Dear Sir/Maam:

We are submitting to your office a copy of the Cost of Distribution in relation to the
costing of the contract rate. As stipulated in the contract, there is an eight (8) hour
and twelve (12) hour duty. Ordinarily, working beyond eight hours a day will entitle
the employee/worker for an overtime pay. However, a proposal was raised that
instead of an overtime pay, three thousand pesos (Php 3,000) will be given for the
excess hours.

Section 7, paragraph 5(d) of DOLE D.O. No. 150-16 also known as the Revised
Guidelines Governing the Employment and Working Conditions of Security Guards
and other Private Security Personnel in the Private Security Industry, which was
issued by DOLE provides that:

Overtime pay for work rendered in excess of eight(8)

hours a day, equivalent to at least twenty-five (25%) of
the regular hourly rate on ordinary days and thirty
percent (30%) of the hourly rate on regular holidays,
special days and rest days

An overtime pay is the additional compensation payable to the employee for the
services or work he has rendered beyond the normal eight hours of work
infringement.

However, if there is an agreement between the Security agency and client, both
shall be jointly and solidarily liable for any consequences that may arise from the
said agreement. The client shall be liable to the agency; on the other hand, the
agency shall be liable to the employee in case of any ------

Sincerely,

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PADPAO Representative