MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement is executed by and between:

HARVY KAY BONGAT TOCYAPAO, of legal age, Filipino, and a resident of

Bulanao, Tabuk city, Kalnga, herein referred to as FIRST PARTY;

-and-

BRANDY BONGAT GILFILAN, of legal age, Filipino, and a resident of Bulanao,

Tabuk city, Kalinga, and DIOMEDES LACADEN SAMONTE, of legal age, Filipino, and a
resident of San Geronimo, Bagabag, Nueva Vizcaya, herein referred to as SECOND PARTY.

WITNESSETH: That,

WHEREAS, the FIRST PARTY is the Contractor for a project by DPWH described as
follows:

“Project ID: 22pk0068;

Project Description: Construction/Rehabilitation of Water Supply Septage and
Sewerage/Rain Water Collector System – Water Supply Construction of Water System, Barangay
Community Waterworks in Olata, Barangay Mabilong, Lubuagan, Kalinga;
Project Location: LUBUAGAN, KALINGA.”

WHEREAS, by virtue of agreement between parties hereto, the SECOND PARTY shall
be a Subcontractor for FIRST PARTY whose obligation is to render some work for the latter, as
particularly described below.

NOW, THEREFORE, for and in consideration of the foregoing premises and terms and
conditions herein set forth, the parties hereby agree and bind as follows:

Section 1: SECOND PARTY has the obligation to perform the following work:

1. To drill a “deepwell” with a depth of 150 meters on the location of the above-described
project, regardless of whether water may be collected from the “deepwell” at such depth;

2. To carry out the task in the previous paragraph, SECOND PARTY shall set up a drilling
rig or equipment;

3. Thereafter, SECOND PARTY shall install the following equipment which shall be
provided by FIRST PARTY, in the order as follows:

a. Casing;
b. Submersible pump;
c. Riser pipe; and
d. Control Box

4. Finally, after installation of the equipment mentioned in the next preceding paragraph,
SECOND PARTY shall perform a Pumping Test or series of Pumping Tests within a 24-
hour period after such installation is completed;

Page 1
 5. SECOND PARTY shall perform the above-mentioned tasks using their own resources,
except those provided under paragraph 3 of this section;

6. SECOND PARTY shall perform any other act, not expressly provided herein, necessary
to carry out the above-mentioned tasks at their own expense or at the expense of FIRST
PARTY, whichever they may subsequently agree upon.

Section 2: FIRST PARTY has the obligation to pay SECOND PARTY for the latter’s
work in the manner provided as follows:

1. FIRST PARTY shall pay a total of ONE MILLION FOUR HUNDRED FIFTY
THOUSAND PESOS (Php 1,450,000) as payment for the work done by SECOND
PARTY by virtue of this agreement;

2. Thirty Percent (30%) of the above-mentioned amount shall be paid by FIRST PARTY to
SECOND PARTY before the latter mobilizes their equipment and commences the
drilling;

3. Upon the completion by SECOND PARTY of its work under Section 1, FIRST PARTY
shall pay SECOND PARTY in a one-time payment the remainder of which is equivalent
to Seventy Percent (70%) of the amount mentioned in Paragraph 1 of this section.

Section 3: The parties further agree that:

1. The drilling equipment may not be removed from the drilling site until SECOND
PARTY has completed its work under Section 1;

2. Work by SECOND PARTY under Section 1 is completed when all the tasks provided
under the same section are completed, regardless of whether the Project Engineer from
DPWH inspects and approves the said work; therefore, payment by FIRST PARTY under
Paragraph 3 of Section 2 is to be made regardless of said inspection and approval.

IN WITNESS WHEREOF, the parties hereunto have affixed their respective signatures
this 22nd day of December, 2022 at Bulanao, Tabuk City, Kalinga, Philippines.

First Party: Second Party:

HARVY KAY BONGAT TOCYAPAO BRANDY BONGAT GILFILAN

ID No. (Licese No.): P03-16-000 ID No. (Licese No.): P03-91-000227
Issued By: LTO Issued By: LTO

DIOMEDES LACADEN SAMONTE

ID No. (Licese No.): B01-98-031102
Issued By: LTO

Signed in the Presence of:

ANDRES TOCYAPAO PETER A. LAM-IN

Witness Witness
ID No.: __________________ ID No.: __________________

Page 2
 Issued By: _______________ Issued By: _______________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF TABUK ) SS.

BEFORE ME, a Notary Public for and in the City of Tabuk, this 22 nd day of December
2022, personally appeared the parties, together with their instrumental witnesses, known to me
and to me known personally to be the same persons who executed the foregoing instrument and
acknowledged to me that the same are their free act and voluntary deed.

This MEMORANDUM OF AGREEMENT consists of only three (3) pages, including the
page on which this acknowledgement is written, duly signed by the concerned parties and their
instrumental witnesses and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on this 22nd day of December, 2022 at Bulanao,
Tabuk City, Kalinga, Philippines.

Doc. No. ______; ATTY. SHERBOURNE A. CALSIYAO

Page No. ______; Notary Public
Book No. ______; Roll No.: 67986/2017
Series of 2022 IBP No.: 1086682/05-30-2019
PTR No.: 0385575/04-20-2022
Purok 4, Bulanao, Tabuk city, Kalinga
Email ad: Castielcalsiyao@gmail.com

Page 3