Chapter 5:

Social Aspect

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 Chapter 5: SOCIAL ASPECT

Social aspect pertains to the impact and benefits of the implementation of

the proposed project and establishment of the business to internal and external

parties. This chapter considered factors that are directly affected by the proposed

project.

5.1 Government

Plasseins Manufacturing Company will follow the standard implemented

by the government by paying registration clearance like taxes, permits, and

licenses for its establishment. These funds will be allocated to the government on

its expenditures and specific projects of the municipality most especially the

country. Also, it will help to the growth of the economy as it increases it Gross

Domestic Product and also the number of operating businesses in the country.

The business will also help the government in environmental aspect since

the raw materials used in the product will be dominantly plastic bottles and plastic

spoons. This results to the reduction of excess waste in the environment thus

helping the government to solve its environmental issues.

5.2 Growth of Related Industries

As the Plasseins Manufacturing Company is established, the growth of

related industries will also follow. This will increase the demand for the raw

materials needed in production including the plastic bottles, plastic spoons,

plywood, glass and clock. The business will dominantly help the junkshops,

which will be considered to be the supplier of the plastic bottles. In line with this,

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junkshops will be more motivated to collect plastic bottles thus will help to reduce

excess waste in the environment.

The manufacturers of foam, plywood and glass will also be benefited by

the business since the furniture that will be produced by the business will be

made up of foam for the sofa and glass for the decorations. As a result, the

manufactures of the said raw materials will increase their production in order to

meet the demand needed to the said product.

5.3 Customer

The establishment of Plasseins Manufacturing Company will bring beauty

in every household of the consumer by providing an environmental-friendly

furniture and decorations at affordable price that will surely corresponds to the

budget of the consumers. The furniture and decorations are surely long lasting

and durable.

The product will be available at Expo, Maysan, Valenzuela City where

most household usually buy their furniture and decorations.

5.4 Employment

The Plasseins Manufacturing Company will provide job opportunities by

hiring qualified workers along Valenzuela City. The business will provide

appropriate amount of salary, benefits and bonus in accordance to Labor Code of

the Philippines that will surely leads to the development of their standard of living.

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5.5 Community

The advocate of the business, which is the reduction of excess waste in

the environment, will surely contribute for the improvement of the community. It

aims to promote the environmental effect of recycling plastic through producing

furniture and decorations that are dominantly made up of recycled plastic bottles.

The partnership also aims for the cleanliness of the community through

community service program and recycling of wastes. With this kind of activity, the

people will know how separate those wastes that are biodegradable from that of

non-biodegradable. The business will also promote the other effect of recycling

plastics through seminar by educating people in the community that recycling

plastic can be an alternative source income.

The business is not just aiming for its growth but also the welfare of the

society as a whole.

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 Chapter 6
Environmental Aspect

195
 Chapter 6: ENVIRONMENTAL ASPECT

This part of study considers both human and environmental health

factors. In this way, environmental orderings, norms and regulations, and

effective measures used in a place must be taken into consideration for

protection and preservation of resources.

6.1 Clean Air

The Philippine Clean Air Act of 1999 or RA 8749 fully emphasized its

principle in providing a quality and harmonious environment. In its Declaration of

Principles, it states that, The State shall protect and advance the right of the

people to a balanced and healthful ecology in accord with the rhythm and

harmony of nature. It shall promote and protect the global environment to attain

sustainable development while recognizing the primary responsibility of local

government units to deal with environmental problems. It recognizes that the

responsibility of cleaning the habitat and environment is primarily area-based and

recognizes the principle that polluters must pay. Finally, the State recognizes

that a clean and healthy environment is for the good of all and should, therefore,

be the concern of all.

This law addressed and pursues to have a balance development and

environmental protection within its jurisdiction. The following are the policies to

serve as guidance in attaining such:

Focus primarily on pollution prevention rather than on control and

provide for a comprehensive management program for air pollution;

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 Encourage cooperation and self-regulation among citizens and

industries through the application of market-based instruments;

Promote public information and education and to encourage the

participation of an informed and active public in air quality planning

and monitoring.

In support of the implementation of the Clean Air Act of 1999 and in

support of DENRs continuing campaign to improve air quality in Metro Manila,

the city mayor of Valenzuela, who was known advocate of sustainable clean

energy, agreed on the installation of the fully-automated Ambient Air Quality

Monitoring Station (AQMS). The purpose of this station is to collect real-time air

quality data in the Northern part of Metro Manila. The equipment is capable of

measuring in real time air pollutants and as well as measuring meteorological

data, such as, wind speed and direction, with the data to become available

online. Air pollution data that the station will collect will be used by DENR and

other concerned agencies as the basis for planning and drafting air quality

management programs and policies.

Relevance and Applicability to the Business

The following are the practices advocated by the company as they

decided to implement efficient actions and programs for the betterment of the

environment, the law, the community, and the company:

The partners should attend seminars and other programs conducted by

the government or any other branch of the government related to this act.

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 Completing the necessary permits and clearances required by local

government in providing clean air programs.

Proper installation of ventilation and air sheds in the working facility, in

order to have a better flow and circulation of air.

Proper handling and regular maintenance of equipment and vehicles

The delivery truck should comply with proper amount of smoke produces.

Raise the awareness about this act by including it in the training of the

employees.

6.2 Noise Management

Presidential Decree No. 1152 also known as Philippine Environment

Code Chapter 2 (Section 5&6) refers to community noise standard. It states that

appropriate standards for community noise levels shall be established

considering, among others, location, zoning and land use classification.

Furthermore, there is an established standard for noise producing equipment

such as construction equipment, transportation equipment, stationary engines,

and electrical or electronic equipment and such similar equipment or

contrivances. The standards shall set a limit on the acceptable level of noise

emitted from given equipment for the protection of public health and welfare,

considering among others, the magnitude and condition of use, the degree of

noise reduction achievable through the application of best available technology

and the cost of compliance.

Relevance and Applicability to the Business

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 a. The business uses more of man-power than machine. One of the reasons

is to ensure compliance with the noise standard of the government.

b. The business purchase equipment that has high quality, although may be

expensive, to ensure that it will meet the established limitation on the

acceptable level of noise emitted from the equipment to avoid future

disturbance to the residents along the area.

c. The partners guarantee that the equipment has undergone proper testing

before its installation to avoid problems to the production in the future thus

preventing unnecessary noise coming from it.

d. The supervisor of the production will routinely check the machine to

ensure that it functions properly to avoid unnecessary machine breakdown

that may create excessive noise.

6.3 Energy Saving Practices

The Energy Efficiency Program promulgated by the Department of Energy,

in which, energy efficiency can reduce energy demand, lessen the environmental

stress due to energy production and use, and will lead to competitive yet

affordable production costs of goods and services. Improvement in energy use in

major energy-consuming sectors would result in the deferment or the need for

new power generation facilities, and eventually reduce greenhouse gas

emissions and other pollutants resulting from energy production and utilization.

The energy efficiency program is focused on the major energy-intensive sectors.

The major users of electricity are industrial sector (29.12%), residential (28.6%),

and commercial (21%) while losses are at 15.2%. For the oil-consuming sectors,

the biggest is power (37%), industrial (23%), and transport (13%).

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Relevance and Applicability to the Business

The business shall limit its energy consumption through maximizing the

machine usage thereby producing more products, while reducing the

machine hours usage during idle time.

The supervisor shall ensure that at the end of the day, all socket not

needed when the store and warehouse is closed is unplugged.

The use of energy-saving lighting options like daylighting through skylights

and clerestories, high-efficiency fluorescent fixtures and bulbs, and the

new LED tube lighting.

Reviewing periodic usage of energy.

Installing energy-saving improvements by the utilities provider.

The business will keep the employees informed about energy-efficiency

goals and progress, and recognized them for their role in supporting these

initiatives. Above all, we will encourage them to share their ideas about

how the facility can be more efficient.

6.4 Ecological Waste Management

Republic Act 9003 which refers to Ecological Waste Management Act of

2000, aims to protect the public health and environment by setting guidelines on

proper segregation, collection, transport, storage, treatment and disposal of solid

waste by utilizing the valuable resources available in making implementing these

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rules. The said law enumerates the details necessary in every specific situation

on how things should be done in its accordance.

Pertaining to Republic Act 9003 under Article 2 Segregation of Wastes, it

shows section 22 which states that:

Section 22. Requirements for the Segregation and Storage of Solid

Waste - The following shall be the minimum standards and requirements

for segregation and storage of solid waste pending collection:

(a) There shall be a separate container for each type of waste from

all sources: Provided, That in the case of bulky waste, it will suffice

that the same be collected and placed in a separate designated

area; and

(b) The solid waste container depending on its use shall be properly

marked or identified for on-site collection as "compostable", "non-

recyclable", "recyclable" or "special waste", or any other

classification as may be determined by the Commission.

Relevance and Applicability to the Business:

a. The business will provide trash bins inside the manufacturing plant to

segregate waste coming from the product. It will be properly labeled and

organized to distinguish which waste will still be recyclable. Moreover,

these trash bins will be put away from other materials for hygiene

purposes.

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 b. Recycling is one of the advocate of the business since most of the

materials use to produce the product are dominantly recycled plastics.

This will result to a lesser cost for the production thus maintaining

corporate social responsibility as provided further in this act.

c. The excess trimmed plastics coming from the production will be gathered

and will have it sold to another manufacturing company in order to

produce another plastic. These excess will undergone another process,

called Injection Mold, shredded plastic is melted in the injection molding

machine and then injected into the mold, where it cools and solidifies into

the final part.

d. The business will not dump any waste matters in undesignated places

provided by this act

e. The business will not use any non-environmental friendly packaging

materials.

6.5 Environmental Policy

Presidential Decree No. 1151 or the Philippine Environmental

Policy refers to a continuing policy of the State (a) to create, develop, maintain

and improve conditions under which man and nature can thrive in productive and

enjoyable harmony with each other, (b) to fulfill the social, economic and other

requirements of present and future generations of Filipinos, and (c) to insure the

attainment of an environmental quality that is conducive to a life of dignity and

well-being.

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 In line with this, the Government took the responsibility upon itself, in

cooperation with concerned private organizations and entities, to use all

practicable means which are consistent with other essential considerations of

national policy to promote the general welfare to the end that the Nation may:

(a) recognize, discharge and fulfill the responsibilities of each generation as

trustee and guardian of the environment for succeeding generations;

(b) assure the people of a safe, decent, healthful, productive and aesthetic

environment;
(c) encourage the widest exploitation of the environment without degrading it,

or endangering human life, health and safety or creating conditions

adverse to agriculture, commerce and industry;

(d) preserve important historic and cultural aspects of the Philippine heritage;
(e) attain a rational and orderly balance between population and resource

use; and
(f) improve the utilization of renewable and non-renewable sources

Through this policy, the Government also recognized the right of the people to

a healthy environment and explicitly stated that it shall be the duty and

responsibility of each individual to contribute to the preservation and

enhancement of the Philippine environment. This policy also required that all

agencies and instrumentalities of the national government, including government-

owned or controlled corporations, as well as private corporation firms and entities

shall prepare, file and include in every action, project or undertaking which

significantly affects the quality of the environment a detailed environmental

impact statements. These statements shall include among others the proposed

action, project or undertakings environmental impact and any alternative

available for the proposed action.

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Relevance and Applicability to the Business

The partnership being a subject and an instrument of the law shall ensure

utmost compliance to the Philippine environmental policy by undertaking the

following steps:

a. The business shall engage in and support community-based and other

activities which promote the preservation and care of the environment

such as tree planting activities, waterways and general clean up drives

and information dissemination campaigns aimed to inculcate to the

community the importance of proper waste segregation among others;

b. The business shall engage in effective waste management activities to

ensure that no harmful substances shall be released in the

environment. Emphasis shall be given to the handling of spray paint

and the proper segregation of waste produced by the business;

c. The business shall be using environment friendly materials such as

recycled paper boxes and paper bags for its packaging instead of

plastic or organic polymers to minimize the release of non-

biodegradable materials in the environment which leads to the clogging

of waterways and pollution;

d. The business shall not transact with and patronize any business,

organization and entity which are known to engage in practices that is

harmful to the environment and in contradiction to the promotion of the

general welfare as provided in the PD No. 1151;

e. The business shall ensure that its recycled plastic bottles are well

cleaned and free from any harm before used it in the production

process. The business shall also exert influence to its suppliers to

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 ensure that there is ample supply of such resources and that such

supply is made possible by sustainable and not harmful means.

Code of Sanitation

This section applies from the Presidential Decree No. 856 also known as

the Code of Sanitation of the Philippines.

Section 47 enumerates the responsibility of the employer and the

employee. These are as follows:

(a) Employer responsibility

1. Provide, install and maintain in good repair all control measures

and protective equipment;

2. Inform affected employees regarding the nature of the hazards

and the reasons for, and methods of control measures and

protective equipment;

3. Make periodical testing of the hearing of all employees in noisy

areas of operation;

4. Adopt measures so that the noise produced is within allowable

limits so as not to affect neighboring offices, buildings or

establishments;

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 5. Request the Department a permit for variation from the

requirements when other means of equivalent protection are

provided; and

6. Provide personal protective equipment and/or protective barriers

when they are necessary.

(b) Employee responsibility

1. Observe strictly protective control measures which are

prescribed; and

2. Use equipment provided them properly.

Under Section 48, the provisions pertaining to the protection of the health of

workers applicable to all industrial establishments are as follows:

In controlling atmospheric contaminants, workers shall not be

exposed to these contaminants which are hazardous to health. It shall be

the duty of the business to control these atmospheric contaminants

accomplished by methods approved by the Secretary or his duly

authorized representatives or other government authority.

Adequate lighting is also provided and distributed in all work areas

in amount required for the type of work or seeing tasks measured by a

light-meter with a minimum of glare and contrasting intensities between

work and workroom.

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 Natural or artificial ventilation is provided in all work areas at a rate

to insure a safe and healthful working atmosphere, free from injurious

amounts of toxic materials and reasonably free from offensive odors and

dust throughout the establishment. Proper control measures shall be used

to reduce concentration of toxic contaminants to allowable limits.

Controlling noise shall be provided to reduce intensity of noise

sufficiently to render it harmless to workers and to eliminate it at its source

as a nuisance by following the recommendations of the local health or

other government authority.

Relevance and Applicability to the Business

a. There will be proper orientation that will be provided for the employees

of the company regarding the management of the chemicals and

safety measures for dealing with these.

b. Proper waste disposal will be implemented to avoid any disease to

occur.

c. The business owns machines that do not produce too much noise. As

much as possible, any artificial noise shall be reduced or prevented.

d. Suitable lighting is available in each section inside the premises. This

is to ensure that the workers could work comfortably inside the

building.

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 e. Ventilation fans will be located in the rooms to reduce the heat inside.

This will also be used to provide a fresh air needed by the people

inside the property. The toxic gasses that are produced by the lye will

also be neutralized by passing through these ventilations.

6.6 City Ordinances

In Valenzuela, there is still a future in plastics. According to the 2002 Metro

Manila Solid Waste Management Report of the Asian Development Bank (ADB),

Valenzuela has the highest number of identified recycling companies in the

region. It was also said that recycling centers related to plastic materials are

relatively higher than other recyclable objects like metals, paper, and glass

among others.

Waste Management

To prevent plastic from clogging the citys drains, Valenzuela Citys Waste

Management Office (WMO) dispatches dump trucks twice a day to collect

garbage.

WMO head, Marietta Antonio, said the local government regularly holds

awareness campaigns to educate the public about recycling and proper waste

disposal. The information drive, she said, is particularly focused on encouraging

residents to collect recyclable waste and sell it to junk shops and recycling

plants. Antonio said there are currently 250 junk shops and over 90 recycling

plants located in the city

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 The city government funded the repair of 29 garbage trucks and purchase

of another 20 trucks that may increase the capacity of Waste Management Office

to do full rounds of garbage every week.

Bantay Ilog Task Force

The City Government of Valenzuela has recently created a task force that

will apprehend polluters of rivers and creeks in the city. As provided in the

Ordinance No. 133, Series of 2014 passed by the City Council, the Bantay Ilog

will enforce all local ordinances and national laws on the protection of rivers and

other waterway. The new deputized law enforcement group responsibilities cover

only laws on the protection of bodies of water and apprehending those who dump

wastes in waterways.
The Bantay Ilog will also inspect establishments in the city that are

suspects of violating relevant environmental laws. If found guilty, a business

owner would pay P1,000 for the first offense, P7,000 for the second offense and

P10,000 for the third and succeeding offenses.

Relevance and Applicability to the Business

Separating and capturing recyclable and waste materials by putting some

recycling bins in the best locations that will accommodate this collection

process.

Collection and proper disposal of waste materials

Follow the residential garbage collection hour

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Appendices

210
 Articles of Partnership
Of
Plasseins Recycled Furniture and Home Decors Partnership

KNOW ALL MEN BY THESE PRESENTS:

That, we the undersigned, all of legal age and residents of the Republic of

the Philippines have agreed to amend a general partnership under the terms and

conditions herein after set forth and subject to the provisions of existing laws of

the Republic of the Philippines.

AND WE HEREBY CERTIFY:

ARTICLE I
That the name of the partnership shall be PLASSEINS Recycled Furniture and

Home Decors

ARTICLE II
That the principal office of the Partnership shall be located at Expo Commercial

Center Cabral St, Valenzuela, Metro Manila

ARTICLE III
That the names, citizenship and residence of the partners of the said partnership

are as follows:

Name Citizenship Residence

Mark Oliver S. Bituin Filipino 278 Narra Streeet 8th Avenue

Caloocan City
Johanna Mari D. Cruz Filipino 44 M. Jose St. Tangos, Navotas
Maricar R. Santos Filipino 15 C. Katarungan St. Muzon, Malabon

City.

Christine Grace Q. Vinas Filipino 711 Diego Compound Pasolo

Valenzuela City
John Paulo F. Cortez Filipino 129 A. Palon Street Caloocan City

ARTICLE IV

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That the term for which said partnership is to exist is 10 years from the original

recording of the said partnership by the Securities and Exchange Commission

ARTICLE V
That the purposes for which said partnership is formed are as follows:

1. To support an environmentally-concerned society, by offering eco-friendly

products.
2. To promote a profitable and sustainable business activity that satisfies the

needs of its customers.

3. To provide excellent and outstanding customer services, to increase its

market share and to gain competitive edge.

ARTICLE VI
That the capital of this partnership shall be One million Seven Hundred Fifty

Thousand Pesos, Philippine Currency contributed in cash by the partners as

follws:
Name Amount Contributed
Mark Oliver S. Bituin. P350,000
Johanna Mari D. Cruz 350,000
Maricar R. Santos 350,000
Christine Grace Q. Vinas. 350,000
John Paulo F. Cortez 350,000
Total P1,750,000

Each partner is allowed to withdraw up to P250, 000 annual.

ARTICLE VII
The profits and losses are shared equally.

ARTICLE VIII
That the firm shall be under the management of General Manager and as such

he shall have charge of the management of the affairs of the partnership.

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 ARTICLE IX
That the partners manifest their willingness to change their partnership name in

the event another person, firm, or entity has acquired a prior right to use the said

firm name or one deceptively of confusingly similar to it.

IN WITNESS WHEREOF, we have hereunto set our hands this 3 rd day of March

2017 at University of the East, Caloocan City, Philippines.

___________________ _______________
TIN _______________ TIN ___________

Singed in the presence of:

_____________________ ________________________
ACKNOWLEDGEMENT

Republic of the Philippines}

S.S.}
BEFORE ME, a Notary Public for and in ______________________

Philippines, this _____________ of _________, personally came and appeared

the following persons with their Community Tax Certificates as follows:

Name CTC. # Date/Place Issued

________________ _________ _______________________
________________ _________ _______________________

Known to me and to me known to be the same persons who executed the

Foregoing Articles of Partnership, and they acknowledged to me that the same is

their voluntary act and deed.

WITNESS MY HAND AND SEAL on the date first above written.

213
 CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE made and entered into by and between:

CARL ANGELO QUINTO, of legal age, Filipino, single, and a resident of

Valenzuela City, Philippines, (hereinafter referred to as the "LESSOR"

- and -

PLASSEINS Co., a general partnership duly organized and existing

under and by virtue of the laws of the Republic of the Philippines, with
principal office at Expo Commercial Center, Maysan Road, Valenzuela
City and represented in this act by its General Manager, CHRISTINE

214
 GRACE VINAS, (hereinafter referred to as the "LESSEE");

WITNESSETH; that

WHEREAS, the LESSOR is the registered and absolute owner of concrete

and commercial building with an area of approximately 400 square meters
situated at Expo Commercial Center, Maysan Road, Valenzuela City, Philippines;

WHEREAS, the LESSEE has formally intended to lease the afore-

described property.

THEREFORE, for and in consideration of the foregoing premises and the

covenants hereinafter stipulated, the parties hereby agree as follows:

ARTICLE I: PROPERTIES FOR LEASE

1. The LESSOR hereby conveys by way of LEASE in favor of the LESSEE the
afore-stated properties (hereinafter referred to as the Leased Properties)
specifically described as follows: A commercial building with an area of 400
square meters more or less located along Expo Commercial Center, Maysan
Road, Valenzuela City, Philippines.

2. Inspection; No Warranty. - The LESSOR leases the Leased Properties to the

LESSEE on an "as is, where is" basis. The LESSEE hereby declares that it
has inspected the Leased Properties prior to the execution of this Lease
Agreement, and acknowledges that it is fully satisfied with the conditions
thereof. The LESSOR makes no warranty as to the condition, operational or
structural capability, or as to any hidden defects of the Property which the
LESSEE warrants to know by virtue of the LESSEE's duty to inspect.

3. Condition Precedent. - It is a condition precedent for the effectivity of this

Lease Agreement that the LESSEE submits to the LESSOR a copy of its
Articles of Partnership including a Management Resolution specifically
authorizing the partnership and the person representing the same in this

215
 instance to enter into this lease agreement with the LESSOR under the
terms and conditions contained herein.

ARTICLE II: CONSIDERATION

1. Rental Payment- Annually, within the first (1) week of the month of January, the
LESSEE shall pay the LESSOR the total monthly rent for the next twelve (12)
months of Forty Thousand Pesos (P40, 000.00) a month for a total annual
payment of Four Hundred Eighty Thousand Pesos (P480, 000.00).

2. Security Deposit. - Within the first (1) day of the month of May of the year
2017, the LESSEE shall remit to the LESSOR an amount equivalent to three
(3) month's rent or One Hundred Twenty Thousand Pesos (P120, 000.00) to
serve as security deposit for any unpaid utility bills such as electricity, water,
telephone, sanitation, sewerage and others, and to answer for any damages
which the Leased Properties may suffer as well as to cover any unpaid
monthly rent; interests or penalties. This amount is refundable to the
LESSEE free of any interest thirty (30) days after the termination of this Lease
Agreement subject to deduction for whatever utility bills and monthly rentals,
interests, penalties that have remained unpaid and damages that may have
been incurred, provided, that the LESSEE shall still be liable for any and all
bills, rentals, interests, penalties and damages that may exceed this security
deposit. The LESSEE shall not be allowed to offset or use its security deposit
as its monthly rental payment.

ARTICLE III: TERM OF LEASE

1. Term. - Unless earlier terminated for reasons specified herein, the term of this
Lease Agreement shall be for 10 (Ten) years to start on May 1, 2016 and end
at noontime on April 30, 2026 renewable upon mutual agreement of the
parties.

ARTICLE IV: PURPOSE OF THE LEASE

1. Use of the Leased Properties. - The LESSEE shall use the Leased Properties
strictly and exclusively as the main office of its business and production and

216
 storage facilities. If the Leased Properties are used for other purposes, the
LESSOR has the choice to:
i. Rescind the Lease Agreement; or
ii. Increase the rent; or
iii. Compel the LESSEE to stop the new activities.

In no case shall the Leased Properties be used for immoral or illicit

purposes and illegal acts or purposes.

ARTICLE V: DEFAULT
1. Interest Payment. - In the event the LESSEE fails to pay its annual rent within
the first (1) week of the month of January, the LESSOR shall charge interest
on the total monthly rent at the rate of five (5%) percent per month, which
shall be compounded monthly until full payment is made.

ARTICLE VI: CANCELLATION

1. Grounds for Cancellation. - The LESSOR may cancel or terminate this Lease
Agreement, upon the happening of any of the following events:

1.1. The LESSEE fails to pay its monthly rent when the same falls due.
1.2. The LESSEE uses the Leased Properties for purposes other than those
specified herein, without prejudice to the options available to LESSOR
under Section 1, Article IV hereof.
1.3. The LESSEE violates any of the other terms and conditions of this Lease
Agreement or fails to get the necessary permits from the national and/or
local government units / agencies.

ARTICLE VII MISCELLANEOUS

1. Insurance. It is upon the discretion of the LESSEE if he shall obtain
insurance coverage for the Leased Properties, against all insurable risks
applicable from a duly accredited and reputable insurance company in an
amount equal to the maximum insurable value of the Leased Properties. In
such case, the LESSOR shall be the Beneficiary of the required Insurance. In
case of complete loss or damage to the Leased Properties, and/or the

217
 improvements therein, during the term of this lease, the LESSOR shall have
the option to reconstruct or restore the lost or damaged Leased
Properties, and/or the improvements therein, to their original condition or to
consider this lease automatically terminated. In case of damage in part, rental
shall be reduced in proportion to the remaining tenantable or useable area.

2. Utilities. - All expenses for water, electricity, telephone, sanitation, sewerage,

gas and other public utility services shall be for the account of the LESSEE.
The cost of installation of utilities within the Leased Properties, such as
water and electricity, shall be for the account of the LESSEE; provided that
any installation shall be under the control and supervision of the
LESSOR and the latter has the right to indicate where the meter connections
shall be placed.

3. Improvements. - The LESSEE shall not make any structural changes,

alterations, additions or improvements on the Leased Properties without the
prior written consent of the LESSOR. Any alterations or improvements made
or introduced by the LESSEE on the Leased Properties with the written
consent of the LESSOR shall, upon the termination of this Lease Agreement,
automatically be owned by the LESSOR without any obligation on the part of
the LESSOR to pay or refund its value or cost to the LESSEE.

4. Signs and Advertisements. - Subject to prior written consent of the LESSOR,

the LESSEE may install, erect or affix upon the Leased Properties, signs or
advertisements as may be necessary to promote and/or advertise the
business in which it is engaged in. In requesting the approval of the LESSOR,
the LESSEE should submit a description and the specification of its proposed
sign or advertisement.

5. Care of Leased Properties. - The LESSEE shall, at its own expense, maintain
the Leased Properties in a clean and sanitary condition free from noxious
odors, disturbing noises or other nuisances. The LESSEE, its employees,
agents or representatives shall not in any manner damage or deface any part

218
 of the Leased Properties. The LESSEE shall comply with any and all
reasonable rules and safety regulations which may be promulgated from time
to time by the LESSOR, together with all the rules, regulations, ordinances or
laws made by the duly constituted authorities; either by the National or City
government or any of its agencies and instrumentalities, arising from or
regarding the use, occupancy and sanitation of the Leased Properties.

6. General Maintenance, Sanitation, Repairs and Safety - The cost of general

maintenance and upkeep of the Leased Properties shall be for the account of
the LESSEE. The LESSEE shall keep the Leased Properties in a clean,
safe and sanitary condition and introduce all the needed repairs at all times.
The LESSEE shall dispose all its garbage, waste, and other pollutants in
accordance with the rules promulgated by the national or local government.
All major repairs resulting from damages not attributable to the LESSEE's
negligence shall be for the account of the LESSOR.

In case of damage to the Leased Properties or its appurtenances by fire,

earthquake, volcanic eruption, war or any unforeseen cause, the LESSEE
shall give notice to the LESSOR within a reasonable time. In the event that
the LESSEE through its own fault or negligence or that of its employees,
agents or representatives, damages the Leased Properties, and the LESSEE
fails to repair the damage within a reasonable time, then the LESSEE shall be
liable to the LESSOR for liquidated damages in an amount equivalent to six
months rent without prejudice to such other amounts as may be due the
LESSOR under this Lease Agreement and/or the law.

7. Fire Hazard and Obnoxious Substances. - The LESSEE shall not introduce,
keep, deposit or store in the Leased Properties any obnoxious substance or
inflammable material or substance not reasonably connected with the herein
stated purpose of the lease which might constitute a fire hazard, without the
prior written consent of the LESSOR. The LESSEE shall also not install within
the Leased Properties any apparatus, machinery or equipment which may
cause obnoxious tremors or noises nor store newspapers, cartons, wood, or

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 other articles of light nature which may expose the Leased Properties to fire
or increase the fire hazard of the Leased Properties or change its insurance
rate.

8. Inspection of Premises. - The LESSOR reserves the right to enter and inspect
the Leased Properties at reasonable times during business hours and with
prior notice. The LESSEE agrees to cooperate with the LESSOR in keeping
the Leased Properties in good and tenantable condition.

9. Assignment. - The LESSOR reserves the right to assign, transfer or encumber

any of its rights and interests under this Lease Agreement to any entity
without the need of obtaining the consent of the LESSEE except to notify the
latter of the same. In the event of such transfer, assignment or encumbrance,
the rights and interest of the LESSEE under this Lease Agreement shall be
respected and observed in its entirety by such assignee, transferee or
mortgagee, and for the entire term hereof unless otherwise mutually agreed
upon by the parties including the LESSEE.

10. Return of Premises. - Upon the termination of this Lease Agreement for any
reason whatsoever, the LESSEE shall peacefully and immediately vacate the
Leased Properties and return possession thereof to the LESSOR in good
and tenantable condition, devoid of all occupants, equipment and effects of
any kind. Failure of the LESSEE to return the Leased Properties as provided
herein shall make it liable to pay liquidated damages to the LESSOR without
prejudice to such amounts as may be due the LESSOR and/or such other
remedies available to the LESSOR under this Lease Agreement and/or under
the law.

11. Right to Enter the Premises to Recover Actual Possession.- Upon the failure
of the LESSEE to comply with any of the terms and conditions of this lease or
its failure to vacate and return the premises as provided herein, the LESSOR
or his authorized representative(s) shall have the right, upon five (5) days
written notice to the LESSEE, or upon written notice posted at the entrance of

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 the Leased Properties for the same period, to enter and take possession of
the said premises, without need of resorting to any court action, holding,
taking custody and impounding such possessions and belongings of the
LESSEE found therein after conducting an inventory of the same in the
presence of witnesses, until such time that all the rentals, interests, penalties,
unpaid utility bills, damages or other amounts due to the LESSOR has been
fully settled by the LESSEE. All these acts being hereby agreed to by the
LESSEE as tantamount to his voluntary vacation of the leased premises
without necessity of suit in court and authorizing LESSOR to use all
necessary and reasonable force to break open doors and to enter the
premises and take actual possession thereof, and such entry and use of
reasonable force should not be regarded as trespass, nor be sued as such, or
in any wise be considered as unlawful.
12. Transfer of Rights. - The LESSEE shall not assign, or transfer or encumber
its rights under this lease without the prior written consent of the
LESSOR and no right, title or interest thereto or therein shall be conferred on
or vested in any other party other than the LESSEE without such written
consent.

13. Indemnity. - The LESSEE shall hold the LESSOR free and harmless from any
loss, damage, injury suffered by the LESSEE, its agents or
employees, clients, guests or customers or other third persons arising out of
the use of the Leased Properties by LESSEE, its agents, employees, clients,
guests, or customers including but not limited to, claims for property damage,
personal injury or wrongful death, or losses or damages occasioned by
reason of any event or cause which could not be foreseen, or which, though
foreseen, were inevitable such as but not limited to fire, earthquake, lightning,
typhoons, flood, volcanic eruption, robbery, theft or other crimes. In addition,
the LESSOR shall not be liable or responsible:
i. For the presence of bugs, vermin, rats, insects, or other similar creatures, if
any, in the Leased Properties:
ii. For the failure of electrical and/or water supply due to causes beyond
LESSOR's control;

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 iii. For any injury, loss or damage which the LESSEE, its agents or
employees, might sustain while in the Leased Properties due to causes
attributable to the fault of said LESSEE, employees, agents and/or
representatives, or those of its clients, guests or customers;
iv. For any damage done or occasioned by, or arising from the plumbing,
gas, water, and/or other pipes or air-conditioning system or for the
bursting, leaking or destruction of any tank, cistern, washers, and water
closets or waste pipelines in, above, upon, or about said Leased
Properties, nor for any damage arising from or attributable to acts of
negligence of the LESSEE or its agents, employees, representatives or
any and all other persons over which the LESSOR has no control.

14. Non-Waiver. - The failure of the LESSOR to insist upon a strict performance
of any of the terms, conditions and covenants hereof shall not be deemed a
relinquishment or waiver of any of the rights or remedies that the LESSOR
may have, nor shall it be construed as a waiver of any subsequent breach or
default of its terms, conditions and covenants which shall continue to be in full
force and effect. No waiver by the LESSOR of its rights under this Lease
Agreement shall be deemed to have been made unless expressed in
writing and signed by the LESSOR.

15. Amendments. - Any amendments or additional terms and conditions to this

Lease Agreement must be in writing.

16. Venue. - In case of any dispute arising in connection with this Lease
Agreement, the parties hereby agree that the venue for the settlement of the
dispute shall fall exclusively within the jurisdiction of the proper courts in the
City of Caloocan, Philippines.

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 IN WITNESS WHEREOF, the parties have set their hands and affixed
their signatures to this contract this 1 st day of May, 2017 in the City of Valenzuela,
Philippines.

PLASSEINS CO. CARL ANGELO QUINTO

Lessee Lessor

By: By:

CHRISTINE GRACE VINAS CARL ANGELO QUINTO

Absolute
Owner

SIGNED IN THE PRESENCE OF:

MARICAR SANTOS RYCEL REYNES

Certified Public Accountant Attorney-In-Fact

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 ROMYLENE LAPID
Administrative Officer IV

REPUBLIC OF THE PHILIPPINES)

City of Valenzuela) S.S
ACKNOWLEDGEMENT
BEFORE ME, a Notary Public for and in City of Valenzuela, Philippines,
this _______day of _____________, 2017, personally appeared MR. CARL
ANGELO QUINTO, exhibiting his/her ID No. XXX-XXX-XXX as competent proof
of identity, known to me and to me known to be the same person who executed
the foregoing Instrument, and he/she acknowledged to me that the same is his/
her free and voluntary act and deed.
This instrument consists of 11 pages including the page hereof whereon
this acknowledgement is written, is signed by the parties and the witnesses.
IN TESTIMONY WHEREOF, I have hereunto signed and affixed my
Notarial seal on the date and place first written above-written.
Doc. No. ____________;
Page No. ____________;
Book No. ____________;
Series of 2017.

REPUBLIC OF THE PHILIPPINES)

City of Valenzuela) S.S
ACKNOWLEDGEMENT
BEFORE ME, a Notary Public for and in City of Valenzuela, Philippines,
this ______day of _____________, 2017, personally appeared MS. CHRISTINE
GRACE VINAS, exhibiting his/her BIR T.I.N XXX-XXX-XXX as competent proof
of identity, known to me and to me known to be the same person who executed
the foregoing Instrument, and he/she acknowledged to me that the same is his/
her free and voluntary act and deed.

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 This instrument consists of 11 pages including the page hereof whereon
this Acknowledgement is written, is signed by the parties and the witnesses.
IN TESTIMONY WHEREOF, I have hereunto signed and affixed my
Notarial seal on the date and place first written above-written.
Doc. No. ____________;
Page No. ____________;
Book No. ____________;
Series of 2017.

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