Document:

EX-10.5

 Exhibit 10.5 

LEASE CONTRACT 
 KNOW ALL MEN BY THESE
PRESENTS: 
 This LEASE CONTRACT is made and entered into this 22 day of AUG 2016 at Tanauan City, Batangas, by and between: 

SHEN LONG PROPERTY MANAGEMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with principal
office address at Lot 1, Block 8, Millennium Drive corner Quality Street, Light Industry and Science Park III, Brgy. Sta. Anastacia, Sto. Tomas, Batangas, herein represented by its President, TETSUYA YOKOTA, hereinafter referred to as
“LESSOR” 
 -AND- 

TIGER RESORT, LEISURE AND ENTERTAINMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with office
address at Manila Bay Resort, Atlantic Drive, Asiaworld City Boulevard 2000, Parañaque City, herein represented by its Chief Operations Officer, TAKAHIRO USUI, hereinafter referred to as “LESSEE”; 

(Together referred to as the “PARTIES”). 

WITNESSETH: 
 WHEREAS, LESSOR is
the owner of the building located at Lot 1, Block 8, Millennium Drive corner Quality Street, Light Industry and Science Park III (LISP III), Brgy. Sta. Anastacia, Sto. Tomas, Batangas, including the right to the use and possession of the land on
which the building is situated; 
 WHEREAS, LESSOR has agreed to lease portion of the said building to LESSEE as offsite laundry facility to
the extent of: 1. Four Thousand Two Hundred and Fifty-Seven (4,257) square meters, on the ground floor of the building (hereinafter, referred to as the “washhouse area”), and 2. One Hundred Sixteen (116) square meters on the 2nd floor of the building (hereinafter, referred to as the “management offices”), or a total area of 4,373 square meters, hereinafter referred to as the “Leased Premises”;

 NOW, THEREFORE, for and in consideration of the covenants and the stipulations hereinafter set forth, the parties have agreed and hereby
agree to the following terms and conditions: 

  
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	1.	 LEASE PERIOD. The lease shall be for a period of fifteen (15) years, commencing on 1 June
2016, and will automatically expire on 31 May 2031 (“Lease Term”), subject to renewal under the same terms and conditions, unless sooner terminated as provided herein. 

 

	2.	 LEASE COST. For the use and occupancy of the Leased Premises, LESSEE shall pay to LESSOR, without need
of further notice or demand, a monthly rent in the following amounts: 

  

	 	a.	 Washhouse Area (4,257 sq. m.) - Two Hundred and Fifty Pesos (Php250.00) per square meter; and

  

	 	b.	 Management Offices (116 sq. m.) - Two Hundred and Fifty Pesos (Php250.00) per square meter.

 The foregoing amounts shall be exclusive of Value-Added Tax, Documentary Stamp Tax and other taxes as may be proper and
due, which shall be for the account of LESSEE under Item 8. The rent shall be payable on or before the fifth (5th) day of every month. The rent may be increased beginning on the second year and
once every year thereafter during the term of the lease, subject to the mutual agreement of the parties. 
  

	3.	 TERMS OF PAYMENT AND SECURITY DEPOSIT. Upon execution of this Contract, LESSEE shall pay LESSOR a non-interest bearing Security Deposit equivalent to two (2) months’ rent, which amount may be adjusted based on the escalated rent as stated in this Agreement. The Security Deposit shall answer for damages
and any other monetary obligation under this Contract, including unpaid utility bills, penalty and interest at the end of the Lease Term; but excluding unpaid rent - it being understood that LESSEE’s liability for breach of obligation under
this Contract shall be limited to the amount of the unpaid rent or an amount not exceeding the ONE (1) month’s rental, as the case may be. If this Contract is not consummated by LESSEE, or due to any reason beyond the control of LESSOR,
the Security Deposit shall be forfeited in favour of LESSOR. If the Security Deposit is insufficient to pay LESSEE’s obligations, the latter shall remain liable for the deficiency which shall be paid within five (5) days from receipt of
demand for payment. 

 The Security Deposit or the balance thereof, after deduction of the items provided in the
immediately preceding paragraph, shall be refunded within sixty (60) days from date of expiration or termination of the Contract. 
  

	4.	 PAYMENT OF PUBLIC UTILITIES AND OTHER CHARGES. LESSEE shall apply and pay for all utility services for
water, telephone, electric power and cable; provided that LESSOR is notified of said application. In this regard, LESSEE warrants that it shall pay in full its monthly consumption and charges and undertakes to settle in full all utility charges upon
the expiration or termination of the lease. 

  
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 All other cost and charges due on the common areas shall be for the account of LESSEE to the
extent pertaining to the Leased Premises, specifically set forth in the attached Annexes “A” and “B” which is deemed an integral part of this Agreement. 
  

	5.	 ENTRY AND EXIT. LESSOR shall allow LESSEE, its agents, representative and employees assigned in the
Leased Premises, entry into LESSOR’s compound for the sole purpose of access to the Leased Premises, including the common areas, twenty-four (24) hours a day including Sundays and Holidays. 

It shall be the LESSEE’s responsibility to ensure that adequate security measures are implemented to strictly adhere to this provision.
LESSEE is required to inform LESSOR of measure/s it shall undertake to implement this provision. 
  

	6.	 INSTALLATIONS, ALTERATIONS AND IMPROVEMENTS. LESSEE may, at its own expense and with prior written
consent and approval of LESSOR (which consent and approval shall not be unreasonably withheld), introduce or install improvements or make any alterations on the Leased Premises as may be required by LESSEE’s business, provided that the strength
and general structure of the Leased Premises are not impaired or adversely affected. All such work shall be done subject to the rules, regulations and laws of the appropriate government agencies and the rules and regulations of the Building. Repair,
maintenance and replacement of installed equipment or improvements requested by the LESSEE, whether made by LESSOR prior to this Contract or by LESSEE after the execution of this Contract, in the Leased Premises shall be for the exclusive account of
LESSEE. 

 Any and all permanent improvements installed by LESSEE shall automatically become the property of LESSOR at the
expiration of the lease, without need of any payment or reimbursement to LESSEE. Moreover, all equipment and machineries installed permanently or temporarily by the LESSEE shall remain the property of the LESSEE, and the LESSEE may remove the same
from the Leased Premises at the expiration or termination of this Contract. However, if LESSOR chooses not to retain the improvements (mentioned in the first sentence of this paragraph), and should LESSEE remove its equipment and machineries (as
referred to in the second sentence), the same shall be removed by LESSEE at its own expense, and LESSEE shall make the necessary repair in the Leased Premises to return the same to its original condition. 

 

	7.	 USE OF THE LEASED PREMISES. LESSEE hereby acknowledges that it has inspected and is satisfied with the
present physical condition of the Leased Premises; thus, LESSEE hereby agrees and warrants to keep the Leased Premises in good and tenantable condition at all times. For this purpose, LESSEE shall be responsible for its maintenance and up-keep during the term of the Lease. LESSEE shall use the Leased Premises for its laundry operations without prejudice to additional use/s which LESSEE may deem appropriate for its business as approved by the
Philippine Economic Zone Authority (PEZA) in its Registration and/or Supplemental Agreements with LESSEE as the case may be. Such additional use/s in addition to laundry operations, if any, shall be subject to prior notice and approval from LESSOR,
which consent shall not be unreasonably withheld. The LESSEE shall not store in the Leased Premises any explosive, illegal or prohibited materials or substances. 

  
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 LESSEE further warrants that it shall and its employees or authorized representatives follow
the existing policies, rules and regulations, as well as those that may be issued, of the LESSOR, the Light Industry and Science Park and applicable laws, rules and regulations of the different government agencies, including but not limited to
maintenance, security, safety and sanitation of the Leased Premises. 
  

	8.	 PERMITS, LICENSES, AND TAXES. LESSEE shall, at its sole expense, secure all permits and licenses as may
be required by any national and/or local government authorities in connection with its business and the use of the Leased Premises. LESSEE shall comply with the building rules and the rules and regulations promulgated by LESSOR and with all the
laws, ordinances, rules and regulations promulgated by the duly constituted authorities of any national and/or local government, regarding the use, occupancy, security and sanitation of the Leased Premises. Taxes, such as documentary stamp tax,
creditable withholding tax required to be withheld at source, real property tax on improvements, local business tax, as may be applicable, shall be for the account of the LESSEE. 

 

	9.	 ASSIGNMENT OF LEASE RIGHTS. LESSEE shall not assign or transfer its rights in this Contract or sublease
the Leased Premises or any portion thereof, without LESSOR’S prior written consent and approval, which consent and approval shall not be unreasonably withheld. 

 

	10.	 SURRENDER OF PREMISES AT THE END OF LEASE. LESSEE hereby agrees to immediately return and surrender the
Leased Premises at the expiration or termination of this Contract in as good condition as reasonable wear and tear will permit and without delay whatsoever, devoid of all occupants, furniture, articles and effects of any kind other than alterations,
additions or improvements which shall belong to LESSOR in accordance with the provisions of this Contract. 

  

	11.	 LIABILITY TO THIRD PARTIES. LESSEE hereby assumes full responsibility for any and all loss or damage to
property, and any death or injury to any person, due to any cause whatsoever by reason of the use, occupancy or enjoyment of the Leased Premises by LESSEE, its agents, employees, guests and clients. LESSEE binds itself to indemnify and hold LESSOR,
its officers, directors, stockholders, agents and employees, free and harmless from any such loss, damage, death or injury, and liability to any person or property, including any and all actions, suits, damages, claims and expenses in relation
thereto, unless there is negligence or fault on the part of the LESSOR. 

  
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 LESSOR shall not be liable or responsible for any injury, death, loss or damage that LESSEE,
its officers, agents, employees, customers or guests, might sustain in the Leased Premises, unless there is negligence or fault on the part of the LESSOR. 

LESSOR shall not be liable or responsible for any and all damages, injury, death or loss, arising from acts of negligence, fault or omission,
of LESSEE, its officers, employees, agents, customers and guests, or of any and all other persons. 
  

	12.	 SECURITY. LESSEE may obtain its own security services and assign its own security guards or install any
security device in the Leased Premises subject to prior notice to LESSOR of the assignment of security personnel and/or the installation of security device or other equipment or machineries. Any change in the security procedures previously
communicated to LESSOR shall be communicated anew to LESSOR within a reasonable time. 

  

	13.	 INSURANCE. LESSEE shall, at its own cost and expense and during the entire term of this Contract, keep
the Leased Premises and all improvements therein insured against destruction, loss, damage caused by fire and other causes and extended coverage risks in an amount equal to the maximum insurable value of the Leased Premises. In case of loss or
damage covered by insurance, LESSEE shall be responsible for the deductible amount and all insurance proceeds for the insurable value of the Leased Premises shall be used for the purpose of restoration or reconstruction of the Leased Premises and
the improvements in the Leased Premises, or otherwise assigned to the LESSOR. 

  

	14.	 PRE-TERMINATION. Either party may
pre-terminate this contract after the first year, for any cause whatsoever, provided that a sixty (60) days written notice shall be given to the other party prior to the intended date of pre-termination, without any liability on the part of either party for loss of business opportunity or damages. 

  

	15.	 BREACH. Any violation of the terms provided for in this contract on the part of the LESSOR or LESSEE
shall be sufficient ground for the termination of this Contract by the aggrieved party. 

  

	16.	 NO WAIVER OR REMEDIES. The failure of either Party to insist upon a strict performance of any of the
terms, conditions and covenants hereof shall not be deemed a relinquishment or waiver of any right or remedy that the said Party may have, nor shall it be construed as waiver of any subsequent breach or default of the terms and conditions and
covenants shall continue to be in full force and effect. No waiver by either Party of any of its right under this contract shall be deemed to have been made unless expressed in writing and signed by the said Party. 

  
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	17.	 ENTIRE AGREEMENT. This Contract constitutes the entire agreement of the Parties and supersedes all
previous negotiations, discussions, agreements and commitments with respect to the subject matter hereof. Any amendment, alteration, revision or modification in any manner shall not be binding except when it is contained in an instrument signed by
the duly authorized representative of the Parties. 

 Areas to be subsequently occupied by the boiler house, fuel tanker,
loading docks and other areas needed by LESSEE for its laundry activities, which are not covered in this Contract and pending negotiations shall be contained in an addendum to be made an integral part of this Contract. 

 

	18.	 APPLICABLE LAW – All terms and conditions under this Contract of Lease shall be interpreted or
construed in accordance with Philippine Laws. Provisions that may be rendered void shall not affect the validity of the other provisions. 

In case of conflict not settled by the Parties, resort to proper Courts of Paranaque City, to the exclusion of other courts, shall be available
to the Parties. Costs and expenses for litigation, Attorney’s fees, damages and other fines or penalties shall be for the account of the Party-at-fault. 

IN WITNESS WHEREOF, this instrument is signed on the date and at the place above-written. 

 

							
	 SHEN LONG PROPERTY

MANAGEMENT, INC.

LESSOR
	 		 		  	 TIGER RESORT, LEISURE AND

ENTERTAINMENT, INC.

LESSEE

				
	Represented by:	 	        	 		  	Represented by:
				
	 /s/ TETSUYA YOKOTA
	 		 		  	 /s/ TAKAHIRO USUI

	TETSUYA YOKOTA	 		 		  	TAKAHIRO USUI
	President	 		 		  	Chief Operating Officer
	
	 SIGNED IN THE PRESENCE OF:

 

				
	  
	 		 		  	  

  
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 SUPPLEMENT TO LEASE CONTRACT 

This Supplement to Lease Contract (hereinafter referred to as “First Supplement”) entered into this
         day of
                                     2016, by and between:

 SHEN LONG PROPERTY MANAGEMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with principal
office address at Lot 1, Block 8, Millennium Drive corner Quality Street, Light Industry and Science Park III, Brgy. Sta. Anastacia, Sto. Tomas, Batangas, herein represented by its President, TETSUYA YOKOTA, hereinafter referred to as
“LESSOR” 
 -AND- 

TIGER RESORT, LEISURE AND ENTERTAINMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with office
address at Manila Bay Resort, Atlantic Drive, Asiaworld City Boulevard 2000, Parañaque City, herein represented by its Chief Operations Officer, TAKAHIRO USUI, hereinafter referred to as “LESSEE”; 

(collectively, the “Parties”). 

WHEREAS, LESSOR and LESSEE entered into a Lease Contract dated 22 August 2016 (“Original Contract”) of
LESSEE’s offsite laundry facility which covers the areas allocated for its Wash House Area and Office Area only, with a total area of Four Thousand Three Hundred Seventy-Three Square Meters (4,373 sq. m.); 

WHEREAS, Parties agree to amend the Original Contract to include the additional leased premise as described in Section
of this First Supplement; 
 WHEREAS, the additional premises under this First Supplement may be subject to change
(increase or decrease) dependent upon LESSEE’s space requirements; 
 NOW THEREFORE, for and in consideration of the foregoing
premises, the Parties hereby agree to effect this First Supplement upon the following terms and conditions: 
  

	 	1.	 ADDITIONAL LEASED PREMISES. 

 

	 	1.1	 LESSOR agrees to lease an additional Nine Hundred Fourteen Square Meters (914sq. m.)1, located at the back/outside of the Building (“Outdoor”) where its laundry equipment are constructed, including but not limited to boiler house, fuel tanker and loading docks;

 With the additional leased premises, total area of LESSEE’s laundry facility shall be Five Thousand Two
Hundred Eighty Seven Square Meters (5,287 sq.m.). 
  

	1 	 Layout is hereto attached as Annex “A”.

	 	2.	 LEASE PERIOD. 

 

	 	2.1	 The lease of the Outdoor shall commence on August 1, 2016 and will automatically
expire at the close of business hours of May 31, 2031 or until LESSEE has completely removed its items or properties, whichever comes later, subject to renewal, unless sooner terminated by the parties; 

 

	 	3.	 LEASE COST. 

  

	 	3.1	 For the use and occupancy of the areas mentioned in this First Supplement and any subsequent increase or
decrease thereto, LESSEE shall pay LESSOR, without need of further notice or demand, a fixed monthly rent in the amount of Two Hundred Fifty Pesos (Php250.00) per square meter, exclusive of Value-Added Tax, Documentary Stamp Tax and other
taxes as may be proper and due, which shall be for the account of LESSEE. 

  

	 	4.	 COMMON AREAS 

  

	 	4.1	 Common Areas as used in this First Supplement shall include the Canteen (1,220.36 sq. m.)2, Locker Room and Ante Room (893.321 sq. m.)3, Lobby including meeting rooms (580.538 sq.
m.)4, Basement Parking (3,350.81 sq. m.)5, Electrical Room (239.96 sq. m.)6, Guard House
(16 sq. m.)7, Guard Post (4 sq. m.)8 or a total area of Six Thousand Three Hundred Four
and 99/100 Square Meters (6,304.99 sq. m.). 

  

	 	4.2	 The cost of maintaining the Common Areas shall be Two Hundred Fifty Pesos (Php250.00) per Square Meter
commencing on November 1, 2016. Provided that such cost shall from time to time be determined by LESSOR upon such basis as the LESSOR may in its discretion consider equitable, having regard to the area of the premises and the use of the
Common Areas. The decision of the LESSOR in respect thereto shall be final and binding upon the LESSEE. 

  

	 	4.3	 LESSEE undertakes to orient its employees and authorized representatives of the rules and regulations in the
use of the Common Areas and warrants that LESSEE and its employees and authorized representatives shall abide by the rules and regulations of the LESSOR at all times and at all costs. 

 

	2 	 Layout is hereto attached as Annex “B”. 

	3 	 Layout is hereto attached as Annex “C”. 

	4 	 Layout is hereto attached as Annex “D”. 

	5 	 Layout is hereto attached as Annex “E”. 

	6 	 Layout is hereto attached as Annex “F”. 

	7 	 Layout is hereto attached as Annex “G”. 

	8 	 Layout is hereto attached as Annex “H”. 

  
 2 

	 	4.4	 LESSOR shall not be liable for any and all injuries that may be caused by the negligence of its employees and
authorized representatives while in the common areas. 

  

	 	5.	 All other provisions of the Agreement not inconsistent with this First Supplement shall remain effective and
binding. 

 IN WITNESS WHEREOF, the Parties hereto have caused this First Supplement to be executed through their
duly authorized representatives, as of the date written above. 
  

									
	SHEN LONG PROPERTY MANAGEMENT, INC.	 		  	TIGER RESORT, LEISURE AND ENTERTAINMENT, INC.
	Lessor	 		  	Lessee
					
	By:	 	 /s/ TETSUYA YOKOTA
	 	            	  	By:	 	 /s/ TAKAHIRO USUI

	          TETSUYA YOKOTA

    President
	 		  	          TAKAHIRO USUI

        Chief Operations Officer

		 		  	       
  

		 		 		  		 	

  
 3 

 SECOND SUPPLEMENT TO LEASE CONTRACT 

This Second Supplement to Lease Contract (hereinafter referred to as “Second Supplement”) entered into this
         day of                              2017, by
and between: 
 SHEN LONG PROPERTY MANAGEMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with
principal office address at Lot 1, Block 8, Millennium Drive corner Quality Street, Light Industry and Science Park III, Brgy. Sta. Anastacia, Sto. Tomas, Batangas, herein represented by its President, TETSUYA YOKOTA, hereinafter referred to
as “LESSOR” 
 -AND- 

TIGER RESORT, LEISURE AND ENTERTAINMENT, INC., a corporation duly organized and existing under the laws of the Philippines, with office
address at Manila Bay Resort, Atlantic Drive, Asiaworld City Boulevard 2000, Parañaque City, herein represented by its Chief Operations Officer, TAKAHIRO USUI, hereinafter referred to as “LESSEE”; 

(collectively, the “Parties”). 

WHEREAS, LESSOR and LESSEE have entered into a Lease Contract dated 22 August 2016 (“Original Contract”) and a
Supplement to Lease Contract dated 17 November 2016 (“First Supplement”); 
 WHEREAS, there is also a common area on
the ground floor consisting of about 236.676 sq. m. which is being utilized by Lessee but which have not been included in the lease contracts between the parties; 

WHEREAS, the common area on the basement parking being charged to LESSEE shall be reduced; 

WHEREAS, the parties agree to include these areas to their lease contracts; 

WHEREAS, the parties agree to share in the water and sewer charges accordingly; 

NOW THEREFORE, for and in consideration of the foregoing premises, the Parties hereby agree on the following terms and conditions as
forming part of their Lease Contracts: 
  

	 	1.	 ADDITIONAL COMMON AREAS. – LESSEE shall share in the cost of maintaining the common area located at
the ground floor consisting of Two Hundred Thirty Six point Six Hundred Seventy Six Square Meters (236.676 sq. m.) as indicated in herein floor plan marked as Annex “A” and made an integral part hereof at the rate of Two Hundred
Fifty Pesos (Php250.00) per Square Meter starting on November 1, 2016, provided that such may be adjusted by Lessor on such basis as in its discretion, consider equitable having regard to the location, area or use of the Common areas. The
decision of the Lessor in this respect shall be final and binding upon the Lessee. 

  

	 	2.	 COMMON AREA IN THE BASEMENT PARKING. – LESSEE shall be charged for the use of the common area in
the basement parking with a measurement of One Thousand Six Hundred Ninety Four Square Meters (1,694 sq.m.), at Two Hundred Fifty Pesos (Php 250.00) per square meter. 

 

	 	3.	 PAYMENT OF WATER AND SEWER CHARGES. - All charges for water and sewer utilities imposed by Light
Industry and Science Park LISP III upon LESSOR, shall be for the account of both the LESSEE and LESSOR depending on its usage and consumption. 

  

	 	4.	 MISCELLANEOUS PROVISIONS. – All other provisions of the Lease Contracts not inconsistent with this
Second Supplement is deemed reproduced and shall remain effective and binding between the parties. 

 IN WITNESS WHEREOF, the Parties, through their respective representatives, hereby
affixed their signatures in this Supplement. 
  

									
	 SHEN LONG PROPERTY MANAGEMENT, INC.

Lessor
	 		  	 TIGER RESORT, LEISURE AND ENTERTAINMENT, INC.

Lessee

					
	By:	 	 /s/ TETSUYA YOKOTA
	 		  	By:	 	 /s/ TAKAHIRO USUI

	           TETSUYA YOKOTA 

          President
	 	                    	  		 	 TAKAHIRO USUI

Chief Operations Officer

	
	 WITNESSESS
  

	 /s/ Martin Matanguihan, Jr.
	 		  		 	 /s/ Roel Joson

	 Martin Matanguihan, Jr.

 
	 		  		 	 Roel JosonRoyal Philips - 20-F 2021

  
   
    Exhibit 4 (c)

    Services contract between the Company and Mr M.J. van Ginneken

    The following contract is the services contract of Mr M.J. van Ginneken, containing terms and conditions for the provision of services and
other arrangements that apply with effect from May 6, 2021 (the “Commencement Date”), subject to his re-appointment on such date as member of the Board of Management of Koninklijke Philips N.V. (the “Company”).

    1. Commencement of Engagement

    	Subject to the terms and conditions of this contract for the provision of services (the “Contract“) the Company hereby engages you as independent contractor starting on the Commencement Date to fulfill the role of member of the Board of Management of the Company as Chief Legal Officer and, in conjunction with such role, of member of the Executive Committee of the Company. As a member of the Executive Committee you will perform your duties and responsibilities attached to that function within the corporate governance framework of the Company. In your capacity as member of the Board of Management of the Company you will have and observe all rights and obligations pursuant to the articles of association of the Company, the Rules of Procedure of the Board of Management and Executive Committee, and statutory provisions. By signing this Contract, you declare that you have received a copy of the Company’s articles of association and abovementioned Rules of Procedure and that you are familiar with their content.
	The terms and conditions set forth in this Contract and its annexes replace the terms and conditions as laid down in any (previous) employment or services agreements and/or other written or verbal understandings you may have (had) with the Company and/or other companies belonging to the Philips Group. By entering into this Contract all prior contracts of employment and/or prior contracts for the provision of services (if any) with the Company and/or other companies belonging to the Philips Group are explicitly terminated.
	This Contract is a contract for the provision of services, as defined in articles 7:400 and further of the Dutch Civil Code (“DCC”). You acknowledge and agree that, pursuant to article 2:132 section 3 DCC, your relationship with the Company and/or this Contract cannot be regarded an employment agreement as defined in article 7:610 DCC and further.
	In this Contract the Company and you are together referred to as the “Parties” and each of you as a “Party”.

    2. Duration of the Engagement

    	The Contract shall be entered into for a fixed period of time. The Contract shall start on the Commencement Date and shall terminate by operation of law, without any prior notice being required, on the last day of the quarter in which the Annual General Meeting of Shareholders of the Company in the fourth calendar year following the Commencement Date takes place (the “Contract End Date”), it being understood that for the period between such Annual General Meeting of Shareholders and the Contract End Date you shall act as an advisor to the Company.
	No later than six months before the Contract End Date the Parties will discuss a possible extension of the Contract. The Contract will terminate in any event, without prior notice of termination being required, at the first day of the month following the month in which you have reached the state pension age based on the AOW (“Algemene Ouderdomswet”) or future legislation amending the state pension age based on the AOW.
	Both Parties shall have the right to terminate this Contract before the Contract End Date or (if renewed) before any later Contract expiration date against the end ofa calendar month by giving written notice of termination. In this respect, the Parties agree to adhere to a notice period of six (6) months. If notice of termination is given by a Party for urgent cause (‘dringende reden’), no notice period applies for the Party giving notice. For the definition of urgent cause (‘dringende reden’), reference is made to article 7:678 DCC and further.
	If you are dismissed by the General Meeting of Shareholders of the Company, or if you resign, as member of the Board of Management of the Company (and, in direct relation thereto, as member of the Executive Committee of the Company) this Contract is terminated by operation of law without any prior notice of termination being required, which termination shall take effect (i) as per the date six (6) months after the end of the calendar month in which the General Meeting of Shareholders has adopted the resolution pursuant to which you are dismissed as member of the Board of Management of the Company, or, as the case may be, (ii) as per the date six (6) months after the end of the calendar month in which you have submitted your written resignation as member of the Board of Management of the Company.
In deviation from the previous sentence, this Contract shall terminate with immediate effect as from the date per which (i) the General Meeting of Shareholders has dismissed you as member of the Board of Management of the Company, or, as the case may be, (ii) you have resigned as member of the Board of Management of the Company, in the event such dismissal or resignation (as the case may be) is given/made for urgent cause (‘dringende reden’). For the definition of urgent cause (‘dringende reden’), reference is made to article 7:678 DCC and further.
	In deviation from clause 2 (c), the Company cannot terminate this Contract during the first two (2) years of your sickness or incapacity for work (although it can already give notice of termination), except when notice of termination is given by the Company (i) for urgent cause (‘dringende reden’) or (ii) prior to the first day of your sickness/incapacity for work. In deviation from clause 2 (d), in the event of your dismissal as member of the Board of Management of the Company by the General Meeting of Shareholders during your sickness or incapacity for work other than for urgent cause (‘dringende reden’) and after the first day of your sickness/incapacity for work, this Contract shall terminate at the later of (i) the date which is six (6) months after the end of the calendar month in which the General Meeting of Shareholders has adopted the resolution pursuant to which you are dismissed as member of the Board of Management of the Company, or (ii) the date of your recovery from sickness/incapacity for work, but no later than at the date on which the incapacity for work has lasted for two (2) years. For the definition of urgent cause (‘dringende reden’), reference is made to article 7:678 DCC and further. The Parties acknowledge and agree that this clause does not prevent the competent body from dismissing you as member of the Board of Management of the Company.
	If the Contract is terminated at the initiative of the Company (whereby your dismissal by the General Meeting of Shareholders as member of the Board of Management of the Company shall also be deemed a termination “at the initiative of the Company” for the purposes of this clause) or by mutual agreement (at the initiative of the Company) before the Contract End Date, or before any other expiration date if the Contract has been renewed, other than for urgent cause (‘dringende reden’), you shall be entitled to a one off compensation in the amount of one time your Annual Base Compensation as defined in clause 3 hereof. For the definition of urgent cause (‘dringende reden’), reference is made to article 7:678 DCC and further. You shall not be entitled to such payment if the Contract is terminated immediately following a period of your long lasting sickness or disability which has lasted two years or longer (periods of incapacity for work that follow one another at intervals of less than four weeks shall be deemed one consecutive period of incapacity for work for the purposes of this clause).
	If the Company does not elect to renew the Contract (e.g. because you are not re-appointed by the General Meeting of Shareholders of the Company as member of the Board of Management of the Company upon expiration of your term of appointment) you shall not be entitled to the compensation referred to above under f. but shall instead be entitled to a lump sum of one time your Annual Base Compensation divided by 12, times the number of months you still have to serve before reaching the state pension age based on the AOW (“Algemene Ouderdomswet”) or future legislation amending the state pension age based on the AOW, with a maximum of one time your Annual Base Compensation.
	In case of termination of the Contract, you will resign, with effect from a date to be determined by the Company but ultimately per the effective date of such termination, as member of the Board of Management and, in direct relation thereto, as member of the Executive Committee of the Company.
	The compensation as referred to in clauses f) and g) above, shall be deemed to include any amounts that may be payable to you in connection with the enforcement of the non-competition clause as set forth in the General Terms of Employment that are – mutatis mutandis – applicable to you.

    3. Compensation

    Your annual compensation as of the Commencement Date amounts to EUR 615,000 gross, which amount includes holiday allowances, to be paid in twelve equal monthly installments after deduction of the statutory tax and social security premiums to be withheld by the Company. Annual review and subsequent upwards adjustment, if any, of your annual compensation, will be determined at the discretion of the Supervisory Board of the Company and on the advice of the Remuneration Committee of the Supervisory Board. Only compensation increases determined and approved by the Supervisory Board will replace the compensation amount mentioned above. You will be informed in writing by means of a compensation statement. The annual compensation as may be amended on the basis of this clause from time to time shall be referred to as the Annual Base Compensation.

    4. Annual Incentive

    In addition to the Annual Base Compensation, you shall be eligible each year for an annual incentive, subject to certain targets being met. This incentive shall be determined annually by the Supervisory Board. You shall be notified in writing of these annual incentive targets.

    The on-target (= 100% score) annual incentive amount to be realized by you is currently set by the Supervisory Board at 80% of your Annual Base Compensation.

    The Supervisory Board shall determine in its sole reasonable discretion to what extent the annual incentive targets have been met.

    5. Long Term Incentive Plan

    The Supervisory Board, where relevant within the framework approved by the Company’s General Meeting of Shareholders, can decide by discretion to grant Performance Shares under the Global Philips Performance Share Plan and/or other equity related incentives to the members of the Board of Management on a year-to-year basis. As a member of the Board of Management you are in principle eligible to participate in such plan.

    The Long Term Incentive grant value equals 150% of your Annual Base Compensation.

    To improve Philips’ Corporate Governance and to further align the interests of senior Philips Executives with the interests of our shareholders, you are required to hold a certain level of Philips shares equal to 300% of your actual Annual Base Compensation. The Supervisory Board may decide to adapt the Philips Share Ownership Guidelines on an annual basis.

    The minimum number of Philips shares required to be held can be accumulated by:

    	Shares acquired pursuant to any grants under the Philips Long Term Incentive Plan;
	Shares currently owned;
	Shares purchased on the stock market or acquired in any other way.

    For further details you are referred to the Philips Share Ownership Guidelines Executive Committee in the enclosed Information Package.

    6. Claw back

    The Supervisory Board may in its sole discretion but acting in good faith, resolve to recoup some or all of the incentive compensation - including any benefits derived therefrom - in all appropriate cases (taking into account all relevant factors, including whether the assertion of a recoupment claim may in its opinion prejudice the interests of the Company and its group companies in any related proceeding or investigation), granted to you as an Annual Incentive, as Performance Shares grants, as shares acquired by you under such grants, as other equity related incentive or otherwise (hereinafter referred to as ‘Incentive Compensation’), if:

    	The Incentive Compensation has been paid, granted, vested and/or delivered on the basis of incorrect financial or other data; or
	In assessing the extent to which the relevant performance conditions and/or targets in relation to the payment, grant, vesting and/or delivery of the Incentive Compensation was satisfied, such assessment was based on an error, inaccurate or misleading information or assumptions and that such error, information or assumptions would have resulted or did in fact result either directly or indirectly in that payment, grant, vesting and/or delivery (or being capable thereof) to a greater degree than would have been the case had that error not been made; or
	There are circumstances which would allow the Company to terminate this Contract for urgent cause (‘dringende reden’) (whereby for the definition of urgent cause (‘dringende reden’) reference is made to article 7:678 DCC and further), where such circumstances arose in, or related to, a period relevant to the date of payment, grant, vesting and/or delivery; or
	You were involved in, or directly or indirectly responsible for a serious violation of the Philips General Business Principles or applicable law; or
	The Company or the business in which you work/worked, or for which you were responsible, suffered a material failure of risk management, or
	Something which occurred in the period relevant to the payment, grant, vesting and/or delivery has a sufficiently significant impact on the reputation of the Company or its group members to justify the operation of a recoupment claim.

    By accepting a payment, grant, vesting and/or delivery of the Incentive Compensation, you agree to fully co-operate with the Company in order to give effect to this clause.

    Furthermore, by accepting any payment, grant, vesting and/or delivery of the Incentive Compensation you provide an irrevocable power of attorney to the Company to transfer any shares held by you in the account administered by the Company’s global plan administrator and to perform any other acts necessary or desirable to give effect to this clause. This power of attorney is governed by Dutch law exclusively.

    7. Pension Rights

    As from the Commencement Date, you shall be included in the Pension Regulations of “Stichting Philips Pensioenfonds” applicable to executives, in respect of your pensionable salary up to the current statutory limit of EUR 112,189 which may change from time to time (“Statutory Pensionable Salary”) if and as soon as you meet the requirements set out in those pension regulations. In respect of your pensionable salary exceeding the Statutory Pensionable Salary, you shall be entitled to the pension allowance applicable as of January 1, 2015 to members of the Executive Committee, in accordance with the rules and conditions governing this pension allowance. The level of the pension allowance is and remains at the discretion of the Company. Currently the pension allowance for the part of your Annual Base Compensation exceeding the Statutory Pensionable Salary is set at 25% of your Annual Base Compensation exceeding the Statutory Pensionable Salary.

    In addition, you have received an individual transition allowance of EUR 55,104 per annum (gross) (the “Transition Allowance”) through 2019, which was paid to you in monthly installments. For the years 2020 through 2022, you are entitled to a reduced Transition Allowance:

    	In 2020 you have received 75% of the Transition Allowance;
	In 2021 you will receive 50% of the Transition Allowance;
	In 2022 you will receive 25% of the Transition Allowance.

    No Transition Allowance shall be due to you beyond 2022.

    8. Car/Mobility Allowance

    You are entitled to a monthly Car/Mobility Allowance amounting to EUR 2,630. The Car/Mobility allowance can be used for a leased company car or to be paid out in monthly (gross) installments.

    You are not entitled to conclude a new lease agreement or switch to the cash alternative before the expiration date of the present lease agreement.

    Your current personal contribution, if any, will be recalculated as per the Commencement Date.

    9. Business Entertainment Expenses Allowance

    With respect to your position within the Company, you may be eligible for a fixed allowance for business entertainment expenses. Currently the tax-free allowance in your case is EUR 8,640 per annum. This sum is meant to enable you amongst others to cover the expenses you incur in entertaining guests on behalf of the Company.

    The above-mentioned allowance will be paid in four equal installments at the end of each quarter.

    Parties agree that changes in fiscal legislation could make it necessary or desirable for the Company to change the above arrangement.

    10. Senior Executive Ambassador Program

    You are invited to participate in the Senior Executive Ambassador Program to use Philips products that will be made available to you at your home.

    11. Insurances

    	
      Accident Insurance
      	You will be covered by a 24-hours accident insurance policy. The maximum sum insured is three times your gross Annual Base Compensation. We refer you to the chapter benefits in the Information Package.

     
	
      Directors and Officers Liability Insurance
      	You will be an Insured Person under the Directors and Officers liability insurance taken out by the Company. Subject to its terms and conditions, the Directors and Officers liability insurance policy protects your personal assets against liabilities and reimburse defense costs that arise based on your acts or omissions in your capacity as member of the Board of Management and Executive Committee. A copy of the Directors and Officers liability insurance policy (or a summary thereof) will be made available upon your request.

     

    12. Incapacity for work

    The present Company policy for Executive Committee members with regard to incapacity for work or sickness is that for a maximum period of three years from the start of disablement, but at the very latest up to the end of the Contract, the balance between your Annual Base Compensation at the start of the total disability and the aggregate amount of any statutory allowance distributed to you on account of the total disablement together with possible allowances distributed for the same reason by the Philips Pension Fund will - subject to your compliance with the Company’s directives - be paid by the Company.

    The Company shall not be bound by the aforesaid obligation if you have a claim against third parties in respect of your disablement. Upon surrender to the Company of such claim - in so far as it relates to loss of Annual Base Compensation - an amount equal to the aforesaid balance shall - but for no longer than the period stated in the foregoing clause - be paid by the Company in advance.

    This policy is subject to change at the discretion of the Company. No compensation will be paid in case the new policy is less favorable than the present policy.

    13. Holidays

    The holiday entitlement for members of the Board of Management is 25 working days per calendar year.

    14. General Terms of engagement

    By signing the Contract, you declare to have received, to have read and to agree with the General Terms of Employment of the Company, which apply mutatis mutandis to your engagement and are attached to this Contract as Annex 1. These General Terms of Employment amongst others contain a non-competition clause. You hereby acknowledge and agree that you are fully bound by the restrictions set out in the aforementioned non-competition clause for the duration of such non-competition clause as set out in the clause itself.

    15. Philips rules about corporate governance and corporate citizenship

    Underpinning Philips’ commitment to responsible corporate citizenship, integrity and transparency, the following terms and principles have been set.

    	General Business Principles;
	Financial Code of Ethics;
	Procurement Code of Ethics;
	Rules of Conduct with respect to Inside Information;
	Rules governing Internal and External Directorships;
	Rules of Procedure of the Board of Management and Executive Committee.

    These terms and principles apply equally to corporate actions and to the behavior of members of the Executive Committee in conducting Philips’ business. By signing this Contract, you declare that you are bound by, and that you shall adhere to and act according to, the terms and principles mentioned above. The Company may alter the terms and principles unilaterally at its discretion. For more information on the terms and principles, we refer you to the Information Package. Any changes will be available on the Philips Global Intranet website.

    In addition, you are expected to embrace the Philips Business System (see Information Package).

    The Compliance Officer with respect to Inside Information will contact you, as you are designated as “Qualified Insider”.

    16. Privacy and data protection

    You acknowledge that Philips may process your personal data for legitimate business purposes, such as human resources and personnel management, business process execution and internal management, internal communications, health safety and security, compliance with legal obligations, exercise or defense of legal claims. The processing of such personal data is further described in the relevant privacy notice(s) which is attached to this agreement or otherwise made available to you. By signing this agreement, you acknowledge to have read and agreed with the processing of your personal data, as described in the relevant privacy notice(s) attached to this agreement or otherwise made available to you.

    During your employment with Philips, you agree to comply with all Philips privacy and security related policies, procedures, rules and regulations (including the Philips Privacy Rules), as announced by Philips from time to time or made available to you. At all times, you must maintain the confidentiality of the personal data that you have access to and cannot share, disclose or otherwise transfer personal data to any unauthorized
third parties.

    17. Applicable Law and jurisdiction

    	This Contract is governed by the laws of the Netherlands.
	All disputes arising from this Contract, including disputes concerning the existence and validity thereof, shall be resolved in accordance with the Arbitration Rules of the Netherlands Arbitration Institute.

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