January 16, 2017

Good day!

I am writing this letter in reply to the demand letter dated November 25, 2016,
addressed to the hereby undersigned for settlement of the alleged outstanding
unliquidated cash advances amounting to Twenty Five Thousand Two Hundred
Ninety Five Pesos (P25,295.00).

The said demand letter enumerated cash advances for years 2005, 2006, 2007,
2009 and 2011 with corresponding amounts of P9,946, P1,763, P5,248, P998 and
P7,340. Only the cash advance in the year 2011 has a check number of 236940.
Furthermore, it is also only that cash advance which has its purpose been stated
on the demand letter. All other enumerated unliquidated cash advances did not
state for what purpose it was incurred.

Please be informed that these enumerated cash advances have already been
settled and accounted for. Unfortunately, being cash advances way back 2005
with the most latest at 2011, the pertaining documents to support the liquidation
of these cash advances are no longer available due to the damaged brought
about by the super typhoon Haiyan in the year 2013 to our office. The said
documents were no longer recovered after diligent and reasonable efforts to
recover such together with all other important documents stored in the office.

Ben S. Calzado