26 December 2019

ENGR. ONOFRE D. GARING, JR.

General Manager
CAMARINES NORTE WATER DISTRICT
Daet, Camarines Norte

Dear GM Garing:

This is a follow-up/supplement to our letter of 16 December 2019, in response to your letter

of 26 November 2019 relative to rental fees for office space of I-Promote People Enterprises,
Inc.’s (“IPPE”) representative.

In addition to the explanations mentioned in our previous letter, please consider that IPPE’s
representative occupying/utilizing the said office space is a supervisor in charge of payroll
activities and other benefits of their employees assigned in Primewater – Camarines Norte
Branch Office (“PWCN”). This representative is for the supervision of IPPE’s employees
which are assigned only in PWCN, and which amounts to around 75 to 80 personnel.

With this exclusivity, we reinforce our position that no rental charge be imposed to IPPE’s
representative occupying/utilizing CNWD’s office space. This is also in line with Section 7.1
of our Joint Venture Agreement, as part of CNWD’s best efforts to ensure that Primewater
will be able to perform its service obligations under the said agreement. Please be assured
that we are also monitoring IPPE’s representative to ensure that he/she is not using the office
space for personal/other purpose not related to the foregoing, otherwise we shall immediately
report any misuse to your office for the imposition of the appropriate penalty/fee.

We trust that we have clarified our position on this matter.

Thank you.

Very Truly Yours,

ENGR. MARK ANTHONY F. MURODA II

Branch Manager
PRIMEWATER-CAMARINES NORTE