SR Name: BrgyCabagnan_Tabaco_Albay

SR No.: NS-NTG20-H46

LEASE AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This LEASE AGREEMENT, (the “Agreement”) entered into this day of

______________________________, by and between:

SPOUSES CESAR B. CERNECHEZ & EDNA BEGINO CERNECHEZ, Filipino

citizens, of legal ages and both residing at Purok #1, Bognabong, Tabaco City
Albay, herein collectively represented in this act by EDNA BEGINO
CERNECHEZ by virtue of a SPECIAL POWER OF ATTORNEY (Annex “A”),
dated 26 January 2021, notarized by and acknowledged before Notary Public,
ATTY. ______________________ of Albay, and entered into his notarial
registry as Doc No. 5; Page No. 2; Book No. III; Series of 2021, hereinafter
referred to as the "LESSOR";

-and-

PHIL-TOWER CONSORTIUM INC., a corporation duly organized and existing

under the laws of the Republic of the Philippines, with principal address at Unit-
S08, 35th Floor, Eco Tower Bldg., 32nd Street Corner 9th Avenue, Bonifacio
Global City, Taguig, Metro Manila, Philippines, herein represented by its
Corporate Secretary, ATTY. JESUS FREDERICK D. DAYO, hereinafter
referred to as the “LESSEE

WITNESSETH THAT:

WHEREAS, the LESSOR is the absolute and registered owner and possessor of a
parcel of land herein referred to as the “Lot” for brevity, covered Transfer Certificate of Title
(TCT) No. 078-2018001943, with total land area of SIX HUNDRED SEVENTY TWO (672)
square meters, more or less, issued by the Registry of Deeds for the Province of Quirino, and
declared for real property taxation purposes, under Tax Declaration (TD) No. 2017-00—14-
00086, located at Brgy. Cabangan, Tabaco City, Certified true copies of the said OCT/TCT
and Tax Declaration are hereto attached as Annexes “B” and “C, respectively, to form integral
parts of this Agreement;

WHEREAS, the LESSEE is in need of, and desires to lease for its telecommunications
site and/or rendition of telecommunications services, a portion of the said Lot, with an area of
ONE HUNDRED FORTY-FOUR (144) square meters, more or less, per Segregation Plan
marked as Annex “D”, where the LESSEE will erect a Tower, an outdoor unit, and/or a
structure to house the Equipment Room and the necessary appurtenances thereto, if
applicable, and more particularly delineated in the Installation/Layout Plans attached hereto as
Annex “E” series and collectively herein referred to as the “Leased Premises”;

WHEREAS, the LESSOR agrees to lease to the LESSEE the Leased Premises
identified and described in the immediately preceding paragraph hereof, and the LESSEE
hereby accepts the same;

NOW, THEREFORE, in view of the foregoing premises and the covenants, recitals, and
stipulations herein stated, the parties agree and bind themselves as follows:

1. LEASED PREMISES – The LESSOR shall lease to LESSEE the LEASED PREMISES as
follows:

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 EQUIPMENT ROOM

Location : Portion of Lot 3661-A-1, Psd-05-050763, covered by Transfer

Certificate of Title (TCT) No. 078-2018001943, with an area of
ONE HUNDRED FORTY-FOUR (144) square meters, more or
less, per attached Segregation Plan (Annex “D”), located at
Brgy. Cabangan, Tabaco City, as per approved
Installation/Layout Plans in Annex “E” series;

TOWER/MACROCELLULAR ANTENNAS

Location : As per approved Installation/Layout Plans in Annex “E” series

The LESSOR shall render the Leased Premises available and suitable at all times for the
duration of the lease for the LESSEE’s use as a telecommunications site and other
facilities related thereto and/or its telecommunications services. The LESSOR shall allow
the LESSEE to construct a Tower, an outdoor unit, and/or an equipment room or other
necessary structure (e.g. cables, ancillaries, accessories, power) in the Leased Premises to
house the latter’s telecommunications equipment/facilities and related appurtenances
thereto, if applicable.

2. TERM – This Agreement shall be for a period of ten (10) years which shall commence on
first day of the implementation of the project, subject to the execution of an
addendum to confirm the specific commencement and expiration dates. This
Agreement is renewable for another ten (10) years, subject to renegotiation by mutual
consent of both parties with written notice given at least sixty (60) days before the
expiration of this Agreement. LESSEE may however, pre-terminate this Agreement with
sixty (60) days prior written notice to the LESSOR. In the event of pre-termination by the
LESSEE without just cause, the LESSEE shall pay to the LESSOR the amount equivalent
to one (1) month rental as liquidated damages

3. CONSIDERATION – As consideration for the lease and use of the Leased Premises,
including all upgrading and additional installation of telecommunications equipment and
appurtenances thereto, the LESSEE shall pay the LESSOR a monthly rental of FIFTEEN
THOUSAND PESOS (Php15,000.00), net of all taxes, The said monthly rental shall be
subject to an escalation rate of Four-point-five (4.5) percent per annum beginning on the
fourth (4th) year of the lease term. The LESSEE agrees to pay advance rental in an
amount equivalent to TWELVE (12) months’ rent which shall be applied on the first
TWELVE (12) months of the lease term. The monthly rent shall be payable within the first
ten (10) days of the month to which the rental corresponds, without the need of demand.
LESSOR shall issue the corresponding Acknowledgment Receipt therefor.

4. USE OF THE LEASED PREMISES – The LESSEE shall use the Leased Premises as a
telecommunications site and/or other telecommunications services. To render the Leased
Premises suitable for LESSEE’s use as a telecommunications site, LESSEE shall
construct a Tower and an Outdoor Unit/Equipment Room to house the necessary facilities,
if applicable. The LESSOR shall allow the LESSEE to install telecommunications
antennas, facilities and/or related equipment, including the necessary upgrading thereof,
without any additional rent to the LESSEE, at such suitable place/s within the Leased
Premises; install cables to interconnect the telecommunications equipment; to install a
power/feeder line; and to operate a dry cell or other alternative back-up power source to
assure continuous power supply to the antennas and other requisite telecommunications
appurtenances, facilities and/or related equipment. Rental charges thereto are already
included as part of the consideration under Paragraph 3 hereof. Further, in order for
LESSEE to comply with its legal and government mandate and obligation as a public
utility/public service provider, LESSOR hereby allows LESSEE to install, de-install, change,
upgrade, enhance, replace, repair, maintain, modernize, update, improve and transform its
antennas, small cells , WiFi, ancillaries, accessories, cables, power source (.e.g genset,

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 batteries, solar panels) and other facilities/equipment at such suitable places within the
Leased Premises, subject to prior written consent and approval of both parties , without
additional cost to LESSEE. Said consent and approval shall not be unreasonably withheld
or denied.

5. LESSEE’S ACCESS TO LEASED PREMISES – The LESSOR shall allow only authorized
employees/agents of the LESSEE access to and from the Leased Premises twenty-four
(24) hours a day, seven (7) days a week, as well as access to other telecommunications
equipment/facilities, in connection with the installation, operation or maintenance thereof by
the LESSEE.

6. RIGHT OF WAY – The LESSOR shall provide Right of Way, FREE OF CHARGE, for the
LESSEE’s telecommunications activities including but not limited to (i) the installation of
electric posts, poles, pipes, wires, conduits, risers, catwalk, ladder and cables (e.g. copper,
fiber optic); (ii) ingress and egress for personnel, mode of transportation (e.g. motor
vehicles, animal-drawn vehicles) and other effects and equipment to the Leased Premises
as may be deemed necessary by LESSEE, for the construction, installation, maintenance
and operation of LESSEE’s telecommunications cell site and facilities on the Leased
Premises, and (iii) in accordance with Clause 4 above within the same period stipulated
under this Agreement and its amendment/s and/or renewal/s.

7. POWER OR FEEDER LINES – Power or feeder lines shall be supplied and installed at the
expense of the LESSEE.

8. CARE OF THE LEASED PREMISES – During the term of this Agreement, the LESSEE
shall keep the Leased Premises clean and in sanitary and tenantable condition.

The LESSEE shall not undertake any illegal activities within the Leased Premises.

9. LEASE TO OTHER TELECOMMUNICATIONS OPERATORS – The LESSOR may allow

other telecommunications operators to install or lease any portion of the Lot provided the
LESSOR warrants: (a) that in order to safeguard LESSEE’s concern on the technical
aspects of its telecommunications facilities, the LESSOR shall furnish the LESSEE with the
approved plans of the other telecommunications operators; (b) that the LESSOR shall
obtain the prior written consent of the LESSEE; and (c) that the LESSOR shall not allow
other telecommunications operators to install their telecommunications facilities on the
Leased Premises and on LESSEE’s facilities (e.g. cable ladders). LESSOR hereby allows
LESSEE to co-locate the Leased Premises with its affiliates, subsidiaries, and other mobile
network operators without additional consideration.

10. ASSIGNMENT AND SUB-LEASE – The LESSEE may assign, sub-lease, share, allow co-
location, transfer, or convey its right of possession and lease over the Leased Premises.

11. CHANGE OF OWNERSHIP – The LESSOR undertakes that the term of this Agreement
shall not be affected by any change in the ownership of the Leased Premises. In the event
that the LESSOR decides to sell the Leased Premises subject of this Agreement, LESSOR
shall first offer the sale of the Leased Premises to the LESSEE. LESSEE shall then have
thirty (30) days from receipt of the offer within which to purchase the Leased Premises.
Failure of the LESSEE to purchase the Leased Premises shall not affect its rights under
this Agreement. The LESSOR hereby guarantees and undertakes that in cases of sale,
assignment, mortgage, or any encumbrance of the Leased Premises, the buyer, assignee,
mortgagee, or encumbrance holder shall honor and respect the existence of this
Agreement and the terms and conditions hereof.

12. LESSOR’S WARRANTIES – The LESSOR warrants that there are no legal impediments
or other obstacles to the LESSEE's use of the Leased Premises as a telecommunications
site. LESSOR further warrants that he shall hold LESSEE free and harmless from any
claims and suits related to LESSOR's ownership and possession of the Leased Premises.
Should there be disturbance in the possession of the Leased Premises which may be

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 caused by the LESSOR or third parties, the LESSEE shall have the right to rescind this
Agreement and recover from the LESSOR any unused advance rental, without prejudice to
any legal action that LESSEE may initiate to protect its interests.

13. REGISTRATION OF THIS AGREEMENT – The LESSEE may, at its own expense, cause
the annotation of this Agreement with the proper Registry of Deeds.

14. PERMITS – LESSEE shall, at its sole expense, secure all permits and licenses as may be
required by the national and/or local government authorities in connection with its business
and the use of the Leased Premises. LESSEE shall comply with any and all rules and
regulations, laws and ordinances which may hereafter be promulgated by the duly-
constituted authorities of the national and/or local governments regarding the use,
occupancy, security, and sanitation of the Leased Premises in accordance with the
obligation of the LESSEE under this Agreement.

15. UTILITIES – The LESSEE shall pay for its actual consumption of electricity and other
public services or utilities consumed in the Leased Premises. For this purpose, LESSEE
shall, at its expense, install a meter for monitoring its electrical consumption or other utility
charges. LESSOR shall allow LESSEE to install and maintain the necessary fixtures,
equipment, and accessories for the supply of utility services to the Leased Premises.

16. TAXES – The LESSEE shall pay for any taxes, assessments, levies, or other charges that
may be imposed by the national or local government authorities relative to improvements
introduced by the LESSEE in the Leased Premises as well as taxes, assessments, or
levies on the LESSEE’s conduct of its operation in the Leased Premises.

17. EXPIRATION/TERMINATION – Upon the expiration or early termination of this Agreement,

all permanent improvements made which cannot be removed without defacing the Leased
Premises, shall become the property of the LESSOR and shall not be removed, except for
the telecommunications equipment, tower, antennas, ancillaries, and accessories which
shall remain the property of the LESSEE, and shall be removed by the LESSEE at its
expense. All actual damages or costs directly incurred in the removal of the
telecommunications equipment, tower, antennas, and accessories shall be for the account
of the LESSEE. Within thirty (30) days from the expiration or termination of this Agreement,
LESSOR shall return LESSEE’s unused advance rental and security deposit, less
allowable deductions, if any.

18. VALIDITY – This Contract shall be valid and enforceable on the parties, their successors-
in-interest, heirs, representatives, and/or agents for the entire duration of this Agreement.

19. ENTIRE AGREEMENT – This Lease Agreement embodies the entire Agreement of the
parties hereto. There are no terms, conditions, or obligations other than those contained
herein. This contract shall supersede all previous communications, representations, or
agreements, either oral or written, between the parties hereto. No amendments to this
contract shall be valid unless the same are reduced to writing and signed by the parties
hereto.

20. COUNTERPARTS SIGNING; ELECTRONIC SIGNATURE – This Agreement may be

executed in any number of counterparts, each of which is an original, but all of which
together constitute one and the same agreement. This Agreement may be executed
electronically or by way of electronic signature and such electronic signatures shall be
deemed original signatures, have the same force and effect as manual signatures and be
binding upon the parties. If this Agreement shall be executed electronically, the best
evidence of this Agreement shall be a copy of this Agreement bearing an electronic
signature, in portable document format (PDF) form or in any other electronic format
intended to preserve the original graphic and pictorial appearance of a document.

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21. VENUE – In the most remote and unlikely event of any suit or action arising from this
Agreement, the action shall be filed with the proper courts of Taguig City, Metro Manila,
Philippines, to the exclusion of all other courts and venues.

IN WITNESS WHEREOF, the parties have hereunto set their hands this day of
_______________________________ at ____________________________________.

HERMINIA M. PAULINO PHIL-TOWER CONSORTIUM INC.

LESSOR LESSEE

and By:

GLEN M. PAULINO ATTY. JESUS FREDERICK D. DAYO

In his capacity as the duly appointed
Attorney-in-Fact of
LUIS B. PAULINO
LESSOR

SIGNED IN THE PRESENCE OF

___________________________ ___________________________
Signature over printed name Signature over printed name

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 ACKNOWLEDGMENT
(LESSEE)

REPUBLIC OF THE PHILIPPINES )

) S.S

BEFORE ME, a Notary Public for and in the above jurisdiction, this _________ day of ______,
2022, personally appeared:

NAME VALID PROOF OF IDENTITY DATE/PLACE ISSUED

JESUS Driver’s License #D14-10- Valid until 2023/11/26, issued by
FREDERICK D. 002184 the Land Transportation Office
DAYO

known to me to be the same person who executed, as representative of the LESSEE, the
foregoing instrument and he acknowledged to have executed the same as his own free and
voluntary act and deed as well as that of the Corporation he duly represents.

WITNESS MY HAND AND SEAL on the date and place above indicated.

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2022.

ACKNOWLEDGMENT
(LESSOR)

REPUBLIC OF THE PHILIPPINES )

) S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, this _________ day of ______,
2022, personally appeared:

NAME VALID PROOF OF IDENTITY DATE/PLACE ISSUED

EDNA BEGINO SSS #050423405-05 Issued by the Social Security
CERNECHEZ System

known to me to be the same person who executed the foregoing instrument and he
acknowledged to have executed the same as his own free and voluntary acts and deeds.

WITNESS MY HAND AND SEAL on the date and place above indicated.

Doc. No. ______;

Page No. ______;
Book No. ______;
Series of 2022.