SUBIC BAY, CERTIFICATE OF REGISTRATION AND TAX EXEMPTION SUBIC BAY FREEPORT ENTERPRISE CERTIFICATE NO, 2003-0018 BUSINESS PLATE NO. 0018 January 23, 2019 In accordance with Republic Act No. 7227 known as the Bases Conversion and Development Act of 1992 (the “Act”), the rules and authority bestowed on the Subic Bay Metropolitan Authority ('SBMA") in accordance with Section 12 of the Act , and the Rules and Regulations Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone (the “Implementing Rules “) , the SBMA hereby grants the following rights, privileges and benefits to HONEYWELL CEASA SUBIC BAY) COMPANY, INC. (The “Company”) with principal office address at Bldg. 14-2, Subic Techno Park, Boton Area, Subic Gateway District, Subic Bay Freeport Zone. ARTICLE 1 The Company Shall be classified as a Subic Bay Freeport Enterprisc, as such term defined under Section 3, Paragraph G of the Implementing Rules for the following purpos Business of servicing, repairing, overhauling, or in any other manner dealing with aircraft wheels, brakes, and other parts at Standard Factory 1A-2 & Factory 1B-2, Suble Techno Park, Boton Area, Subic Gateway District, Subic Bay Freeport Zone. ARTICLE 1 The Company is hereby granted a PERMIT TO OPERATE the aforementioned business at the address specified in Article L, subject to compliance with applicable laws and SBMA regulations. ARTICLE IM The Company, with regard to its business at the location deseribed above, shall enjoy all the rights, obligations, privileges, responsibilities, incentives and benefits established under and in accordance with the Act, the Implementing Rules and other applicable policies, rules and regulations as listed at the back ofthis Certificate. ARTICLE IV This Certificate and the rights, obligations, privileges, responsibilities, incentives and benefits hereby granted may be revoked, suspended or cancelled by the SBMA upon fifteen (15) days, prior written notice if the Company violates any of the terms and conditions of its lease with SBMA, the Act, the Implementing Rules, this Certificate, other SBMA rules and regulations, or any customs or tax regulation of the Republic of the Philippines. The Company shall have the obligation of showing compliance with the aforementioned laws and regulations. ARTICLE V_ This Certificate is automatically renewed annually under Section 23 of the Implementing Rules from the date set forth above until December 31, 2019. This Certificate and the rights, obligations, privileges, responsibilities, incentives and benefits hereby granted shall be renewable so long as the Company is in compliance with the terms end conditions hereof, the Act and the Implementing Rules and has a valid lease agreement within the Subic Bay Freeport Zoe. "Y. WILMA T, EI ae ‘and AdministratoARTICLE IIL a. To import and export freely all types of goods into and out of the SBF, subject to the provision of the Act, the Implementing Rules and other regulations that may be promulgated by the SBMA. 1b. The tax and duty free importation of raw materials, capital, equipment and all articfes in general, except those prohibited by SBMA and those absolutely prohibited by law. However, exportation or removal of goods from the Subic Bay Freeport Zone to the other parts of the Philippine territory shall be subject to customs duties and taxes under the Tariff and Customs Code and other relevant tax laws of the Philippines. cc. The exemption fiom all local and national taxes, including but not limited to the following: i) Castoms and import duties and national revenue taxes, such as VAT, exeise and ad valorem taxes on foreign articles; ii) Intemal revenue taxes, sch as VAT, ad valorem and excise taxes on the ‘Company's sales of goods and services for which the Company is directly liable; iil) Income tax on all income from sources within the Subic Bay Freeport Zone and forcign countries, Export Processing Zones, Bonded Warchouses and other Special Economic Zones within the Philippines, fas well as all other areas that may now or hereafter be considered to be outside the Customs Territory, whether or not payment of such income is actually received, made or collected within such areas; provided , that the Company shall, as withholding agents for the National Government , ‘withhold tax on compensation and income payments to persons or individuals subject to expanded withholding tax; and iv) Franchise, common carrier or value taxes and other percentage taxes on public and service utilities and enterprises within Subic Bay Frecport Zone. In lieu of paying local ‘and national taxes, a final tax of five percent (5%) of Gross Income Earned shall be paid by the Company in accordance with Sec. 57 of the Implementing Rules as amended by Republic Act No. 9400. Provided, that should the Company's income from source within the Customs Territory exceed thirty percent (30%) of its total income from all sources, then the Company shall be subject to the income tax laws of the Customs Territory, provided further, that in any case, customs duties and taxes must be paid by the Company with respect to its income from sales of articles to the Customs Territory. 4d. The availment of an Inventory Residency Visa if qualified, and the employment of foreign nationals via a Subic Special Working Visa or its equivalent, subject to evidence of the unavailability of comparatively skilled Filipinos within the Philippines. cc. The faithful compliance with the Act, the Implementing Rules, and other rules, regulations, fees, rates, and charges promulgated by the SBMA. f. The prompt, diligent and periodic reporting to the SBMA of any information on the Company's business activity that the SBMA may reasonably require. The periodic and truthful filing of any information normally required by the Bureau of Internal Revenue and/or the Bureau of Customs. h. All other tights, obligations, privileges, responsibilities, incentives and benefits provided under and in accordance with the Act, its implementing Ruics and other applicable policies, rules and regulations adopted and for enforcement by SBMA.