globe

I. Globe™ is a leading telecommunications company in the Philippines. Our mission is to transform and enrich lives through communications by way of our vision of making great things possible. Through our renewed commitment to "enriching lives through ease and relevance", our goal is to enrich everyday communications by simplifying and removing obstacles in communication technology so that we bring our customers closer to what matters to them most. THE GLOBE WAY We put our Customers first. Our people make the difference. We act with integrity. We care like an owner. We keep things simple. To us, it's be fast or be last. I love Globe. Together, we make great things possible.

HISTORY In 1928, Congress passed Act No. 3495 granting the Robert Dollar Company, a corporation organized and existing under the laws of the State of California, a franchise to operate wireless long distance message services in the Philippines. The Robert Dollar Company subsequently incorporated in the Philippines as Globe Wireless Limited and in 1934, Congress passed Act No. 4150 transferring the franchise and privileges of the Robert Dollar Company to Globe Wireless Limited. Globe Wireless Limited was subsequently renamed Globe Mackay Cable and Radio Corporation. Congress, through Republic Act 4630 enacted in 1965, further expanded its franchise to allow it to operate international communications systems. Globe Mackay Cable and Radio Corporation was closed in the Philippines by Martial law. Shortly before the expiration of its franchise, the Batasan Pambansa in 1980 enacted Batas Pambansa 95 granting Globe Mackay Cable and Radio Corporation a new franchise. On June 15, 1990, Isla Communications Co., Inc. (Islacom) was incorporated. Through Republic Act 7372, Islacom was authorized to develop full-service telecommunications network in the country. In 1991, Globe Mackay was subsequently merged with the Clavecilla Radio Corporation. Globe Mackay as the surviving company was renamed GMCR, Inc. and on March 19, 1992, the Philippine Congress passed Republic Act 7229 approving the merger and the transfer of the franchise of Clavecilla Radio Corporation to the surviving company to be renamed GMCR, Inc. In 1994, Islacom launched the country's first digital mobile communication services using GSM world standard digital technology. On August 20, 1998, the Philippine Securities and Exchange Commission (SEC) approved the change of name of GMCR, Inc. to Globe Telecom, Inc. (Globe). On February 22, 2000, Globe and its principal shareholders Ayala Corporation (AC) and Singapore Telecom International Pte. Ltd. (STI), a wholly owned subsidiary of Singapore Telecom (ST), and Islacom and its principal shareholders Asiacom Philippines, Inc.(Asiacom) and DeTeAsia Holding GmbH (DeTeAsia), a wholly owned subsidiary of Deutsche Telekom AG (DT), entered into a general agreement for a combination of the business and operations of Globe and Islacom.

On June 27, 2001, Globe completed the share swap transaction with Islacom, which effectively made Islacom a 100%-owned subsidiary of Globe. In September 2002, Globe announced the operational integration of Globe and Islacom's wireless networks. A key element of the integration involves the migration of existing wireless subscribers of Islacom to the improved Touch Mobile (TM) service. On August 7, 2003, the National Telecommunications Commission (NTC) approved the legal transfer of Globe's wireline business, authorizations, properties, assets and obligations to Islacom. On August 25, 2003, the SEC approved the change in name of Islacom to Innove Communications, Inc. (Innove). On March 30, 2007, Globe Telecom, through its president and chief executive Gerardo Ablaza Jr. said it is diversifying from its core business to take advantage of the booming broadband business. Ablaza said the company would increase its investments in cable systems and wire lines to build its broadband Internet infrastructure. Industry analysts have viewed Globe's plan to invest in cable systems as a strategy to compete more aggressively with Philippine Long Distance Telephone Company (PLDT), which took advantage of its wire line infrastructure to diversify into broadband business.

Ownership 

SingTel - 47%



Ayala Corporation - 32%



Public Stock - 21%

Competition Globe's main competitor in the fixed-line telephone market is PLDT. In the mobile telephony market, its main competitors are Smart Communications and Talk N' Text, which is owned by PLDT, and Sun Cellular, which is owned by Digitel.

COMPANY BACKGROUND Cultures and Values: These values are the anchor of our corporate existence: •

Customer Commitment - a steadfast pledge to provide only the best to the customer

•

Excellence - the relentless pursuit of outstanding performance

•

Integrity- a faithful adherence to the highest ethical standards

•

Primacy and Worth of the Individual - respect for every employee as a unique individual, a professional in his own right, and with his own sense of dignity and self-worth

•

Teamwork - the collective drive to achieve the company’s vision and mission and uphold the company’s values

•

Commitment to Society and the Environment - a responsibility to uplift the quality of people’s lives and protect the environment

LOCATION Globe Telecom 5th Floor, Globe Telecom Plaza Pioneer corner Madison Streets 1552 Mandaluyong City, Philippines (main office)

SUBCOMPANIES/ SISTER COMPANIES 

Ayala Corporation



Globe Handyphone



TM (Touch Mobile)

PRODUCTS AND SERVICES Globe has rolled out Globe broadband powered by WiMAX (Worldwide interoperability for Microwave Access). Globe's network is considered the first and biggest 2.5Ghz WiMAX (802.16e) broadband network in South East Asia. It is first in the Philippines to commercially launch a consumer WiMAX offering. Currently, Globe has around four thousand subscribers on its WiMAX network, after only a few weeks. The service is initially available in selected areas in South Luzon, Metro Manila, Visayas and Mindanao. Globe continues to roll-out WiMAX sites, as a complement to its existing DSL and 3G Internet facilities, to ensure the internet gets to every Filipino who needs it. Globe is providing WiMAX to selected local community government offices in Cavite, Batangas and Cagayan de Oro City. Globe is also providing Internet access via WiMAX to selected schools and city hospitals in Mindanao as part of its thrust of community service to the marginalized areas. Globe has been expanding its wireless broadband network to accommodate the increasing demand for the Internet. In 2009, Globe introduced Globe Tattoo and Globe broadband powered by WiMAX (Worldwide interoperability for Microwave Access). In June 2009, the company launched hyper-speed plans via fiber-to-the-home technology. Globe Telecom brought iPhone 3G to the Philippines on August 22, 2008. iPhone 3G combines all the features of iPhone plus 3G networking, built-in GPS for expanded locationbased mobile services, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync. With Globe broadband Tattoo, users can experience speeds of up to 2 Mbps, delivered via 3G and High-Speed Downlink Packet Access (HSDPA). SulitChat is Globe's messaging offer to subscribers who never want to be disconnected from their chatmates and/or textmates. It allows them to continue sending messages complete with emoticons even in the absence of a laptop or personal computer. GCASH Remit, remittances delivered straight to Globe or TM phone in response to Filipino expatriates and overseas Filipino workers growing needs. GCASH Click answered the need for a more secure mode of payment for Internet buys. It’s a new payment option for merchants and consumers transacting on the web, which assures security and confidentiality. Duo allows subscribers unlimited calling to and from any landline number, as well as, unlimited calling to and from any Globe DUO postpaid mobile subscriber.

Super Duo is an upgrade of the Globe Duo service. It is an unlimited mobile-to-landline call service, which also enables subscribers to make unlimited calls to any Globe, TM and Tattoo mobile numbers within the Philippines. Super Surf is an unlimited mobile Internet browsing service which enables subscribers to gain unlimited access to surf, e-mail, chat and blog from mobile phones, laptops or desktop computers. Super Unli is a service that provides unlimited Globe to Globe/Tattoo/TM text and calls for 7 days or 1 day.

MISSION AND VISION Our mission is to transform and enrich lives through communications by way of our vision of making great things possible.

TAGLINE “Abot mo ang mundo.”

ORGANIZATIONAL STRUCTURE Chairman of the Board Jaime de Ayala

CFO & Administration AdL

Financial Control JDA

Vice Chairman of the Board Gerardo Ablaza

CTO RG

Internal Audit CHA

Legal Services FC

Information Systems GR

Secretary Solomon Hermosura

Assistant, Secretary MCC

Consumer Marketing CO

Consumer Customer Facing PB

Director Kah Sek Koh Director Delfin Lazaro Director Roberto de Ocampo Director Guillermo Luchangco Director Romeo Bernardo Director Xavier Loinaz Director Fernando de Ayala Co-Vice Chairman of the Board Weng Cheong Hui

Customer Facing & Innove GG

Legal RS LHK

Consumer Sales & After Sales FdLC

Consultant SRM

Human Resources RJ

Communication MYC

Strategy Management RE

II. Administrators The President & CEO, guided by the Company’s vision, mission, and values statements, is accountable to the Board for the development and recommendation of strategies, and the execution of the defined strategic imperatives. The President & CEO is assisted by the Deputy CEO to whom the heads of each of the major business units and support groups report. The Office of Strategy Management (OSM) reports to the Deputy CEO and oversees the Company’s strategy management processes from strategy formulation, translation to executable plans, horizontal alignment of business objectives across the organization, to execution and performance

tracking

linked

to

the

Company’s

rewards

system.

Every year, the Company reviews and formulates its strategic priorities which then guide the formulation of the key business strategies and goals for the year. Using the balanced scorecard framework, each business group identifies financial and non-financial objectives, and sets targets and initiatives to achieve them. This is captured in what is called the groups’ Terms of Reference (TOR). To ensure line of sight, the group TORs are cascaded to all employees, making sure that everyone understands and appreciates their contribution to the group goals. This helps in developing individual performance plans that are aligned with the key strategies. Rewards and incentives are given based on the achievement of the committed group and individual targets. Key programs, projects, and major organizational initiatives are taken up at the SEG, composed of the President & CEO, the Deputy CEO, as well as the heads of each of the major business units and support groups. All budgets and major capital expenditures must be approved by the SEG prior to endorsement to the Board for approval. The Chief Operating Adviser and Chief Technical Adviser also provide inputs to the SEG as required. The SEG meets at least twice a month. Management is mandated to provide complete and accurate information on the operations and affairs of the Company in a timely manner. Management is also required to prepare financial statements for each preceding financial year in accordance with Philippine Financial Reporting Standards (PFRS). Management’s statement of responsibility with regards to the Company’s financial

statements

is

included

in

this

annual

report.

The annual compensation of the ten (10) top officers of the Company, including the President & CEO, is disclosed in the Definitive Information Statement distributed to the shareholders. The total annual compensation includes the basic salary, guaranteed bonuses, fixed allowances, and variable pay (performance-based annual incentive). BOARD OF DIRECTORS

Delfin Lazaro Director Jaime Augusto Zobel de Ayala Chairman

Roberto F. de Ocampo Director Gerardo C. Ablaza, Jr. Co-Vice Chairman & Chairman of ExCom

Romeo L. Bernardo Director Hui Weng Cheong Co-Vice Chairman

Tay Soo Meng Director Ernest Cu Director, President and CEO

Guillermo D. Luchangco Independent Director

Fernando Zobel de Ayala Director Xavier P. Loinaz Independent Director

Comments: The duties and responsibilities of all the executives are equally distributed in each of them. They all have different tasks and jobs and the tasks assigned to them are given according to their positions.

Man Power

Name

Position

Ernest L. Cu

President and Chief Executive Officer

Alberto de Larrazabal

Chief Financial Officer

Catherine Hufana-Ang

Head - Internal Audit

Ferdinand M. de la Cruz

Head - Consumer Sales and After Sales

Rebecca V. Eclipse

Head - Office of Strategy Management

Rodell A. Garcia

Chief Technical Officer

Gil B. Genio

Head - Business CFU & President - Innove Communications, Inc.

Atty. Solomon M. Hermosura

Corporate Secretary

Atty. V. Froilan M. Castelo

OIC for Corporate and Legal Services Group

Renato M. Jiao

Head - Human Resources

Carmencita T. Orlina

Head - Consumer Marketing

Greg L. Romero

Head - Information Systems Group

Name

Position

Lee Han Kheng

Chief Operating Adviser

Susan Rivera Manalo

Consultant

Rodolfo A. Salalima

Chief Legal Counsel

Peter George Bithos

Advisor for the Consumer Customer Facing Unit

Comments:

There are many branches of specialization in the organization that’s why all of their tasks divided equally and properly and because of this planning, organizing and decision making is not a hard thing to do.

FINANCES STOCK INFO Dividends Globe is committed to creating more value for its shareholders. To further enhance our shareholders' value, Globe aims to maintain healthy performance and continue with its cost management measures with a view to achieving steady and sustained growth in earnings and dividends over time. History of Dividends Stock Dividends On January 29, 2002, Globe Telecom's BOD approved the declaration of a 25% stock dividend payable to all common stockholders of record as of April 30, 2002.The stock dividends declaration was approved by Globe Telecom's stockholders on April 11, 2002 and approved by the Philippines SEC in June 2002.A total of 30,379,672 additional common shares were issued in

June 2002 as payment for the said stock dividends. The stock dividends were issued at par out of additional paid-in capital.

Cash Dividends Information on Globe Telecom’s BOD declaration of cash dividends follows: Date (In Thousand Pesos, Except Per Share Figures)

Per share

Amount

Record

Payable

Preferred stock dividends declared on: December 11, 2006

P 0.41

P 64,669

December 31, 2006

March 15, 2007

December 7, 2007

0.31

49,449

December 18, 2007

March 17, 2008

December 2, 2008

0.38

60,637

December 18, 2008

March 17, 2009

February 21, 2006

March 15, 2006

Common stock dividends declared on: February 7, 2006

20.00

2,638,072

July 31, 2006

30.00

3,961,745

February 5, 2007

33.00

4,359,650

August 10, 2007

33.00

4,362,385

August 29, 2007 September 14, 2007

November 6, 2007

50.00

6,616,708

November 20, 2007 December 17, 2007

February 4, 2008

37.50

4,962,508

August 5, 2008

87.50

11,579,763

August 17, 2006 September 12, 2006 February 19, 2007

February 18, 2008

March 15, 2007

March 13, 2008

August 21, 2008 September 15, 2008

On January 29, 2004, the BOD of Globe Telecom approved a dividend policy to declare cash dividends to its common stockholders on a regular basis as may be determined by the BOD from time to time. The BOD had set out a dividend payout rate of approximately 50% of prior year’s

net income payable semi-annually in March and September of each year. This will be reviewed annually, taking into account Globe Telecom’s operating results, cash flows, debt covenants, capital expenditure levels and liquidity. On July 31, 2006, the BOD of Globe Telecom amended the dividend policy increasing the dividend payout rate at approximately 75% of prior year’s net income to be implemented starting 2006’s second semi-annual cash dividend declaration. On November 6, 2007, the BOD declared a special cash dividend of P50 per common share based on shareholders on record as of November 20, 2007 with the payment date of December 17, 2007. The special dividend was in consideration of the record profitability and strong operating cash flows of Globe Telecom, and to optimize Globe Telecom’s capital structure and enhance shareholder value. On August 5, 2008, the BOD approved the declaration of the second semi-annual cash dividends in 2008 of P4,962.61 million (P37.50 per common share) and additional special dividend of P6,616.81 million (P50.00 per common share) to common stockholders of record as of August 21, 2008 and payable on September 15, 2008. On February 3, 2009, the BOD approved the declaration of the first semi-annual cash dividend of P32 per common share, payable to shareholders on record as of February 17, 2009. Total dividends of P4.234.88 million will be paid on March 10, 2009. Review of Dividend Policy Our Board regularly reviews our dividend policy depending on the Company's cash flow position, capital expenditure requirements and the level of competition in the market. Ownership Structure Stockholders as of June 30, 2008

Ayala Corporation SingTel

Common SharesPreferred shares Total % of Total 40,319,262 40,319,262 13.9% 62,646,486

-

62,646,486

21.5%

Asiacom Public Total

-

158,515,021

158,515,021

54.5%

29,370,488

-

29,370,488

10.1%

132,336,236

158,515,021

290,851,272

100%

Ayala Corporation Ayala Corporation has, through the years, transformed itself into one of the Philippines most diversified conglomerates, with operations in real estate, financial services, telecommunications, utilities, electronics, information technology and automotive industries. The diversity of Ayala's investments in various lines of businesses has ensured stable earnings performance, and has led the various companies in the Ayala Group to excel in their respective sectors. As of June 30, 2008, Ayala Corporation owns 40,319,262 shares or 30.5% of the common shares of Globe Telecom, Inc. SingTel Singapore Telecom International (Singtel) was formed in 1988 to spearhead Singapore Telecom's overseas investments. It was later on incorporated in March 1992 and became a public company in October 1993. Serving both the corporate and consumer markets, the SingTel Group is committed to bringing the best of global communications to customers in the Asia Pacific and beyond. With siginificant operations in Singapore and Australia, the Group provides a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms. The Groups major investments in the region include Advanced Info Service of Thailand, the Bharti Telecom Group of India, Globe Telecom of the Philippines, Pacific Bangladesh Telecom of Bangladesh and Telkomsel of Indonesia. Together with its regional partners, Singtel is Asia's largest multi-market mobile operator, serving more than 92 million customers in seven markets. Over the years, Singtel has grown to be a global player with a strong regional heritage. With one of the most extensive and advanced telecommunications infrastructure, the Group offers unparalleled reach in Asia and beyond. As of June 30, 2008 SingTel owns 62,646,486 shares or 47.3% of the common shares of Globe Telecom, Inc.

Public As of June 30, 2008, public float of Globe Telecom, Inc.'s common shares stood at 22.2% or 29,370,488 shares. Asiacom As of June 30, 2008, Asiacom owns 100% or 158,515,021 of preferred shares. Stock Profile On August 11, 1975, Globe Telecom, Inc. (as Globe Mackay Cable and Radio Corporation or GMCR) listed its shares in the Philippine Stock Exchange (PSE) and became the first telecommunications company in the Philippines to do so. In 2000: Common shares were declassified;Reverse stock split changed par value of common shares from P1 per share to P50 per share. Authorized capital stock was increased from P5 billion to P11.25 billion.158 million preferred shares were issued at P5 par value. Issuance of 29 million common shares to DeTeAsia Holding GmbH (DeTeAsia), a wholly-owned subsidiary of Deutsche Telekom AG. Board of Directors of Globe approves the issuance of 12 million common shares of Globe Telecom (post declassification and post reverse stock split) as underlying shares for Globe Telecom Inc.'s program to raise equity via the issuance of Philippine Depositary Receipts (PDRs). In 2001: Globe Telecom, Inc.'s Board of Directors approves the creation of 20 million series B preferred shares with P50 par value and approves the issuance of an additional 16 million common shares. On July 29, 2001, Globe Telecom, Inc.'s preferred shares were listed with the PSE. In 2002: Globe Telecom, Inc. declares a 25% stock dividend to all common shareholders of record as of April 30, 2002. A total of 12 million PDRs have been exercised by the end of the year. In 2003:

In October 2003, DeTeAsia sold its 24.8% equity ownership in Globe Telecom, Inc to Ayala Corporation (10.04 million common shares), SingTel (15.64 million common shares) and Globe Telecom, Inc. (12 million common shares). In 2005: On February 1, 2005, the BOD approved an offer to purchase one share for every fifteen shares (1:15) of the outstanding common stock of Globe Telecom from all stockholders of record as of February 10, 2005 at P950.00 per share. The approval allowed Globe Telecom to purchase up to 9,326,924 shares representing 6.67% of Globe Telecom's outstanding common shares. Each shareholder is entitled to tender a proportionate number of shares at the 1:15 ratio for purchase by Globe Telecom upon and subject to the terms and conditions of the tender offer. Globe Telecom also filled with the SEC the tender offer report with a copy of the letter to the shareholders, the terms and conditions of the tender offer and the tender form. Globe Telecom commenced the tender offer on February 3, 2005 and ended on March 3, 2005. On April 4, 2005, Globe Telecom's stockholders approved the cancellation of the 20.06 million treasury shares consisting of the 12.00 million shares acquired from Deutsche Telecom (DT) in 2003 and the 8.06 million shares acquired during the share buyback, and the amendments of the articles of incorporation of Globe Telecom to reduce accordingly the authorized capital stock of the corporation from P11,250.00 million to P10,246.72 million. On April 29,2005, Globe Telecom applied for the retirement and cancellation of the existing treasury shares with the SEC, which the latter approved on October 28, 2005. Accordingly, Globe Telecom cancelled the existing treasury shares at cost. The difference between the par value and cost of treasury shares was charged to "Additional paid in capital" and "Retained earnings" accounts amounting to P5,179.35 million and P9,685.80 million, respectively In 2008: On June 27, 2008, Ayala Corporation announced the sale to Singapore Telecom International Pte. Ltd. (SingTel) of 3.8 million common shares of Globe Telecom ("Globe") at P1,21 0 per share. With the sale, Singtel's ownership of Globe common shares will now be 47.3% from 44.5%. Capital Stock (as of December 31, 2008) Type of Capital StockAuthorized Capital Issued and Outstanding Preferred Shares 250,000,000 158,515,021

Common Shares

179,934,373

132,340,152

Total

429,934,373

290,851,257

Comments: Globe Telecom is one of the most successful company in the country and because of that many businessmen wanted to be a stock holder of this company. And as years passes by shares in the company grow bigger and bigger that’s what makes the Globe Telecom successful and always on the top.

OPERATIONS . THE AGREEMENT This Agreement governs the relationship between GLOBE TELECOM INC, (hereinafter referred to as GLOBE TELECOM) and an eligible Subscriber with an approved subscription plan (hereinafter referred to as the “Subscriber”) and defines the rights and obligations of the Subscriber to GLOBE TELECOM. GLOBE TELECOM reserves the right to adjust, modify, amend or supplement these terms and conditions as the service may require. Said modifications, amendments, adjustments however, shall be posted in GLOBE TELECOM’s website: www.globe.com.ph and once published the same becomes binding to the Subscriber as it shall be the obligation of the Subscriber of be informed thereof by accessing such website. This Agreement shall take effect immediately upon activation by GLOBE TELECOM of the subscription subject to the compliance/observance of the terms and conditions stated herein.

2. SERVICE GLOBE TELECOM shall provide the cellular mobile telephone service in accordance with the subscribed plan. The subscription is generally capable of Domestic/National Direct Dialing (NDD), International Direct Dialing/International Long Distance Service (IDD), and International Roaming, unless the same have been restricted according to payment, billing and credit limit conditions found in this Agreement.

3. MINIMUM SUBSCRIPTION PERIOD 1. FOR POSTPAID LINE SUBSCRIPTION WITH HANDSET/EQUIPMENT/PROMOTIONAL PRODUCT - The minimum subscription period shall be two (2) years from date of activation or a shorter/longer period as stipulated in the promo offer. Should the Subscriber fail to complete the minimum subscription period, a minimum termination fee of either P10,000 or the value of handset/equipment/promotional product proportionate to the unfulfilled term, whichever is higher, shall be imposed as penalty for the Subscriber’s breach of Agreement. 2. FOR POSTPAID LINE ONLY SUBSCRIPTION WITHOUT HANDSET/EQUIPMENT/ PROMOTIONAL PRODUCT - The minimum subscription period required is 12 months or a shorter/longer period as stipulated in the promo offer. Should the Subscriber fail to complete the minimum subscription period, a termination fee of P10,000, shall be imposed as penalty for the Subscriber’s breach of Agreement. Subscriber acknowledges that Globe incurs certain administrative costs in activating a subscription. Subscribers who avail of line only subscription (without a handset/equipment or promotional product) pre-terminate after thirty (30) days from the date of activation, Subscribers will be charged a fixed penalty fee of P10,000 to cover for the acquisition and administrative costs of allocating a line. Any pretermination prior to such period will not be subject to any pre-termination fees.

4. FEES RATES AND CHARGES 1. Rates – The Subscriber shall pay the applicable monthly service fee (payable in advance), rates, and charges for the service, which shall be in accordance with the prescribed schedule of rates, depending on the plan, as approved by the National Telecommunications Commission (NTC), inclusive of all taxes and Currency Exchange Rate Adjustment (CERA) on the service. Any change in rates shall be effective in accordance with the rules and regulations of the National

Telecommunications Commission. Additional taxes imposed on the service by government shall be paid by Subscriber in accordance with the laws, rules and regulations imposing the same, notwithstanding the fact that the Subscriber may have been billed or made advance payments in accordance with previous rules. Except for promotional offers with special rates, a fraction of one minute shall be considered and billed as one full minute. 2. Free Call Allocation – Subject to applicable rates, type of call, and depending on the plan, free calls, if any, are determined in accordance with the Subscribed Plan. The free call allocation is applicable only to local calls (Globe-to-Globe, Globe to other networks, Globe to landline, and NDD calls). International roaming calls and incoming collect calls shall be charged the appropriate rate even if incurred within the free call allocation. Except for promotional offers with special rates, aA fraction of one minute shall be considered and billed as one full minute. 3. Free Text Allocation – Depending on the plan, GLOBE TELECOM allocates free SMS for a prescribed number of text messages. The free SMS shall refer to local text messages (Globeto-Globe & Globe to other networks) only. Such SMS are absolutely free and are not part of any purchase price, such as the price of the SIM card, monthly service fee or the voice call rate. In this respect, GLOBE TELECOM may from time to time change or discontinue the monthly free text allocation with or without notice. VAS, International SMS and other services that use SMS other than local Globe to Globe and Globe to other networks are NOT included in the free text allocation. 4. Consumable Amount – The consumable amount of the monthly service fee, if any, shall be specified in the Plan upon subscription, and may or may not include all types of calls. 5. Credit Limit – Every Subscriber shall be assigned a credit limit. GLOBE TELECOM reserves the right to suspend, redirect or temporarily disconnect the service as soon as the Subscriber exceeds the credit limit, or when otherwise warranted by abnormal usage patterns or other circumstances, without prior notice to the Subscriber. GLOBE TELECOM shall have no obligation to reconnect the service unless the cause for such suspension, redirection or temporary disconnection or permanent disconnection has been cured to its satisfaction. Such temporary disconnection may be made permanent at GLOBE TELECOM’s option for the Subscriber’s failure to cure the cause of disconnection within a reasonable period of time. Non-exercise of the remedies herein stated shall not absolve Subscriber from liability for call charges in excess of the credit limit. 6. Plan Upgrades and Downgrades – Requests for changes in the subscribed plan shall be subject to the approval by GLOBE TELECOM. If approved, the corresponding adjustment in rates and fees shall be made effective in the subsequent billing cycle following the approval of

the request for plan upgrade and downgrade. Requests for downgrading of plan within the lockup period shall incur a corresponding penalty fee. Penalty for pre-termination and downgrading of plan shall be either P10,000 or the value of the Handset/Equipment/Reward/Promotional Product amount the unfulfilled holding period, whichever is higher. 7. Service Modification Fees – GLOBE TELECOM reserves the right to charge a nominal fee for processing service modification such as changes in subscribed plans, approved transfer of ownership, etc.

5. BILLING AND PAYMENT Billing – GLOBE TELECOM will send the Subscriber bills for services at regular intervals. GLOBE TELECOM may also render interim billings in advance of the usual billing cycle whenever actual usage charges exceed the credit limit. Notwithstanding the non-delivery of any bill, the Subscriber may request, at any time, information on his outstanding balance through GLOBE TELECOM’s Customer Service Hotline at tel. no. (02) 730-1000 or through any GLOBE TELECOM Business Center. Balance due and unbilled fees can also be checked by texting PLANBALANCE for balance due and PLANUNBILLED for unbilled fees and send to 2312. Non-receipt of the bill does not abate GLOBE TELECOM’s right to collect for the usage of the service as it is the Subscriber’s obligation to inquire from the customer service as mentioned above. 1. Payment – The Subscriber shall pay for his service charges and fees and any accrued or carried over charges and other applicable fees on or before the regular due date assigned to him (the Regular Due Date). GLOBE TELECOM shall inform the Subscriber of his regular due date in the first bill, and will indicate the due date in each succeeding bill. Notwithstanding the nondelivery of any bill, it shall be the responsibility of the Subscriber to inform himself of his outstanding balance through the Customer Service Hotline/ (02) 730-1000 or any GLOBE TELECOM Business Center and effect payment, without need of further demand, on or before the Regular Due Date. Payment may be made at any GLOBE TELECOM Business Center or banks or collectors authorized by GLOBE TELECOM. All late payments shall be charged interest at a rate of two percent (2%) per month or One Hundred Pesos, whichever is higher. All payments shall be applied first to penalties, then interest, then bills in arrears, and any balance left thereafter to current obligations. Payments of accounts with overdue charges shall be made directly to GLOBE TELECOM’S head office, centers, or branches. 2. Changes in Billing Address – The Subscriber shall inform GLOBE TELECOM in

writing, of any changes in billing address. GLOBE TELECOM shall not be responsible for the consequences of the Subscriber’s inability to receive and pay his bill as a result of his failure to timely notify GLOBE TELECOM of any change in billing address. GLOBE TELECOM reserves the right to require subscriber to provide another billing address in the event the billing address provided by the subscriber is determined by GLOBE TELECOM, in its sole discretion, to be undeliverable, or is a post-office box. 3. Non-payment – GLOBE TELECOM may suspend, redirect, temporarily or permanently disconnect the service of any Subscriber for failure to pay any amount due to GLOBE TELECOM on or before Due Date. Such suspension, redirection or disconnection shall be without prejudice to any action available to GLOBE TELECOM under other portions of this Agreement, or in law equity in order to recover all sums due and damages suffered by GLOBE TELECOM for such non-payment. In addition, temporarily or permanently disconnected lines arising from non-payment and are within the lock-up period shall incur a corresponding penalty fee which shall be either P10,000 or Handset/Equipment/Reward/Promotional Product amount proportionate to the unfulfilled holding period, whichever is higher.

6. SUBSCRIBER’S DUTIES AND RESPONSIBILITIES Phone and Card Security – The Subscriber shall be responsible for the security of the Subscriber Identity Module (SIM) Card and the confidentiality of his Personal Identification Number (PIN). All calls, including long distance charges regardless of who accepts such calls, made using the Subscriber’s SIM card are presumed made by and/or authorized by the Subscriber and the Subscriber shall be liable for all calls using his handset, or on other handset through their access to his SIM Card and/or knowledge of the Subscriber’s PIN. The Subscriber is also responsible for the charges of incoming long distance collect calls received through his mobile number regardless of who may accept such calls. 1. Care, Repair and Maintenance – The care, repair and maintenance of the cellular telephone handset/equipment/promotional product shall be the sole responsibility of the Subscriber. The Subscriber is responsible for keeping the cellular handset and SIM Card in good order and condition and be fully responsible for any loss or damage to GLOBE TELECOM’s handset/equipment/promotional product, whether the same be caused by fire, theft, vandalism, accident, fault or negligence by the Subscriber or other persons or otherwise. The cost of the

repair rendered necessary thereby or the cost of replacement of lost equipment shall be paid for by the Subscriber. Warranty claims shall be dealt with in accordance with the warranty extended to the cellular handset/equipment/promotional product by the authorized dealer or manufacturer, as applicable, of the same and GLOBE TELECOM shall not be responsible for the consequences of any acts of the Subscriber which voids his warranty or renders the same inapplicable. Replacement of SIM Card shall be for the account of the Subscriber. Repair or replacement, if undertaken by GLOBE TELECOM, shall be subject to GLOBE TELECOM’s schedule of repair and/or replacement charges in force at the time the repair or replacement is sought. 2. Loss – In case of loss or theft of the Subscriber’s cellular telephone handset/equipment/promotional product and/or SIM Card, the Subscriber shall notify GLOBE TELECOM of such fact, first by telephone through its Customer Service Hotline/(02) 730-1000 or any GLOBE TELECOM Business Centers immediately upon discovery of the loss, to be followed by submission of a duly notarized written affidavit of loss or police report to document such loss within twenty four (24) hours from discovery of the loss. GLOBE TELECOM will disconnect the service upon receipt of such notice; however the Subscriber shall continue to be responsible and liable to pay for all calls made using his line until the time the loss is reported and for a period of twenty-four (24) hours after receipt of the written affidavit of loss or police report. Subscriber shall remain liable for monthly service fees during the period of temporary disconnection. 3. Phone/Equipment/Promotional Product Ownership – For all legal purposes, the owner of the handset shall be the registered subscriber on record, regardless of who is the user. Ownership of cellular telephone handsets/equipment/ product vests in the Subscriber only upon full payment thereof. The foregoing notwithstanding, the Subscriber agrees the risk of loss or damage for handset/equipment/promotional products taken on financing or under special handset/equipment/promotional product promos shall be borne by the Subscriber as the possessor and actual user of the for handset/equipment/promotional product and GLOBE TELECOM shall not replace any lost or damaged for handset/equipment/promotional product, and shall, additionally continue to bill the Subscriber for the amortizations of the handset/equipment/promotional products taken on financing despite the loss or damage. Encumbrances and Transfer of Ownership – The Subscriber shall not mortgage or create any encumbrance on this Agreement and on any right or interest originating from it nor sell, mortgage or pledge the cellular telephone service or handset/equipment/promotional product, without the prior written authority of GLOBE TELECOM, whenever the handset/equipment/promotional product has been acquired through financing or under special handset/equipment/promotional

product promos. GLOBE TELECOM reserves the right not to honor any transfer of ownership executed without its prior consent, and immediately disconnect the service, without any liability on its part, upon discovery of such unauthorized transfer. Moreover, GLOBE TELECOM’s consent to any transfer shall be given only after submission of all GLOBE TELECOM’s credit requirements relative to the transferee as a new Subscriber after credit investigation. Pending approval of the transfer of assignment, the Subscriber shall be liable to pay accrued charges. If the transfer occurred within/during the lock-up and the transferee is unable to complete the said period, the latter shall be liable to pay the corresponding penalty fee which shall be either P10,000 or the value of the Handset/Equipment/Reward/Promotional Product proportionate to the unfulfilled holding period, whichever is higher. 4. Subscriber shall indemnify GLOBE TELECOM for all sums for which it may be liable arising from its refusal to render service to the unauthorized transferee. Subscriber shall ensure that GLOBE TELECOM’s Postpaid services shall not be used to cause irritation, annoyance, embarrassment, harassment, vexation or nuisance of any kind whatsoever to others or for any illegal purposes. 5. Moreover, Subscriber shall not engage in Spamming (i.e. unsolicited electronic messages for business or other purposes) or undertake any other activity, which may adversely affect the operation of the Services. Subscriber shall not engage in any other activity that will threaten the integrity of any work system, nor use the Services in a manner that would compromise security or tamper with System resources and accounts. 6. Except for prohibited telecom services and or practices, Subscriber should obtain the written approval of GLOBE TELECOM thru its Product Management and Segment Business Group whenever Subscriber contemplates of using the Service as part of another telecommunication service or as a medium of promotion, publicity for any campaign for whatever purpose, of whatever nature, by whatever name called which is likely to generate a change in the usage of the services in excess of the Subscriber’s daily usage of the service, and/or likely to cause congestion in GLOBE TELECOM’s network. 7. The Subscriber shall not allow third party other than the duly authorized GLOBE TELECOM personnel, to connect, disconnect, and/or alter any and all instruments or facilities furnished by GLOBE TELECOM. 8. In the event that the Subscriber has terminated account/s with other GLOBE TELECOM services, subscription to the wireless Postpaid subscription shall not absolve the Subscriber from settling his outstanding balances, if any, from those terminated service/s. GLOBE TELECOM reserves the right to terminate any or all other agreements the Subscriber has entered into with

GLOBE TELECOM due to breach of this Agreement. 9. Subscriber shall use the Services only for the purposes herein stated and shall not use the same for illegal activities which otherwise constitute a Bypass or Simple Resale (ISR). Bypass of Simple Resale are activities wherein the Subscriber resells or uses the Service in violation of existing laws for an illegal purpose or uses the Service as part of a ringback, dialback, or similar operation, or avails of ringback, dialback, or similar services utilizing the Services provided by GLOBE TELECOM to Subscriber. 10. Subscriber shall ensure that his use of the Services does not improperly restrict, inhibit, or degrade any other Subscriber use of the Services nor represent an unusually large burden on the network itself as determined by GLOBE TELECOM upon its sole discretion or does not improperly restrict, inhibit, disrupt, degrade or impede GLOBE TELECOM’s ability to deliver and monitor the service, backbone, network nodes and/ or other services. 11. Subscriber shall not resell, or otherwise re-distribute the service or any portion thereof to any third party who, no matter how short, be it temporary or permanent, whether or not for value, occupies, uses, gains access to the subscribed service, without the prior written consent of GLOBE TELECOM. m.) Subscriber shall abide by the generally accepted standards of conduct and usage of the Services by not sending or transmitting any electronic message that libels, defames, invades privacy and stalks; are obscene, pornographic, racist, abusive, harassing, threatening or offensive. 12. Subscriber shall further abide by the generally accepted standards of conduct and usage of the Services by not sending or transmitting any electronic message that seeks to exploit or harm children by exposing them to inappropriate content, asking for personally identifiable details or otherwise; infringes any intellectual property or other right of any entity or person including violating anyone’s copyrights or trademarks or their rights of publicity. 13. Subscriber shall further abide by the generally accepted standards of conduct and usage of the Services by not sending or transmitting any electronic message that violates any law or may be considered a violation of any law; advocates or promotes illegal activity; impersonates or misrepresents connection to any other entity or person or otherwise manipulates headers or identifiers to disguise the origin of the content. 14. Subscriber shall abide by the generally accepted standards of conduct and usage of the Services by not sending or transmitting any electronic message that advertises any commercial endeavor (e.g. offering for sale products and services) or otherwise engages in any commercial activity (e.g. conducting raffles or contests displaying sponsorships, banners, and/ or soliciting goods or services) that tends to violate or violates the Consumer Act of the Philippines; amounts

to a “Pyramid” or similar schemes. 15. Subscriber shall abide by the generally accepted standards of conduct and usage of the Services by not sending or transmitting any electronic message that contains viruses, worms and/ or “Trojan horses” or any other computer code, files or programs designed to interrupt, destroy or limit the functionality of the handset or any ancillary equipment computer software or hardware or telecommunications.

7. INTERNATIONAL ROAMING SERVICE The Subscriber understands and agrees that the subscription is IDD and International Roaming capable which is built in with the services upon activation of his account subject to compliance with the payment, billing and credit limit conditions found in this Agreement. When availing of the International Roaming Service, the Subscriber agrees to be subject to and abide by the terms and conditions for Mobile Phone Services and those applicable to the domestic Subscriber of the foreign mobile telephone service network that the Subscriber has selected.

The Subscriber ensures GLOBE TELECOM that he/she is using the International Roaming Service activation for his own use. Thus, the Subscriber is responsible and will pay for all calls, SMS, VAS originating from his Handyphone or otherwise reflected on his phone bills. The Subscriber acknowledges that when roaming, he will be charged for both incoming and outgoing voice call and SMS. Some roaming partners may or may not charge incoming SMS. Voice calls and SMS rates may vary depending on the roaming partner and is also subject to change at the discretion of the roaming partner without need of prior notice. The Subscriber also acknowledges his obligation to secure from GLOBE TELECOM the charging principle of the country of destination. The Subscriber is aware and agrees that while roaming, GLOBE TELECOM will monitor all calls, SMS and VAS usage on a daily basis and strictly implement the credit limit on the Subscriber’s account. The Subscriber understands and agrees that GLOBE TELECOM will call the Subscriber in the event of any unusual surge in call, SMS and VAS usage.

The Subscriber ensures that all call charges are settled in full in order to avail of the International Roaming Service. Moreover, when the sum of previously billed but unsettled charges and the unbilled charges corresponding to calls placed while roaming in these countries exceed the credit limit, GLOBE TELECOM may require and the Subscriber shall agree to pay all billed and unbilled charges as a condition for the continuation of the International Roaming Service. The Subscriber agrees that GLOBE TELECOM may temporarily or permanently disconnect the service in the event that charges are not settled on a timely basis as required by GLOBE TELECOM. In case of loss, the Subscriber agrees to immediately notify GLOBE TELECOM by calling collect (operator-assisted) the Globe Roaming support hotline at (632) 730-1212. GLOBE TELECOM shall only shoulder collect call charges to the Globe Roaming Support Hotline. Any other charges, including, but not limited to, IDD charges, hotel call charges or surcharges, shall be shouldered by the Subscriber. In the event that the loss is not immediately reported, Subscriber shall be liable for all calls made using the handset up to and until the Subscriber has reported the loss. The Subscriber understands that GLOBE TELECOM reserves the right to cancel or preterminate the International Roaming Service at any time without incurring liability thereto. In support of the Subscriber’s application for the International Roaming Service, the Subscriber shall provide GLOBE TELECOM with all the relevant information which it may require to effect the International Roaming Service. The Subscriber agrees that while outside the Philippines, his contact person in the Philippines as indicated in this form is authorized to transact with GLOBE TELECOM regarding the Subscriber’s International Roaming Service. The Subscriber shall promptly inform GLOBE TELECOM prior to his departure, if the contact person or his contact details changed. GLOBE TELECOM shall not be liable for any failure on the part of the Subscriber to inform GLOBE TELECOM of any change in contact person or contact person details.

8. EXCEEDING THE CREDIT LIMIT The credit limit represents the allowable cap of charges or rates by which the Subscriber is

allowed to enjoy the service within a billing cycle wherein upon reaching such amount and in the absence of payment GLOBE TELECOM retains the sole discretion to review the provisioning or extension of further service to the Subscriber. GLOBE TELECOM may, but is not obliged to, temporarily disconnect the service of the Subscriber once the Subscriber’s usage in a given month exceeds the credit limit. The foregoing notwithstanding, the Subscriber agrees to pay for all his usage whether within or in excess of his credit limit.

9. CALL REDIRECT Call redirection is a temporary measure implemented by GLOBE TELECOM for its own safety and that of the Subscriber, by virtue of which all of Subscribers outgoing calls are redirected to a GLOBE TELECOM operator instead of being completed to the called party. Call redirection allows GLOBE TELECOM to communicate to the Subscriber any issues affecting his service and the requirements which the Subscriber must comply with in order to restore his normal outbound calling service. GLOBE TELECOM may redirect the Subscriber’s telecommunication service in the event it finds inconsistencies in the information provided in the Service Agreement, non-payment of an overdue account, usage in excess of credit limit, abnormal usage patterns, fraud, or other similar cases. Subscriber shall have no cause of action against GLOBE TELECOM for call redirection. GLOBE TELECOM may reconnect the service of Subscriber once the Subscriber fully complies with GLOBE TELECOM’s requirements.

10. GROUNDS FOR DISCONNECTION/TERMINATION In addition to nonpayment and other grounds for disconnection stated elsewhere in this Agreement, GLOBE TELECOM reserves the right to temporarily disconnect the service of any Subscriber, without prior notice to the Subscriber in the following instances: 1. unauthorized transfer of line. 2. connection of accessories (pertaining to application software that might have virus bugs). 3. use or installation of software that is not subject of license agreement which may result in infringement of intellectual property rights), which is illegal, harmful to the handset or to GLOBE TELECOM’s network. 4. perform callback, unauthorized audiotex, international simple resale (ISR), and other analogous services which are prohibited in the Philippines, or which operation or service

constitutes a bypass defrauding GLOBE TELECOM and/or its interconnect partners of the rightful access/termination charges due them. In the event that the SUBSCRIBER uses GLOBE TELECOM’s facilities and services for any illegal or unauthorized services including, but not limited to, those enumerated above, the SUBSCRIBER shall immediately compensate GLOBE TELECOM an amount equivalent to the rightful access or termination charge prevailing at the time the bypass was committed for the type of traffic passed via the bypass service or practice committed by the SUBSCRIBER to the applicable Philippine network (including without limitation, a GLOBE TELECOM network, or the network of any other carrier with whom GLOBE TELECOM has an interconnect agreement, whether mobile or landline) plus 50% of such access or termination charge (in its entirety, the "Bypass Compensation."). Such Bypass Compensation shall be payable, without limitation, from the time the bypass activity was conducted by the SUBSCRIBER until its discovery by GLOBE TELECOM and the complete payment thereof by the SUBSCRIBER, and such Bypass Compensation shall be computed from the time the bypass occurred or was discovered, whichever is earlier, until the actual cessation of bypass. GLOBE TELECOM shall likewise pass on, and the SUBSCRIBER agrees to accept and immediately pay, all other claims and damages demanded by any of GLOBE TELECOM’s interconnect partners who may have been affected, directly or indirectly, by the unauthorized service. This shall not be subject to any limitation of liability provided in this agreement. 5. emission of signals or code harmful to or interfering with GLOBE TELECOM’s network. 6. Spam, denial of service attacks, call abuse, excessive short-text messaging, loading or load transfer to international simple resale, or viruses discovered to have been emitted from the handset, use for call selling illegal operation of a public calling office, and other forms of fraud. 7. subscription fraud discovered after approval of the application. 8. non-payment of bills on due date exceeding the credit limit. 9. violation of any provisions of this Agreement and rules and regulations of GLOBE TELECOM supplementary thereto. 10. use of the handset/equipment/promotional product or service for any illegal purpose or for the obstruction of justice and other analogous causes. 11. inconsistencies on information given during application. Any temporary disconnection, to the satisfaction of GLOBE TELECOM, within five (5) days from such temporary disconnection, reconnection or restoration of the service shall be the sole prerogative of GLOBE TELECOM and subject to payment of service modification fees. Upon reconnection or restoration of service, the minimum subscription period shall be automatically

extended for a period equivalent to the period of temporary disconnection. During the period of Temporary Disconnection, the counting of the lock-up period will likewise be suspended or interrupted. Computation of the unfulfilled lock-up period shall be from effectivity date of temporary disconnection to the expiration of the holding period. Any fraction of a month or remainder number of days will be counted as one full month. 11. REPRESENTATIONS AND WARRANTIES 1. GLOBE TELECOM shall endeavor to provide the Services reasonably in accordance with industry standards. 2. GLOBE TELECOM does not warrant that the Services shall be interruption or error-free. The use of the Services, any information available and/or accessed to the Services and any security features provided for the Services shall be at Subscriber’s sole risk. GLOBE TELECOM disclaims all warranties, either expressed or implied, including, without limitation, any warranties of merchantability or fitness for a particular purpose, or non-infringement. 3. Subscriber further represents and warrants that he has not represented to any third party that GLOBE TELECOM has made any warranty or representation of any kind with respect to the Services. 4. GLOBE TELECOM is not responsible for loss of data. The Services are not intended to be the sole back-up location for any data. Subscriber is responsible for backing up his own data files to a location other than the Service. Subscriber agrees that this Service comes with no warranty and is on an “AS IS” and “AS AVAILABLE” basis only. Subscriber assumes all the risks associated with accepting the Services. 5. GLOBE TELECOM makes no representation that it has coverage throughout the Philippines and in all international territories.

12. NON-LIABILITY OF SERVICE PROVIDER The Subscriber further acknowledges that GLOBE TELECOM and/or the service provider shall not be liable to the Subscriber for any loss or damage, whether in contract, tort, or otherwise (including negligence or breach of the statutory duty) caused to the mobile equipment or for any defect in the use of or performance of the mobile equipment or for any interruption or loss of mobile service to the mobile equipment or any cause of whatsoever and shall not be held liable for any loss of business, revenue, anticipated savings or other consequent or indirect damage.

13. TERMINATION 1. Final Bill – In case service is discontinued or terminated for any reason, all unpaid bills, applicable fees and penalty charges shall immediately become due and demandable without prejudice to the right of GLOBE TELECOM to bill the Subscriber by way of supplementary bills for charges that it discovers after such termination and final billing of Subscriber. 2. Termination Fees – In the event of pre-termination by the Subscriber or cancellation of the subscription before the end of the minimum subscription period of this Agreement, the latter shall be liable to pay a termination fee of either a minimum of P10,000 or the value of handset/equipment/promotional product proportionate to the unfulfilled term, whichever is higher as stated in Section 3 hereof. For instances of termination due to non-payment/delinquency (reckoned from final termination) or breach of this Agreement, GLOBE TELECOM shall impose either a minimum fee of P10,000 or the value of handset/equipment/promotional product proportionate to the unfulfilled term, whichever is higher, as penalty for the Subscriber’s breach of Agreement without prejudice to the imposition of interests and penalties on unpaid bills, claim for damages and any other remedial action. Should the Subscriber want to continue with the Service after his/her/its account has been permanently disconnected, such Subscriber needs to re-apply for the said service subject to all conditions set forth by GLOBE TELECOM.

14. VENUE OF SUITS AND LITIGATION EXPENSES In the event of suit arising from or connected with this Agreement, the appropriate court in Mandaluyong City, shall have jurisdiction over the case to the exclusion of all other courts. In case of suit, the Subscriber shall, in addition to the amount due and collectible, pay twenty-five percent (25%) of such amount as damages of Five Thousand Pesos (P5,000) whichever is higher and twenty five percent (25%) for attorney’s fees and costs of suit.

15. GOVERNING LAW AMENDMENTS TO THESE TERMS AND CONDITIONS

These Terms and Conditions shall be construed in accordance with the Philippine laws, including matters on enforcement and performance. GLOBE TELECOM reserves the right to amend these terms and conditions at any time with or without prior notice, including a change in the rate schedule for voice, SMS and other value-added services or special features. All the Terms and Conditions stated herein have been read and understood by the Subscriber and his signature at the bottom of this agreement indicates acceptance thereof. This Agreement shall take effect immediately upon GLOBE TELECOM’s approval of the application. Subscriber shall provide true, correct and complete information as may be required by GLOBE TELECOM.

Comments: Globe Telecom has so many operations being done and that’s one of the reason who makes them number 1. In all their operations they assure that the needs of their customers will be given properly and it can give the costumers the real satisfaction.

INVESTMENTS AND VENTURES GLOBE GCASH and BOKU Partner to Create the Blueprint for International Mobile Payments February 16, 2010 – MANILA, PHILIPPINES AND SAN FRANCISCO, CA – Globe Telecom, a leading mobile operator in the Philippines through its wholly owned mobile commerce subsidiary G-Xchange Inc (GXI), is partnering with BOKU, Inc., a global leader in mobile payments, to expand the acceptance of the Globe GCASH service internationally, the companies announced today. The deal opens the BOKU mobile payment platform and growing international merchant community to Globe’s GCASH subscribers. By partnering with BOKU, GCASH extends its reach outside the Philippines to a global community of more than 1,000 BOKU merchant partners and a mobile payments community that covers over 190 carriers worldwide, allowing its users to purchase virtual goods from any merchant in the BOKU global merchant network.

“The Philippines is one of the richest markets in the world for mobile payments.” said Rizza Maniego-Eala, President of G- Exchange, Inc. “Since its inception in 2004, GCASH has been the widely used mobile payment method for online purchases in the Philippines. BOKU’s focus on mobile payments, specialized team, large merchant base, and tier one investors makes them the perfect partner in providing GCASH subscribers with a rich new experience in mobile commerce, that opens up the opportunity to explore and purchase virtual goods from the vast international market.” “This partnership is a perfect meeting of two companies’ visions for the way to pay in the future” said Mark Britto, CEO of BOKU. “This is a great model for mobile payments, enabling carriers to reach global merchants through BOKU’s network, expanding capabilities for online and physical purchases, while driving increased carrier revenues and reducing subscriber churn.” BOKU launched in June 2009 and has seen tremendous growth in the last year. Over this brief period the company has developed direct mobile payments service relationships with over 1,000 game and application developers, including almost all of the top applications for virtual goods and currencies purchased on Facebook. BOKU’s mobile payment service, Paymo, is enabled across 190 carriers worldwide in over 60 countries, and reaches a potential 1.8 billion customers. About GXI and GCASH G-Xchange, Inc. (GXI) is a pillar in m-commerce and a fully-owned subsidiary of Globe Telecom which is a leading full service telecommunications company in the Philippines. GXI pioneered the revolutionary model in cardless and cashless mobile commerce service called GCASH which was launched in the Philippines in October 2004. GCASH is an internationally-acclaimed micro payment service which transforms a mobile phone into a virtual wallet for secure, fast, and convenient money transfers at the speed and cost of a text message. Since GCASH launch, GXI has established a wide network of local and international partners that includes government agencies, utility companies, cooperatives, insurance companies, remittance companies, universities, and commercial establishments which have agreed to accept GCASH as a means of payment for products and services. About BOKU BOKU is creating the standard for online payments using your mobile phone, making it easy to

pay for digital goods and social experiences across the web. With a strong focus on reliability and security, BOKU's goal is to bring bank-grade payments technology and mobile users together on the web, creating a trusted, viable and accessible market for consumers, publishers and carriers alike. Based in San Francisco with offices in Europe, Asia and Latin America, BOKU reaches over 1.8 billion consumers worldwide, and is funded by leading entrepreneurs and venture capitalists Benchmark Capital, DAG Ventures, Index Ventures and Khosla Ventures. For more information, please visit BOKU.com. BOKU, Paymo and Pay by Mobile are registered trademarks of BOKU, Inc., and/or its subsidiaries. All other brand names, product names, or trademarks belong to their respective holders. BOKU reserves the right to alter product offerings and specifications at any time without notice. Comments: Globe Telecom have the right decision in having their operations not just here but also in abroad. It’s a great thing to know that a company in the Philippines would like to compete globally.

Rogationist College College Of BA/ BSA

Principles of Management and Organization

In Partial Fulfillment of the Requirement of the Course of Bachelor of Science in Business Administration

Jen Marielle Ortega RENE ANDAL March 9, 2011