PSE Circular for Brokers No. 1597-99

July 1, 1999 PSE CIRCULAR FOR BROKERS NO. 1597-99 July 1, 1999 PHILIPPINE STOCK EXCHANGE, INC . 4th Floor Philippine Stock Exchange Center, Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor, Disclosure Department Gentlemen : This is in reference to your inquiry via fax about the news article captioned "Casino set to reopen as MLRC-CDC dispute ends" published in the July 1, 1999 issue of the Manila Times. The Compromise Agreement established the amount to be paid by Mondragon in rental arrears of P325 million through June 30, 1999 and specified amendments to the existing Lease Agreement between the two parties including the substantial reduction of future Minimum Guaranteed Lease Rentals for the remaining term of the Lease Agreement to assure the viability of the project. LLcd The Compromise Agreement states that MLRC shall pay CDC the amount of P325 million by way of rentals in arrears as of June 30, 1999. MLRC shall pay CDC in installments the amount P325 on or before the following dates: P50 million on or before the last day of the months July December 1999 and the balance of P25 million on or before June 30, 2000 through the opening of a Letter of Credit in favor of CDC which shall submitted to CDC not later that 30 days from the signing of the Compromise Agreement. The agreement further states that immediately upon the receipt of the Letter of Credit by CDC, MLRC may re-open and resume operations of the Mimosa Regency Casino and MLRC shall have full access to, and the disposition of its premises and facilities consistent with the Compromise Agreement. Thus, when Mondragon presents and CDC accepts the Letter of Credit on or before the 30th day from the signing of the compromise agreement Mondragon may re-open the Mimosa Regency Casino and it shall have full access to, and the disposition of its premises and facilities consistent with the Compromise Agreement. LLpr Hope the foregoing meet your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Comptroller