ROYALTY CONTRACT

This Agreement is entered into this ___th day of April 2017 by between:

Mssgrs..Alfred C. Versoza/Aniceto A. Bactol, Attorney-In-Fact and In his capacity as President of VERZA JB

CONSTRUCTION CORPORATION/A.G. HERRERA CONTS.CORP ,(Joint Ventures) a construction
entity duly registered with the Securities & Exchange Commission(S.E.C), existing under the laws of the
Philippines, with an office address at No. 565-Gemeni St.,F.I.E.V.Executive Village, Brgy. Palangoy,
Binangonan,1940, Province of Rizal, and hereinafter called as the FIRST PARTY

-AND-
_________________________ of legal age, residing No.___________________________; and hereinafter
known as the Owner/Proprietor of _____________________________________________, or hereinafter
called as the UNDERTAKER of _____ (__) CLUSTERS, consisting of five (5) Units per Cluster, with the
total Area of : two hundred one point Ninety four (201..94sq.m2) square meters per Cluster; located at Puerto
Princesa City, Palawan; and hereinafter known as the SECOND PARTY

WITNESSETH:
WHEREAS, both parties hereto, intending to be legally bound, and in consideration of the mutual covenants
hereafter contained, agree as follows;

1. GRANT OF LICENSE:
a. Mr. Alfred C. Versoza/Aniceto A. Bactol , referred to as First Party, grants the right to the Second
Party, to use the company’s license pertaining to the Subcontracting the Supply of Labor &
Materials, tools, equipment, ppe and temfacil, and other necessaries needed for the
CONSTRUCTION OF ________ (__ ) CLUSTERS of socialized Housing at the above-mentioned
Project Location;

2. TERMS AND CONDITIONS:

1. EFFECTIVITY
This Contract shall be effective immediate upon SIGNING of this CONTRACT, of which an
immediate mobilization of the SECOND PARTY shall be effective within three (3) days, after
execution of this ROYALTY CONTRACT, the proponent shall not revoked during the course
and implementation of the said project. Project duration and TURN-OVER of the PROJECT
is; at least NINETY (90) DAYS, after all such SITE PREPARATIONS specially for the
TEMPORARY FACILITIES (temfacil) for the STAFFS & MANPOWER of the SECOND
PARTY;
2. CONTRACT PRICE::THREE MILLION SEVEN HUNDRED THOUSAND (PHP3,700,000.00)
3. ROYALTY PAYMENT: not more than FIVE (5%) PERCENT, of which 50% is deductable from the
Down payment and balance of 50% is DEDECTABLE from the 1st & 2nd BILLINGS UNTIL FULLY PAID

4. DOWN PAYMENT : TWETY (20%) PERCENT; shall be paid more or less TWO(2)WEEKS upon
showing the presence of SUSTAINABLE MANPOWER,TOOLS,EQUIP-
MENTS, at SITE to completely deliver the PROJECT AWARDED of not
more than NINETY(90) DAYS;

5.CASH BOND : Second Party is AWARE of the CASH BOND of and equivalent of 1.5%
of the TOTAL CONTRACT; Second Party to Voluntarily remit the equiva-
lent Amount to the Corporate Account of the First Party at BDO, with
Account No. 010080065643/Account Name:Verza JB Construction Corp.
to serves as commitment of the Second Party; that Second Party shall
seriously commit himself to undertake and finished the Project in a 100%
Job-Well-Done, and deliver the Project on given time;
6.SETTLEMENT : BOTH PARTIES, agreed that said CASH BOND serves as GUARANTY AND
COMMITMENT of the SECOND PARTY for His/Her Undertakings; and com-
promise to DELIVER THE ONE HUNDRED (100%) JOB-WELL-DONE
in 90 days; excess period without reasonable cause shall be a valid ground to
FORFEITURES of said CASH BOND and FIRST PARTY shall utilize said
CASH BOND for whatever expenses which may incurred to labor and material’s
penalties due from the FAILURE TO DELIVER IN DUE TIME of the SECOND
PARTY;FIRST PARTY AGREED the refund of the same to the SECOND
PARTY,provided,however,that the SECOND PARTY delivered the SAID
PROJECT in 100% JOB-WELL-DONE, IN DUE TIME AGREED WITH,

7.EFFECTIVITY : SECOND PARTY to commence mobilization of His/her Manpower, tools,

Equipment and construction of Temporary barracks, PPE at least within Se-
venty two (72) hours after execution of this contract and after remittance
of the so called CASH BOND;(Second Party shall provide the First Party a
copy as Proof of Remittance to serves as Records Purposes of the First Par
ty;

8. EXTENSION OF THIS CONTRACT MAY CAUSE:

a. Force majeure due to bad weather conditions;
b. Unstable peace and order of the project site;
c. Proponent’s advice for works stoppage.

9. TERMINATION OF THIS CONTRACT MAY CAUSE:

a. Lack of interest or no intension to perform the requirements within the given period as stated
in this ROYALTY CONTRACT;
b. Project Slippage or Failure to deliver such Project Accomplishment base on the PERT/CPM
submitted by the Second Party to the Proponent.
c. FINISHED PROJECT with FINAL Inspection and ACCEPTANCE LETTER.

C1. SLIPPAGE ORDER,WITH DUE PENALTIES; as follows:

a. 3% -VERZA JB CONST. CORP/A.G.HERREREA. will issue a warning/reminder to
the Second Party;

b. 5% - VERZA JB CONSTRUCTION CORP.A.G.HERRERA CONST. will call for a

meeting, Dialogue regarding the under Accomplishment Deliveries committed by the
Second Party

c. 7% - VERZA JB CONSTRUCTION CORP./A.G.HERRERA CONST,with no

advice will automatically take-over the implementation of the said Project
to AVOID blacklisting and penalties imposed by the PROPONENT;automatically
take over and implement and continue the Project to AVOID any legal predicament,
nor Blacklisting, penalties neither implied by the Proponent;

10.VERZA JB CONSTRUCTION CORP. /A.G.HERRERA CONST.CORP shall not be

Held responsible and liable for any of the following;

a. For any defects, back jobs, repair cost committed and remarked by the Inspection and Evaluation
Committee of the Proponent as stated in the Terms of References (TOR).
b. For any accidents may occur with the Second Party Personnel’s assigned to the said Project.
c. For any Vehicular Accidents and damages may occur during the operation.

11. SCOPE
VERZA JB CONSTRUCTION CORP./A.G.HERRERA thru the Attorney-In-Fact grants this
Royalty Contract to the Second Party to undertake the projects construction and authorizes to demand
payments from the Proponent.
12. ROYALTY PAYMENT
It is agreed that the Second Party will pay FIVE (5%) PERCENT of the Approved Contract Cost to
the First Party as license rental and consultancy charges. The breakdown as follows:

BALANCE AFTER
MOBILIZATION PAYMENT OF 1ST
50%,deductable
from 1st & 2nd
50% upon receipt of DP
Billings

13.The FIRST PARTY will provide a representative to monitor the daily activities and inspects the
construction are in accordance with the agreed plans, design, technical specification and standards of the
building code of the Republic of Philippines.

Salary of the Representative will be ₱18,000.00 per month for his/her daily salary, expenses, (board
and lodging) which will be shouldered by the Second Party on project completion basis.Whereas
expenses originating from the account of the SECOND PARTY shall becomes deductable from the
SHARES OR WHATEVER SHARES OF THE FIRST PARTY, and the same shall be PAID &
PAYABLE TO THE SECOND PARTY, without comments nor objections of the FIRST PARTY, so
that the SECOND PARTY can recover said expenses incurred for the Subject

14.CONSTRUCTION AND SUPERVISION:

The SECOND PARTY shall provide all necessary manpower, skilled workers, materials, equipment’s,
engineers needed for the satisfactory completion of the said project.

15. BILLING AND PAYMENT COLLECTION

VERZA JB CONSTRUCTION CORP./A.G.HERRERA CONST. will grant as SPECIAL POWER
OF ATTORNEY to the representative of the Second Party to submit requirements; to demand
payment; to receive cheque as payment of the said project.
a. Receive cheque of payment will be deposited to a JOINT BANK
ACCOUNT named to BOTH Parties.
b. Second Party shall always be open their book of account of expenditures as
subject for auditing and monitoring by the First Party in connection of billing
payments received for the said project.

16.RELATIONSHIP OF PARTIES
Nothing is this Contract shall be deemed to constitute a joint venture, partnership, employment or other
legal relationship other than of granting or authorize to use the business license to undertake
construction projects within the said location, both parties should adopt a gesture of professionalism,
respect and obey the content of this Agreement to ensure the dignity and reputation of both.

17. CONDFIDENTIALITY
This Contract entered shall remain confidential to both parties, any information bind should not
elaborate or submitted to anybody, (private/public institution) which this Royalty Contract, is Covered
by NON-DISCLOSURE AND NON-CIRCUMVENTIONAL and Both Parties Bind themselves and
abide with the Provisions of NDNDC. Within three (3) years to commence on the date, place stipulated;
herein; DIRECT OR INDIRECT negotiations of the SECOND PARTY, with the CLIENTS of the
FIRST PART; shall cause an IMMEDIATE CANCELLATION of this AGREEMENT, without any
Legal Predicament, neither CLAIMS of SECOND PARTY due from the FIRST PARTY & HIS PARTY
involved; FIRST PARTY has the right to AUTOMATICALLY FORFEIT any balances of monies,
properties or any material without objection of the SECOND PARTY. FAILURES, of compliance with
all PROVISIONS will cause the FIRST PARTY to SUE the SECOND PARTY to any COURT in the
Philippines;
 IN WITNESS WHEREOF the parties have signed this Contract on the date on the first written.

COMFORME:

A.G. HERRERA CONST.CORP. name of company:_________________

By; By:
ENGR. ANICETO A.BACTOL print name:______________________
(First Party to award) (Second Party to rcvd.award)

VERZA JB CONST.CORP.
By:
ALFRED C. VERSOZA
(First Party to Award)

WITNESSES
__________________ ________________
(Witness 1 ) (Witness 2)

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

s.s.
Mun/City of______________________)

KNOW ALL MEN BY THESE PRESENTS:

SUBSCRIBED AND SWORN TO BEFORE ME, this__day of April 2017, Affiant has known to Me, to be
known as the same Person who have executed this foregoing instrument;affiants exhibited to Me their
Community Tax Certificates and known to Me that the same are their Free Act and Deed.

WITNESS MY HAND NOTARIAL SEAL this__April 2017, in the Mun./City____________Philippines.

Notary Public

Doc. No.___
Page No.___
Book No.___
Series of 2017