
any just or authorized cause pursuant to the relevant provisions of the Philippine
Labor Code.

12.2 In addition to the just and authorized causes for the termination of employment
enumerated in the relevant provisions of the Code, the following acts and/or
omissions will similarly constitute valid grounds for imposing disciplinary action
including the termination of your employment with the Company:

(a) intentional or unintentional violation of the policies, rules and regulations of

the Company;

(b) commission of an act which results in a loss of confidence on the part of the
Company with regard to your ability to satisfactorily perform the duties and
requirements of your employment;

(c) serious misuse or abuse of the Company's property, facilities and/or

resources;

(d) commission of an act which may constitute a crime or offense against the
Company or any of its representatives;

(e) failure to attain a satisfactory grade in two consecutive performance

evaluation made by the Company or its representatives;

(f) intentional or unintentional disregard of the disciplinary measures or

sanctions imposed by the Company or its representatives;

(g) directly or indirectly participating, engaging and/or entering into personal

business arrangement involving products and/or services of the Company or
products and/or services of the competitors of the Company;

(h) intentional or unintentional violation or breach of confidentiality of

information belonging to the Company;

(i) failure to meet the standards for regularization;

(j) abandonment;

(k) gross negligence in the performance of duties and requirements of your

employment;

(l) provision of false, inaccurate or misleading information contrary to the

provisions of Section 16.1 below; and

(m) other similar acts, omissions, and/or events.

12.3 If your employment is terminated for any reason:

(a) the Company may set-off amounts you owe the Company against any
amounts the Company owes you at the date of termination; Commented [G1]: This is in violation of DOLE Labor Advisory
No. 11-2014 on allowable deductions.
4
 Any outstanding obligations, claims, or amounts you owe and is payable to
the Company shall be paid at the date of termination. The Company reserves
the right to take any legal remedy or action against you to ensure full
payment of its claims.

(b) you agree that all Company records, documents, and properties including
without limitation all written or machine readable materials, software,
computers, credit cards, keys, vehicles and property leased by the Company
that are in your custody or control will be immediately surrendered to the
Company, if requested, during your employment, and at the termination of
your employment with the Company without need of any demand; and

(c) you must not record or retain any confidential information in any form after
termination.

12.4 Should you decide to resign from the Company, you agree that you will provide the
Company with at least thirty (30) days written notice prior to your resignation.
However, you agree that the Company may, at its sole option, waive this one (1)
month advance notice requirement; in which case, your employment shall cease
immediately upon acceptance by the Company of your notice of resignation.

12.5 Upon the termination of your employment, for whatever reason, you hereby
expressly authorize the Company to deduct from any payments then due or
becoming due to you (whether in respect of any period before such termination or
not) any outstanding obligations, claim or moneys, which you owe to the Company. Commented [G2]: This is in violation of DOLE Labor Advisory
No. 11-2014 on allowable deductions and should be deleted.

12.6 If the amount due is not sufficient to satisfy the claims of the Company, the
Company reserves the right to take any legal remedy or action against you to ensure
full payment of its claims. Commented [G3]: Suggested to be deleted as per comment in
the preceding paragraph.

13. No Conflict of Interest

13.1 During your employment with the Company, you agree not to become associated as
an owner, partner, consultant, agent, employee, or in any other capacity with any
business which furnishes products or services similar to those of the Company or its
affiliates. For purposes of this Agreement, an “affiliate” is any company owned by
or is under common control with the Company.

13.2 You hereby represent and warrant that you are not subject to any restrictions,
agreement, arrangement (including but not limited to any non-compete restriction),
court order that would directly or indirectly restrict you from entering into this
Agreement or from fully performing your duties and responsibilities pursuant to this
Agreement.

13.3 You will indemnify, defend and hold the Company and its representatives harmless
from and against any and all claims, made or threatened, arising from any such
restrictions (including but not limited to, any non-compete restriction) that directly
or indirectly restricts you from entering into this Agreement or from fully
performing your duties and responsibilities pursuant to this Agreement.

13.4 You will also indemnify the Company for any amount of damages that the latter
may suffer thereby.

14. Non-competition and Non-solicitation

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14.1 During, and for sixty (60) months for twenty four (24) months after the date of the Commented [G4]: Under recent jurisprudence, the allowable
year is only up to two (2) years.
termination of, your employment, with the Company you must not participate in,
assist with, or otherwise be directly or indirectly involved as a member, shareholder,
unit holder, director, consultant, adviser, contractor, principal, agent, manager,
employee, beneficiary, partner, associate, trustee or financier of any business by any
person, company or other entity that directly competes with the Company within the
Philippines.

14.2 During, and for sixty (60) months for twenty four (24) months after the date of the Commented [G5]: Same comment as above.
termination of, your employment with the Company, regardless of the cause of the
termination, you must not directly or indirectly call, solicit, canvass or approach:

(i) any existing or potential customer, client, supplier, vendor, or contractor of

the Company with whom you worked, had material dealings, or gained
knowledge of within the twelve (12) months prior to the termination of your
employment for the purpose of soliciting any business, buying or selling
goods or services, or seeking employment; or

(ii) any employee of the Company, or any other member of the Funtastic Group,
who is employed in a senior, managerial, technical, supervisory, sales,
marketing or financial capacity, or in any confidential position, for the
purpose of hiring or engaging the same, whether as an employee, agent,
independent contractor or in any other capacity.

14.3 Any violation, whether actual or prospective, of this clause can cause grave and
irreparable injury to the Company; thus, the latter shall be entitled to the issuance of
a restraining order and/or injunction to prevent such violation or further violation.
Moreover, you shall be liable for liquidated damages in the aggregate amount of
PHP100, 000.00 for every such violation.

15. Confidentiality and Non-disclosure

15.1 You agree to hold and maintain any confidential information that you may have
obtained in your employment with the Company in strictest confidence for the sole
and exclusive benefit of the Company and the Funtastic Group.

15.2 At all times, both during your employment and after its termination, you agree to
keep confidential and not to use or disclose any confidential information,
proprietary information, trade secrets, or anything relating to them without the prior
written consent of a duly authorized officer of the Company, except as may be
necessary in the ordinary course of performing the duties of your employment.

15.3 If you are asked to disclose any confidential information pursuant to a final order
issued in a valid legal process, you agree to promptly give prior written notice of
such disclosure requirement to the Company.

15.4. Any violation, whether actual or prospective, of this clause can cause grave and
irreparable injury to the Company; thus, the latter shall be entitled to the issuance of
a restraining order and/or injunction to prevent such violation or further violation.
Moreover, you shall be liable for liquidated damages in the aggregate amount of
PHP100, 000.00 for every such violation.

16. Employee Personal Information

16.1 All information and documents you provide and submit to the Company (including
your resume, application forms, etc.) before the commencement of your

6
 employment, or at anytime thereafter, are material and relevant, and form the basis
of the Company’s offer of employment to you. The veracity, accuracy and
completeness of the information provided to the Company by you, or on your
behalf, are standing conditions for your continued employment in the Company.
Any false, inaccurate or misleading information shall result in the rescission of the
Company’s offer of employment to you and/or the immediate termination of your
employment.

16.2 You consent to the processing and use of your personal data obtained and recorded
by the Company for legal, personnel, administrative and/or management purposes.

16.3 You further consent to the transfer of your personal data or information to third
parties including those who provide products or services to the Company (such as
payroll administrators), legal counsel, regulatory authorities, and potential
purchasers of the Company.

16.4 Subject to the provisions of the Data Privacy Act of 2012, you (1) agree to the
conduct of checks by the Company or any third-party service providers engaged by
the Company to conduct such checks; (2) consent to the processing, analysing and
accessing of all your personal data and information by, and disclosure thereof to,
whenever necessary, relevant officers of the Company, or any third-party service
providers engaged by it; and (3) authorize the Company or any of its authorized
representative to access your personal information and records kept and maintained
by the Social Security System Head Office and/or relevant branch/es.

17. Use of Information Technology and Communications

17.1 You acknowledge that the Company's telecommunications system and its
components and all forms of communications made, transferred via, and/or stored
on the IT systems are the property of the Company.

17.2 For the protection of its employees, clients/customers and business, the Company
reserves the right to monitor, intercept, review and access your telephone log,
internet usage, voicemail, email and all other hardware/equipment and
communication/telecommunication facilities provided by the Company which you
may use during your employment. The Company will use this right of access
reasonably but you agree that all communications and activities on the Company’s
IT systems will not be considered private. In this regard, you agree to abide by the
terms of the Company’s policies regarding the use of all information technology,
telecommunication and communication resources provided by the Company,
including but not limited to email, telephone, mobile communication devices and
the use of social networking sites.

18. Intellectual Property

18.1 You agree and acknowledge that during your employment with the Company, the
Company will be entitled to sole ownership and will solely own, any and all
intellectual properties that you will write, create, conceive, or develop, including but
not limited to product design, industrial design, software, hardware specifications,
trademarks, logos, inventions, web design and content, advertising materials, and
other intellectual properties.

18.2 You agree that you will promptly disclose to the Company the following:

18.2.1 All Intellectual Properties that you made, created or conceived (either
alone or with other co-workers) during the term of your employment, at the
Company’s premises, with the use of the Company’s equipment, materials and other
7
 properties, or in relation to the performance of your functions or to the business of
the Company;

18.2.2 All Intellectual Properties that will be written, created, conceived or

developed by you (either alone or with others) based on proprietary or confidential
information regarding or that belongs to the Company.

18.2.3 Any documentation relating to Intellectual Properties described under

Sections 18.2.1 and 18.2.2

18.3 You hereby assign to the Company any and all of your rights, title and interest in
and to the Intellectual Properties contemplated under this Section 18, whether in the
Republic of the Philippines and throughout the world, including applications for
patents, registrations, renewals or reissuances, in relation to any such Intellectual
Properties.

18.4 You agree to extend utmost cooperation with the Company in any registrations or
applications relating to the Intellectual Properties contemplated under Section 18, or
in protecting, prosecuting or defending any or all of the Company’s Intellectual
Property Rights.

18.5 Subject to the terms of this Section 18, you agree to keep and maintain adequate and
current written records of all Intellectual Properties, which you agree to surrender to
the Company upon its request. Upon surrendering such records to the Company,
you agree not to keep and to destroy any and all copies thereof.

19. Governing Law; Injunctive Relief.

19.1 This Agreement is to be governed and construed by the laws of the Philippines,
without regard to conflict of laws principles thereunder.

19.2 You agree that the Company cannot be adequately compensated for any breach or
violation of Sections 13, 14 and 15 of this Agreement. Accordingly, you agree that
the Company will be entitled to temporary and permanent injunctive relief to
enforce the provisions of Section 13, 14 and 15 and that this relief may be granted
without the necessity of proving actual damages.

19.3 You agree that the matter of seeking injunctive relief for any breach or violation of
Sections 13, 14, 15 and 18 of this Agreement is within the jurisdiction of regular
courts and you hereby waive any claim that any regular court from which the
Company will seek injunctive relief has no or lacks jurisdiction over the Company’s
claim for injunctive relief against you or that the venue of the proceedings is
improper. With respect to any initiative of the Company to seek injunctive relief
under this Section 19.3, you hereby irrevocably and unconditionally (a) consent and
submit to the exclusive jurisdiction of any court located in Las Piñas City, and (b)
waive any objection to the laying of venue of any such action in any court located in
Las Piñas City.

20. No Waiver

The Company’s failure at any time to insist on performance of any provision of the
Agreement set out in this letter is not a waiver of its right at any later time to insist on
performance of that or any other provision of the Agreement set out in this letter.

21. Severability

8
You agree that the provisions of this Agreement are severable, and if any one provision is
found to be unenforceable in whole or in part, the remainder of the Agreement will remain
valid and enforceable.

22. Entire Agreement

22.1 This Agreement sets out the entire agreement and understanding between the
Company and you relating to your employment and this Agreement supersedes all
prior discussions between the parties.

22.2 You understand and acknowledge that except as set out in this Agreement no other
representation or inducement has been made by the Company to you and that you
have relied on your own judgment and investigation in accepting your employment.

23. Counterparts

This Agreement may be executed in any number of counterparts and each of such
counterparts will for all purposes be deemed to be an original, and all such counterparts
will together constitute but one and the same document.

24. Acceptance
Ang mga nilalaman ng kasunduang ito ay lubos kong nauunawaan,naiintindihan, at
sinasang-ayunan. Itong kontratang ito ay binasa ko sa wikang Ingles, isang wika na aking
alam, pinag-aralan at nauunawan. Itong kontratang ito ay ipinaliwanag din sa akin sa
wikang Tagalog o Pilipino ng isang kawani ng____________________________________
Dahil dito, ako ay pumipirma at sumasang-ayon sa lahat ng pahina at ANNEXES ng
kasunduang ito na may kusang loob at walang pag-aalinlangan.

Very truly yours,

FUNTASTIC INTERNATIONAL, INC.

By: _______________________________
[Authorized Signatory], [Position]

I hereby certify that I have explained

this Employment Contract to the
Employee in Tagalog or Filipino.

__________________________________
Employer’s Representative
Name:
Date:
Place:

AGREED AND ACCEPTED BY:

___________________________________
Name:
Date:
Place:

9
 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

) S.S.

Before me, this ______________ in ________________, personally appeared:

Name CTC No. Issued at Issued on

known to me to be the same person who executed the foregoing instrument consisting of
____ pages including this acknowledgement, and who acknowledge to me that the same
is their voluntary and free act and deed and those of the parties represented.

IN WITNESS WHEREOF, I set my hand and affix my notarial seal on the date and place
above written.

Notary Public

Doc. No. : _________

Page no. : _________
Book No.: _________
Series of : _________

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 ANNEX A

JOB DESCRIPTION

[please provide job description]

Position
Department
Direct Supervisor [Indicate Position]
Main Duties and
Responsibilities

Other Duties And

Responsibilities

11
 ANNEX B

PRE-EMPLOYMENT REQUIREMENTS

(a) National Bureau of Investigation clearance;

(b) Certificate of employment issues by past employer;
(c) Social Security System identification Card (“ID”);
(d) Philippine taxpayer identification number ID;
(e) Home Development Mutual Fund (Pag-IBIG Fund) ID (or any proof of
membership);
(f) Philhealth ID (or any proof of membership);
(g) Two (2) passport-size photographs;
(h) Chest X-ray;
(i) Barangay clearance;
(j) Police clearance; and
(k) Map showing your place of residence and indicating person to contact in
case of emergency with the contact information of the contact person.

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 ANNEX C

STANDARDS FOR REGULARIZATION OF EMPLOYMENT

A probationary employee will qualify for regular employment upon meeting standards
for regularization by way of satisfactory results of a performance appraisal conducted by
the probationary employee’s immediate supervisor in relation to all of the following
factors:

(a) Attendance;
(b) Punctuality;
(c) Productivity and efficiency;
(d) Quality of work;
(e) Accuracy in executing instructions of supervisors or officers of the
Company;
(f) Observance of or compliance with Company policies, rules or regulations;
(g) Proper decorum and discipline;
(h) Relationship with other employees of the Company;
(i) Work attitude;
(j) Honesty and integrity; and
(k) Other similar factors

Acknowledgment

By signing this acknowledgment, you acknowledge that the foregoing performance

standards have been explained and discussed with you on the starting date of your
employment, which is at the beginning of the probation period.

________________________________
Name:
Date:
Place:

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