MEMORANDUM OF AGREEMENT

KNOW BY ALL MEN BY THESE PRESENTS

This Agreement made and entered into by and between:

The PHILIPPINE COAST GUARD, a government agency created under the

law, with office address at 139 25th Street, Port Area, Manila represented by its
Commandant, RADM ELSON E HERMOGINO PCG, hereinafter referred to as the PCG.

- and -

The MUNICIPALITY of CALATAGAN, PROVINCE OF BATANGAS, a local

government unit existing and operating under the laws of the Republic of the
Philippines, represented by its Mayor, Honorable PETER OLIVER M. PALACIO,
hereinafter referred to as the MUNICIPALITY;

WITNESSETH

WHEREAS, the PCG, pursuant to its mandated function of promoting “safety of

life of sea”, which can be facilitated through proper maintenance of vital aids to
navigation, considers to extensive rehabilitation, restoration and continued
maintenance and operation of the Cape Santiago Lighthouse situated at Bagong Silang,
Calatagan, Batangas of urgent importance;

`WHEREAS, the thrust of the National Government and Local Government Units
of the country is to promote the tourism industry and it has long been the aspiration of
the people of the Municipality of Calatagan for the restoration and development of the
Cape Santiago Lighthouse as a tourist spot and destination;

WHEREAS, the National Historical Commission of the Philippines has declared

the Cape Santiago Lighthouse as a national historical site; historical mark for the
purpose has already been installed;

WHEREAS, in order to hasten the preservation, restoration, maintenance and

promotion of the Cape Santiago Lighthouse, the MUNICIPALITY has its strong intent to
manage the operation of the Lighthouse in coordination with the PCG;

WHEREAS, the Municipality has also agreed to provide the necessary support
and assistance in the operation and maintenance of the lighthouse including its
coordination with the national government agencies, including the National Historical
Commission of the Philippines, for funding assistance;

WHEREAS, the PCG, recognizing the potential of project, is very much willing
that the PCG and the MUNICIPALITY undertake their respective commitments for the
Lighthouse not only to promote tourism but also to preserve history and improve the
socio-economic condition of the locality;

NOW THEREFORE, for and in consideration of the foregoing premises and

mutual covenants and undertaking herein set forth, the PCG agrees and the
MUNICIPALITY accepts the management of the operation of the Cape Santiago
Lighthouse under the following terms and conditions, to wit;
ARTICLE I : OBJECTIVE

The PCG and the MUNICIPALITY hereby agree to undertake the restoration and
development, operation, maintenance and promotion of the CAPE SANTIAGO
LIGHTHOUSE located at Barangay Bagong Silang, Calatagan, Batangas for the benefits
and enjoyment of foreign and local tourists;

ARTICLE II : RESPONSIBILITIES OF PARTIES

On the part of the PCG:

The Philippine Coast Guard shall:

1. Continue to be the sole owner and administrator of the Cape Santiago

Lighthouse;

2. Remain responsible for the actual operation and regular maintenance of the
Cape Santiago Lighthouse “beacon light” including all supporting mechanism
(i.e. generator, solar panels, etc.) and provide/source-out funds needed for
such purpose;

3. Be responsible in the deployment of Coast Guard personnel which shall

oversee the operation of the “beacon light” and all other supporting
mechanisms;

4. Allow the MUNICIPALITY in close consultation with the appropriate

government agencies to restore/rehabilitate its buildings (main building and
tower) without altering the original structural design;

5. Allow the MUNICIPALITY to develop and maintain its vicinity and establish
additional facilities and amenities for tourism purposes: i.e. establishment of
trails for trekking/hiking, construction of souvenir shops, comfort rooms,
cafeteria, picnic sheds and other similar facilities;

6. Supervise any construction, undertaking and vicinity development activity of

the Cape Santiago Lighthouse and its area;

7. Allow the MUNICIPALITY to impose fees in the utilization of the new facilities
and amenities and other regulatory fees to be used for the operation and
maintenance;

On the part of the MUNICIPALITY:

The Municipality shall:

1. The MUNICIPALITY shall undertake the promotion of Cape Santiago

Lighthouse as a tourist destination for the Municipality of Calatagan,
principally for the development of tourism particularly in the development and
restoration of the Cape Santiago Lighthouse as its pivotal center;

2. The MUNICIPALITY shall appropriate adequate funds for the continuous

operation, administration and sufficient maintenance of the Lighthouse. In
this connection, the MUNICIPALITY shall exert effort in requesting fund
allocation from national agencies for the restoration of the Lighthouse.
 3. The MUNICIPALITY shall accept the fund appropriated for the implementation
of the Project and place the same in a trust fund and shall be disbursed only
for the Project;

4. The MUNICIPALITY shall advise the PCG on whatever rehabilitation or

restoration activities in the Lighthouse. The MUNICIPALITY shall clear with
the PCG before any further improvements and construction shall be made;

5. The MUNICIPALITY shall impose to impose fees in the utilization of the new
facilities and amenities and other regulatory fees to be used for the operation
and maintenance subject to the passage of an Ordinance;

6. The MUNICIPALITY shall keep the PCG free from any claim from third parties
arising from the use and operation of the facilities and the area as a tourist
spot.

ARTICLE III : OTHER COVENANTS

1. All revenues generated from the operation of the Cape Santiago Lighthouse
shall accrue to the LGU for the continuous operation, conservation,
maintenance and promotion of the same.

2. It is hereby understood and agreed that the PCG or its duly authorized
representative shall have the right to inspect the premises at any reasonable
hour of the day upon presentation by the representative of an authorization
and proper identification for the purpose. Failure to present the above shall
give the right to deny access to the premises.

3. It is hereby understood and agreed that the MUNICIPALITY shall take up in

its books of accounts the project in accordance with accounting and auditing
rules and regulations.

4. It his hereby understood and agreed that should there be any violation of the
terms and conditions of this Agreement by the Municipality, the PCG shall be
constrained from requesting the nullification of this Agreement.

This Memorandum of Agreement, which supersedes previous agreements on the

restoration and development of Cape Santiago Lighthouse, shall take effect on the date
signed hereof by the parties concerned and shall only be terminated with the mutual
consent of all parties.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures

this ____________________day of __________________ at _________________.

FOR THE PHILIPPINE COAST GUARD (PCG): FOR THE MUNICIPALITY OF CALATAGAN:

RADM ELSON E HERMOGINO PCG PETER OLIVER M. PALACIO

 Commandant Municipal Mayor

Signed in the presence of:

__________________________ ____________________________