ANNEX-F

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF ENERGY

WIND ENERGY SERVICE CONTRACT

(WESC No. ________-____-___)

This WIND ENERGY SERVICE CONTRACT (this “RE Contract”), made and entered
into this DATE OF EXECUTION in Bonifacio Global City, Taguig City by and between:

The REPUBLIC OF THE PHILIPPINES, hereinafter referred to as

“GOVERNMENT”, through the “Department of Energy”, hereinafter
referred to as the “DEPARTMENT”, a government agency established
pursuant to Republic Act No. 7638, as amended, with principal office
address at the Energy Center, Rizal Drive, Bonifacio Global City, Taguig
City, Metro Manila, represented herein by its Secretary, Name;

-and-

COMPANY NAME, hereinafter referred to as the “RE DEVELOPER”, a

corporation duly organized and existing under the laws of the Republic
of the Philippines, with principal office address at Company Address
represented herein by its Designation, Name;

Each of the DEPARTMENT and the RE DEVELOPER is referred to as a “Party”, and

collectively as the “Parties”. In the implementation of this RE Contract, the
GOVERNMENT shall act through and be represented by the DEPARTMENT.

WITNESSETH:

WHEREAS, all forces of potential energy in public and/or private lands, within the
Philippine territory, belong to the State and their exploration, development and
utilization are governed by Section 2, Article XII of the 1987 Constitution;

WHEREAS, under Republic Act No. 7638, as amended, otherwise known as the
Department of Energy Act of 1992, the DEPARTMENT shall establish and administer
programs for the exploration, development and utilization of energy resources,
including Wind Energy Resources;

WHEREAS, under Republic Act No. 9513, otherwise known as the Renewable
Energy Act of 2008 (the “Act”), the exclusive right to explore and develop a particular
renewable energy area under the said Act shall be through a Renewable Energy
Service Contract;

WHEREAS, pursuant to the Act, the RE DEVELOPER has agreed to enter into this
RE Contract with the DEPARTMENT covering the Contract Area for the Project with
the corresponding rights and obligations stipulated herein;

WHEREAS, the RE DEVELOPER has been determined by the DEPARTMENT to be

legally, technically, and financially qualified to enter into this RE Contract;

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NOW, THEREFORE, for and in consideration of the terms and conditions set forth
herein, the Parties hereby stipulate and agree as follows:

SECTION I
SCOPE

1.1. This RE Contract is entered into, with the services, technology and financing
to be furnished by the RE DEVELOPER for its conduct of Wind Energy
Operations, in an economically viable manner.

1.2. This RE Contract shall cover the Contract Area only as provided under Section
V (Contract Area) hereof.

1.3. The RE DEVELOPER is hereby appointed and constituted by the

DEPARTMENT as the Party having the exclusive right to explore, develop, and
utilize the Wind Energy Resources within the Contract Area as defined herein.

1.4. The RE DEVELOPER may pursue any Additional Investment or New

Investment within the Contract Area and shall be solely responsible for
providing the necessary services, technology, equipment and financing
therefor. In case of New Investment, the Parties shall enter into a new RE
Contract at the option of the RE DEVELOPER, subject to approval of the
DEPARTMENT.

1.5. The RE DEVELOPER shall assume all the technical and financial risks under
this RE Contract without any guarantee from the GOVERNMENT and shall not
be entitled to reimbursement for any expense incurred in connection with this
RE Contract.

SECTION II
DEFINITION OF TERMS

2.1 The words and terms under this RE Contract, unless otherwise specified in the
Act and its IRR or in relevant laws and regulations, shall have the meaning in
accordance with the following definitions:

a) “Abandonment and Termination Plan” refers to the plan prepared by

the RE DEVELOPER submitted within three (3) months from Effective
Date in the case of Pre-Development Stage and five (5) years from
confirmation of the Declaration of Commerciality and approved by the
Department of Environment and Natural Resources (DENR) and the
DEPARTMENT for the decommissioning, abandonment and surface
restoration or rehabilitation of the Contract Area, and such
abandonment work plan may be amended, supplemented or modified
by the Parties from time to time;

b) “Accounting Procedures” refers to the set of procedures, guidelines,

and arrangement between the Parties, and any amendments thereto, to
govern the applicable treatment of expenses, costs, and income, set

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forth in Annex “B” hereof, which forms an integral part of this RE

Contract;

c) “Additional Investment” refers to investments relating to

improvements, modernization, rehabilitation, or expansion duly
registered with the DEPARTMENT, subject to the conditions to be
determined by the DEPARTMENT, such as, but not limited to, the
following:

i. Identification of and investment in sequential phases/stages of

production, or undertaking scheduled modernization or
rehabilitation of the Wind Energy Systems; and

ii. Improvements to the Wind Energy Systems such as reduced

production/operational costs, increased production, improved
operational efficiency, and better reliability of the Project;

d) “Affiliate” refers to any person or group or persons, directly or indirectly,

through one or more intermediaries, controls, is controlled by, or is
under common control with, the RE DEVELOPER. As used herein,
“control” shall mean the power to direct or cause the direction of the
management’s policies of a person by contract, agency, or otherwise;

e) “Certificate of Confirmation of Commerciality” or “COCOC” shall

refer to the Certificate duly signed by the DOE Secretary confirming the
Declaration of Commerciality by the RE Developer and shall serve as a
notice to proceed for the construction of the RE Project or the installation
of the RE Facilities. The date of issuance of the COCOC shall be
considered as the commencement date of the Development Stage of
the RE Project;

f) “Certificate of Registration” refers to that certification issued to the RE

DEVELOPER upon the Effective Date of this RE Contract or upon
approval of New Investment, to serve as the basis for its entitlement to
the incentives provided under the Act;

g) “Commercial Operation” shall refer to the phase commencing at the

operation of the RE Project, following the successful testing and
commissioning of the RE Project, and confirming its readiness to inject
power into the grid to sell or supply its produced energy, as duly
confirmed by the DEPARTMENT and other relevant regulatory bodies;

h) “Commercial Quantities” shall mean quantities of electricity to be

generated using commercially available technology to develop the Wind
Energy Systems through proof of moderate to high wind speed, wind
direction, wind density from the Wind Energy Resources which have a
reasonable chance of being sufficient and technically compliant to
operate and support the Commercial Operation of the project;

i) “Contract Area” refers to an area where the RE DEVELOPER is given

the exclusive right to explore and develop the Wind Energy Resources
and which is more particularly described in a map with its technical
description attached herein as Annex “A” and made an integral part of
this RE Contract.

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j) “Contract Year” refers to a period of twelve (12) consecutive calendar

months counted from the Effective Date of this RE Contract and
thereafter, from the anniversary of such Effective Date;

k) “Corporate Income Tax” refers to the tax imposed upon net taxable
income under the National Internal Revenue Code (NIRC) of 1997, as
amended by Republic Act No. 9337 and the Act. Upon the lapse of the
period of the Income Tax Holiday (ITH) under the Act, the RE
DEVELOPER shall be subject to a Corporate Income Tax rate of ten
percent (10%);

l) “Cost of Goods Sold” refers to all business expenses directly incurred

in the exploration, development and utilization of the Wind Energy
Resources in order to produce and sell electricity and transmit the same
to its intended location and use, which expenses are particularly
described in Annex “B” hereof;

m) “Declaration of Commerciality” refers to a written declaration by the

RE DEVELOPER stating that the electricity to be generated from the
Wind Energy Resources is of Commercial Quantities;

n) “Development Stage” refers to the development, production, or

utilization of RE resources, including the construction and installation of
relevant facilities up to the operation phase thereof;

o) “Effective Date” refers to the date of the execution of this RE Contract

subject to the payment of the signing fee and the posting of the
performance bond covering the first Contract Year as provided
hereunder;

p) “Expatriate Expert” refers to a foreign national engaged by the RE

DEVELOPER and/or its Subcontractor/s involved in the Wind Energy
Operations, who shall exercise his technical profession, as allowed
under existing laws;

q) “Expiration” refers to either the lapse of the term of this RE Contract as

provided in Section III (Term) hereof or the surrender, abandonment, or
waiver of the RE DEVELOPER of the entire Contract Area to the
DEPARTMENT;

r) “Filipino Employee” refers to any citizen of the Republic of the

Philippines employed and/or engaged by the RE DEVELOPER and/or
its Subcontractor/s involved in the Wind Energy Operations under this
RE Contract, and such engagement is characterized as establishing an
employer-employee relationship between such citizen and RE
DEVELOPER;

s) “Force Majeure” refers to extraordinary events not foreseeable or

avoidable, events that could not be foreseen, or which, though foreseen,
are inevitable;

t) “Generation Facility” refers to a facility for the production of electricity;

u) “Government Share” refers to the amount due the national government

and LGUs from the exploration, development and utilization of the Wind

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Energy Resources computed in accordance with the Act and its

Implementing Rules and Regulations (IRR), and described in Section XI
(Government Share) hereof;

v) “Gross Income” refers to income derived from the RE DEVELOPER’s

Wind Energy Operations equivalent to the gross sales of Wind Energy
less sales returns, discounts and allowance, and Cost of Goods Sold,
which is more particularly described in the Accounting Procedures
attached as Annex “B”;

w) “Host LGU” refers to the LGU where the Wind Energy Resources and/or
Generation Facility is located;

x) “Local Government Unit/LGU” refers to the territorial and political

subdivisions of the State which organization and function are fully
described under the Local Government Code of 1991;

y) “New Investment” refers to investments relating to discovery,

exploration, development and/or utilization of new RE resources or the
development of new Generation Facilities within the Contract Area
distinct from the originally registered operations having separate books
of accounts;

z) “Pre-Development Stage” refers to the preliminary assessment and

feasibility study up to the financial closing of the Project and specifically
covers the term provided in Section 3.1 of this RE Contract;

aa) “Production Area” refers to that portion of the Contract Area

designated by the RE DEVELOPER where Wind Energy Resources are
utilized to produce electricity in Commercial Quantities;

bb) “Project” refers to the RE DEVELOPER’s Wind Energy Systems within

the Contract Area, which may be implemented in one or more phases;

cc) “RE Contract” refers to this Wind Energy Service Contract, as may be
amended or extended by the Parties and shall have the same meaning
as provided under the Act;

dd) “Subcontractor” refers to any person or entity contracted by the RE

DEVELOPER to provide goods or services for the purpose of this RE
Contract, subject to the provisions of existing laws;

ee) “Termination” refers to the right of the Parties to cancel this RE

Contract pursuant to Section XIV (Suspension and Termination) hereof;

ff) “Wind Energy” refers to the energy that can be derived from wind that
can be converted into useful electrical or mechanical energy;

gg) “Wind Energy Operations” shall include Wind Energy exploration,

development, production, and utilization, including the construction,
installation, operation and maintenance of Wind Energy Systems to
convert Wind Energy to electrical power and the transmission of such
electrical power and/or other non-electrical uses;

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hh) “Wind Energy Resources” refers to the wind resources found within
the Contract Area to be technically feasible for the development of Wind
Energy projects;

ii) “Wind Energy Systems” refers to the energy systems that convert wind
energy into electrical or mechanical energy; and

jj) “Work Program” refers to all types of plans and programs and related
activities formulated for the performance of the work obligations by the
RE DEVELOPER during the Pre-Development Stage, along with the
corresponding budgetary estimate, submitted to the DEPARTMENT
under this RE Contract as Annex “C” and shall thereafter updated on a
regular basis.

SECTION III
TERM

3.1 Pre-Development Stage. The Pre-Development Stage of this RE Contract

shall be a non-extendible period of five (5) years from the Effective Date:
Provided, That the RE DEVELOPER shall submit a Declaration of
Commerciality duly confirmed by the DEPARTMENT at any time during the
Pre-Development Stage, otherwise, the term of this RE Contract shall
automatically expire.

3.2 Development Stage. Upon submission of the Declaration of Commerciality by

the RE DEVELOPER, as confirmed by the DEPARTMENT through the
issuance of a Certificate of Confirmation of Commerciality, this RE CONTRACT
shall remain in force for the balance of a period of twenty-five (25) years from
Effective Date: Provided, That at the option of the RE DEVELOPER, by written
notice to the DEPARTMENT not later than one (1) year prior to the expiration
of the initial twenty-five (25)-year period, and so long as the RE DEVELOPER
is not in default of any material obligations under this RE Contract, the
DEPARTMENT may approve the extension of this RE Contract for another
twenty-five (25) years, subject to the terms and conditions to be mutually
agreed upon by the Parties.

SECTION IV
CONTRACT STAGE TRANSITION

4.1 Declaration of Commerciality. Upon its determination that the Wind Energy
Resource can generate power in Commercial Quantities, the RE DEVELOPER
shall submit the Declaration of Commerciality along with supporting documents
which shall be made within the Pre-Development stage.

4.2 Certificate of Confirmation of Commerciality. The DEPARTMENT shall act

on RE DEVELOPER’s Declaration of Commerciality within twenty (20) working
days from receipt thereof provided the submission is made within the Pre-
Development Stage as provided in Section 4.1. Within the twenty (20) working
day period, the DEPARTMENT shall either: a) issue the Certificate of
Confirmation of Commerciality or b} deny the Declaration of Commerciality, as
the case may be.

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4.3 Should the DEPARTMENT find the Declaration of Commerciality without

sufficient basis, the RE DEVELOPER shall be given a one-time chance of thirty
(30) calendar days from receipt of the result of evaluation to rectify its
submission. Otherwise, the request of issuance of Certificate of Confirmation
of Commerciality shall be denied.

SECTION V
CONTRACT AREA

5.1 The Contract Area refers to the areas as described in Annex “A” hereof, which
the RE DEVELOPER has exclusive right to explore, develop and utilize the
Wind Energy Resources in accordance with this RE Contract.

5.2 The RE DEVELOPER may, upon submission of written notice to the

DEPARTMENT, surrender or waive the entire Contract Area or any portion
thereof without prejudice to any other outstanding liability or costs. In case the
RE DEVELOPER completely ceases its operations, the provisions under its
Abandonment and Termination Plan shall apply consistent with its
Environmental Compliance Certificate (ECC).

5.3 During Pre-Development Stage, the RE DEVELOPER shall delineate its

Production Area which shall be the final Contract Area during the Development
Stage of the Project and shall form part of its Declaration of Commerciality.

5.4 Any areas outside the proposed Production Area shall be deemed surrendered
or waived on the date of Declaration of Commerciality.

SECTION VI
WORK PROGRAM

6.1 The RE DEVELOPER shall carry out its existing work according to good
industry practices.

6.2 During the Pre-Development Stage, the RE DEVELOPER shall conduct a full
Wind Energy Resources assessment.

6.3 Attached to this RE Contract is a Work Program, details of which are

particularly described in Annex “C” hereof.

6.4 The RE DEVELOPER shall submit to the DEPARTMENT a Work Program for
the first five (5) years which shall form part of its Declaration of Commerciality
and its corresponding budget thereof.

6.5 Not later than two (2) months prior to the end of the first five (5) years from the
RE DEVELOPER’s Declaration of Commerciality, the RE DEVELOPER shall
submit a Work Program for the next five (5) years and shall do so every five
(5) years thereafter. The Work Program or any revisions thereof shall require
the approval of the DEPARTMENT.

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During the implementation of the Project, the RE DEVELOPER shall submit

for evaluation and approval by the DEPARTMENT, a request for any revisions
to the Work Program, upon determination of such revision. The
DEPARTMENT shall act on the request for revision and thereafter, the RE
DEVELOPER may proceed to implement the activity without violating the
provisions on the Work Program: Provided, That revision shall not be allowed
within the first two (2) Contract Years. Provided, further, That the RE
DEVELOPER shall be allowed to subsequently revise its Work Program only
if it has substantially complied with all its material financial and technical
activities under the Work Program for the immediate preceding Contract Year
and such revision shall be allowed only once per Contract Year.

6.6 The failure of the RE DEVELOPER to comply with its commitments under the
Work Program, the DEPARTMENT shall call the performance bond posted by
the RE DEVELOPER. This is without prejudice to the right of the
DEPARTMENT to terminate the RE Contract.

SECTION VII
RIGHTS AND OBLIGATIONS

7.1 The RE DEVELOPER shall have the following rights:

a) To be granted fiscal and non-fiscal incentives and privileges under the

Act and its IRR and all other existing laws that are not otherwise
modified or repealed by the Act;

b) To receive assistance from the DEPARTMENT:

i. During the Pre-Development Stage, in securing access to lands

and/or offshore areas where Wind Energy Resources shall be
harnessed; and

ii. In endorsing the Project to the other agencies of the National

Government, LGUs, Board of Investments (BOI) and other entities,
for the acquisition of permits, licenses and clearances and availment
of applicable fiscal and non-fiscal incentives;

c) Have at all times the right of ingress to and egress from the Contract
Area to and from facilities wherever located;

d) Acquire rights-of-way and similar rights on, over, under, across and
through the Contract Area or properties adjacent to the Contract Area,
which constitute or is reasonably expected to constitute the Contract
Area as the RE DEVELOPER may reasonably deem necessary.

The DEPARTMENT shall, upon request by the RE DEVELOPER as

may be reasonable given the attendant circumstances, assist the RE
DEVELOPER in securing such rights. For such purpose, the
DEPARTMENT shall and does hereby appoint the RE DEVELOPER as
its attorney-in-fact and does hereby give and grant to the RE
DEVELOPER full authority to act for and on its behalf in the negotiation
and conclusion of agreements and payments for such rights. All
obligations, payments and expenses arising from or incidental to the

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acquisition of such rights shall be for the account of the RE

DEVELOPER so as to enable the RE DEVELOPER to have ingress
into and egress from the Contract Area and to perform all Wind Energy
Operations in accordance with this RE Contract and in consideration of
which, entitlement to such rights shall be held in trust in favor of the RE
DEVELOPER.

The DEPARTMENT undertakes to provide further assistance to the RE

DEVELOPER, including the exercise of the power of eminent domain if
necessary, to secure such necessary or proper rights at such cost for
the account of the RE DEVELOPER, if the RE DEVELOPER is unable
to secure such rights at commercially reasonable costs through
negotiations or if the same is the most expedient course of action to
support the timely execution of Wind Energy Operations;

e) Allow, in accordance with the existing laws, to engage the services of

Expatriate Experts who shall exercise their technical professions solely
for the Wind Energy Operations: Provided That, Filipino Employees
shall be given preference to positions for which they have adequate
training and experience required by the RE DEVELOPER: Provided
further, That if the employment or connection of such Expatriate Expert
with the RE DEVELOPER ceases, applicable laws and regulations shall
apply to him and his immediate family;

f) Have a free and unimpeded use of Wind Energy Resources within the
Contract Area in view of the Wind Energy Operations, Additional
Investments and New Investments; in regard of which, the
DEPARTMENT shall ensure that rights, privileges and other
authorizations it may grant to third parties will not defeat or impair such
use; and

g) Be informed by the DEPARTMENT, if at any time the latter becomes

aware of any intended exploration, extraction or use of energy
resources other than Wind Energy Resources on the Contract Area and
adjacent areas thereof, within thirty (30) days from the date it becomes
aware of such intended exploration, extraction or other use.

7.2 The RE DEVELOPER shall have the following obligations:

a) During the Pre-Development Stage, upon determination of Wind Energy

Resource of Commercial Quantities, the RE DEVELOPER shall submit
to the DEPARTMENT its Declaration of Commerciality;

b) Secure and be subject to any necessary permits, licenses,

endorsements, agreements and clearances from all relevant
government and private entities for the Project;

c) Perform exploration, assessment, field verification, harnessing, piloting

and other activities in accordance with the Work Program and provide
technology and financing in connection with the Pre-Development
Stage;

d) Perform the required Wind Energy Operations and provide services,

technology, and financing in connection therewith;

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e) Maintain complete and accurate accounting, financial and technical

records of its Wind Energy Operations, subject to Sections X (Data and
Reports) and XII (Confidentiality) hereof, and in accordance with the
Accounting Procedures as provided under ANNEX “B” hereof;

f) Allow officials and representatives authorized by the DEPARTMENT

access to the Contract Area and to the accounts, books and records
directly relating to the Wind Energy Operations during reasonable hours
and without causing disruption. The RE DEVELOPER shall provide
such reasonable facilities and assistance as maybe practicable to
ensure the success of the inspection;

g) Give priority in employment to qualified personnel in the Host

Community and LGU, and local expertise subject to Section XVI
(Employment, Training and Development Programs) hereof;

h) At the start of every Contract Year, post a performance bond or any

other guarantee of sufficient amount but not less than the annual
budgetary estimate for the corresponding Contract Year in favor of the
DEPARTMENT from a list of DEPARTMENT-accredited insurance or
surety companies. The posting of performance bond shall be
conditioned upon the faithful performance by the RE DEVELOPER of
any or all of the commitments and obligations under the Work Program
until the commencement of the construction of the Generation Facility;

Upon the commencement of the construction of the Generation Facility,

the RE DEVELOPER shall notify the DEPARTMENT of such fact and
the latter shall verify the same. Thereafter, the obligation to post the
bond shall cease;

i) Be subject to the provisions of laws of general application;

j) Develop, operate and maintain the Contract Area in accordance with

accepted industry practices to enable maximum economic production
of the Wind Energy Resources;

k) Be responsible for procurement of installation, equipment and supplies,

and for entering into subcontracts related to the Wind Energy
Operations;

l) Comply with the provisions of Department Circular No. DC2012-11-

0009 entitled “Renewable Energy Safety, Health and Environment
Rules and Regulations”, as may be amended, and in so doing, (1) exert
its best efforts to prevent pollution and damage to the atmosphere,
oceans, rivers, lakes, harbors and land; and (2) ensure the safety and
health of its operating personnel;

m) Give preference to Philippine companies/agencies entering into

subcontracts on goods or services that are required in the Wind Energy
Operations but are not carried out by the RE DEVELOPER: Provided,
That the goods or services are competitive as to cost, quality and
availability;

n) Be responsible in the proper handling of data, samples, information,

reports and other documents;

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o) Maintain all meters and measuring equipment in good order and allow
access to inspectors authorized by the DEPARTMENT;

p) Pay the Government Share in accordance with the computation in the

Act’s IRR and taxes as may be applicable;

q) Organize Information, Education and Communication (IEC) Campaign

on benefits to the Host LGUs pursuant to Section 18 of the
DEPARTMENT’s Department Circular No. DC2009-07-0011; and

r) Comply with all rules, regulations, and guidelines issued by the

DEPARTMENT and other government agencies that are applicable
hereto.

7.3 Upon the Effective Date of this RE Contract or upon the approval of the RE
DEVELOPER’s New Investment, the DEPARTMENT shall issue a Certificate
of Registration to the RE DEVELOPER, to enable it to avail of the fiscal and
non-fiscal incentives and privileges as stated under the Act and its IRR. The
registration shall be valid and effective for the entire term and effectivity of this
RE Contract.

SECTION VIII
REPRESENTATIONS AND WARRANTIES

Acknowledging that the GOVERNMENT, through the DEPARTMENT, has entered

into this RE Contract in reliance upon the representations and warranties in this
Section, the RE DEVELOPER represents and warrants as follows:

8.1 It is a corporation or entity duly formed, established, validly existing and in

good standing under the laws of the Philippines with full power to own its
property; to carry on its business as it is now being conducted; and to execute,
deliver and perform its obligations under this RE Contract, and the entering
into and performance of this RE Contract by the RE DEVELOPER does not
conflict with the articles of incorporation, by-laws and other constitutive
documents of the RE DEVELOPER and has been duly authorized by all
necessary corporate and legal action on the part of the RE DEVELOPER;

8.2 There is no litigation, arbitration or administrative proceeding pending or, to

the best knowledge of the RE DEVELOPER, threatened against the RE
DEVELOPER or its properties the adverse determination of which would
adversely affect the ability of the RE DEVELOPER to perform or comply with
any of its material obligations under this RE Contract;

8.3 The RE DEVELOPER:

a) Has not been declared in default in respect to any of its material

financial commitments or obligations based on their reports duly
validated by the DEPARTMENT;

b) Is not otherwise in default of any kind in respect of any financial

commitment or obligation or in respect of any agreement, undertaking

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or instrument as a party thereof by which it or any of its assets or

properties may be bound; and

c) Is not aware of a fact that by the service of notice and/or lapse of time
would constitute a default in any or both of sub-paragraphs (a) and (b)
above;

8.4 No written material information given by the RE DEVELOPER to the

DEPARTMENT under this RE Contract contains any misstatement of fact as
of the Effective Date or omits to state a fact that is materially adverse to the
interests of the DEPARTMENT; and

8.5 The ownership of the RE DEVELOPER’s capital stock complies with

applicable laws and regulations.

SECTION IX
ASSETS AND EQUIPMENT

9.1 The RE DEVELOPER shall acquire and maintain for the Project and for its
Wind Energy Operations and such assets as are reasonably estimated to be
required in carrying out the exploration, assessment, harnessing, piloting and
other studies for the Wind Energy Resources in the Contract Area; and the
development, utilization and commercialization of Wind Energy Resources
therein, including the construction, installation, operation and maintenance of
the Wind Energy Systems.

9.2 All materials, equipment, plants and other installations that are erected or
placed on the Contract Area by the RE DEVELOPER and are owned by the
RE DEVELOPER shall remain the property of the RE DEVELOPER up to one
(1) year from the Expiration or Termination of this RE Contract: Provided, That
upon the written request of the RE DEVELOPER, the DEPARTMENT shall
approve an additional non-extendible period of one (1) year within which to
remove such assets in the Contract Area. Thereafter, the ownership of any
remaining materials, equipment, plants, and other installations shall be vested
in the Government.

9.3 The RE DEVELOPER shall be responsible for the removal and the disposal of
all materials, equipment and facilities from the Contract Area in accordance
with the ECC and the provisions of the Abandonment and Termination Plan as
provided under Section II hereof.

9.4 The ownership of all data, records, accounts, samples and other technical data
produced or generated in the course of the Wind Energy Operations that are
confidential, proprietary in nature, or otherwise not generally available to the
public shall remain with the DEPARTMENT and RE DEVELOPER and shall
be kept confidential in accordance with Section XII (Confidentiality) hereof.

SECTION X
DATA AND REPORTS

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10.1 All data and reports, except for proprietary techniques used in developing such
technical data and reports, must be submitted by the RE DEVELOPER in
accordance with the format approved by the DEPARTMENT.

10.2 The data and reports to be submitted to the DEPARTMENT shall include, but
not limited to, the following:

a) Annual Progress Report - shall be submitted not later than two (2) months
prior to the end of each Contract Year and shall contain the summary of
accomplishments under the approved Work Program, direct or indirect jobs
generated, summary of fiscal incentives availed in Philippine Peso and
status of construction with relevant comments and recommendation on any
technical findings, among others;

b) Procurement Plan - shall be submitted not later than one (1) month from
the approval of the Work Program and shall be designed according to the
approved Work Program, containing an itemized list of equipment,
materials, and supplies to be procured with corresponding estimated costs;

c) Monthly Generation Report - shall be submitted within fifteen (15) days

from the end of each calendar month and shall include reservoir report and
total electricity generated, used and exported to the grid;

d) General Information Sheet and the RE DEVELOPER’s management

personnel - shall be submitted every July of the calendar year and at any
time there are changes in the company structure;

e) Audited Financial Statement - shall be submitted annually within one

hundred twenty (120) calendar days after the end of the fiscal year, as
indicated in the Financial Statements;

f) Reports in accordance with the Department Circular No. DC2012-11-0009

entitled “Renewable Energy Safety, Health and Environment Rules and
Regulations”, as may be amended; and

g) To hasten the development of wind energy resources and reduce risk and
costs from the private sector, the RE Developers shall submit wind data set
to the DOE, through the Energy Data Center of the Philippines (EDCP).

i. Wind Data Set. The wind data set shall have an average time interval
of ten (10) minutes and shall include, but are not limited to, wind
speed measured at three (3) different heights, wind direction
measured at two (2) different heights, and temperature. If encrypted,
the RE Developer shall provide the data encryption.

ii. Submission of Wind Data Set. The RE Developer, with RE Contract

issued after the effectivity of this Circular or RE Contract converted
into new template under this Circular, shall submit to REMB the
electronic copy of wind data set described in Section 14.1 from the
following RE Projects:

• RE Project under Pre-Development Stage, the RE

Developer shall submit the wind data set gathered during
this Stage as part of the DOC requirement.

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• Operational RE Project Annual wind data set shall be

submitted by operational RE Projects.

• Upon Expiration, or Termination or Relinquishment of RE

Contract, the RE Developer shall submit to DOE all the
gathered wind data.

iii. Management of Data. The EDCP shall manage the wind data set
following the existing guidelines of the EDCP.

iv. Data Access. The wind data set can be accessed by other RE
Developers for a fee following the guidelines of EDCP on data
access/acquisition.

v. Fee for Data Access. Fee for the access/acquisition of one (1) year
wind data set for one (1) site is One Hundred Thousand Pesos
(PhP100,000.00). To partially or fully recover the cost borne by the
concerned RE Developer in the course of wind measurement
campaign, half of the proceeds shall be paid to the concerned RE
Developer while the other half shall be paid to the DOE.

SECTION XI
GOVERNMENT SHARE

11.1 The Government Share shall be equal to one percent (1%) of the Gross
Income from the sale of electricity generated from Wind Energy Operations in
accordance with the Accounting Procedures as prescribed under Annex “B”
hereof.

11.2 The RE DEVELOPER shall within sixty (60) days following the end of each
quarter of a Calendar or Fiscal Year remit to the DEPARTMENT the Government
Share: Provided, That any unremitted amount shall carry an interest of ten
percent (10%) per annum reckoned from the day immediately following the end
of each quarter of a Calendar or Fiscal Year, as may be applicable.

SECTION XII
CONFIDENTIALITY

12.1 All documents, information, data and reports produced or generated during the
Wind Energy Operations under this RE Contract shall be kept strictly
confidential over the term of this RE Contract or any extension thereof:
Provided, That proprietary information shall be kept strictly confidential at all
times subject to lawful acquisitions of such information following the
procedures prescribed under Section 10.2.g hereof and under existing laws
and regulations.

12.2 Without the written consent of the other Party, no Party shall use or disclose
the confidential information to any third party and/or to any Affiliate not directly
connected with the implementation of this RE Contract except the third parties
and Affiliates in Section 12.5 hereof.

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 ANNEX-F

12.3 The DEPARTMENT may use such confidential information belonging to the
RE DEVELOPER for the DEPARTMENT’s resource mapping, data gathering,
policy making and for government planning purposes.

12.4 Upon the Expiration or Termination of this RE Contract, the DEPARTMENT

may provide third parties with the data and reports submitted by the RE
DEVELOPER pursuant to this Section.

12.5 Contrary stipulations notwithstanding, the RE DEVELOPER may furnish the

information to the following third parties, subsidiaries and Affiliates, such as,
but not limited to:

a) Banks or other credit institutions from which finance is sought by the

RE DEVELOPER;

b) Third parties, subsidiaries and Affiliates that provide services for the
Wind Energy Operations, including Subcontractors and other service
contractors;

c) Prospective assignee/s to whom rights and obligations under this RE

Contract are intended to be assigned;

d) Prospective investor/s or entities with whom the RE DEVELOPER

intends to enter into joint venture or other similar agreements for the
Project;

e) Governments and stock/commodity exchanges in accordance with the

laws, regulations, or rules of the relevant country or stock/commodity
exchange; and

f) Government authorities, entities and judicial courts if required by law,

regulation, directive, or order to disclose.

12.6 The information shall be revealed to those persons allowed under this RE
Contract only if and to the extent necessary and desirable for the purpose
intended. Each Party shall ensure that such person to whom information is
disclosed is informed of the confidential nature of the information and the
purpose for which it may be used and that each such person is bound by this
Section.

12.7 The RE DEVELOPER and its Affiliates or the DEPARTMENT, its officers,
employees, consultants and other duly authorized representatives shall not
make any public statement or announcement of any information produced,
generated or acquired in the course of the Wind Energy Operations, without
prior written consent of the other Party.

SECTION XIII
PERFORMANCE BOND AND SIGNING FEE

13.1 The RE DEVELOPER shall pay the signing fee in the amount of
______________________ Pesos (Php ____________) and post the
performance bond covering the first Contract Year within fifteen (15) and thirty

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 ANNEX-F

(30) days, respectively, from its receipt of notice.

13.2 Failure of the RE DEVELOPER to comply with Section 13.1 hereof shall render
the COR and RE Contract to be void ab initio.

13.3 The initial amount of the bond or other guarantee as specified in Sub-section
7.2(h) shall not be less than the annual financial commitment/budgetary
estimate for the first Contract Year based on the Work Program.

13.4 The amount of performance bond or other guarantee may be adjusted, subject
to the following conditions:

a) In the event of surrender by the RE DEVELOPER of a portion of the

Contract Area covered by this RE Contract, the performance bond or other
guarantee shall be reduced proportionately in accordance with the Work
Program;

b) In the event that the RE DEVELOPER has fully expended its budgetary
estimate under the Work Program but has not fully performed its work
obligations, the amount of bond or other guarantee shall be equal to the
succeeding Contract Year’s budgetary estimate under the revised Work
Program; and

c) Such other conditions or circumstances as would reasonably warrant the

modification of the amount of the performance bond or other guarantee.

13.5 If the RE DEVELOPER, through its own fault, fails to observe or perform its
work obligations under the Work Program, the DEPARTMENT, upon prior
written notice, may proceed against the performance bond or other guarantee,
Provided That, should the work obligations under the Work Program be
fulfilled, and through the efficiency of the RE DEVELOPER, the corresponding
actual expenditures thereon are lower than the estimated expenditures stated
in the Work Program, the same shall be considered as full compliance of the
work obligations.

13.6 The DEPARTMENT shall release the performance bond or other guarantee
not later than twenty (20) working days from the date of confirmation by the
DEPARTMENT on the start of the construction of the Generation Facility.

(Note: The amount for signing fee/bonus shall be based on the total Contract Area at
the rate of Php100.00/has.)

SECTION XIV
SUSPENSION AND TERMINATION

14.1 In case of the Pre-Development Stage, the DEPARTMENT shall have the
power to terminate this RE Contract after due notice to the RE DEVELOPER
on any of the following grounds:

a) Non-compliance with the Work Program and the material terms and
conditions of this RE Contract;

b) Non-compliance with the RE technical design standards adopted by the

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 ANNEX-F

DEPARTMENT;

c) Tampering, falsifying or plagiarizing of technical design and feasibility study

reports;

d) Non-payment of the financial obligations agreed upon under this RE

Contract; and

e) Non-posting of performance bond or other guarantee within the period/s

provided under Section XIII (Performance Bond) hereof.

14.2 In case of the Development Stage, the DEPARTMENT shall have the power
to terminate this RE Contract after due notice to the RE DEVELOPER on any
of the following grounds:

a) Non-compliance with the approved Work Program and the material terms
and conditions of this RE Contract;

b) Violation of the Renewable Portfolio Standards Rules, as defined in the Act

and its IRR and relevant Department Circulars;

c) Non-compliance with the RE technical design standards adopted by the

DEPARTMENT;

d) Tampering, falsifying or plagiarizing of technical design, feasibility study

generation and operation reports;

e) Non-remittance of Government Share as determined by the Compliance

Division - Financial Services of the DEPARTMENT;

f) Non-payment of the financial obligations agreed upon under this RE

Contract;

g) Non-posting of performance bond or other guarantee within the period/s

provided under Section XIII (Performance Bond) hereof.

14.3 In case the default of the RE DEVELOPER on account of any of the foregoing
grounds is attributable to Force Majeure, the obligation of the RE
DEVELOPER may be suspended for a period of six (6) months or until the
Force Majeure event ceases to exist whichever comes earlier subject to the
following conditions:

a) The RE DEVELOPER shall file a notice of Force Majeure to the

DEPARTMENT within fifteen (15) calendar days from its existence along
with proof that:

i. The Force Majeure exists;

ii. The event/s occurred independent of the will of the RE
DEVELOPER;
iii. The event/s rendered it impossible for the RE Developer to fulfill its
obligations in a normal manner; and
iv. The RE DEVELOPER is free of participation in, or aggravation of,
the injury to DOE.

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 ANNEX-F

b) After due validation which shall be made within twenty (20) working days
from receipt of such notice, the DEPARTMENT shall issue an approval of
suspension of contractual obligation/s affected by Force Majeure;
Provided, that if the suspension of the obligations will extend the Pre-
Development Stage, the REMB Director shall endorse the approval to the
DOE Secretary;

c) The RE DEVELOPER shall continue to post the performance bond, if

necessary, observe administrative requirements and comply with
reportorial obligations on its work commitments not affected by Force
Majeure;

d) Once the Force Majeure had ceased, the RE DEVELOPER shall notify the
DEPARTMENT within five (5) calendar days from cessation together with
the revised Work Program covering the remaining contract term;

e) Any failure or delay on the part of the RE DEVELOPER of the

DEPARTMENT in the performance of its obligations or duties under the
RE Contract shall be excused to the extent attributable to Force Majeure;

f) If the Wind Energy Operations are curtailed or prevented by such causes,

then the time for enjoying the rights and carrying out the obligations
thereby affected, and all rights and obligations hereunder shall be
extended for a period equal to the period of delay, curtailment or
prevention: Provided, however, That the suspension of obligation shall in
no way extend the term of the RE Contract. Provided, further, That if
operations are delayed, curtailed or prevented by Force Majeure for a
continuous period of twelve (12) months, this RE Contract may thereafter
be terminated, at the option of the RE DEVELOPER, at anytime that the
Force Majeure condition still exists, subject to confirmation of the
DEPARTMENT; and

g) The Party whose ability to perform its obligations is so affected shall notify
the other Party thereof in writing stating the cause and such affected Party
shall do all reasonably within its power to remove such cause.

14.4 In the case the wind energy operations are delayed, curtailed or prevented by
Force Majeure for a continuous period of six (6) months, the efficacy of the RE
Contract may be suspended for a maximum period of three (3) years or until
Force Majeure event ceases to exist, whichever comes earlier. The period of
such suspension shall not be counted against the constitutional term limits.

The RE DEVELOPER and the DEPARTMENT shall comply with the following
conditions:

i. Upon strict compliance with the conditions under 16.7 of the WESC,
the RE DEVELOPER may file a request for suspension of the WESC
within fifteen (15) days following the last day of the said sis (6)-month
period.

ii. For a period of ninety (90) days from receipt of endorsement,

DEAPARTMENT shall exert efforts to enable the RE DEVELOPER to
resume wind energy operations.

iii. If, despite such efforts, the Force Majeure persists and the wind energy

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 ANNEX-F

operations cannot resume, the DEPARTMENT shall approve the

request for suspension of the RE Contract. Notice of suspension shall
be given to the RE DEVELOPER within fifteen (15) days following the
last day of the ninety (90)-day period.

iv. Within ten (10) days from receipt of notice of suspension, the RE
DEVELOPER shall submit a sworn undertaking to notify the
DEPARTMENT and submit proof that the Force Majeure has ceased.
Failure to give notice within ten (10) days from cessation shall be
deemed a relinquishment of the RE Contract.

v. If the RE Developer intends to resume operations, it shall submit a

request to resume hydropower operations together with the notice
abovementioned. After due evaluation and if warranted, the request
shall be endorsed to the DOE Secretary for approval.

vi. The RE DEVELOPER may only avail of the above suspension of RE

Contract once during its term.

14.5 The DEPARTMENT shall have the power to compel the RE DEVELOPER to
perform wind energy operations when the following conditions exist:

a. The RE DEVELOPERS fails, refuses or neglects to perform the wind

energy operations without any justifiable cause; and

b. Such failure, refusal or neglect:

i. Results in or contributes to a shortage I the supply of electricity,

based on the report of the EPIMB; and

ii. Poses a threat to the country’s national security and/or economy,

as determined by the DOE Secretary

If the RE Developer does not comply with the DEPARTMENT's directive

within three (3) calendar days from receipt, such noncompliance shall be
deemed sufficient authority for the DEPARTMENT to conduct hydropower
operations directly or through another government entity; Provided, that the
DEPARTMENT's authority herein set forth shall only subsist for such period
as may be needed to avert or arrest the threat, or upon the RE
DEVELOPER's resumption of wind energy operations, whichever comes
earlier.

14.6 Notwithstanding the foregoing, this RE Contract shall be terminated without

prejudice to the RE DEVELOPER’s obligation which survive the termination of
this RE Contract.
.
SECTION XV
DISPUTES AND ARBITRATION

15.1 Any dispute, controversy or claim arising out of or relating to this RE Contract,
except Section 14.1.a hereof shall be settled amicably within a period of sixty
(60) days after receipt by one Party of a notice from the other Party of the
existence of the dispute.

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 ANNEX-F

15.2 If the dispute cannot be settled amicably within the sixty (60)-day period, the
Parties shall, with respect to disputes arising out of or in connection with
Sections V (Contract Area), VI (Work Program and Estimated Expenditures)
and XI (Government Share) hereof, refer the dispute to an independent expert
for resolution in the manner provided below; Provided That any Party, in its
sole discretion, may require the dispute be referred to arbitration under Section
15.4 hereof;

15.3 The following shall govern the rules of referral:

a) After the sixty (60) day period in Section 15.1 hereof has passed, any Party
may give notice to the other Party of its intention to refer the dispute to an
expert in accordance with the provisions of this RE Contract;

b) The respondent shall, within twenty-one (21) days after receipt of the notice
of intention to refer, serve the applicant a notice of its intention to defend;

c) If within fourteen (14) days after the applicant’s receipt of the respondent’s
notice of intention to defend, the Parties have agreed on an expert and on
the terms under which the dispute shall be referred to the independent
expert mentioned in Section 15.2 hereof. In the event that within such
fourteen (14)-day period, the Parties are unable to agree upon an expert to
be appointed hereunder or upon the terms of such expert’s reference or
both, then either Party may request the International Chamber of
Commerce (ICC) International Centre for Expertise to appoint an expert,
and the matters to be determined by such expert shall be those set out in
the notice of intention to refer and the notice of intention to defend;

d) Unless the Parties agree otherwise, any expert proceedings under this
Section shall be required to follow the ICC Rules for Expertise in force as
of Effective Date;

e) The language of the expert proceedings and the expert’s determinations

shall be in English;

f) The Parties hereby agree to be bound by, to perform this RE Contract in

accordance with, and to implement, as the case may be, the determination
of the expert. Failure by one Party to so act shall constitute a breach of
this RE Contract and shall be submitted to arbitration in accordance with
Section 15.4 as the sole means of enforcing the determination;

g) Each Party shall bear the costs and expenses of all lawyers, advisors,
witnesses and employees retained by it in connection with the expert
proceedings: Provided, however, That in circumstances where the expert
determines that a matter referred to him was not subject to a bona fide
dispute, the costs and expenses incurred by the prevailing Party and the
expert in connection with such matter shall be paid by the non-prevailing
Party.

15.4 If the dispute cannot be settled within sixty (60) days by mutual discussions as
contemplated in Section 15.1 hereof, and referral to an expert is neither
prescribed nor elected by the Parties with respect to any technical dispute, the
dispute shall finally be settled by an arbitral tribunal (the “Tribunal”) governed
by and conducted in accordance with the ICC Rules of Arbitration (the “Rules”)
in force as of Effective Date (or such Rules as may be in force at the time such

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 ANNEX-F

arbitration is commenced), as follows:

a) The RE DEVELOPER will nominate one (1) arbitrator and the

DEPARTMENT will nominate one (1) arbitrator within thirty (30) days from
the date of a request by either Party to initiate arbitration. The two Party-
nominated arbitrators will then jointly nominate a third arbitrator within thirty
(30) days from the date of the appointment of the second arbitrator, to act
as Chairman of the Tribunal. Arbitrators not nominated within the time limits
set forth in the preceding sentence shall be appointed by the ICC Court of
International Arbitration;

b) Unless otherwise agreed by the Parties, the venue of the arbitration shall
be in Metro Manila, Philippines;

c) The language of the arbitration and award shall be in English;

d) The Tribunal shall not be authorized to impose, and either Party shall not
be authorized to seek from any judicial authority, any requirement that the
Party posts security for the costs of either Party;

e) The decision of the Tribunal shall be final and binding upon the Parties.
Judgement upon the award rendered may be entered into any court having
jurisdiction, or application may be made to such court for a judicial
acceptance of the award and an order of enforcement, as the case may
be.

15.5 The right to arbitrate disputes under this RE Contract shall survive the
Expiration or Termination of this RE Contract.

SECTION XVI
EMPLOYMENT, TRAINING AND DEVELOPMENT PROGRAMS

15.1 The RE DEVELOPER agrees to give preference in employment to qualified

Filipino Employees who are residents of the Host Communities and LGUs and
will undertake the development and training of Filipino Employees for labor
and staff positions, including administrative, technical and executive
management positions. In the course of its operations, the RE DEVELOPER
shall maintain as much as possible, an equal percentage men and women
employees and accord them equal access to development and training
programs. In no case shall an employee be denied employment and access to
such development and training programs on the basis of sex and/or gender.

16.1 During the Pre-Development Stage, the RE DEVELOPER shall, upon request
of the DEPARTMENT provide development assistance in kind in the amount
of ___________________________ (Php___________). Upon confirmation
of the Declaration of Commerciality, the RE DEVELOPER shall, upon request
of the DEPARTMENT, provide development assistance in kind in the amount
of ______________________ (Php______________).

16.2 During the Pre-Development Stage, the RE DEVELOPER shall provide

assistance for training programs, conference seminars and other similar
activities for the DEPARTMENT’s personnel in the amount of
_________________ (Php___________) per Contract Year. During the

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 ANNEX-F

Development Stage, the RE DEVELOPER, upon request of the

DEPARTMENT, shall provide assistance for training programs, conference
seminars and other similar activities for the DEPARTMENT’s personnel in the
amount of __________________ (Php______________) per Contract Year.
This assistance shall be accumulated for the succeeding Contract Years if not
availed of in a given Contract Year. The RE DEVELOPER shall pay the
unutilized amount of the training commitment prior to the Expiry or Termination
of this RE Contract.

16.3 The RE DEVELOPER shall undertake corporate social responsibility projects

in Host LGUs with focus in education and training of qualified and deserving
beneficiaries, as determined by the RE DEVELOPER.

(Note: The funds for training program and development assistance shall be computed
based on the total Contract Area at the rate of Php100.00/has. during Pre-Development
Stage. During Development Stage, the funds shall be at the rate Php300.00/has. for
training program and Php 600.00/has for development assistance or both Php50,000.00
whichever is higher except that projects with installed capacity of 1MW and below shall
be exempt from these financial obligations.)

SECTION XVII
MISCELLANEOUS PROVISIONS

17.1 NOTICES

Any notice required or given by either Party to the other Party shall be (i) in
writing and delivered personally or sent by registered or certified mail,
commercial courier service to the address designated in writing, (ii) by
facsimile to the number most recently provided to such party or such other
address or fax number designated in writing by such party and (iii) by electronic
mail, to the electronic mail address designated in writing by such party or such
other electronic mail address as may be later designated in writing by such
party.

Any notice or other communication so transmitted shall be deemed to have

been given: (a) on the day of delivery if delivered personally; (b) one (1)
business day after delivery to a commercial courier service; (c) five (5) days
after mailing if sent by registered mail, return receipt requested, postage
prepaid; or (d) when sent by electronic mail or facsimile, using the email
address and facsimile number herein below provided if sent during normal
business hours of the recipient, and if not so confirmed, then on the next
business day. All such notices shall be addressed:

To the DEPARTMENT:

The Secretary
Department of Energy
Office Address
Email Address
Telephone/Fax Numbers

To the RE DEVELOPER:

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 ANNEX-F

Designation
Company Name
Office Address
Email Address
Telephone/Fax Numbers

Any Party may substitute or change such address with prior written notice
thereof to the other Party.

17.2 GOVERNING LAW

The laws of the Republic of the Philippines shall apply to this RE Contract.

17.3 ASSIGNMENT

a) The RE DEVELOPER may assign this RE Contract to a third party subject

to the prior written approval of the DEPARTMENT. This RE Contract shall
not be assigned to any third party, unless such third party is qualified in
accordance with the Act and its IRR.

b) The RE DEVELOPER may assign or transfer part or all of its rights and/or
obligations under this RE Contract to its Affiliate upon compliance with the
following provisions:

i. The RE DEVELOPER shall submit to the DEPARTMENT copies

of the written document which unequivocally shows the
agreement of the parties thereat to the assignment of the RE
Contract; and

ii. In the case of a partial assignment, the RE Developer shall

guarantee in writing to the Department the performance of the
assigned obligations.

c) The RE DEVELOPER may authorize its subsidiaries, branches or regional

corporations to implement this RE Contract, but the RE DEVELOPER shall
remain responsible for the performance of this RE Contract.

d) During the Pre-Development Stage, this RE Contract shall not be assigned

except where the assignee is a subsidiary, branch or regional corporation
of the RE DEVELOPER created for the special purpose of handling the
project covered by the RE Contract.

e) No assignment shall be granted if the RE DEVELOPER is in default of its

Work Program or any of its material obligations under the RE Contract and
other RE agreements with the DEPARTMENT.

f) An assignment of the RE Contract, whether full or partial, to a non-Affiliate,

may be allowed only once during the entire period covering the Pre-
Development Stage and pre-commissioning phase of the RE Contract. An
assignment shall not be allowed to a non-Affiliate during the first two (2)
years of the RE Contract from its effectivity.

17.4 AMENDMENTS

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 ANNEX-F

The RE Contract shall not be amended or modified in any respect except by

the mutual consent in writing of the Parties.
.
17.5 BOOKS OF ACCOUNTS AND AUDITS

a) The RE DEVELOPER shall be responsible for keeping complete books and

accounts, in Philippine currency denominations, reflecting all transactions
in connection with this RE Contract in accordance with the Annex “B”
hereof.

b) The DEPARTMENT shall have the right to inspect the RE DEVELOPER’s

books and accounts directly relating to this RE Contract for any Calendar
or Fiscal Year thirty-six (36) months following the end of each Calendar or
Fiscal Year. Any such audit shall be completed within twenty-four (24)
months from its commencement. Any exceptions must be made to the RE
DEVELOPER in writing within ninety (90) calendar days following the
completion of such audit. If the DEPARMENT fails to give such written
exception within such time, then the RE DEVELOPER’s books of accounts
and statements for such Calendar or Fiscal Year shall be established as
correct and final for all purpose.

c) The DEPARTMENT, upon at least fifteen (15) days advance written notice
to the RE DEVELOPER, is entitled to access, during reasonable hours
without affecting Wind Energy Operations, all books of accounts and
records and may inspect such sites and facilities as necessary.

d) If the DEPARTMENT notifies the RE DEVELOPER of an exception to the

RE DEVELOPER’s books of accounts within the period specified in Sub-
section 17.6 (b), the RE DEVELOPER shall within ninety (90) days from
receipt of written exception from the DEPARTMENT, question its validity,
otherwise, the same shall become final and binding on the RE
DEVELOPER. If the Parties are not able to agree on the exceptions or
adjustments after ninety (90) days from the date of receipt of the RE
DEVELOPER’s response to the DEPARTMENT’s exception report, the
Parties shall resolve the dispute in accordance with Section XV (Disputes
and Arbitration) hereof.

17.6 SEPARABILITY CLAUSE

Should any provision of this RE Contract or the application thereof to any

situation or circumstance be declared null and void and/or invalid or
unenforceable, such invalidity or unenforceability shall not affect the remaining
provisions hereof which shall remain valid and enforceable to the fullest extent.
In the event of such partial invalidity or unenforceability, the Parties shall seek
in good faith to agree on replacing the invalid or unenforceable provisions with
a provision that in effect will most nearly and fairly approximate the effect of
the invalid or unenforceable provision through the issuance of appropriate
supplemental contract/s or agreement/s.

IN WITNESS WHEREOF, the Parties have caused this RE Contract to be executed

by their respective representatives at the place and on the date above written.

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 ANNEX-F

DEPARTMENT OF ENERGY COMPANY NAME

By: By:

NAME PRINCIPAL SIGNATORY

Secretary Designation

WITNESSES

NAME NAME OF WITNESS

Director IV, REMB Designation

Page 25 of 27
 ANNEX-F

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF TAGUIG ) S.S.

Before me, a Notary Public duly authorized in the City of Manila, this
___________________, personally appeared:

Competent
Name Date and Place of Issuance
Evidence of Identity

DOE SECRETARY

known to be the same person described in the foregoing instrument, who

acknowledged before me that her signature on the instrument was voluntarily affixed
by him/her for the purposes stated therein, and who declared to me that she executed
the instrument as her free and voluntary act and deed as well as the free and
voluntary act and deed of the government agency herein represented.

This RE Contract consisting of twenty-five (25) pages, including the page on which
the acknowledgment is written, is signed on each and every page thereof by the
Parties and his instrumental witnesses and sealed with my notarial seal.

WITNESS MY HAND AND SEAL on ______________ at _______________.

NOTARY PUBLIC

Doc. No. __________;

Page No.__________;
Book No.__________;
Series of __________.

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 ANNEX-F

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF TAGUIG ) S.S.

Before me, a Notary Public duly authorized in the City of Manila, this
___________________, personally appeared:

Competent Evidence of Date and Place of

Name
Identity Issuance
FULL NAME ID / ID No. DATE/Place of Issuance

known to be the same person described in the foregoing instrument, who

acknowledged before me that her signature on the instrument was voluntarily affixed
by him/her for the purposes stated therein, and who declared to me that she executed
the instrument as her free and voluntary act and deed as well as the free and
voluntary act and deed of the government agency herein represented.

This RE Contract consisting of twenty-five (25) pages, including the page on which
the acknowledgment is written, is signed on each and every page thereof by the
Parties and his instrumental witnesses and sealed with my notarial seal.

WITNESS MY HAND AND SEAL on ______________ at _______________.

NOTARY PUBLIC

Doc. No. __________;

Page No.__________;
Book No.__________;
Series of __________.

ANNEX “A”
CONTRACT AREA

ANNEX “B”
ACCOUNTING PROCEDURE

ANNEX “C”
WORK PROGRAM

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