COLLECTION SERVICES AGREEMENT

This CONTRACT OF COLLECTION SERVICES (The “Contract”), made and entered into this
___ day of July 2019, by and between:

VERDANA HOMES HOMEOWNERS’ ASSOCIATION, INC., (VHHAI) a corporation

organized and existing under and by virtues of the laws of the Philippines, that represents the
Residents of the Subdivision and with office address at The Clubhouse Verdana Homes, Daang Hari
Road Molino 4 Bacoor City Cavite, represented in this act by Mr. GALILEO JUNE DESTURA,
hereinafter referred to as the “CLIENT”.

- and -

ACCOUNT HANDLERS, INC., a corporation organized and existing under and by virtues of the
the laws of the Philippines, with office address at Unit 1009, Cityland Herrera Tower, #98 V.A
Rufino corner Valero Streets, Salcedo Village, Makati City, represented herein by its President,
ARTHUR P. MARQUEZ, hereinafter referred to as the “AGENCY”.

WITNESSETH THAT :

WHEREAS, the CLIENT needs to facilitate the collection of its accounts receivable from its
debtors;

WHEREAS, the AGENCY represents itself to be a corporation able to perform collection services
for the CLIENT;

NOW THEREFORE, premises considered, the CLIENT accepts the services of the AGENCY
under the following terms and conditions:

SECTION 1. PROCEDURES FOR COLLECTION

1.1 The CLIENT shall endorse the accounts for collection to the AGENCY, supported by
the following information and/or documents:

a. Name, address, telephone and fax numbers, if any, of the debtor/s;

b. The amount and details of the account;
c. Statements of account, billings, invoices issued to the debtors, or any
other proof of the accounts receivable from the same;
d. Other documents and information that the AGENCY may deem
necessary for the proper collection of the accounts.

1.2 The above-mentioned documents shall be certified correct and complete by an

authorized representative of the CLIENT;

1.3 The CLIENT hereby authorizes the AGENCY to effect any arrangement for
payment that is reasonable under the circumstances, provided that all compromise
agreements or amicable settlements must first be approved by the CLIENT;

1.4 All check payments shall be made payable in the name of the CLIENT;

1.5 All check and cash payments shall be remitted to the CLIENT within twenty four
(24) hours from receipt by the AGENCY;

1.6 Should the debtors send their payments directly to the CLIENT, the CLIENT shall
notify the AGENCY within twenty four (24) hours from receipt of the same so that
the records of the AGENCY may be adjusted accordingly;

1.7 Any previously collected account erroneously endorsed to the AGENCY for
collection shall not be considered in determining the collection fee due to the
AGENCY;
1.8 The AGENCY shall submit a report to the CLIENT at the end of every month,
describing in detail the status of each and every account as a result of its collection
efforts;

1.9 The CLIENT shall inform the AGENCY of any attempt by the DEBTOR to
coordinate or negotiate with them directly for the settlement of the endorsed account
and shall provide the AGENCY with copies of all communications and
correspondences between them.

1.10 The CLIENT expressly authorizes the AGENCY, as the AGENCY hereby
undertakes to exert EXTRA-JUDICIAL remedies to effect collection within ninety
(90) days from the date of account endorsement through the efforts of its legal
assistant/s, which may include further referral to its LEGAL COUNSEL, in order to
achieve the purpose herein stated. Should the AGENCY fail to effect collection,
whether full or partial, within the said ninety (90) day period, the CLIENT shall have
the option to withdraw said endorsed account by serving a written notice within thirty
(30) days after the expiration of the ninety (90) day period. Otherwise, said ninety
(90) day period shall be deemed renewed for another ninety (90) days. However, if
initial efforts or negotiations have been undertaken with the object of collecting
payment from the debtor thereby causing the AGENCY to incur costs, the CLIENT
shall not be entitled to pull-out / withdraw said account.

SECTION 2. TERMS OF PAYMENT

For and in consideration of their mutual agreement, the parties herein do, by these presents,
enter into a CONTRACT OF COLLECTION SERVICES, whereby the CLIENT agrees to
engage the services of the AGENCY for the collection and/or recovery of the accounts
receivable endorsed by the CLIENT for collection, and that the AGENCY accepts to render
its services on a “NO COLLECTION – NO FEE” basis.

2.1 For and in consideration of the work to be performed by the AGENCY, it shall be
entitled to a collection fee of twenty percent (20%) (plus 12% VAT) of the actual
collection from the accounts endorsed by the CLIENT;

2.2 The AGENCY shall bill the debtors the total amount of the debt due plus twenty
percent (20%) of said amount;

2.3 Should the debtor refuse to pay said additional twenty percent (20%) despite earnest
efforts from the AGENCY to collect said additional amount, the CLIENT undertakes
to pay the AGENCY the collection fee due thereon.

2.4 The collection referred to in this Contract does not only refer to cash collections,
whether paid to the AGENCY or directly to the CLIENT, but shall also include
payments in kind and/or services rendered, or offsetting of accounts payable by the
CLIENT to the debtor concerned as against the accounts receivable from the latter;

2.5 If payment is offered in the form of personal and/or real properties, the same shall be
communicated to the CLIENT together with the corresponding market value of the
property. Acceptance of the offer of payment through the aforementioned property
and the valuation of the same shall be subject to the approval of the CLIENT. Said
acceptance by the CLIENT of such offer of payment in the form of property, or
dacion en pago shall be deemed conclusive with respect to both the mode of
collection and the value of the property. Said value of the property shall be the sole
and exclusive basis for computing the collection fee due thereon.

2.6 The AGENCY shall submit to the CLIENT a Statement of Account for all of the
collection fees due every end of the month, listing all accounts collected during the
month, paid either directly to the CLIENT or through the AGENCY. The CLIENT
shall pay the AGENCY said collection fees, as indicated in the Statement of Account,
within ten (10) days from receipt of the same. The AGENCY shall have the absolute
right to withhold remittance or delivery of any collection and/or to automatically
apply the same as payment for sums due to it, without incurring any civil or criminal
liability therefore, should the CLIENT unjustly fail and/or refuse to settle any unpaid
billing or statement of account.
 SECTION 3. DURATION OF THE CONTRACT

3.1 This Contract shall be for a term of one (1) year, beginning from the date of signing
hereof, and shall be automatically renewed from year to year unless terminated by
either party upon written notice by one to the other thirty (30) days prior to the
expiration of the Contract;

3.2 This Contract may be pre-terminated by either party due to violation of any provision
hereof or for any reason provided by law for rescission of contracts, provided that a
written notice of the intention to terminate is given by the terminating party to the
other thirty (30) days prior to the date of the intended termination.

SECTION 4. PERFORMANCE BOND.

4.1. On the first year of the Agreement’s effectivity and every year thereafter upon
renewal, the Agency shall post a performance bond equal to the Presumed Annual
Collection Amount. The formula for determining the “Presumed Annual
Collection Amount” shall be the collectible amount endorsed to the Agency for
the 90-day period, as mentioned under Par. 1.10 hereof, multiplied by four (4).
The performance bond shall come from reputable insurance companies, as certified
by the Insurance Commission;

SECTION 5. MEDIATION / ARBITRATION / VENUE OF ACTIONS.

5.1.Any dispute, controversy or claim arising out of this agreement, or a breach thereof, shall
first be referred to a single arbitrator, preferably from the list of active Voluntary
Arbitrators of the National Conciliation and Mediation Board–DOLE, to be agreed upon
by both parties. It is hereby expressly stipulated that it shall be a condition precedent to
any right of action or suit upon this agreement that the award of such arbitrator shall first
be obtained;

5.2.The exclusive venue for any legal action arising from the agreement shall be in the proper
courts of Bacoor City. In such event, the party at fault shall pay the innocent party, in
addition to its claims, an amount equivalent to twenty-five percent (25%) of such claims
but in no case less than TWENTY THOUSAND PESOS (P20,000.00) to cover for
expenses for attorney’s fees and other costs of litigation;

5.3.In the event that any party violates any provision of this agreement, the erring party shall
pay liquidated damages in an amount equivalent to ONE-TENTH OF ONE PERCENT
(0.10%) of its previous month’s total billing for each calendar day of violation until the
breach is remedied. No liquidated damages shall be charged when the breach is due to
force majeure.

IN WITNESS WHEREOF, the parties hereby affixed their signatures this ___ day of July, 2019 at
Bacoor City.

CLIENT: AGENCY:

VERDANA HOMES HOMEOWNER’S ACCOUNT HANDLERS, INC.

ASSOCIATION INC.

by: GALILEO JUNE DESTURA by: ARTHUR P. MARQUEZ

SIGNED IN THE PRESENCE OF:

 _________________________ _________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES ) s.s.

IMUS CITY, CAVITE )

BEFORE ME, a Notary Public for and in the City of _____________, Cavite this ____ day
of __________________, 2019, personally appeared:

Name Evidence of Identity/Passport No. Date/Place Issued

Galileo June Destura
Arthur P. Marquez TIN 122-287-236

identified by me through the competent evidence of identity who represented to me that the
signatures affixed on foregoing instrument or document, as well as the witnesses thereat, was
voluntarily affixed by them for the purpose stated therein and declared to me that they executed the
foregoing instrument or document as their free and voluntary act and deed.

WITNESS my hand and seal on the date and place above written.

Doc. No.:_____;
Page No.:_____;
Book No._____;
Series of 2019.