September 26, 2018

MR. NORMAN N. ESCOBAR

Regional Director for Operations
MEGAWIDE Construction Corporation
# 20 N. Domingo St., Brgy. Valencia
Quezon City, Philippines 112

Dear Mr. Escobar,

We were informed that payment for our MEGAWIDE projects in Iba, Zambales will be
released anytime soon.

In view thereof, we are authorizing you to deduct the amount of Php 169,000 to be paid
directly to Frenzel Abraham Hardware and Php 200,000 to Manfel Hardware for the
supplies and materials utilized for the projects.

As regards the subcontractor/claimant for the Paolo Abastillas Elementary School project
we wished to inform you that we have already paid him Php 750,000 or 50% of the
agreed total contract price which he admitted to in his letter to your Office; however, he
not only failed to complete the project but literally abandoned it prompting MEGAWIDE
to take-over the project from us. His act did not only besmirch our reputation but also
tarnished our image as a contractor. Thus, we categorically refused to pay any amount
claimed by him such claim having no basis.

We hope that we have enlightened your regarding this matter. Moreover, may we
respectfully request your good Office to facilitate the release of our collectibles the
soonest possible

Sincerely yours,

MARK VALENZUELA
Project Manager