USUFRUCT WITH CONSTRUCTION AGREEMENT

This AGREEMENT made and entered into this ________ day of ________ 2013 at Quezon City, Philippines, by and between: The PEOPLES TELEVISION NETWORK, INC., a o!ernment"owned and #ontrolled #orporation, #reated and e$istin by !irtue of %epubli# &#t 'o( )30*, with prin#ipal offi#e at +isayas &!enue, ,iliman, Quezon City, represented by its -eneral .ana er, CLEO B. DONGGA-AS, hereinafter referred to as PTNI; an PHILIPPINE INFORMATION AGENC!, a -o!ernment & en#y with prin#ipal offi#e at the P/& 0uildin , +isayas &!enue, ,iliman, Quezon City, represented by its ,ire#tor -eneral, ________________, hereinafter referred to as 1PIA2, WHEREAS, PIA is the owner of 3des#ription of the area whi#h we will use45 WHEREAS, PTV desires to use the abo!e"des#ribed premises, and to #onstru#t therein a tele!ision studio as its 6T7,/8 1C25 WHEREAS, PIA a##epts the offer of PTV for a #onsideration herein below a reed upon5 NOW THEREFORE, for and in #onsideration of the fore oin premises, the parties hereby a ree as follows: ". RIGHT TO USE PIA hereby rants unto PTV the ri ht to use the -round 9loor &rea whi#h PTV will use for a period of 9ifteen 31:4 years( This ri ht to use in#ludes the ri ht to #onstru#t therein a tele!ision studio on the a reed spe#ifi#ation( 9or purposes of the spe#ifi#ations, the atta#hed Ann#$ A shall be the offi#ial referen#e for the model of the 6tudio to be #onstru#ted the premises( %. OWNERSHIP OF THE STUDIO &ll e$penses for the #onstru#tion of the 6tudio in the premises shall be for the a##ount of PTV( &s soon as the #onstru#tion of the 6tudio has been #ompleted, all the ri hts pertainin thereto shall be in the name of PTV( &. OPTION TO CONVERT THE RIGHT TO USE WITH RIGHT OF OWNERSHIP /n the e!ent that PTV opts to ha!e the 6tudio to be owned by PIA, thereby effe#ti!ely terminatin the ri ht to use, PIA, as the owner of the premises where the 6tudio was #onstru#ted, at the instan#e of PTV, shall e$e#ute a deed of #on!eyan#e so that the ri ht to use #an be #han ed to ri ht of ownership wherein it in#ludes the ri ht to use the same 6tudio mentioned(

'. STUDIO TO BE CONSTRUCTED PTV en a es PIA to #onstru#t the 6tudio in the PIA premises for a #onsideration payable on the terms a reed below( The spe#ifi#ations of the 6tudio is pro!ided in the Ann#$ A duly si ned by the parties( /t is understood that #ompletion of the 6tudio #onstru#ted #arries with it the deed of restri#tion as a reed upon by the parties, whi#h shall #onstitute as formin part and par#el of this & reement( The ,eed of %estri#tion is hereto atta#hed as Ann#$ B( (. TOTAL CONSIDERATION The #onsideration of this & reement in!ol!in the rant of the ri ht to use with #onstru#tion of the 6tudio shall be the sum of __________________________ Pesos only 3P_____________(004, payable as follows: :(a( & non"refundable reser!ation fee in the amount of _________________________ Pesos only 3P____________(004 is hereby a#;nowled ed to ha!e been re#ei!ed by the PIA and shall form part of the total #ontra#t pri#e upon si nin of this & reement(

). CONSTRUCTION SCHEDULE PTV<s #ontra#tor shall endea!or to #omplete the 6tudio and deli!er the same to PTV n*+ later than two 324 months( ,. TURN OVER OF THE STUDIO 7pon #ompletion of the #onstru#tion, PIA shall turn o!er the 6tudio to PTV who shall a##ept in writin the #onstru#tion( The turn o!er shall in#lude a #ertifi#ate of o##upan#y issued by the lo#al o!ernment unit of Quezon City(

-. USE OF STUDIO

The 6tudio shall be for the e$#lusi!e use of PT+ for all its pro rams( 6hould P/& re=uire the use of the 6tudio, it is understood that a written re=uest be made to PT+ as lon as the re=uested s#hedule will not #onfli#t with that of PT+(
.. WARRANTIES PIA warrants that there is no a reement with any other person, firm or #orporation whi#h will in any way interfere with any ri hts of PTV under this & reement, and that the premises where the 6tudio will be #onstru#ted is free and #lear of all en#umbran#es of e!ery ;ind and nature whi#h may be in#onsistent with the ri hts of PTV hereunder( 6hould either PART! fail to perform or obser!e any term or #onditions, or

!iolate any of its warranties and representations under this & reement, or should rant or allow, in !iolation of this & reement at any time durin its affe#ti!ity or any person, #orporation, partnership or any other entity without the li#ense or authority to use the 6tudio in any manner, shall be liable to pay the a rie!ed PART! su#h amount as may be determined by the proper #ourt of law, for any !iolation of the ri hts or remedies at law or e=uity, and without in any way releasin or dis#har in the uilty party from any of its obli ations under this & reement( >ai!er by either PART! of the terms and #onditions of this & reement in any substan#e shall not be deemed or #onstrued to be a wai!er of su#h terms or #onditions for the future, or of any subse=uent brea#h thereof( &ll remedies, ri hts, underta;in s, obli ations and a reements #ontained in this & reement shall be #umulati!e and none of them shall be in limitation of any other remedy, ri ht, underta;in , obli ation or a reement of either PART!( This & reement shall be sub?e#t to all the laws, rules and re ulations of the %epubli# of the Philippines, its a en#ies, and instrumentalities, and other #ompetent authorities, as well as those rules and re ulations of PTV( /n #ase any portion hereof is de#lared or interpreted to be in#onsistent and #ontrary to su#h laws, rules or re ulations, and, therefore, null and !oid and unenfor#eable, the remainin portion not so ad!ersely affe#ted shall remain !alid and bindin , and the same shall be interpreted and #onstrued to #arry out the spirit and intent of this & reement( This & reement shall be sub?e#t to the usual bud etin , a##ountin , #i!il ser!i#e and auditin rules and re ulations(

IN WITNESS WHEREOF, the Parties hereunto set their hands this ____ day of _____________, in ,iliman, Quezon City, Philippines(

PEOPLES TELEVISION NETWORK, INC. /PTNI0 0y:

PHILIPPINE INFORMATION AGENC! 0y:

CLEO B. DONGGA-AS -eneral .ana er

DG PIA

Signed in the Presence of:

_________________________________

________________________________

ACKNOWLEDGMENT
R#123456 *7 +8# P8545115n#90 :2#;*n C5+< 0S.S( BEFORE ME, a 'otary Publi# for and in Quezon City personally appeared the followin : CLEO B. DONGGA-AS Community Ta$ Certifi#ate 'o( 0*@2:3:2 /ssued on 21 9ebruary 2012 /ssued at Quezon City T/' " 1B*"01***2 Community Ta$ Certifi#ate 'o( _____ /ssued on ______________ /ssued at ______________ T/' " -o!At( /, 'o(

-o!At(/, 'o(

&ll ;nown to me and to me ;nown to be the same persons who si ned and e$e#uted the fore oin instrument and they a#;nowled ed that the same is e$e#uted on their own free will and deed( This instrument, refers to a 7sufru#t with Constru#tion & reement, #onsistin of ______ pa es, in#ludin the pa e on whi#h a#;nowled ment is written, has been si ned on the mar in of ea#h pa e by parties thereto, and their instrumental witnesses, on the date and at the pla#e first abo!e written( '8T&%C P70D/C ,o#( 'o( ________ Pa e 'o(________ 0oo; 'o(________ 6eries of 2013(