2nd Floor, Unit 13, The Market Strip (in front of Ramos Market), Cogon Ramos, Cebu City

June 10, 2019

Katherine L. Ceniza
8990 Corporate Building
Negros St, Cebu Business Park
Cebu City 6000

Dear Sirs,

This is the second letter we sent in relation to the Notice of Cancellation we

received last March 30, 2019. However, no effort or response was made.

In the Notice of Cancellation you send, your office has failed to state the
corresponding authorization evidenced by Secretary’s Certificate or Board Resolution.
In fact, the Contract to Sell between the unit owner and Fog Horn, Inc. dated June 30,
2014 failed to state the authorized personnel allowed to cancel the contact. Through
this, the individuals acting as representatives should declare that they are authorized to
act as such. This is particularly crucial with respect to signatories to notices of
cancellation or demands for rescission under Sections 3 and 4 of R.A. 6552 or the Maceda
Law. It is imperative that the officer signing for Fog Horn, Inc. indicates that he or she
is duly authorized to effect the cancellation of a perfected contract. It must be noted
that not all personnel are capacitated to effect these cancellations. The individuals
purporting to do so must demonstrate their specific authority.

Of equal consequence, as imposed by R.A. 6552 or the Maceda Law, in order to

effect the cancellation of a contract, the conditions provided by law must be complied
with, otherwise, injustice will result.

The law stressed the importance of complying with the provisions of the Maceda
Law as to the cancellation of contracts to sell involving realty installments. For there to
be a valid cancellation of the contract by the seller, it must be in accordance with Section
3 (b) of the Maceda Law, which requires the notarial act of rescission and the refund to
the buyer of the full payment of the cash surrender value of the payments made on the
property. The actual cancellation of the contract takes place after thirty (30) days from
receipt by the buyer of the notice of cancellation or the demand for rescission of the
contract by a notarial act and upon full payment of the cash surrender value to the
buyer.

In the off chance that the contract is cancelled, the seller shall refund to the buyer
or unit owner the cash surrender value of the payments on the property equivalent to
fifty percent (50%) of the total payments made.

Should there be any reply to this letter, please

address it to PROVIDENCE SOLUTIONS, GT
WHEELS COMPUND, PLARIDEL STREET,
MANDAUE CITY
 2nd Floor, Unit 13, The Market Strip (in front of Ramos Market), Cogon Ramos, Cebu City

As such, the law is very clear that only upon the full payment of the cash
surrender value to the buyer or unit owner, will the contract be considered cancelled.

There being no valid cancellation, the purchase agreement between Fog Horn,
Inc. and buyer or unit owner remains valid and subsisting.

It is likewise important to note that before a valid cancellation of a contract, the

ownership of the property remains to the buyer or unit owner. Changing of door knobs
to avoid entry by the buyer is considered qualified trespassing of Section 2, Article
280 of the Revised Penal Code and is therefore a criminal act. Very important and useful
things are still inside the unit which the unit owner had no access to. Any loss items will
be attributable to your office.

We are hereby giving your office 24 hours from receipt of this letter to grant
access to the buyer or unit owner to the property and replace the door knobs to
its original knob, otherwise, we will be forced to file the appropriate civil or criminal
cases against you.

Please give this matter your immediate and preferential attention. We trust you
will see your way clear towards the prompt and amicable settlement of this valid
demands in order for you to avoid the inconvenience, expenses and embarrassment of
litigation.

Sincerely,

ATTY. RACHELLE ANNE BILLONES

Contact No. 0945-321-1028

Should there be any reply to this letter, please

address it to PROVIDENCE SOLUTIONS, GT
WHEELS COMPUND, PLARIDEL STREET,
MANDAUE CITY