Fort Del Pilar, Baguio City

1. Fort Del Pilar, Baguio City

2. PRESENTATION OUTLINE • PCC BOARD OF DIRECTORS AND OFFICERS • FLASHBACK • GROUND BREAKING & CORNER STONE LAYING • PROJECT TAKE OFF • FUNDING STRATEGY • THE PLAN • THE BENEFITS • HANDBILL

3. PCC BOARD OF DIRECTORS & OFFICERS • CAV PROTACIO L DEPAKAKIBO JR ’54 - Chairman • CAV PATERNO D LOMONGO ’54A - Vice-Chairman • CAV ANGELO C QUEDDING ’54 - Director • CAV BIENVENIDO G GOROSPE ’54 - Director • CAV JOSE C SORRETA ’54 - Director • CAV JOSE G GUILLEM ’54 - Director • CAV FRANCISCO V GATMAITAN ’52 - Director • CAV SALVADOR M MISON ’55 - Director • CAV ROLAND I PATTUGALAN ’57 - Director • CAV BONIFACIO C LOMOTAN JR ’59 - Director • CAV LEOPOLDO L MALIGALIG ’76 - Director • CAV FIORELLO S ADRIANO ’70 - Treasurer • CAV MARIANO R SANTIAGO ’67 - Secretary • CAV ROLANDO G BORJA ’82 - Asst Secretary

4. FLASHBACK The 2004 PMAAAI Board under the Chairmanship of the late Cav Stim P Muñasque, saw the need for an alumni center in PMA similar to that in USMA and USNA as they were about to end their term. Pursuing this vision, the succeeding 2005 Board with Cav Roland I Pattugalan as Chairman passed a resolution creating a Special Committee on PMAAAI Alumni Learning Center headed by Cav Munasque himself to undertake the construction and operation of the project which eventually became known as the PMA Cavaliers Center in Fort del Pilar, Baguio City. The Multipurpose facility is envisioned to be a venue for a learning center for leadership training and professional excellence, conduct of entrepreneurial seminars and workshops especially for retiring alumni to prepare them for civilian life, social and cultural activities with adequate billeting and other support facilities. It will also serve as a rest and recreation center and as an appropriate place for PMA alumni to get-together, foster camaraderie, and “recharge batteries.”

5. Saddled by complexities in the acquisition of the lot inside the BCDA 30-hectare site in Camp John Hay, the project was stalled. Not until eighteen months later when Cav Leopoldo Maligalig ’76 , the PMA Superintend-ent at that time, graciously pointed out a 1.904-hectare lot inside Fort Del Pilar, did the project take off. Consequently, groundbreaking took place on February 17, 2007.

6. GROUND BREAKING CEREMONY & CORNER STONE LAYING

7. PROJECT TAKE OFF The said PMAAAI Board resolution designated the PMA Class ’54 volunteers whose president was Cav Stim P Munasque to be the action class in coordination with the Special Committee which was also chaired by him in bringing the project to fruition. The two groups collaborated as the action team composed mostly of volunteers that formulated certain concepts and acted as follows: 1. Organized the “PMA Cavaliers Cooperative” (PCC) and registered it with the Cooperative Development Authority (CDA) on 02 October 2007 with all PMA alumni, associates and qualified donors eligible for membership. The first 100 cooperative share subscribers who are PCC charter members raised the amount of P3,125,000,00 which is the paid-up capital requirement for CDA registration based on the PCC capitalization of P50 Million. 2. At the instance of National Defense Secretary Gilbert C. Teodoro Jr, a foundation was created to be able to obtain government approval for the use of the allocated 1.9 hectare Area in Fort del Pilarm Baguio City, solicit and receive Donations for the construction of the PMA Cavaliers Center. Thus, the PMAers Foundation, Inc. (PFI) was Registered with the Securities and Exchange Commission (SEC) on 30 October 2008 with PMA alumni associates As members.

8. 3. The PCC and PFI having similar objectives to attain the same goal which is to put up the PMA Cavaliers Center, have to work in tandem with respective tasks and responsibilities spelled-out under a Build, Operate and Transfer (BOT) Agreement. The PFI will eventually have ownership and full control of the center after complete settlement of the equity invested in the project by the PCC. 4. Funding construction of the project which is estimated to cost at least P175 Million come from the PCC and PFI as follows: a. PMA Cavaliers Cooperative (PCC) (1) PCC membership fees and a minimum share subscription of 200 PCC shares valued at P20,000.00 where the members share in the operation and profit of the cooperative. (2) PCC “Sponsorship Agreement” whereby a sponsor, who may be an individual, group or corporation, subsidizes the construction of a bedroom suite under certain conditions such as the guaranteed free use of a room for 30 days per year for 25 years, etc. b. PMAers FOUNDATION, INCORPORATED (PFI) (1) PFI membership fees – all PMA alumni and associates are eligible for membership (2) Donations – individual, group or corporate donors who will be duly recognized and benefit from tax deductible credit or donations

9. 5. Construction is to be done in two phases. (Ph1 - 3119 sq m at the cost of Php 95.0 M, Ph 2 - 2388 sq m at the cost of Php 80.0 M). The three-storey building will have the following 4-star features: PHASE 1 Reception and Lounge Coffee Shop and Piano Bar 32 Bedroom Suites Kitchen, Storage, & Drivers’ Quarters

10. Construction of Phase 1 has started in February, 2008 with the initial two contracts with J Santos Construction Company, a firm owned and operated by Cav Joselito L Santos ’61, for the foundation structure for Phase 1. • The facility will be a venue for a Learning Center for Leadership training and Professional Excellence, the conduct of entrepreneurial especially for retiring alumni to prepare them for civilian life, seminars and workshops, conventions, social and cultural activities. The Center will have adequate, decent and affordable billeting and other support facilities for alumni and their guests. It may also be used by the PMA, its officers and cadets for training or social functions. It will admit patronage of local Baguio City officials, colleges and universities as well as corporate assemblies. It will be a suitable meeting place for alumni to get-together, enhance camaraderie, reminisce and refresh unforgettable memories about PMA.

11. PHASE 2 400 person cap Auditorium, Lecture Room 40 Bedroom Suites Board Room, Library, Business Center Administrative Offices, Prayer Room, Game Room, Convenience Store Souvenir Shop, Laundry Shop Parking Area, etc. PHASE 3 28 Bedroom Suites

12. Room charges for PCC and PFI members will be • inexpensive, much lower than hotel rates in Baguio City. • This is possible because in effect it will be partly • subsidized in a number of ways. • The PMA Cavaliers Center is a project of PMAAAI and • members are expected to support it. As the first • important association project in the very hallowed grounds of Fort del Pilar, it will be a symbol, a fitting reminder to PMA alumni at their sacrifices as cadets that became the key to a bright and successful future. Every one who has gone through the rigors of cadet life should enjoy that beautiful sentimental feeling of belonging to the prestigious elite in society. To be part of this worthwhile project, it is also a way of paying back to the Alma Mater as the Center will give added distinction to its already glorious image.

13. FUNDING STRATEGY The PMA Cavaliers Cooperative (PCC) has decided to construct a 100-room, 3-Star, hotel at Fort Del Pilar, in Loakan, Baguio City, to service the out-of-town needs of the members’ visits to their alma mater. The estimated construction cost of the facility would be Php200,000,000. PCC had worked out the bridge funding of the construction cost from anonymous Cavaliers. The Share Capital Formation and Benefits Plan would provide the EXIT STRATEGY to return the ‘loaned’ funds to the lenders in reasonably short time that would meet said lenders’ own requirements.

14. THE PLAN CATEGORY 1 (a) Members of Class 2000 to 2009 are automatically enrolled in the Share Capital Formation and Benefits Plan, except those with written Option for Exclusion. (b) Members of incoming Classes, like Class 2010, etc., are automatically enrolled in the Share Capital Formation and Benefits Plan upon admission in the PMAAAI, except those with written Option for Exclusion.

15. THE PLAN CATEGORY 2 Members of Class 1999 and earlier Classes who are in the Active Service on Plan Inception Date are automatically enrolled in the Share Capital Formation and Benefits Plan, except those with written Option for Exclusion.

16. THE PLAN CATEGORY 3 Members of PMAAAI who are on retired status on Plan Inception Date may be enrolled by their Class Presidents in the Share Capital Formation and Benefits Plan provided that at least 90% of eligible members of the Class are so submitted for enrollment within the 6-month window after Plan Inception Date.

17. THE BENEFITS Termination Benefits: The accumulated amount of contribution. Death Benefit during construction of hotel facilities: Php100,000 or the accumulated amount of contribution, whichever is greater. Death Benefit after completion of hotel facilities: Php200,000 or the accumulated amount of contribution, whichever is greater.

18. Forecast Results of 5-Year Operation • Forecast Results of 10-Year Operation • Share Capital Formation and Benefit Plan • Articles of Coop and By laws