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Republic of the Philippines

DEPARTMENT OF FINANCERoxas Boulevard Comer Pablo Ocampo, Sr. Street

Manila 1004

November 25,2020

MR. BRYAN A. ESCUETASenior Account ManagerPHILSTAR DAILY, INC.202 Roberto S. Oca cor. Railroad Sts.,Port Area Manila Metro Manila

Subject: NOTICE OF AWARDDear Mr. Escueta:

We are pleased to inform you that the proposal of Philstar Daily, lnc., equivalent toTwo Million Seven Hundred Seventy Two Thousand Pesos (Php2,772,000.00) totalcontract amount, inclusive of VAT, for the Engagement of Multimedia Services for theCommunicating of Economic, Fiscal, and lnstitutional Reforms Project to News Publication ishereby accepted.

Thank you

Very truly yours,

tm* $#Undersecretary

L*MARK DENNIS Y.C. JOVEN

Undersecretary

CONFORME

B A. ESCUETA

Date /1 ' '^'1,o

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Republic of the PhilippinesDEPARTMENT OF FINANCE

Roxas Boulevard Comer Pablo Ocampo, Sr. Street Manila 1004

November 27, 2020

MR. BRYAN A. ESCUETASenior Account Manager PHILSTAR DAILY, INC.202 Roberto S. Oca cor. Railroad Sts. Port Area Manila Metro Manila

Subject: NOTICE TO PROCEED

Dear Mr. Escueta;

In view of the award of the Contract for the Engagement of Multimedia Services for the Communicating of Economic, Fiscal, and Institutional Reforms Project to News Publication ("the Contract"), you are hereby given Notice to Proceed to render said services for this Department.

The Contract shall be effective upon receive of Notice to Proceed.

Thank you.

Very truly yours,

-4,BAYANI H. yS(^ABlM

Undersecretary

(uhMARK DENNIS Y.C. JOVEN

Undersecretary

CONFORME:

BRYAN A. ESCUETA

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f' y.r g c I I (Contract of Philstar Daily, Inc.)

CONTRACT FOR SERVICES IN RE: THE ENGAGEMENT OT MULTIMEDIASERVICES FOR THE COMNIUNICATING OF ECONOMIC, FISCAL, AND

INSTITUTIONAL REFORMS PROJECT

KNOW ALL MEN BY THESE PRESENTS:

2020. in

DEPARTMENT OF FII{ANCE, a national government agency dulyestablished under the laws of the Republic of the Philippines, with officialaddress at DOF Building, Roxas Boulevard corner Pablo Ocampo, Sr.Street, Manila, represented by Undersecretaries BAYANI H. AGABINand MARK DENNIS Y.C. JOVEN, hereinafter referred to as "DOF";

and

PHILSTAR DAILY, INC., a domestic corporation duly organized andexisting under and by virtue of the laws of the Republic of the Philippines,with principal offrce address at202 Roberto S. Oca cor. Railroad Sts., PortArea Manila Metro Manila, represented by its Senior Account Manager,BRYAN A. ESCUETA, hereinafter referred to as the "Supplier".

(DOF and the Supplier shall be collectively referred to as the "Parties", and individually,a ttPartyt'.)

WITNESSETH: That-

WHEREAS, pursuant to Executive Order No. 127, series of 1987, DOF w-as mandated toformulate, institutionalize, and administer fiscal policies in coordination with other concernedsubdivisions, agencies and instrumentalities of the government. DOF shall be responsible fbr thegeneration and management of the hnancial resources of the goverrrment. ensuring that saidresources are generated and managed judiciously and in a manner supportive of developmentobjectives;

WHEREAS, in connection therervith and as part of the "econornic. fiscal, and institutionalreforms" ("CEFIR") of the national government, DOF is pushing for the CEFIR specifically. theremaining packages under the Cornprehensive Tax Refonn Program ("CTRI"') that seek to rnakethe tax system simpler, fairer, and more efficient, as well as provide support to businesses andordinary Filipino citizens'who are criticall,v-impacted by COVID- 1 9:

WHEREAS, DOF aims to communicate the recent policy developments in the CEFIR.and engage stakeholders through the multimedia public awareness campaign, thus, would requirethe scrviccs of a multimedia scrv'ice provider:

WHBREAS, the Supplier represents that it has the financial, technical, and legal capacityto execute a multimedia awareness campaign by producing and publishing print materials andother media executions (the "Materials") in its media company, and is agreeable to perform thesame, under the terms and conditions herein set forth;

WHEREAS, as provided under Section 53.6 of the Revised lmplementing Rules andRegulations (Revised-IRR) of Republic Act (RA) No. 9184, negotiated procurement is allowed inthe case of where goods, infrastructure projects, and consulting services can be contracted to aparticular supplier, contractor or consultant as determined by the Head of the Procuring Entity, forthe requirement of media documentation, advertisement, or announcement through television,radio, newspaper, internet, and other communication media;

This CONTRACT is made and entered into this _ day of __ Philippines, by and between:

I' rlg t: | 2 (Contract of Philstar Daily, Inc.)

WHEREAS, under the DOF Bids and Awards Committee (BAC) Resolution No.it was resolved to recommend the award of the negotiated procurement to the

Supplier for the engagement of multimedia services;

WHEREAS, the DOF has issued Obligation Request and Status No.dated certiffing that adequate funds have been

duly appropriated for this procurement in accordance with existing accounting and auditing rulesand regulations;

NOW, THEREFORE, for and in consideration of the foregoing premises, the Partieshereto agree as follows:

I. SUBJECT

Unless stated otherwise, and for the avoidance of doubt, this Contract shall cover bothMaterials that are:

1.1 Produced, created, and/or written by the Supplier for its exclusive airing orpublication as approved by the DOF; and

1.2 Produced, created, and/or written by DOF (or any of its third party contractors) fornon-exclusive publication by the Supplier, both subject to the following terms andconditions.

2 SUPPLIER'S UNDERTAKING S

The Supplier shall perform the following services (the "Selices"):

2.1 Production. Creation. and Exclusive Publication of the Materials

2.1.1 Provide for the facilities, technical requirements, technical personnel and staffnecessary for the production and creation of the Materials. For reference, acopy of the project proposal (the "Project Proposal") is attached hereto asAnnex ttAtt;

2.1-2 Produce the Materials; provided that any and all creative content and materialscreated/produced shall be cleared by DOF prior to publication;

2.1.3 Provide media spots for the publishing (See Annex A for breakdown) of theMaterials provided by DOF and produced by the Supplier.

2.2 Publication of the Materials Produced, Written, and Created bv DOanv of its Dulv Authorized Representatives

2.2.1 Publish the Materials provided by DOF in accordance with the Supplier'sgeneral rules on publication, provided that, nothing in this Contract shall beconstrued to grant, permit, or allow the Supplier to exercise the exclusive rightto publish the aforesaid Materials. Further, it shall be understood that no noticeto or consent by the Supplier shall be necessary for DOF's exercise of its rightsover the Materials produced by virtue hereof.

2.3 Timeline

2.3.1 It shall be understood that the production and publication of the Materialsshall be not later than 31 December 2020, subject to the provisions of this

/' it ;q t' | 3 (Contracl of Pltilstar Daily, Inc.)

Contract. Any subsequent changes in the timeline indicated herein shall beagreed by the Parties in writing.

In addition to the foregoing, the Supplier shall secure the required government andregulatory approvals and permits necessary for the performance of the Services.

J. DOF'S UNDERTAKINGS

3.1 In connection with Section 2.1, DOF undertakes to perform the following:

Provide technical and creative inputs on the production of the Materials;Participate in content planning meetings and conferences with theSupplier's production staff; and

3.1.13.t.2

3.1.3 In coordination with the Supplier, review the produced Materials and clearthe same prior to publication.

3.2 In connection with Section 2.2, DOF undertakes to provide the Materials to theSupplier in accordance with the schedule agreed upon by the Parties.

4. CONTENT AND INTELLECTUAL PROPERTY

For the avoidance of any doubt, the intellectual property rights and correspondingobligations of the Parties shall be governed by the following rules:

4.1 Copyright and other rights over the Materials produced, published, and airedpursuant to Section 2.1 shall be co-owned by the Parties. For this purpose, it shallbe understood that the Materials produced relative thereto shall be exclusivelypublished by the Supplier and/or any of its affiliates or subsidiaries. The Materialsshall not be published by a third party without the prior written consent of both theSupplier and DOF.

4.1.1 Copyrights and other rights specifically over the broadsheet newspaperfalse cover (co-produced by the DOF with the Supplier) shall be grantedto the DOF for its own reproduction and distribution. The saidreproduction and distribution is compatible with the fair use under theIntellectual Property Code of the Philippines.

4.2 Copyright and other rights over the Materials produced and aired pursuant toSection 2.2 shall be exclusively owned by DOF. Thus, the right to publish,reproduce, modiff, alter, and/or amend the same shall be exercised exclusively byDOF, without any need for notice to or consent by the Supplier. For this purpose,the Supplier shall be granted a non-exclusive right publish the Materials inaccordance with the terms and conditions of this Contract.

5. REPRESENTATIONS AND WARRANTIES

5.1 DOF warrants and represents that:

There is no agreement with any otherperson, firm or corporation which willin any way interfere with any rights of the Supplier under this Contract,and that the Materials are free and clear of all impediments of every kindand nature, which may be inconsistent with the rights of the Supplierhereunder, provided, that nothing in this Contract shall prohibit DOF toengage the services of other media service providers to perform similarservices;

5.1.1

l1 rr g e' | 4 (Contract of Philstar Daily, Inc.)

5.1.2 Any and all rights acquired by DOF pursuant to Section 2.1 of this Contract,as it refers specifically to the Materials, shall not be assigned, transferred,conveyed, or sold to third parties, nor allowed to be enjoyed by such thirdparties, without the prior written approval of both Parties.

5.2 The Supplier warrants and represents that it is an entity duly authorized underexisting laws, applicable government procurement rules and regulations, to performthe Services. It further warrants that it has the legal, technical, and financial capacityto perform the Services, without any impediments whatsoever, which may prohibitits performance thereof.

5.3 Should either Party: (a) fail to perform or observe any term, covenant or condition,(b) violate any of its warranties and representations under this Contract, or (c) grantor allow, in violation of this Contract at any time during its effectivity or eventhereafter, any person, corporation, partnership or any other entity without thelicense or authority, publish in any manner the Materials without any reasonableground or valid justification and written consent of the Parties, as may benecessary, shall be liable to pay the aggrieved Party such amount as may bedetermined by the proper court of law, for any of the Materials shown or licensedto be shown in violation of the rights of the Parties without in any way releasingor discharging the guilty Party from any of its obligations under this Contract.

5.4 Either Party agrees to indemniff and hold the other Party and/or their respectiverepresentatives free and harmless from and against any and all third-party claims,damages, liabilities, costs, attomey's fees. and expenses arising from or out of anymaterial breach committed by either Party with respect to any representation,warranty or undertaking made pursuant to this Contract. For this purpose, eitherParty undertakes to provide written notice to the other Party of any such claimimmediately upon receipt or knowledge of the same.

6. PUBLICATION AND PRODUCTION COSTS AND PAYMENT TERMS

6.1 The Supplier shall deliver and perform the Services specified in this Contract forand in consideration of the amount of TWO MILLION SEVEN HTINDREDSEVENTY-TWO THOUSAND PESOS (P2,772,000.00) (the"Consideration"), inclusive of value-added-tax ("VAT") and subject to theappropriate withholding taxes.

6.2 The Consideration shall be payable upon complete compliance and submission bythe Supplier to DOF of all the required and agreed deliverables, invoice/s, andother documents required under government procurement laws. The same shall bepaid by DOF within thirty (30) days upon receipt of the submitted invoice or theissuance of the Certificate of Acceptance, whichever comes later.

6.3 All payments shall be strictly made through bank deposit/check payment under theSupplier's company name or its authorized representative. Payment made to anyunauthorized person/s shall not be honored and shall be considered null and voidor invalid.

7. INABILITY TO PUBLISH

The Supplier shall not be liable for damages for its inability to publish the Materials asspecified in the approved implementation schedule due to:

l:' o ;q t: | 5 (Contract of Philstar Daily, Inc.)

7.1 Public emergency or necessity, legal restrictions, acts of God, strikes, lockouts, orat the direction ofnational or local authorities, or for any other reason beyond itscontrol; and

7.2 Publication of other material/s that may be of public and/or special interest such aslive telecasts of coverages of the President's activities, or priority and emergencyannouncements.

In all cases, the Supplier shall inform DOF of the change in schedule within eight (8)hours prior to the scheduled publication of the Materials, or as soon as any of the instancesenumerated above arises, through an official electronic mail sent by the authorized officersof the Supplier to the authorized officers of DOF (the list is attached herein as Annex"8"). The unpublished Materials shall be published on the next available schedule or asagreed by the Parties. The Supplier shall ensure the availability of the publication spot forthe Materials in excess of those scheduled in case all the spots are published on time. Inthe event that the publication of the said Materials is no longer possible, it will compensateby publishing an additional publication spot or granting a reduction of airing cost, as maybe agreed upon by the Parties.

The Supplier reserves the right to suspend or stop the airing or publishing of the Materialsfor any material breach of the Contract with prior written notice to DOF as far aspracticable, without prejudice to DOF's right to dispute the same and be indemnified incase of unjustified suspension of publication.

8. PROHIBITIONS AND RESTRICTIONS

8.1 Any political statement, advertisement or political opinion expressed by arry talent,writers, editors, officers, or employees of either Party without the consent orknowledge of the other Party shall be deemed unauthorized, if not illegal, and shallremain as those of the speaker's and will not in any way be connected to orconstrued as words or opinions of the management and staff of the said Party;

8.2 Either Party shall hold the other Party free from any liability, imposition ordamages, contingent or otherwise, for any political statement, advertisement orpolitical opinion expressed by any writer, talent, officers and employees of the saidParty;

8.3 The Supptier reserves the right to stop or cancel the publication of any material, ifin its reasonable discretion, the same is contrary to law, morals, good customs,public order and public policy or shall offend any tradition, belief, religiousconviction or any personal privacy ofany person, group or affiliation. This shall bewithout prejudice to DOF's rights to claim damages if the suspension, stoppage, orcancellation of publication is found to be unjustified and unreasonable;

8.4 No person, entity or party shall have the right to use either Party's narne, logo ortrademark without its written permission, and any unauthorized use thereof shallmake the user, person, entity or parly or any person responsible, whether personalor juridical, liable for administrative, civil and criminal prosecution as may beapplicable. During the effectivity of this Contract, either Party, after securingwritten authority from the other Party, may use or list each other's name asclienVpartner for marketing or promotional materials only, provided, that theauthority given should be clearly specified for marketing and promotional materialsonly, and should not be used for other purposes, including but not limited to: callingcards, I.D.s, fund raising, charitable causes or securing funds from the public; and

I' a g e' | 6 (Contract of Philstar Daily, Inc.)

8.5 The authority herein given shall not be transferred, assigned or alienated in favorof a third party and shall be used only or exclusively for the purpose for which itwas issued.

9. MISCELLANEOUSPROVISIONS

Nothing in this Contract shall be construed to mean that the Supplier or any of itsofficers, employees, staff and talents, is an employee, representative or agent ofDOF, and it is understood that the relationship is limited to production andpublication of the produced advertisement material/s and other media executionsfor DOF. Therefore, there is NO EMPLOYER-EMPLOYEE RELATIONSHIPbetween DOF and any of the Supplier's officers, employees, staff and talents.

The titles of the sections of this Contract are for convenience only and shall not inany way affect the interpretation of any section of this Contract or of the Contractitself.

This Contract supersedes any previous existing agreement by the Parties. ThisContract, including the appendices, constitutes the entire agreement between theParties with respect to the matters dealt with in this Contract and there are no oralor written understandings, representations or commitments of any kind, express orimplied, not expressly set forth in this Contract. Any amendment or addendum tothis Contract shall be in writing, mutually agreed upon and signed by the Parties.

A waiver by either Party of the breach of any of the terms and conditions of thisContract shall not be deemed or construed to be a waiver of such any subsequentbreach thereof. Further, failure by either Party to insist on a strict compliance bythe other Party with all the terms and conditions contained herein shall notconstitute a waiver of such compliance by the concemed Party, unless such waiveris reduced in writing duly signed by the concerned Party or its authorizedrepresentative. All remedies, rights, undertakings, obligations and agreementscontained in this Contract shall be cumulative and none of them shall be inlimitation of any other remedy, right. undertaking, obligation or agreement of eitherParty.

Either Party warrants that it has not given or promised to give money, gift or anymaterial favor/consideration to any offrcial or employee of either Party forpurposes of securing this Contract, and that any violation of this warranty shall besufficient ground for either Party to revoke or cancel the same without need ofjudicial action, without prejudice to the filing of appropriate case(s) against theerring employee(s).

9.6 Each Party represents to the other that: a) its signatory has the full authority toexecute this Contract and bind such party to fulI performance of its obligationsherein set forth; b) it has obtained all the consents, approvals, and authorizationsnecessary for the due execution and delivery and performance of this Contract; andc) this Contract constitutes its legal and binding obligation enforceable inaccordance with its terms.

Any delay or failure in performance hereunder by either Party shall be excused if,and to the extent caused, by occurrences beyond such Party's control, including,but not limited to decrease or restraints of government, acts of God, force majeure,sabotage or any cause or causes whether similar or dissimilar to those alreadyspecified which cannot be controlled by such Party. If as a result of legislation orgovernment action, either Party is precluded from receiving any benefit to whichit is entitled hereunder, the Parties shall review the terms hereof so as to restore to

9.1

9.2

9.3

9.4

9.5

9.7

lj rr g c' | 7 (Contract of Philstar Daily, Inc.)

the relevant Party to the same relative positions as it previously obtainedhereunder.

9.8 This Contract and its terms shall be solely govemed by the laws of the Republic ofthe Philippines.

9.9 This Contract shall be subject to all the laws, rules and regulations of the Republicof the Philippines, its agencies, and instrumentalities, and other competentauthorities. In case any portion hereofis declared or interpreted to be inconsistentand contrary to such laws, rules or regulations, and, therefore, null and void andunenforceable, the remaining portion not so adversely affected shall remain validand binding, and the same shall be interpreted and construed to carry out the spiritand intent of this Contract.

9. 10 This Contract shall be effective for the duration of the production and publicationof the Materials upon signing hereof, and shall expire or end on timeline or periodagreed herein. In case a renewal is necessary to accomplish the purpose of thiscontract, the existing rates shall apply. In case the Parties have allowed theproject/activity to continue in the absence of a written contract, then it shall besubject to the terms and conditions contained in this Contract; the Parties, uponmutual agreement, may pre-terminate or terminate this Contract by giving thirty(30) days written notice prior to the date of termination:. Provided, however, that allliabilities or charges due from each Party prior to such termination shall have beenpaid or settled.

9.11 This Contract shall be subject to the usual government budgeting, accounting, civilservice and auditing rules and regulations.

9.12 The Parties agree that in the event of any litigation that may arise from theinterpretation, execution or violation of any provision of this Contract, the sameshall be filed in the proper Courts of Manila only, to the exclusion of other venues.

10. SEPARABILITYCLAUSE

Should any provision of this Contract be rescinded, revoked or declared illegal or unlarnfulby virtue of the any laws, the provisions not affected thereby, shall remain in full force andin effect, if said provision can stand independently from those rescinded, revoked ordeclared illegal and the same shall be interpreted and construed to carry out the spirit andintent of this Contract.

11. EFFECTIVITY

This Contract shall be effective upon signing hereof.

t rr t t' | 8 (Conlracl of Philstar Daily, Inc.)

?:IN WITNESS WHEREOF, the PARTIES hereunto set their hands thislQlday of

2020,in ti fTY OF MUVII .t , Philippines. ' (0A

DEPARTMENT OF FINANCE PHILSTAR DAILY,INC.

By: By:

$av,^LJ. VYBAYANI H. AGOTBIN

UndersecretaryA. ESCUETA

Account Manager

By:

,

MARK DENNIS .C. JOVENUndersecretarv

Signed in the Presence of:

Po 9{a of Philstar Daily, Inc.)

ACKNOWLEDGMENT

Republic of the Philippines )c0mf CF [viAIIIL.|D s.s

BEFORE ME, a Notary Public for and inappeared the following:

BRYAN A. ESCUETA Govemment Issued ID No.s.{Y ?z _[1121s7 _y

PTR# Mla 9tt22t4 - l-2-1020R{}tlf l2r}-13,^flNl lJ.2-4}6-6t7rltr-E L',,,,,i1 Nu \; l-tx)2 I l7o untrl -l-' 1-ltll?

BAYANI H. AGABIN Govemment Issued ID NoTIN No: 172-571-956

MARK DENNIS Y.C. JOVEN Govemment Issued ID No.TIN No: 167-305-432

All known to me and to me known to be the same persons who signed and executed theforegoing instrument and they acknowledged that the same is executed on their own free will anddeed.

This instrument, refers to the contract between PHILSTAR DAILY, INC. and THEDEPARTMENT OF FINANCE, consisting of eleven (11) pages, including the page on whichacknowledgement is written, has been signed on the margin of each page by parties thereto, andtheir instrumental witnesses, on the date and at the place first

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l" u g t: l l0 (Conlract of Philstar Daily, Inc.)

ANNEX A

PROJECT PROPOSAL

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ANNEX B

AUTHORIZED OFFICERS TO GIVE AND ACCEPT NOTICES OF INABILITY TOBROADCAST, CHANGE OF SCHEDULE, AND PREEMPTION

NAME E-MAIL ADDRESSAntonio Joselito G. Lambino II alambino@dof.gov.phEuvimil Nina R. Asuncion easuncion@dof.gov.ph

f) o grlll (Contractof PhilstarDaily, Inc.)