September 29, 2017

Mr. Antonio V. Baez

Ms. Luisita Baez Valera
Ms. Nena Baez Hojilla
Bolo St., Sandugo Village,
Marikina City

Re.: Demand Letter to Perform Obligations in the Contract

Dear Mr. Baez, et al.:

On December 7, 2004, we entered into an offer to sell your property off 20-square
meter parcel of land in Barangay Talipapa. We executed and accepted a Letter
Agreement irrevocably giving us the option to buy the land with a purchase price
of Four Hundred Thousand Pesos (P400,000.00) in February 4, 2005.

The Letter Agreement stated that you shall bring our portion of the land under the
operation of Republic Act 496, as amended, and to issue in your name the
corresponding original certificate of title. You added that these shall be
accomplished within a reasonable time from the date hereof.

It also stated that you shall execute an absolute deed of sale in our favor or our
assignee/s with the aforementioned provisions and standard warranties on
conveyances of real property.

On our part, we provided in the Agreement that we will pay in full only when you
have presented to us the certificates and/or clearances, with corresponding receipts
issued by the appropriate government offices or agencies to the effect that all taxes,
fees or charges due on the transaction and/or on the Property have been paid. We
have already made a cash advance of Two Hundred Seventeen Thousand Pesos
which we have deducted (P217,000.00) from the purchase price of P400,000.00.

We have already constructed staff houses and made improvements in the Property.
The co-owners left for abroad, so they executed a Special Power of Attorney
(SPA) in favor of Edgardo B. Hojilla granting him full power and authority
whatsoever requisite or necessary or proper to be done in or about the premises as
fully to all intents and purposes as the co-owners might or could lawfully do if
personally present.

However, the BANTAYAN suddenly stopped its operation. The Land Bank of the
Philippines and the National Development Company took over the operation and
turned over BANTAYANs equity to Asset Privatization Trust (APT). When the
APTs term expired on December 2007, the Privation and Management Office was
created through Executive Order No. 323, to which the powers and functions of the
APT was transferred. The BANTAYAN, therefore, is represented by the Republic
of the Philippines through the PMO.

After the operation stopped, the co-owners declared the land as Urbano Baez
Property, rented out to third parties the staff houses that BANTAYAN constructed,
and ordered its guards to prohibit the BANTAYAN from entering the compound.