CONSTRUCTION CONTRACT

HONHUA ENVIRONMENTAL TECHNOLOGY PHILS. INC.

KNOW ALL MEN BY THESE PRESENTS:

This Construction Contract (“Contract”), made and entered into this 25th day of
August 2020 by and between:

HONHUA ENVIRONMENTAL TECHNOLOGY PHILS. INC., a

corporation duly organized and existing under Philippine laws, with office
address at Block 11, Lot 4, Suntrust Ecotown Tanza, Cavite, represented
by its Chief Executive Officer, HUIBIN ZHENG, who is likewise duly
authorized, hereinafter referred to as the OWNER/CLIENT.

and

GEMWEALTH CONSTRUCTION & TRADING, a single propriety

business duly organized and existing under and by virtue of the laws of the
Republic of the Philippines, with principal offices at San Pedro, Sto.
Tomas Batangas, duly represented in this Contract by its Operations
Manager, MR. BERNALDO M. LINGA, hereinafter referred to as the
CONTRACTOR.

WITNESSETH:

Whereas, the Contractor has assumed to the Owners / Client the services for the Canopy
Construction (7m high) as well as the necessary and faithful performance of all works
and supervision necessary to commence and complete the application.

Whereas, after taking into consideration the Contractor’s representations as to its

expertise, the Owners have agreed to engage the services of the Contractor for the Project;

NOW, THEREFORE, the parties hereby agree to the following terms and conditions:
1.0 SCOPE OF WORK / CONTRACT PRICE

1. Site Works
a. Demolition of concrete slab for canopy footing
b. Excavation
c. Backfilling
d. Disposal of Excavated Soil/Debris
e. Grave fill
2. Concrete works
a. Pedestal Formworks
b. Concrete Reinforcements
c. GI Wire #16
d. Concrete pouring of Footing and Pedestal
3. Metal Works
a. Steel Columns
b. Roof Framing
c. Roofing

4. Additional works:
a. Guard house two wall with windows renovation
b. Second floor small room ceiling (next to male CR)
c. Windows leaks
d. Aircon hole leaks
e. CCTV installation
f. Female CR additional faucet for washing machine
g. Ground floor CR urinal installation
h. Second floor Mop washing area repair for leaks
i. Installation of downlights to lobby canopy

Contract Price shall be a lump sum amount PESOS: ONE MILLION, FIVE HUNDRED
THIRTY THOUSAND (Php 1,530,000.00) ONLY.

The CLIENT shall release to GEMWEALTH CONSTRUCTION & TRADING a 50%

down payment in the amount of PESOS: Seven Hundred Sixty-Five, Thousand (P
765,000.00) ONLY.

A. The Contractor shall diligently comply with the plan and specifications agree upon. In
addition, the Owner has the right to inform or notify the Contractor of any concern or
matter regarding construction materials, quality of work, or any deviation from plans
and specifications agreed upon, to ensure compliance with the said plans and
specifications, by giving notice thereof in writing to the contractor within a reasonable
period of time, in order to avoid further delay or damages in the correction process.
Any revisions or changes that are not included in the plan, the Owner will shoulder all
expenses on the said revisions.
 In case of any such deviations thereon, the Contractor hereby agrees to remedy or
rectify such defects without delay and additional cost on the part of the Owner.

B. The CONTRACTOR acknowledges that the OWNER shall not suffer [loss] by the
delay or failure of the CONTRACTOR to finish and complete the works called for
under this Contract within the time stipulated. The CONTRACTOR hereby expresses
covenants and agrees to pay to the Owner liquidated damages equivalent to One-
Fourth of One Percent (1/4 of 1%) of the Contract Price per calendar day of delay
until completion, delivery and acceptance of the said Works by the OWNER.

Any sum which may be payable to the OWNER for such liquidated damages may be
deducted from the amounts under retention which may be due or become due the
CONTRACTOR when any particular works called for under this Contract shall have
been finished or completed.

The obligation of the CONTRACTOR to pay damages due to unexcused delays shall
not relieve it from the obligation to complete and finish the performance of the
Works, and to secure the final certificate of inspection from the proper government
authorities.

The provision on liquidated damages notwithstanding, the OWNER, upon

certification of the PROJECT MANAGER that sufficient cause exists to justify its
action, may without prejudice to any other right or remedy and after giving the
CONTRACTOR and its sureties proper notice in writing, terminate this Contract and
take over the performance of the Works either by administration or otherwise, and to
charge against the CONTRACTOR and its sureties the excess cost occasioned
thereby.

If the Works are suspended for an unreasonable length of time, without any justifiable
cause by the CONTRACTOR, such suspension shall be taken as abandonment of the
Works, and the OWNER shall have the right to declare the CONTRACTOR in
default; and the former shall be entitled to charge against the CONTRACTOR’S, from
the amounts under retention, all forms of damages it may suffer and to hire another
CONTRACTOR to finish the Works

C. The CONTRACTOR shall provide safeguards, facilities, equipment and personnel for
the full protection and safety of the construction site and its entire premises and the
safety and protection of the general public, pursuant to the standard and/or acceptable
norms and practices in the Construction Industry and/or as may be mandated by
applicable laws, rules and regulations.

The CONTRACTOR shall be solely responsible for and shall forever hold the
OWNER free and harmless from and against any and all obligations, liabilities,
damages, losses, expenses, judgments, court costs or costs of suit, attorney's fees,
litigation expenses, demands, payments, suits, actions recoveries, decrees, executions
and claims of whatever nature, kind and description brought, commenced, instituted
and/or recovered against the CONTRACTOR and/or jointly against the OWNERS as
the co-defendants of the CONTRACTOR (a) by any and all builders, agents, servants,
laborers, employees or representatives of the CONTRACTOR and/or (b) by any and
 all injured or aggrieved persons, parties and/or entities arising from, by reason of, due
to, and/or caused by the construction of the subject residential building.

2.0 TERMS OF PAYMENT

2.1 A down payment equivalent to Fifty Percent (50%) of contract price will be
released upon signing of contract. Which the total amount released by the
Owner is Php765,000.00 as of _____________, 2020
2.2 Balance on Contract Amount equivalent to Fifty Percent (50%) will be
released 20% upon progress billing (after construction of column and beam
or before the installation of roofing / 75% work progress), 20% upon
completion of Project and 10% after sixty (60) days from Acceptance of
the OWNER of the Finished Project.

3.0 CONTRACT PERIOD

GEMWEALTH CONSTRUCTION & TRADING shall complete and turn-over the

works called for under this Agreement on the following:

Completion and Turn-over (45 Working Days upon DP)

In the preparation of this formal contract documents, the Contractor has already started and
undertake the necessary preparation of the Project. Kindly confirm your acceptance by
signing on the space provided for below and on every pages hereof.

IN WITNESS WHEREOF, the PARTIES have hereunto affixed their signatures

this ____________day of __________ 2020, in Tanza, Cavite Philippines.

HONHUA ENVIRONMENTAL GEMWEALTH

TECHNOLOGY PHILS. INC CONSTRUCTION &TRADING

By: By:
MR. HUIBIN ZHENG MR.BERNALDO M. LINGA

Chief Executive Officer Operation Manager

SIGNED IN THE PRESENCE OF:

__________________________ __________________________

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPINES

TANZA, CAVITE

Before me, a Notary Public duly authorized in the city named above, personally
appeared:

NAME COMPETENT DATE/PLACE ISSUED

EVIDENCE OF
IDENTITY
March 14, 2019/ Consulate
General of P.R. China in
MR. HUIBIN ZHENG Passport No. EF1581094 Cebu
MR. BERNALDO M. LINGA

who are personally known to me to be the same persons described in the foregoing
instrument, who acknowledged before me that their respective signatures on the
instrument were voluntarily affixed by them for the purposes stated therein, and who
declared to me that they have executed the instrument as their free and voluntary act and
deed and that of the corporations they represent.

This document consisting of five (5) pages including this page whereon the
Acknowledgment is written refers to a Construction Contract signed by the parties.

IN WITNESS WHEREOF, I have hereunto set my hand and seal this _______ day of
_______________, 2020.

Doc. No. _____

Page No. _____
Book No. _____
Series of 2020 .