50 Mahinhin St.

Teachers Village
Quezon City Metro Manila, Philippines
63 (2) 433-1174

Sean Cannon
Country Head
Ascentia Consulting Inc.
SOHO 2/F-4 McKinley Park Residences
3rd Ave cor. 31st Str.
Bonifacio Global City, Taguig
Metro Manila, Philippines

February 12, 2015

Dear Sir:

Proposal to provide Accounting and Payroll Processing Services

Following our discussion, we are pleased to submit to you our proposal to conduct Accounting and
Payroll services for your company. The key areas to be covered by the review shall be the overall
general accounting and payroll processing of the company.

In the sections that follow, we present in detail our understanding of your requirements, proposed
approach, deliverables and final outputs, timing and project management arrangements. Please feel
free to call us for any queries you may have on this proposal.

We have taken the opportunity to set out below specific services required by your organization. This
proposal is being submitted to Ascentia Consulting Accounting to meet stated requirements.

A. Understanding of your requirements

The desire of management to bring improvements in their financial and accounting activities has
become more pronounced in the light of business development initiatives. In the fast pace of
business transactions, the challenge of keeping records and core reconciliation of key documents
became very apparent. Likewise, the need to comply with certain Philippine rules and regulations
has become more distinct. Management felt the intervention of a third party support who will help
keep the system up to date and value adding.

B. Project Scope, approach and output

This proposal to provide accounting and payroll services seeks to achieve the following:
Record, classify and summarize economic transactions and events
Report relevant, timely and reliable financial information
Ensure consistent application of accounting principles
Ensure compliance with applicable laws and regulations
We shall also provide consulting assistance in the compliance to local laws and regulations.

The current year or year 2015 is expected to be covered by the services.

The work is broken down by specific task, output and timing.

Tasks Expected Output Timing

1. Project Planning

a. Leveling of expectations Detailed project plan (resources,

between Ascentia Consulting scheduling, Service Level
and ABAR, Inc. Agreement, others).

b. Establishment of project Agreed upon project

communications/monitoring
mechanism
2. Accounting services
a. Record, classify and summarize
economic transactions and
events
b. Report relevant, timely and
reliable financial information
communications mechanism to
expedite service tracking and
reporting of results
Monthly
To design the organizations
Financial Management System as
well as its related reports and
implement the selected back office
application.

c. Ensure consistent application of Monthly financial and management

accounting principles reports.

d. Ensure compliance with

applicable laws and regulations.
Including tax advice.

e. Preparation of government
remittances. (Note: Filing is not
included)
3. Payroll
a. Computation of earnings and Monthly
net pay
Monthly payroll and related
b. Preparation of pay slips reports(payroll register, earnings
and deductions registers and
c. Generation of accounting data others)
to record the payroll in the
books

2
 d. Preparation of remittance of
your payments to the
government agencies (BIR, SSS,
Philhealth, Pag-Ibig)

e. Preparation of payroll related

statutory reports

f. Preparation of bank advice

g. Computation of the final pay of

separated officers and
employees

Given the above coverage of work, ABAR is lining up a field work team of 2 staff to render 4 hours a
day, from Monday to Friday. The staff will be provided supervision in coordination with the Ascentia
Consulting coordinator.

Using the agreed scope of work and project plan, we shall define the service levels or the minimum
quality and level of service that ABAR is required to perform. Operating level agreement will also be
established or the performance level that Ascentia Consulting is required to deliver to ABAR and that
ABAR is dependent upon in order to meet service level obligations.

Our approach assumes ABAR will provide innovation in the provision of services when and where
practical and possible.

C. Client Responsibilities

The management is responsible for making available to us upon request all necessary records,
information and company personnel to whom we can direct inquiries to perform our engagement. If
management intends to publish or reproduce, in printed form or electronically, our report or
otherwise make reference to our firm in a document that contains other information, management
agrees to (a) provide us with a draft of such document to read, and (b) obtain our approval for
inclusion of our report, before the document is finalized and distributed.

Ascentia Consulting shall confirm that the definition and scope of the services detailed herein is
agreed by the Management to be sufficient to address its needs. It shall also be agreed that
responsibility for the implementation of actions identified in the course of this assignment rests with
Ascentia Consulting, its management and employees. However, monitoring if actions recommended
is being implemented by Ascentia Consulting may be performed by ABAR for another engagement
upon your request. ABAR will rely on Ascentia Consulting to meet its responsibilities as set forth
herein.

3
D. Our Team

The success of the proposed project will depend in large part on the quality of the client service team
selected to serve Ascentia Consulting. Our core team who has exposures in this type of engagement
will be pooled together to serve you in this undertaking:

Augusto Cabugao, our Managing Director will serve as the client service Director. He will provide
overall direction and quality assurance oversight on the engagement.

Edith Lagran our Director, will function as the overall project director. She will interact with Ascentia
Consultings top management to discuss and resolve sensitive issues that may arise during the course
of the engagement, in addition to providing general and risk management supervision on the
services.

Ms. Racquel Alim, our Accounting Services Manager, and Victor Gerard Cabugao (ABARs Information
Technology Support Team Leader), will oversee the project on a day to day basis and provide senior
support to the ABAR staff. They will interact with Ascentia Consultings management to discuss and
resolve sensitive issues that may arise during the course of the engagement, in addition to providing
general and risk management. They will likewise support the team in the day to day conduct of this
engagement.

We shall appreciate the appointment of a project coordinator from your company to support us
during the conduct of the service. Support work shall be in the form of scheduling meetings with
management, and providing data needed by our team. We also will appreciate being provided a
work station while conducting the service.

E. Non-Disclosure and Confidentiality Agreement

ABAR acknowledges that in the course of its performance of services for Ascentia Consulting under
this agreement, ABAR, in general, and its designated service team, in particular, will acquire
information concerning the business affairs or property of Ascentia Consulting, all of which are
considered confidential and proprietary in nature. ABAR agrees to protect all such confidential or
proprietary information received or acquired by it or its designated service team from Ascentia
Consulting as it would its own confidential and proprietary information, and further agrees that it will
not disclose such information to third parties or use the same for its own commercial benefit or for
the benefit of others, without the prior written consent from Ascentia Consulting. This confidentiality
obligation shall survive the termination or expiration of this agreement.

F. Fees

ABAR, Inc. believes in and is committed to delivering value for money. We are confident that given
the opportunity to work with you, we shall be able to provide areas and opportunities for continuing

4
improvement in key business processes, risk management and in enhancing personnel productivity.
We assembled together a team of financial audit, industry, systems and process specialists who will
bring tangible benefits to your bottom line.

As a normal professional practice, our fees are based on the time required by the individuals to carry
out the work calculated at scaled rates appropriate to the grades and experience of the staff assigned
to the engagement.

Our cost for delivering this service is more than what we have quoted to you. In anticipation of
developing a long-term relationship with your company, we have taken the initiative to heavily
discount our proposed fees for this engagement.

Based on the objectives and scope of work set out in this proposal, we estimate our fees to be as
follows:

I Accounting and Payroll Service Php 55,000/month

II Consulting Assistance Php1,250 /hour

Out of pocket expenses in the form of travel cost and meals including office supplies and materials to
produce interim reports and final output will be charged at 10% of the quoted monthly fee.

Our fees are exclusive of 12% Value-added tax (VAT).

The services and fees covered by this proposal will be reviewed periodically with Ascentia
Consultings management to reflect changes that may impact the objectives and scope of work
embodied in this proposal.

Next Step

This proposal has been prepared to reflect and meet your immediate requirements to carry out
financial and accounting consultancy services. We hope that it addresses all your issues of immediate
concern. We would welcome the opportunity to discuss our proposal including any amendments that
you consider desirable to ensure that your objectives are achieved.

If you require further information, or wish to discuss further the terms of our engagement, please do
not hesitate to contact us.

Very truly yours,

Augusto C. Cabugao
Managing Director