NPC IRISVILLE HOMEOWNERS’ ASSOCIATION, INC.

Irisville Subdivision, Irisan Baguio City

September 26, 2010

MR. EDMUND P. ANGULUAN

Vice President-HR/Admin, NPC and
Chairman, Board of Trustees
NPC Welfare Fund
Quezon Avenue, Corner BIR Road
Diliman, Quezon City 1100

Dear Mr. Anguluan:

The members and officers of the NPC Irisville Homeowner’s Association, Inc. (NIHAI) met last
September 25, 2010 to tackle several concerns gravely affecting the residents. Among the
issues tackled was the reopening of Gate 2.

The NIHAI members believe and still do in the original reason for closing such gate on July 15,
2010. It was to control the proliferation of squatters at Phase 2 and to protect the Welfare
Fund’s property at Irisville.

However, since the closure, other problems, as severe as the original arose. These are as
follows—

1. The Neighbouring Community

NPC Irisville belongs to Purok 20. Outside of Gate 2 is Purok 12. The residents of Purok
12 access the passenger jeep terminal located at Gate 1

Since the closure, residents of Purok 12 were forced to look for alternative routes to get
to the city proper. Their first alternative is a foot path, more than a kilometer in
distance, very steep and slippery when wet because of the presence of lime. This is
through the lime quarry-Apugan. This is also the site of some hold-up incidents. This is
very dangerous to everybody there and more especially to the young school children,
the sick, the pregnant, and the employees and students who render duty at night.

The second alternative, which is being utilized right now, is the footpath that goes
around the perimeter fence and exits just beside the house located at Gate 2. While this
alternative is shorter, it is located beside a cliff. Below this is the underground river
(Bubon) located at Irisville. Also, below and beside the river is the site of the huge
erosion caused by Typhoon Peping last year. This footpath is now deteriorating rapidly
as the rains continue. This again poses a great danger to the lives of the Purok 12
residents.

The residents filed an appeal and a petition for the full opening or for the creation of a
pedestrian access through Gate 2. Both have not been acted upon to this date.
 Also as a backgrounder, the rough road outside of Gate 2 was the access road of the
NPC Welfare Fund while NPC Irisville Subdivision was being developed and while
negotiations for a right-of-way were on-going. Then, the project managers entered into
a verbal agreement with the late Mr. Maggio Salom to provide an access road for the
project in return for allowing them passage when eventually development will have been
finished.

Because of the situation, the residents of Purok 12 are growing restless and angry. They
are looking into the possibility of filing lawsuits. They cite provisions of Republic Act No.
9904 known as Magna Carta for Homeowners and Associations and for other purposes,
which provide among others, Section 18 which states “Associations are encouraged to
actively cooperate with LGUs in the furtherance of their common goal and activities for
the benefit of the residents of the subdivision/villages and their environs.”

2. The Barangay

The Barangay officials have a job to do to maintain peace and order for the community
it governs:

a. Residents of Purok 12 have appealed to the barangay for help regarding Gate 2.
b. NPC Welfare Fund also appealed to the barangay for help regarding the squatting
problem at Phase 2.
c. The barangay says “that the affected Purok 12 petitioners are our allies and are
against squatting and thus even vowed to help your association (NIHAI) for the
prevention of the entrance of squatters”. (Contained in the letter of the Barangay
Captain dated September 13, 2010 to Mr. Edmund Anguluan).
d. The closed Gate 2 obstructs the barangay from doing their night patrol of both Purok
12 and Purok 20. (Contained in September13, 2010 letter).

3. The Squatting Problem at Phase 2

Despite the closure of Gate 2, the squatting problem was not really controlled. The
squatters have used other routes both legal and illegal to access Phase 2 and to bring
their construction materials to the site. Gate 1 is the main access of the squatters.

With all due respect to the Welfare Fund, its Board and its resolutions, the members of
NIHAI felt the urgency to unanimously decide to provide a pedestrian access at Gate 2
for Purok 12. This decision will:

1. Restore good community relations with Purok 12 residents. NIHAI cannot afford to
make another enemy in another front. NIHAI residents cannot also renege on the
verbal agreements entered earlier regarding the right-of-way. As citizens we must, in
the exercise of our rights and in the performance of our duties, act with justice, give
everyone his due and observe honesty and good faith. [Art. 19, Civil Code]

2. Avoid the possible loss of lives and limbs due to the closed gate. Residents of Purok
12 traversing the alternate routes may be harmed or injured should they accidentally
fall off the cliff or they may drown if they plunge into the underground river. The
 victims and their families would end up suing NIHAI and the NPC Welfare Fund for
damages. Every person—whether natural or juridical [such as the NIHAI and the
NPC Welfare Fund]—who contrary to law, willfully and negligently causes damages
to another, shall indemnify the latter for the same. [Art. 20, Civil Code]

3. Forestall the filing of lawsuits by Purok 12 residents. The law is actually on their side.
They can lawfully demand that a road right of way be established for the benefit of
their community. [Art. 614, Civil Code]. They can file cases for injunction and
damages for the purpose of causing the opening of the right of way. NIHAI and the
Welfare Fund would end up being unduly burdened by the unnecessary expense of
defending itself in such a lawsuit and also in the payment of damages. Note that it is
also possible for the Purok 12 residents to file individual civil, criminal and
administrative cases against the residents of NIHAI and the board members of the
Welfare Fund for oppression, coercion, and unjust vexation [Administrative Code,
Revised Penal Code].

4. Manifest our support to the barangay officials who are doing their job, by acceding
to their request for a temporary pedestrian access at Gate 2. This is because the
barangay is also supporting us in the resolution of the Phase 2 squatting problem.

5. Enforce the principal that the Welfare Fund is committed to the welfare not only of
its constituents but the community as a whole by fulfilling its corporate social
responsibility. The Gate 2 Access is in reality a voluntary easement granted by the
Welfare Fund to the Purok 12 residents and the same has been in existence for
years. The Welfare Fund cannot arbitrarily close it in a manner that is detrimental to
these residents. [Art. 630] It is mandated by law to abstain from performing any act
which will impair, in any manner whatsoever the use of the right of way. [Art. 629,
Civil Code]

With the above, the NIHAI residents hereby respectfully request the Welfare Fund Board to
confirm the decision of the NIHAI members to provide Purok 12 residents a pedestrian access
at Gate 2 the soonest possible time.

Thank you very much for your approval and support.

Very truly yours,

NIHAI Officers and Members

Printed Name Signature

Printed Name Signature