PSE Circular for Brokers No. 839-98

April 28, 1998 PSE CIRCULAR FOR BROKERS NO. 839-98 Philippine Stock Exchange, Inc. PSE Center, Exchange Road Ortigas Center, Pasig Metro Manila Attention: Mr . Reynold P . Ong Vice President Listings & Disclosure Group Ms . Maria Isabel P . Garcia Head, Listings & Compliance Department Gentlemen : In compliance with your requirement, we are pleased to confirm our fax-letter that we received today the attached letter-notice dated April 22, 1998 together with a copy of the Affidavit of Adverse Claim of one of our former stockholders, Mr. Jimmy T. Go on Chinabank shares totalling 41,376 which were allegedly "surreptitiously and fraudulently transferred and registered" in the name of Mr Alberto T. Looyuko. LexLib We will fax simultaneously said notice and affidavit to RCBC, our Transfer Agent since January 1998 for their information and proper annotations on the stock transfer records. Thank you. Very truly yours, (SGD.) ARSENIO L. LIM, JR. Vice President & Corporate Secretary April 22, 1998 ATTY. ARSENIO LIM Corporate Secretary China Banking Corporation Makati City Dear Atty. Lim : SUBJECT : Notice of Adverse claim over 41,376 China Bank shares fraudulently transferred by Alberto T . Looyuko I am writing in behalf of my client, Mr. Jimmy T. Go, in connection with 41,376 shares in China Bank subscribed and paid for by my said client, who discovered upon verification, that Mr. Alberto T. Looyuko had surreptitiously and fraudulently transferred and registered in his name the subject shares and took advantage of the previous endorsement in blank by my client. Please find attached herewith my client's affidavit of adverse claim for annotation in your books, to serve as notice and prevent its subsequent sale, transfer and assignment to innocent parties. LLjur Thank you for your kind attention and prompt action to the above-request. Very truly yours, (SGD.) RONALD E. JAVIER AFFIDAVIT OF ADVERSE CLAIM OVER 41,376 CHINA BANK SHARES OF STOCK I, JIMMY T. GO, FILIPINO citizen, of legal age, single, and a resident of No. 8 Cattleya Street, Valle Verde, Pasig city, after being duly sworn in accordance with law, do hereby depose and state: 1. That I am a 50% co-owner of all the assets and businesses of Noah's Ark, a sole proprietorship registered in the name of Alberto T. Looyuko, with office and business address at Noah's Ark Building, Escolta, Manila; that we started our business partnership in sugar trading since 1977, or for more than 21 years now; 2. That sometime in 1986, Alberto T. Looyuko and I purchased shares of stocks from China Banking Corporation from the shares held by the family of Mr. Peter Dee, who is now the incumbent President of China Banking Corporation; LLpr 3. That in buying the above shares of stock, we used the money of our partnership in Noah's Ark; Alberto T. Looyuko subscribed and paid for 101,957 shares, while I subscribed and paid for 41,376 shares; that my own shares were originally covered by the following stock certificates: Date of Certificate Certificate No. Amount of Shares 08-06-85 25447 5000.00 08-09-85 25449 4432.00 08-14-85 15450 4019.00 05-07-87 26481 672.00 04-06-90 28418 1412.00 03-02-93 30916 5650.00 11-12-93 32501 6296.00 11-18-94 34697 6620.00 09-12-95 36713 8275.00 TOTAL 41,376.00 Shares 4. That sometime in February 1997, I agreed with Alberto T. Looyuko to endorse in blank and give my shares to him, as we would sell all our shares together in big bulk, at a time when the price of the shares would go up in the stock market, since we were then in need of funds to pay off some company obligations; that he would hold our shares so that it will be in place anytime there is a ready and willing buyer; 5. That being business partners for a long time, and 50% co-owner of the business and assets of Noah's Ark, I agreed to endorse my shares in blank and entrusted the same to Alberto T. Looyuko pursuant to our aforesaid agreement; 6. That after a very long time since I endorsed and entrusted my aforesaid shares, I have not heard anything anymore from Alberto T. Looyuko, nor did he ever inform me if the shares were sold, or gave me the proceeds of the sale of my shares. prLL 7. That when I verified with China Banking Corporation, I was surprised to discover that Alberto T. Looyuko surreptitiously and fraudulently transferred in his name all the 41,376 shares which I endorsed and entrusted to him, contrary to what we have agreed upon, with malice aforethought and intent to gain, including my pre-emptive rights to subscribe to additional shares; 8. That I am consequently registering my adverse claim over the above-mentioned 41,376 shares of stocks in China Banking Corporation, and I hereby reserve my right to take whatever legal actions warranted under the premises against Alberto T. Looyuko for the fraudulent transfer of my shares in his name and with abuse of the trust and confidence I had in him as my business partner; 9. That I have not received any payment or any form of consideration from Alberto T. Looyuko out of the shares I endorsed and entrusted to him on the belief and upon our agreement that he would sell all our respective shares together in big bulk at such time when the share price reach its peak in the stock market; cdll 10. That I am executing this affidavit in order to set forth and attest to the truth of all the foregoing facts and in order to register my adverse claim over the above shares which were fraudulently transferred by Alberto T. Looyuko in his name, and in order to prevent its sale, transfer and assignment to third parties. (SGD.) JIMMY T. GO Affiant SUBSCRIBED AND SWORN to before me this 24th day of April 1998. Affiant exhibited to me his Comm. Tax Cert. No. 11-593325 issued at Manila on March 2, 1998. (SGD.) ATTY. RONALD E. JAVIER NOTARY PUBLIC UNTIL DEC. 31, 1998 PTR # 8089510 ISSUED AT RIZAL ISSUED FEB. 2, 1998 Doc. No. 62 Page No. 13 Book No. III Series of 1998.