APPLICANT'S UNDERTAKINGS In applying for PEZA registration, the Applicant herewith makes the following representations and commitments:

1 . That the applicant is capable of operating, on a sound and efficient basis, and of contributing to the objectives of the Philippine Economic Zone Authority in particular and to the development of the national economy in general; That the project is economically, technically and financially sound; That the applicant proposes to engage, in good faith, in the creation of a market for its project/product; That the applicant has installed/undertakes to install an accounting system adequate to identify the investments, revenues, costs and profits or losses of the project covered by this application separately from the aggregate investments, revenues, costs and profits or losses of the other business activities of the applicant not registered under Republic Act No. 7916, as amended by Republic Act 8748 or has established/undertakes to establish a separate entity for the project/activities covered by this application if so required by the Authority. (Applicable only if applicant is engaged or proposes to engage in undertaking or activities in addition to the project covered by this application); That the applicant shall submit periodic reports and other information, pertaining to its activities in the Ecozone that the Authority may require; That the applicant has read Republic Act No. 7916, as amended, and the Rules and Regulations adopted by the PEZA and commits itself to abide by the provisions thereof as well as amendments thereto; The applicant will start and operate the project covered by this application within such reasonable time as may be fixed by the Authority; That the applicant's Board of Directors has authorized the filing of this application in accordance with the terms thereof if the applicant is a corporation; That pursuant to Section 2(p), Rule I of the PEZA Rules, the applicant's income derived within the ecozone shall be subject to taxes under the National Internal revenue Code pursuant to Section 25 of the Act; That no Board member or officer of the Philippine Economic Zone Authority has an investment or any other financial interest, direct or indirect, in the applicant's enterprise; and That there exists no dummy relationship between any of the stockholders and/or principal officers of the applicant and any foreign individuals/business entity.

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this

Done in the City/Province of day of

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Affiant Designation Republic of the Philippines City / Province of ) ) S.S.

Subscribed and sworn to before me this_________ day of ________________ , 20___ in the City/ Province of ______________________. Affiant exhibited to me his Resident Tax Certificate No. _____________

issued at ___________________________ on _______________, 20___

Notary Public Until December 31, 20_____ Doc. No. Page No. Book No. Series of 20

Philippine Economic Zone Authority (PEZA) The Special Economic Zone Act of 1995 as amended, mandates the PEZA to operate, administer, manage and develop Special Economic Zones or Ecozones. Enterprises that may qualify for registration with PEZA are those that will manufacture and export 100% of their production. Permission has to be sought if the enterprise located within the zone will export below 100% and in most cases PEZA has allowed 30% of production in the domestic market. There are 98 operating proclaimed Special Economic Zones in the country.

4. What incentives are available to registered enterprises?

Board of Investments (BOI) An enterprise registered with the Board of Investments (BOI) pursuant to the 1987 Omnibus Investments Code (Executive Order No. 226) is entitled to, among others, the following incentives subject to certain terms and conditions: Fiscal Incentives a. Income Tax Holiday (ITH) a. BOI-registered enterprise shall be exempt from the payment of income taxes reckoned from the scheduled start of commercial operations, as follows: 1. New projects with a pioneer status for six (6) years; 2. New projects with a non-pioneer status for four (4) years; 3. Expansion projects for three (3) years. As a general rule, exemption is limited to incremental sales revenue/volume; 4. New or expansion projects in less developed areas (LDAs) for six (6) years, regardless of status; 5. Modernization projects for three (3) years, as a general rule, exemption is limited to incremental sales revenue/volume.

b. Tax credit on raw materials, supplies and semi-manufactured products; c. Additional deduction from taxable income for labor expense (cannot be simultaneously enjoyed with the ITH incentive); d. Additional deduction from taxable income for necessary and major infrastructure works (cannot be simultaneously enjoyed with the ITH incentive); e. Exemption from wharfage dues and export tax, duty, impost and fees. f. Modified Duty Rate for Capital Equipment by virtue of E.O. No. 313 Effective June 06, 2004 BOI registered enterprises of good standing with project registered as new or expanding Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, may import machinery, equipment, spare parts and accessories subject to zero percent (0%) duty for export-oriented enterprises and one percent (1%) duty for domestic-oriented enterprises, classified under AHTN Chapters 40, 59, 68, 69, 70, 73, 76, 82, 83, 84, 85, 87, 89, 90, 91 and 96 of the Tariff and Customs code of the Philippines The capital equipment incentive provided under the E.O. No. 313 shall be availed of by the registered enterprise for a period of two (2) years from its effectivity or until 06 June 2006. Non-fiscal Incentives Certain non-fiscal incentives are also available to the registered enterprise, among which are: employment of foreign nationals; guaranteed repatriation of foreign investments and earnings thereon; and importation of consigned equipment for an unlimited period subject to the posting of re-export bond.

Philippine Economic Zone Authority (PEZA) Investment Incentives for Ecozone Developers / Operators Income Tax Holiday 1. 4 years for IT Parks/Buildings located outside of Metro Manila; 2. years for manufacturing located in less developed area; B. Incentives under the Build-Operate-Transfer Law, which includes government support for accessing Official Development Assistance and other sources of financing; C. Provision of vital off-site infrastructure facilities; D. Option to pay a special 5% Gross Income Tax, in lieu of all national and local taxes; E. Permanent resident status for foreign investors and immediate family members; F. Employment of foreign nationals; G. Assistance in the promotion of economic zones to local and foreign locator enterprises; A.