September 25, 2019 ENGR NIÑO A. JAYME Chief Engineer, Ayala Malls Capitol Central Bacolod City, Negros Occidental Subject: Explanation Letter Dear Sir: Good day! I’m writing this letter to your good office; as the President of DRCB SQUARE CONSTRUCTION AND DEVELOPMENT CORPORATION, a contractor authorized by FAMILY HEALTH AND BEAUTY CORPORATION to construct WATSONS DRUG AND BEAUTY located in Ayala Malls Capitol Central, Gatuslao St, Bacolod City, Negros Occidental; to explain our side regarding our failure to process the application of required Occupancy Certificate of the said project. During the on – going construction, we availed the services of the certain MERTJOHN LUSTERIO LUMAHANG, to facilitate the processing of the required permits particularly the logistics given that our office was based on Manila, which is approximately 746 km from Bacolod City. Given that we already had transaction from our previous projects, we entrusted all the complete requirements, including plans and other documents that may seemed to be confidential. Along with it, we’ve already issued money amounting to approximately Php 100,000.00 for the processing itself of both projects. Mr. Lumahang was able to provide to us the set of necessary building permits for construction in which a copy was transmitted to FAMILY HEALTH AND BEAUTY CORPORATION. However, for the application of occupancy certificate, problems started to arise. We’ve closely monitored the permit applications, even resorting to require weekly update from Mr. Lumahang regarding the matter. At first, he kept on saying that our “application was already on – process and the order of payment will be issued anytime soon.” But as the end of construction approaches, Mr. Lumahang continues to decline our calls and kept on making excuses until such time that he can no longer be contacted. We tried to retrieve at least our construction documents for us to consider reapplication through another processor but to no avail. Whereas, may we request for your consideration to waive the issued notice of violation, subject to the following conditions: 1. We shall be sending this letter for your office, as your required update regarding the matter. 2. We shall be sending our own personnel, Mr. Adonis Cudia, to check the status of application of Certificate of Occupancy of both projects at the Office of Building Official (OBO), Bacolod City. 3. In case no applications were submitted at the said office, we’re considering submitting another set of application along with its requirements at the soonest possible time. 4. We shall pay the corresponding fees and other required payments within 5 days upon completion of assessment / approval of OBO. Hoping for your kind consideration regarding the matter. Thank you very much! Very truly yours, ENGR. DEMET C. BAUTISTA JR. President & COO DRCB SQUARE CONSTRUCTION & DEVELOPMENT CORPORATION CC: OBO, Permit and License Office