JUDICIAL AFFIDAVIT

I, Steven Valdez, 48 years old, born on December 9, 1970, married to

Korina Valdez, founder of and Chief Executive Officer of 78 Research and
Communications Corp., after having been duly sworn to in accordance with law,
hereby depose and state:

PRELIMINARY STATEMENT

That in accordance with A.M. No. 12-8-8-SC, which prescribes the use of
judicial affidavits to serve as the direct examination testimony of the witness, on the
basis of which the adverse party may conduct their cross-examination on such a
witness, I hereby execute this judicial affidavit in a question and answer format;

That conformably with section 3 (b) of the said A.M. No. 12-8-8-SC, I also
state that it was _________________, investigator of ______________________
who conducted the examination of the undersigned affiant;

That conformably also with section 3 (c) thereof, I hereby state under the
pain of perjury that in answering the questions asked of me, as appearing herein
below, I am fully conscious that I did so under oath, and that I may face criminal
liabilities for false testimony or perjury;

AND UNDER OATH, AVERS THE FOLLOWING:

[knowledge/information on
the distribution of the “Lasthole” cap product in the Philippines]

1. Q : What are the reasons why you are voluntarily came to this Office?
A : I come to offer my statement regarding the increased distribution of the
“Lasthole” cap product in Metro Manila, Metro Cebu, and Metro Davao.

2. Q : If that is the case, can you tell us on what you base your statement that
there is indeed an increased distribution of the “Lasthole” cap product?
A : I base my statement on the 2005 Market Survey Report conducted by
my company that focused on new and upcoming players in the sporting
goods industry, compared with the 1996 Market Survey Report of the
same nature.

3. Q : What was the nature of this Survey?

A : It is a quantitative survey. The aim was to monitor changes in the key
players, if any, in the sporting goods industry, by noting the quantity of
products of the same kind distributed to different metropolitan areas in the
country.

4. Q : What was your participation in this Survey?

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 A : I was the one who oversaw the researchers dispatched to different
locations, collated their findings, and analyzed the data of the 2005 Survey.

5. Q : What were the results?

A : In 1996, there was not any mention of the “Lasthole” caps being
distributed large scale either in shopping malls or outlet stores. However in
2005, it was found that multiple department stores all across the Philippines
received shipments of these caps for sale. In Metro Manila: Robinsons
Galleria Department Store, Robinsons Metro East Department Store, SM
North Edsa Department Store, SM Megamall Department Store, SM Fairview
Department Store, and Rustan’s Shangri-la Plaza each received 1,000 pieces
of the “Lasthole” cap for sale.

6. Q : For the meantime, I don’t have further questions, do you have any
statements to add or take away on this affidavit?
A : None for the meantime.

7. Q : Were you threatened, promised or bribed to do this confession?

A : No sir. I made it voluntarily with my own free will.

8. Q : Are you willing to sign this affidavit consisting of three (3) pages, to
certify that all the statements you made are true.
A : Yes sir.

---------END OF STATEMENT----------

IN WITNESS WHEREOF, I hereunto set my hand below this _______ day of

______, 2018 at ________________________

________________________
Affiant

SUBSCRIBED AND SWORN to before me this ____ day of ___________,

2016 at ___________________________. Further, I certify that I personally
examined the herein affiant that he voluntarily executed and fully understood his
statements.

________________________
Administering Officer

ATTESTATION

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 I, ________________________, investigator of ____(Police Station)____,
____(Location)_____________, on my oath as the Investigator-on-Case (IOC),
hereby depose and states:

That I have personally conducted the foregoing examination to the witness-

affiant ____________________ at ____(Police Station)____,
____(Location)_____________;

That I have faithfully recorded and translated into English language the
questions asked of him/her and the corresponding answers that he/she gave in
response to the questions asked;

Neither I nor any other person/s coached this witness-affiant regarding the
answers given by her.

IN WITNESS WHEREOF, I hereunto set my hand below this _______ day of

______, 2018 at ________________________.

________________________
Investigator

SUBSCRIBED AND SWORN to before me this ____ day of ___________,

2018 at ___________________________. Further, I certify that I personally
examined the herein affiant that he voluntarily executed and fully understood his
statements.

________________________
Administering Officer

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