January 23, 1998

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement (MOA) entered into by and between:

The REPUBLIC OF THE PHILIPPINES, through the DEPARTMENT OF FOREIGN AFFAIRS (DFA), a duly constituted agency of the Philippine government, with principal office at 2330 Roxas Boulevard, Pasay City, Metro Manila, Philippines, represented herein by SECRETARY DOMINGO L. SIAZON, JR., hereinafter known as the DEPARTMENT;

— and —

The ASIAN INSTITUTE OF MANAGEMENT (AIM), an educational institution established in accordance with Philippine law, with principal address at 123 Paseo de Roxas, Makati City, Philippines, and represented herein by PRESIDENT FELIPE B. ALFONSO, hereinafter known as the INSTITUTE;

Witnesseth, that

WHEREAS, at the Asia-Europe Leaders' Meeting (ASEM) held in Bangkok on 1-2 March 1996, President Fidel V. Ramos proposed, as one of the three (3) Philippine initiatives, the establishment of the Asia-Europe Management Programme at the Asian Institute of Management (AEMP-AIM);

WHEREAS, President Ramos has ordered the release of the amount of THREE MILLION PESOS (P3,000,000.00), which shall serve as Presidential Endowment Fund for the establishment of the AEMP-AIM;

WHEREAS, in order to complete the requirements for the release of the aforesaid Presidential Endowment Fund, a Memorandum of Agreement (MOA) between the DEPARTMENT and the INSTITUTE will have to be executed as regards the establishment of the AEMP-AIM;

NOW, THEREFORE, in view of the foregoing, the parties have entered this Memorandum of Agreement and agree, as follows:

I

The DEPARTMENT and the INSTITUTE shall promote, coordinate and cooperate in the establishment of the AEMP-AIM;

II

The AEMP-AIM shall be established at the principal address of the Institute and shall cover three (3) areas, namely: management research; management information systems; and human resources development including exchanges of management scholars and practitioners;

III

The DEPARTMENT and the INSTITUTE shall actively ensure that, principally, the AEMP-AIM will create a more enhanced linkage, especially between Asia and Europe, by providing assistance and management planning and implementation of social and economic initiatives with the view towards building intellectual exchanges and capital;

IV

The DEPARTMENT and the INSTITUTE shall further specifically pursue:

(a) the enhancement of linkages by mobilizing partnership between business and government sectors, and academic or educational sectors in Asia and Europe;

(b) the operationalization of management planning and implementation assistance for intellectual and social capital building through cross-cultural management education and training responsive to ASEM initiatives;

(c) the further operationalization of assistance to social and economic initiatives through development of appropriate management information systems, primarily to facilitate the mutual inflow of trade and investments;

(d) the recognition of exemplary contributions for the promotion of Asia-Europe best management practices; and

(e) the development and management of various media as channels for generating support for these partnerships;

The DEPARTMENT and the INSTITUTE shall closely endeavor to have the AEMP-AIM be fully implemented in three (3) years, which period shall be reckoned from the date of initial release of the Presidential Endowment Fund. Towards this end, a monitoring mechanism composed of representatives of the parties, the Special Disbursing Officer, and a COA representative shall be created.

IN WITNESS WHEREOF, the parties, through their respective representatives have hereunto set their hands, this 23rd day of January 1998, at the Department of Foreign Affairs. Pasay City, Philippines.

ACKNOWLEDGMENT

BEFORE ME, a Foreign Service Officer of the Department of Foreign Affairs, City of Pasay, Philippines, this 23rd day of January 1998, personally appeared DOMINGO L. SIAZON, JR., and FELIPE B. ALFONSO, Secretary of Foreign Affairs and President of the Asian Institute of Management respectively, known to me to be the same persons who executed the foregoing Memorandum of Agreement which they acknowledged before me as their free and voluntary act of deed.

WITNESS MY HAND AND SEAL this 23rd day of January 1998 at the City of Pasay, Philippines.