CONTRACT OF SERVICE

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is made and entered into by and between:

ZAK Energy Inc, a corporation duly incorporated under the laws of the
Philippines with principal office address at GF Insular Life Bldg., Abanao Extension
Corner Legarda Road, Baguio City herein represented by its President and Chief
Executive Officer Atty. ALEXANDER L. BANGSOY hereinafter referred to as the
FIRST PARTY;
and

UNITED HYDRO POWER BUILDERS, a corporation duly incorporated

under the laws of the Philippines with principal office address at Lot 27, Block 2,
Shangri-La Village, Asin Road, San Luis Barangay, Baguio City herein represented by
its General Manager Engr. RODRIGO A. LIZARDO, JR referred to as the
SECOND PARTY;

WITNESSETH, that:

WHEREAS, the PARTIES are engaged in the conduct renewable energy

development;

WHEREAS, the FIRSTY PARTY is in need for the conduct of Engineering

Consultancy Services for the review of the Comprehensive Feasibility Study and
Detailed Engineering Design of TAMDAGAN 1 and 2 HYDRO POWER PLANT
PROJECTS;

WHEREAS, the SECOND PARTY has signified their intention to contract

said services, to which the FIRST PARTY has accepted, to provide the services
needed by the latter;

WHEREAS, the SECOND PARTY and all it’s representatives hereby

possesses the education, experience and skills required to perform the job as
described herein;

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

the FIRST PARTY and the SECOND PARTY agree and stipulate the following:
1. That the SCOPE OF WORK/RESPONSIBILITIES of the
SECOND PARTY:
a. REVIEW OF THE FOLLOWING REPORTS
i. Hydrologic Study
ii. Plant System Layout
iii. Hydraulic Profile Analysis and Evaluation
iv. Analysis, Evaluation and Design of the Plant’s
Components (Intake, Desander, Headrace, Surge
Tank/Forebay, Penstock, Power Plant Building,
Electro Mechanical)
v. Generation Simulation and Sensitivity Analysis
vi. Project Estimates
vii. Economic and Financial Analysis
That after the thorough conduct of the following reports the SECOND
PARTY shall be able to provide a detailed Comprehensive Feasibility Study and
a Detailed Engineering Design.

2. That the FIRST PARTY on the other hand shall provide the following
necessities for the carrying out of the SECOND PARTY’s
responsibilities:

a. Mobilization/Down Payment upon acceptance of the proposal

equivalent to FIFTY (50%) percent of the total cost in the amount of
TWO HUNDRED FIFTY THOUSAND PESOS (P250,000.00).
The acceptance is done by the signing of this Contract of Service or
as otherwise agreed upon by the parties during the execution of this
Contract;
b. The FIRST PARTY shall make the final payment upon completion
of all the works. This is equivalent to FIFTY (50%) percent of the in
the amount of TWO HUNDRED FIFTY THOUSAND PESOS
(P250,000.00).

3. That the duration of the study shall be for a period of TWO (2)
MONTHS upon execution of this Contract of Service. The duration
shall be strictly followed and any extension shall be considered as a
default on the part of the SECOND. PARTY’s performance of it’s
obligations as contained in this agreement;
 3. That each party warrants to the other party the following stipulations:
a. That they have the power to enter into and perform its obligations
under this Agreement, to carry out the transactions and obligations
contemplated hereunder and to carry on its business as now conducted
or contemplated;

b. That have taken all necessary corporate action to authorize the entry
and the performance of this Agreement, and to carry out the
transactions and obligations contemplated by it; and,

c. That all their obligations under this Agreement constitute legal, valid,
direct, unconditional and binding obligations.

4. That the obligation of the parties is limited by the foregoing, unless this
agreement is subsequently amended in writing by the parties;

5. That this Contract of Service shall in no way constitute any novation of any
previous obligation or contract of the parties which are binding between
them.

6. That the parties shall faithfully comply with the provisions of this
agreement, and in case of litigation, the parties agree that the venue shall
exclusively be in the City Courts of Baguio City, Philippines.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the

date set forth below.
By:

ALEXANDER L. BANGSOY
(President & Chief Executive Officer)
(FIRST PARTY)

RODRIGO A. LIZARDO JR
(General Manager)
(SECOND PARTY)
 ACKNOWLEDGMENT

Republic of the Philippines}

In the City of Baguio }

BEFORE ME personally appeared:

PERSONS IDENTIFICATION

presenting their competent evidence of identity, known to me and to me

known to be the same persons who executed the foregoing CONTRACT OF
SERVICE and they acknowledged to me that the same is their knowing, free and
voluntary act and deed.

This agreement consists of four (4) pages, including this page, each of which
had been signed by the parties.

WITNESS my signature and notarial seal this _____ day of __________ 2019

Doc. No. ___

Page No. ___
Book No. ___
Series of 2019.