AWARD NOTICE

Date: October 24, 2023

MR. ULYSSES V. BORRAL

Business Development Division Head
PHILIPPINE SEVEN CORPORATION
7th floor, The Columbia Tower,
Ortigas Avenue, Mandaluyong City

Dear Mr. Borral,

We are pleased to award to you the lease of an area of 300 square meters, located at Barangay Sto. Domingo, Nabua, Camarines Sur
subject to the following basic terms and conditions:

Trade Name of Lessee : 7-Eleven

Use of Leased Premises : For the business activity pertaining to the operation and/or franchise of 7-Eleven
Convenience Store. This refer to the retail sale of merchandise customarily sold
at grocery stores of the type commonly called supermarkets, but not limited to
groceries, produce, meat, dairy products, beer, wine, and alcoholic beverages,
petroleum products and sundries and the servicing of ticket sales systems,
automatic teller systems, and video rental and other various services emphasizing
convenience to the consumer which LESSEE may provide in the future; and also
for any lawful purpose other than those above mentioned.

Type of Lease : Building shell

Leased Premises/Site : 300 square meters (sqm) 11 meters (m) frontage (subject to actual site
measurement)

Location : Barangay Sto. Domingo, Nabua, Camarines Sur

Transfer Certificate of Title (TCT) No. 7894

Other Conditions : Tree cutting, landfilling and existing structure demolition should be shouldered
by lessor and should be delivered to LESSEE prior to date of actual turnover by
the LESSOR of the Leased Premises/Site and acceptance thereof in writing by
the LESSEE

Lease Term : Fifteen years ( 15 ) years from the date of actual turnover by the LESSOR of the
Leased Premises/Site and acceptance thereof in writing by the LESSEE,
whichever occurs later.

Renewal Term : Renewable for five ( 5 ) years upon agreement of both parties.

Rent-free Period : One Hundred Twenty (120) days from turnover by LESSOR of site and
acceptance in writing by PSC. Acceptance by PSC is subject to complete
submission of all required documents and signing of a Contract of Lease.

Basic Monthly Rent : PhP 32,000 exclusive of Value Added Tax (VAT), subject to withholding tax

Escalation : Three percent (3%)to start on the 5th Year

Advance Rent : PhP 96,0000 Equivalent to three ( 3 ) months basic rent, subject to tax

The advance rent shall be paid to Lessor upon actual turnover of the Leased
Premises/Site and acceptance in writing by the LESSEE or the signing of the
Contract of Lease by the LESSEE, whichever occurs later.

Security Deposit : PhP 96,000 equivalent to three ( 3 ) month/s basic rent.

The security deposit shall be paid upon actual turnover by the LESSOR of the
LEASED PREMISES and acceptance thereof in writing by the LESSEE or the
signing of the Contract of Lease by the LESSEE, whichever occurs later.
Utilities : New application of Water and Electric Meter.

LESSEE shall have the right to assign or sublease the whole or any part of the
Assignment and Subletting : LEASED PREMISES for the operation and/or franchise of 7-Eleven
Convenience Store and for the operation of any related business of the LESSEE,
provided that any assignment or sublease shall be subject to all the terms and
conditions of this lease and the LESSEE shall remain primarily liable for the
payment of the rent and the performance of the terms and conditions of the lease.

Termination of Lease : Upon sixty (60) days prior written notice to LESSOR, LESSEE may terminate
the Contract of Lease to be executed pursuant to this Award Notice for any

1
 reason whatsoever; aside from those already provided for under the said Contract
or for reasons attributable to a breach or default by the LESSOR of the terms and
conditions thereof, without any liability on the part of the LESSEE for any claims
or damages of any nature whatsoever. Upon termination of the lease, LESSOR
shall forfeit the deposit to the LESSEE as full compensation for the above and
shall allow the LESSEE to remove all movable improvements, trade and fixtures
installed in the LEASED PREMISES.

Signing of Contract : Parties hereby agree to finalize and execute the Contract of Lease within One
Hundred (100) days from date of signing of this Award Notice. Unless otherwise
provided in the Contract of Lease, all payments shall be released upon actual date
of turnover by the LESSOR of the Leased Premises and acceptance thereof in
writing by the LESSEE and upon of signing of the Contract of Lease by both
parties.

Binding Effect : The Parties herein expressly agree that this Award Notice shall be binding and
enforceable upon the Parties their heirs, legal representatives, successors-in-
interest and assigns from execution hereof and upon signing of the Contract of
Lease.

Breach of Award Notice : In case of default or termination by LESSOR of this Award Notice during the
effectivity thereof, the LESSEE, may seek all commercially reasonable actions
necessary to enforce its rights or seek any available remedies for breach provided
under applicable laws and to be compensated for all damages which the LESSEE
may suffer, direct or indirect, arising from, in connection with, or relating to,
such breach, including attorney’s fees and cost of suit. Further, the LESSEE shall
have the right to the return of all payments made to the LESSOR under the
Award Notice, plus five percent (5%) interest per month, until fully paid. In
addition thereto, the LESSOR agrees to pay the LESSEE liquidated damages of
THREE HUNDRED THOUSAND PESOS (PhP300,000.00) for pre-construction
cost and other related expenses incurred by the LESSEE.

If you agree to the foregoing, please sign on the space provided below to indicate your conformity and return one (1) copy to us.

Very truly yours, CONFORME:

_____________. ___________ ______________________________________

Lessor ULYSSES V. BORRAL
Business Development Head
Date: ______________________________