CONSTRUCTION AGREEMENT

THIS CONSTRUCTION AGREEMENT is made and entered into this of

at , by and between

SUBIC BAY MARINE EXPLORATORIUM INC, represented by

MR.DOMINADOR GALANG, Purchasing Manager, and ENGR. ELMER HIPOLITO,
Director for Construction and Maintenance, a corporation duly incorporated under
the laws of the Philippines with principal office address at West Ilanin Forest Area,
Camayan Wharf, Subic Bay FreePort Zone, Philippines, 2222.

And

R.G LACSON ENGINEERING SERVICES., represented herein by its

president RINEO G. LACSON, a company duly incorporated under the laws of the
Philippines with principal office address at Blk 27 Lot 11 Dahlia St. Primrose
Hills Filinvest Mahabang Parang Subd., Angono Rizal (THE CONTRACTOR).

WHEREAS:

The CONTRACTOR represents and warrants that he is in the business offering

contract service and has skill, competence, expertise, know-how and labor force
necessary and sufficient for the performance of the contract, and has offered to
start and complete the PROJECT subject to stipulations, terms, and condition herein
obtained.

NOW IT IS AGREED as follows:

1.0 DOCUMENTS. This document, together with all others documents as may be
agreed by the parties in writing to be made integral parts hereof and attached or
incorporated hereto by reference, comprise the entire contract between the parties
without prejudice to other conditions made in writing from time to time while the
WORK is still in force and effect.

1.01 The complete Plans of the Structural, Electro Mechanical, Sanitary

Plans and Specifications prepared by the office of R.G.
LACSON ENGINEERING SERVICES and approved by the Owner

1.02 The Accepted Bid of the Contractor (see attached proposal)

1.03 Contractors Work Schedule and Schedule of expected delivery period

of materials prepared by R.G. LACSON ENGINEERING SERVICES.

2.0 SCOPE OF WORKS. The CONTRACTOR shall furnish all labor, materials, tools,
equipment and supervision necessary for the PROJECT and shall ensure that all
works is performed according to the plan, specification, instructions, and conditions
of this CONTRACT. Contractor will assign a contemplated herein which have been
included in the contract price agreed upon by the parties, includes such items a
herein specified:

2.01 General Requirements (Refer to Proposal)

2.01a Mobilization, site preparation, construction of storage and

workers quarters.
2.01b Supply of all equipment for the STP and for the existing septic
tank for the additional centralized collection tank.
2.01c Civil, Electrical and Mechanical works for the STP and 5 existing
collection tank and additional centralized collection tank.
2.01d Installation of 2 units submersible pumps including duplex
controller and piping for every existing collection tank.
2.01e Automation of STP and lift station. Automatic operation of
pumping system
2.01f Painting of all exterior wall of STP concrete structure.
2.01g Safety and housekeeping.
 2.02 The CONTRACTOR guarantees that the methodology, quality,
material specification and sizes to be installed are all in accordance
with the National Building Code Standards.

3.0 CHANGE ORDERS/EXCLUDED WORKS. Any alterations or changes in the

plan, or in the scope works, or of the finished works, which may be required by the
OWNER, without any fault by the CONTRACTOR which shall results in more labor
and materials on the part of the CONTRACTOR will be subject to further
agreement.

4.0 CONTRACT PRICE AND TERMS OF PAYMENT. For and in consideration of the
terms of works herein stipulated, and performance of the contractor of all the
undertakings, obligations and responsibilities as stated in the contract documents,
owner shall pay the CONTRACTOR the total of
SIX MILLION FOUR HUNDRED THOUSAND PESOS ONLY (Php. 6,400,000.00)
Vat Exclusive

4.01 The Owner shall pay the CONTRACTOR the amount of ONE MILLION
NINE HUNDREDTWENTY THOUSAND PESOS ONLY representing
thirty percent (30 %) down payment upon signing of this contract
includes:

Mobilization.
Delivery of Materials for Civil Works.
Earthworks, Carpentry Works, Steel Works.

4.02 Balance will be payable thru Progress billing representing 65% from
contract price includes:

10% Upon completion of concrete pouring of bottom slab and first lift of R.C. wall.
10% Upon completion of second lift of R.C. wall.
10% Upon completion of third lift of R.C. wall and top slab of Equalization Tank
and Effluent holding Tank.
5% Upon completion of Blower Room structure and centralized influent holding tank.
25% After delivery of STP process Equipment and Materials for Electromechanical .
5% After installation and completion of all civil and electromechanical works.

4.03 Balance of five percent (5%) retention of the total contract cost shall
be released six (6) months after Owners Acceptance.

5.0 CONSTRUCTION PERIOD, EXTENTIONS AND LIQUIDATED DAMAGES. In

case of CONTRACTOR/SELLER delay or failure in the delivery of the PROJECT and
such delay or failure is caused by the fault/negligence of SELLER or any of its
officers, employee, agent or representatives (and is thus not attribute to force
majeure as define in this agreement or to the fault negligence of BUYER or any of
its officers, employee, agents, or representatives) seller shall pay BUYER a penalty
of ONE(1%) percent of the total amount of the contract amounting to (Php.
64,000.00) for everyday of delay without need of demand from BUYER.

6.0 CONTRACT PRICE NOT SUBJECT TO ADJUSTMENT. The contract price

agreed upon by the parties herein shall not be subject to escalation regardless of
the increase in price of fuel, devaluation, labor and others.

7.0 THE CONTRACTOR shall render fee and harmless from any all claims,
demands or suits of any kind, whatsoever, arising from the performance of the work
herein stipulated, or the failure of the CONTRATOR to comply with any of
provisions in this agreement.

All works, laborer and employees of the CONTRACTOR shall not, by reason of this
agreement be deemed or classified as having an employer-employee relationship
with the OWNER, and none of the employee of the CONTRACTOR or third parties
thereof shall have any claim or demand whatsoever for any unpaid wages and
benefits against the owner arising out of or in connection with this agreement.
The OWNER has Jurisdiction over any materials of the CONTRACTOR which are
included in their scope of works, or any materials supplied by CONRACTROR.

8.0 WARRANTY STATEMENT. The CONTRACTOR guarantees that the proposed

Sewage Treatment Plant Design shall meet the effluent quality standards set by
DENR as outlined in DENR-DAO No.35

a. OWNER shall strictly observe and ensure at all times that the flow rate is
within the specified design capacity which is 250 cu. m .per day.

b. Also guarantees installation workmanship of its job for TWO (2) years and
all process equipment for a period of also TWO (2) years from the date of
acceptance, provided that the owner shall consistently and effectively
maintain all equipment installed in accordance with the Equipment
Preventive Maintenance Manual.

c. Also guarantees the STP concrete structure for a period of twenty five (25)
years as stated in the National Building Code of the Philippines.

d. Also guarantees the system will not create unpleasant odor during
operation.

9.0 OWNER will provide temporary facilities including barracks, power and water
for the CONTRACTOR during the construction.

IN WITNESS WHEREOF, the parties hereto have entered into this agreement as the
day and year first above written.

SUBIC BAY MARINE EXPLORATORIUM INC R.G.LACSON

ENGINEERING SERVICES
(OWNER) (OWNER)

By: By:

DOMINADOR GALANG RINEO G.

LACSON
Purchasing Manager President

ELMER HIPOLITO PAULO G. MANIEBO

Director for Construction and Maintenance Sales

Director

Signed in the presence of:

ACKNOWLEDGEMENTS

REPUBLIC OF THE PHILIPPINE)

, _____________________ ) S.S.

BEFORE ME, a notary in and for

,__________________,
Philippines, personally appeared
 CTC No. Placed/Date of issued

Mr. Rineo G. Lacson

Known to me and by me known to be the same persons who executed the foregoing
instrument and they acknowledged to me that the same is their free and voluntary
act and deed and the free and voluntary act of the corporation they represent.

IN TESTIMONY WHEREOF, I have hereto set my hand and affixed my

notarial seal this
Day of 2017 at ,
____________________.

NOTARY PUBLIC

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