Letter Head

M E M O R A N D U M:

TO: --------------------------------
[Position]

FROM: Name of Immediate Superior

CC: 201 File

SUBJECT: NOTICE TO EXPLAIN

Based on the report of Mr. _______, the guard on duty on warehouse No. __ on _____ and from
other witnesses, this office was informed in writing that the warehousemen Mr. _____ and Mr.______
fabricated a table made of steel scraps from the said warehouse without the consent of the owner.

However, after the conduct of preliminary investigation against the two warehousemen, it
appears that you are the one who ordered them to fabricate the said table and was delivered to your
residence for your own personal gain.

Under the circumstances, it is apparent that the said act is a violation of the company policy
particularly in par. 2.6 which states that, to wit:

2.6 Using company materials, equipment or

personnel on or off company time for personal benefit.

1st Offense: 15 days suspension

2nd Offense: 30 days suspension w/ warning of

separation.

3rd Offense: Separation

Moreover, your act falls under par. 5.11 of the same Company Code of Conduct particularly
states that:

Par. 5.11: Coercing, bribing, encouraging or inciting

another to violate company rules.

Lastly, you, as a warehouse manager, who, as a matter of responsibility, should inherently work
for and in the interest of the company who happens to be your employer.

In view of the foregoing, you are hereby required to explain in writing within three calendar (3)
hours upon receipt of this memorandum why you should not be charged/punished for such offense/s
mentioned. Failure to give a written explanation shall be considered as waiver on your part to present
your defense and will constrain us to render a decision based on the existing evidence and to file a
necessary complaint in court.

For your strict compliance.

_______________________________

NAME OF YOUR IMMEDIATE SUPERIOR