To :

Subject : Notice to Explain and Conference

The following incidents has been brought to our attention for appropriate action.

We have received information that you have illegally used several of our dealer’s
accounts for your own purpose. It was reported that you were fraudulently forwarding
product orders to the office. That you were disguising these orders to have been placed
by certain dealers of good standing in order to secure the approval for release and
delivery. When in fact, reports indicated that these orders did not actually originated
from the dealer. That upon securing the approval for release you have diverted the
delivery and sold the products somewhere else.

Further reports signified that these products that you have diverted and sold were paid
in cash, and that you have not fully remitted these cash payments to the office which
led to the reason why the accounts of these dealers remain outstanding.

In addition, it was also brought to our attention that you have misappropriated several
cash collections. Report states that several dealers’ account were paid to you in full, in
the form of cash. That from this cash payment, you have remitted only portion of the
payment to the office, while the balance you have used for personal purpose. You
issued billing statement (BS) to these customers bearing correct amount of payment but
altered the duplicate and triplicate copies to make it appear that these were only partial
payments.

As a result of your act, these dealer accounts were suspended due to outstanding
balances.

In this regard, please explain within three (3) days from receipt of this notice why no
disciplinary action should be imposed upon you for such act.

Likewise, you are invited to a conference on 08 September 2016, Thursday, at the

company’s Los Baños Office at 3427 Tikling Street Extension, Rhoda’s Subdivision, Los
Baños, Laguna. Please make sure that you reach the office by 11:00 a.m. since the
conference will start at 1:30 p.m.

This is your opportunity to explain your side on the issues involved. You may bring
support person for this purpose.
Failure to attend the case conference or to submit a reply shall be deemed waiver on
your part of your right to due process.

For your strict compliance.

Sincerely yours,