COLLECTIVE BARGAINING AGREEMENT PROPOSAL

This Proposal, made by:

THE PHILIPPINE BASKETBALL LEAGUE (PBL) ATHLETE’S UNION (PBL-AU),

a legitimate labor organization registered and existing under Philippine laws, with
office address at the PBL Headquarters, Pasig City, represented herein by its
undersigned officers duly authorized for the purpose, hereinafter referred to as the
UNION,

WITNESSETH: That

WHEREAS, the UNION desire to sign and enter into a Collective Bargaining Agreement
covering five (5) years under mutually acceptable terms and conditions as a means of
further fostering good labor management relations, enforcing discipline, and maximizing
efficiency and honesty in the performance of the athlete’s duties, to insure optimum
productivity, peaceful adjustment and settlement of grievance, disputes and differences
which may arise between the COMPANY and the UNION, to prevent strikes,
slowdowns, lockouts, and other disturbances, interferences with or interruption to,
production, and to promote sound and stable industrial peace and advance the general
welfare, health, safety and the best interest of the athletes and the of the COMPANY;

ARTICLE I
DEFINITIONS

The following terms shall have the corresponding meanings:

a) “Active List” means the list of players, maintained by the PBL, who have
signed Player Contracts with a team are otherwise eligible to participate in a
regular season game.

b) “Athlete” or “Player” means any player who is currently signed with the PBL

c) “Base Compensation” means the component of Compensation other than

bonuses of any kind.

d) “Basketball Related Income” or BRI means basketball related income

e) “Commissioner” means Commissioner of the PBL.

f) “Company” means the employer of the athletes, the PBL.

g) “Draft” or “PBL Draft” means the PBL’s annual draft of Rookie basketball
Players.

h) “Early Termination Option” means an option in favor of a player to shorten

the stated number of years covered by a Player Contract.

i) “Free Agent” means a Veteran Free Agent, a Rookie Free Agent, a Veteran
whose Player Contract has been terminated in accordance with the NBA
waiver procedure, or a player whose last Player Contract was a 20-Day
Contract and who either completed the Contract by rendering the playing
services called or was released early from such contract.

j) “Inactive List” means the list of players, maintained by the NBA, who have
signed Player Contracts with a Team and are otherwise ineligible to
participate in a Regular Season game.
 k) “Incentive Compensation” means the component of Compensation consisting
of one or more bonuses

l) “Restricted Free Agent” means a Veteran Free Agent who is subject to a

Team’s right of first refusal

m) “Rookie” means a person who has never signed a Player Contract with a
PBL Team, whether he be a Draft Rookie or a Non-Draft Rookie.

n) “Team” means any team that is a member of the PBL.

o) “Team Affiliate” means:

i. Any individual or entity who or which holds an ownership interest in a

Team;

ii. Any individual or entity who or which controls, is controlled by, is under
common control with, or who or which is an entity affiliated with or an
individual related to, a Team;

iii. Any individual or entity who or which controls, is controlled by or is under

common control with, or who or which is an entity affiliated with or an
individual related to, an individual or entity

iv. Any entity as to which an owner or an individual or entity that holds an

ownership interest in an entity, holds more than five percent (5%) of its
ownership interests, or participates in or influences its management or
operations.

ARTICLE II
RECOGNITION

SECTION 1. Recognition - The COMPANY recognizes the Union as the sole and
exclusive collective bargaining representative of all its Athletes in the COMPANY for
purposes of collective bargaining with respect to their rates of pay and other terms and
conditions of employment.

SECTION 2. Coverage – This Agreement shall apply to and cover all Athletes of the
COMPANY – _________ and in any establishment that may be organized by the
COMPANY in the future with the same nature of business and where the COMPANY
has controlling interest, except those athletes explicitly excluded from the bargaining
unit as enumerated in the succeeding section.

SECTION 3. Exclusions - The following employment categories are expressly excluded

from the bargaining unit and from the scope of this Agreement: Executives, managers,
supervisors, coaches, athletes exercising any of the attributes of a managerial
employee; Finance, HR and IT Department employees, Department secretaries, and
personnel assigned to the Office of the General Manager, and other categories of
employees declared by law to be ineligible for union membership.

SECTION 4. Additional Exclusions - Athletes within the bargaining unit heretofore

defined, who are promoted or transferred to an excluded employment category as
hereinbefore enumerated, shall automatically be considered as resigned and/or
disqualified from membership in the UNION and be automatically removed from the
bargaining unit.

ARTICLE II
UNION SECURITY

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SECTION 1. Maintenance of Membership - All athletes who are within the bargaining
unit as herein defined and are members of the UNION upon the signing of this
Agreement shall remain members of the UNION in good standing for the duration of this
Agreement as a condition precedent to continued employment with the COMPANY.

It is understood that athletes within the bargaining unit who are not members of the
UNION as of the date of the signing of this Agreement shall be free to join or not to join
the UNION without pressure or compulsion from the COMPANY or the UNION.

SECTION 2. Dismissals - Any such athlete, mentioned under the last paragraph of
Section (1) hereof, who refuses to join the UNION after attaining regular status and/or
any UNION member who fails to maintain his membership in the UNION for any of the
following grounds:

(a) commission of a crime against the Federation, UNION officers and members;

(b) non-payment of right amount of UNION dues and other special assessments
to the UNION;

c) voluntary resignation from the UNION during the effectivity of the Agreement
except as allowed by law; and

d) violation of the UNION’s Constitution and By-Laws shall, upon written notice
by the UNION of such refusal to join or to maintain membership in the UNION
and upon written recommendation to the COMPANY by the UNION, be
dismissed from employment by the COMPANY provided, however, that the
UNION shall hold the COMPANY free and blameless from any and all liabilities
that may arise should the dismissed employee question, in any manner, his
dismissal.

SECTION 3. Discharge of Critical Athletes - The COMPANY may ask the UNION
a reasonable period of time from the date of recommendation by the UNION within
which the employee shall be terminated from employment, if such employee is
performing a function that is critical to the business of the COMPANY, unless
replacement therefor may be or is actually obtained by the COMPANY.

SECTION 4. Action on Demand for Dismissal - Where the COMPANY asks for a
longer period within which to dismiss the employee concerned in view of the critical
nature of his functions, final action on the recommendation on the termination by the
COMPANY shall be taken only after a suitable replacement has been obtained within a
reasonable period of time pursuant to Section 3.

SECTION 5. Type of Dismissal - Dismissal and/or termination of employment of an

employee under Sections 2 and 3 of this Article shall be treated and considered as
dismissal for a just cause.

ARTICLE III
CHECK-OFF

SECTION 1. Written Authorization - The COMPANY agrees to check-off or deduct

once a month from the wages/salaries of members of the UNION, earned in the second
period of each calendar month, UNION dues in such definite amounts as provided for in
the UNION’s Constitution and By-laws or general membership resolution and to remit
50% of such deductions for UNION dues to the Federation of Free Workers and the
other 50% to the local chapter; provided, however, that the UNION members submit
individual written requests and authorizations thereof. The COMPANY also agrees to
check-off or deduct from the wages/salaries of members of the UNION special union
assessments such as bereavement contributions and fines; provided, however, that the

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Board resolution thereof, approved by the general membership, duly certified by the
Secretary and President of the UNION, together with the Special check-off authorization
of individual UNION members relative to such assessments, is submitted to and
received by the COMPANY not less than ten (10) days prior to the date during which
assessment or deduction is requested to be made. In addition, the COMPANY agrees
to check-off for the UNION from the wages/salaries of the UNION members
contributions/collections for the employees’ Cooperative, provided, however, that the
UNION submits to the COMPANY at least ten (10) days prior to the deductions or
check-off, individual written authorization thereof from the UNION members. The
COMPANY and the UNION shall formulate a control mechanism regarding such
contributions/collections for the Cooperative to avoid any undue financial burden to the
employees.

SECTION 2. Agency Fee - All athletes covered by the bargaining unit but who are
not members of the UNION shall be collected an amount equivalent to the union dues
representing agency fee to be deducted from their monthly salary.

SECTION 3. Duration of Written Authorization - The check-off request and

authorization for monthly UNION dues shall remain in effect during the term of this
Agreement. The special check-off request and authorization for special UNION
assessment and the Cooperative shall be good only for the specified UNION
assessment or deduction.

SECTION 4. Transmittal of Check-Off Amounts - The COMPANY agrees to remit

to the Treasurer of the UNION by check, the amount deducted in accordance with the
check-off authorization within five (5) working days after such check-off or deduction is
made. The Treasurer of the UNION and/or the duly authorized UNION representative
shall acknowledge and issue the corresponding UNION official receipt therefor and,
thereafter, the COMPANY shall no longer be responsible for such amount(s).

SECTION 5. Priority of Certain Obligations or Indebtedness - Notwithstanding the

provisions of this Article, the COMPANY shall have the right to give priority to the
deductions from the wages or salaries of the members of the UNION all obligations,
indebtedness and deductions required to be made by law, such as SSS, PhilHealth, and
Pag-ibig Fund contributions, withholding tax deductions and the like. After which
deductions for the UNION and the Cooperative shall be effected.

SECTION 6. Athlete Records - The COMPANY agrees to furnish the UNION a copy
of each athlete who is a qualified member of the bargaining unit. The COMPANY
furthermore agrees to accommodate such requests of the UNION for specific
information or data regarding any of its members which are available from their
personnel files provided they are directly related to claims and grievance of the
employee concerned.

ARTICLE IV
MANAGEMENT PREROGATIVES

SECTION 1. The COMPANY and the UNION shall both have rights to the exclusive
control of management over all functions and facilities and to the direction of the entire
working force. Both the COMPANY and the UNION shall be the sole judge of the
competence of an athlete in the performance of his assigned work. The exclusive rights
and prerogatives of the COMPANY shall include, but shall not be limited, to the right to
schedule games, appearances; to plan schedule, direct, curtail, increase or control
operations and schedules of periods during which the COMPANY will be shut down; to
introduce and install new or improved systems, procedures, methods of facilities; to
make and enforce rules and regulations governing conduct and maintenance of order,
safety and effective operations within the COMPANY; to dismiss, discharge, lay-off,
discipline, and suspend athletes, and, in general, to exercise the inherent customary
prerogatives and functions of management subject to the provisions of the law and of
this Agreement.

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 ARTICLE V
UNIFORM PLAYER CONTRACT

SECTION 1. Compensation Protection.

a) Lack of Skill. When a Team agrees to protect the Base Compensation

provided for by a Uniform Player Contract in the event such Contract is
terminated by the Team by reason of the athlete’s lack of skill, such
agreement shall mean that the termination of such Contract by the Team shall
in no way affect the player’s right to receive, in whole or in part, the Base
Compensation payable.

b) Death. When a Team agrees to protect the Base Compensation provided for
by a Uniform Player Contract, if such failure has been caused by the athlete’s
death, such agreement shall mean that the termination of the Contract shall in
no way affect the athlete’s right to receive, in whole or in part, the Base
Compensation payable.

c) Basketball-Related Injury. When a Team agrees to protect the Base

Compensation provided for by a Uniform Player Contract in the event such
Contract is terminated by the Team by reason of the athlete’s failure to render
his services thereunder, if such failure has been caused by the athlete’s
disability and/or unfitness to play skilled basketball as a direct result of an
injury sustained while participating in any basketball practice or game played
for the Team, the termination of such Contract by the Team shall in no way
affect the athlete’s right to receive, in whole or in part, the Base
Compensation payable.

d) Mental Disability. When a Team agrees to protect the Base Compensation

provided for by a Uniform Player Contract in the event such Contract is
terminated by the Team by reason of the athlete’s failure to render his
services thereunder, if such failure has been caused by the athlete’s disability
and/or unfitness to play skilled basketball as a direct result of Mental
Disability, the termination of such Contract by the Team shall in no way affect
the athlete’s right to receive, in whole or in part, the Base Compensation
payable.

e) No agreement by a Team to protect, in whole or in part, the Base

Compensation provided for by a Uniform Player Contract shall require such
Team to continue to employ the athlete, whether on the Active List, Inactive
List, or otherwise, nor shall any such agreement afford the player any right to
be employed, or to be deemed as having employed, by such Team for any
purpose.

f) Notwithstanding any other provision of this Agreement, when a Team agrees

to protect the Base Compensation provided for by a Uniform Player Contract,
such protection shall be applicable and effective only if the Athlete Contract
has not been previously terminated at the time such condition is fulfilled.

g) With respect to Athlete Contracts entered into or extended on or after the

effective date of this Agreement:

i. The maximum amount of aggregate Base Compensation that can be

protected for death is 10 million pesos (P10,000,000).

ii. If a player elects to purchase term life insurance for his benefit, his
Team shall be permitted to reimburse him each Season for the
premiums paid for such insurance with respect to such Season and
any other future Season(s).

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SECTION 2. Minimum Player Salary.

a) Except with respect to 20-Day Contracts, no Player Contract shall provide for
a Salary of less than the applicable scale amount contained in the Minimum
Annual Salary Scale applicable for such Salary Cap Year. For the 2021-2022
Salary Cap Year, the Minimum Annual Salary Scale is set forth as Exhibit A
hereto. For each Salary Cap Year commencing with the 2022-2023 Salary
Cap Year, the Minimum Annual Salary Scale amounts shall be adjusted
applying the percentage increase (or decrease) in the Salary Cap from the
preceding Salary Cap Year to the current Salary Cap Year.

b) No 20-Day Contract shall provide for a Salary of less than the Minimum
Player Salary applicable to that Player.

SECTION 3. Maximum Annual Salary - There shall be no ceiling on the maximum

amount that a Team can offer its players, even if it exceeds the Salary Cap, so long as it
does not go below the Minimum Annual Salary, provided that if a team does go beyond
the Salary Cap for the year prescribed, then it shall enter into the Luxury Tax. The
computation for Luxury Tax can be found in annex B of this Agreement.

SECTION 4. 20 – Day Contracts.

a) Beginning on January of any PBL Season, a Team may enter into Player
Contracts wit a player for the longer of 20 days or a period encompassing 5
games played by such Team (a “20-Day Contract”).

b) The Salary provided for by the 20-Day Contract shall not be less than the
Minimum Player Salary.

c) No Team may enter into a 20-Day Contract with the same player more than
twice during the course of any Season.

SECTION 5. Rest-of-Season Contracts.

a) At any time after the first day of PBL Regular Season, a Team may enter into
a Player Contract that may provide Compensation to a player only for the
remainder of that Season.

b) The Salary provided for in a Rest-of-Season Contract shall not be less than
the Minimum Player Salary.

ARTICLE VI
PLAYER EXPENSES

SECTION 1. Moving Expenses. - A Team’s obligation to reimburse a player for

“reasonable” expenses related to the assignment of a Player Contract from one Team to
another shall extend to the reimbursement of actual expenses incurred by such player in
moving to the home territory of his new Team, if any, provided that such expenses result
directly from the assignment and are ordinary and reasonable, and provided further that,
prior to his actually incurring such expenses, the player consults with the Team to which
his Contract has been assigned in advance concerning his move, and furnishes the
Team with a written estimate of such proposed expenses from an established moving
company so as to afford such assignee-Team an opportunity to make reasonable
comparable alternative arrangements for the move of the player.

SECTION 2. Meal Expense Allowance.

a) For the 2021-2022 Season: P2,500 per day.

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 b) For each subsequent Season of this Agreement, the preceding Season’s
meal expense allowance amount adjusted for cost of living by applying the
preceding Season’s meal expense allowance amount the percentage
increase (or decrease) in the national Consumer Price Index from June 1
through May 31 immediately preceding such Season.

ARTICLE VII
BENEFITS

SECTION 1. Player Pension Benefits. - The PBL shall provide the following pension
benefits to PBL athletes and former PBL athletes in accordance with and subject to the
terms and conditions of the PBL Pension Plan.

a) Benefits.

i. Current Benefit. As of the effective date of this Proposal, the monthly

amount per Year of Credited Service Payable as a Normal Retirement
Pension.

ii. Benefit Increases. The Monthly Benefit shall be adjusted such that the
Normal Retirement Pension shall be equal the maximum benefit amount
permitted under the Internal Revenue Code, as amended. Any increase in
the Normal Retirement Pension payable on or after the date of this
Proposal shall apply only to those players and beneficiaries who have not
yet received or begun to receive a benefit under the Pension Plan.

b) Contributions/Funding. - The COMPANY and UNION acknowledge and

agree that the Teams shall continue at all times to contribute to the Plan at
least the amount necessary to meet the Pension Plan’s statutory minimum
funding requirements, as determined by the actuaries of the Pension Plan.
For any period during the term of this Agreement during which a new funding
improvement plan is required to be adopted, the funding benchmark for sup
plan shall be equal the funding benchmark required by the Minimum Funding
Standards. The Teams may, in the sole discretion of the COMPANY,
contribute to the Pension Plan more than the amount necessary to meet the
Minimum Funding Standards.

SECTION 2. Player Health and Welfare Benefits. - The PBL shall provide the
following health and welfare benefits to PBL players and former PBL players in
accordance with the subject to the terms and conditions of the PBLA-PBL Supplemental
Benefit Plan.

SECTION 3. Labor-Management Cooperation and Education Trust.

i. As of the effective date of this Proposal, the PBL Labor-Management

Cooperation and Education Trust shall continue to be jointly operated and
administered by the PBL and the Players Association in accordance with the
provisions of the Agreement and Declaration of Trust Establishing the PBL
Players Association.

ii. The Education Trust shall continue to be operated and administered for the
purpose of establishing and providing health education programs and
education and career counselling programs designed to assist the PBL, PBL
Teams, and PBL players in solving problems of mutual concern not
susceptible to resolution within the collective bargaining process and to
enhance the involvement of PBL players in making decisions that affect their
working lives.

SECTION 4. The Post Career Income Plan. - To the extend permitted by the Code
and applicable law, the PBL shall provide post career income benefits to PBL players

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and former PBL players. These benefits shall include Current Benefits, Deductibility of
Team Contributions or Regulatory Changes, and Funding.

ARTICLE VIII
GOVERNMENT POLICIES

SECTION 1. Through the LMC, the parties, in recognition of individual and team
productivity potentials of its entire employees, participate in decision-making processes
that affect the general welfare of the players to enhance their quality of life and
COMPANY goodwill. Therefore, the parties agree to develop, promote and implement
workable:

a) Labor Management Cooperation programs for the benefit of the employees

and the Company

b) Family Planning in accordance with law

c) Health, Safety and other Government Policies – The COMPANY and the
UNION agree to support existing government policies on health and safety
standards and related government programs including worker’s education, job
enrichment, with the end in view of enhancing productivity, efficiency and
morale as well as the physical health and well-being of employees.

ARTICLE IX
RESPONSIBILITIES OF THE PARTIES AND INDUSTRIAL PEACE

SECTION 1. Maintenance of Industrial Peace and Harmony – Each of the parties

hereto acknowledge the rights and responsibilities of the other party and agrees to
discharge its responsibilities under this Agreement. Except in cases allowed by law, the
UNION, its officers, agents and members warrant that for the duration of this Agreement
they shall not initiate, engage or tolerate the commission of strikes or any form of work
stoppages or concerted activity disruptive of the smooth and efficient operations of the
COMPANY. In turn, the COMPANY undertakes that there shall be no lockouts so long
as this Agreement is in effect. The parties further reiterate their commitment to preserve
and maintain industrial peace and harmony in the COMPANY for the duration of this
Agreement, and shall at all times discuss and resolve labor-management problems or
disputes amicably, in accordance with the terms of this Agreement and the law.

SECTION 2. Warranties - The parties acknowledge that during the negotiation which
resulted in the execution of this Agreement, each of them has had the right and
unlimited opportunity to make demands and proposals with respect to any and all
subjects and matter proper for collective bargaining and not prohibited by law; and the
parties further acknowledge that the understanding and agreement arrived at by them
after the exercise of that right and unlimited opportunity are fully set forth in this
Agreement.

The COMPANY and the UNION, during the life of this Agreement, each voluntarily and
unqualifiedly waives the right, and each agrees that the other shall not be obligated to
bargain collectively with respect to any bargaining matter and/or matter referred to or
covered by this Agreement.

ARTICLE X
GRIEVANCE MACHINERY

SECTION 1. Purpose - The intention and purpose of the parties is to establish a

means for the prompt disposition and amicable settlement of all grievances.

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SECTION 2. Definition - A grievance is any difference of opinion or
misunderstanding between the COMPANY and member of the UNION with respect to
the meaning, interpretation, application of, or compliance with, any of the provisions and
terms of this Agreement, or with respect to terms and conditions of employment.

SECTION 3. Procedure - Should a grievance arise, an earnest effort shall be made

to settle the same in accordance with the following procedure:

STEP 1. (a) Within 3 days from the time the event considered as a grievance
arose, the employee, either in person or through the Shop Steward shall submit
his grievance in writing to his Supervisor, who, together with the Shop Steward,
shall endeavor to resolve the grievance within 3 days from the time the grievance
was submitted.

(b) If the grievance is not resolved by the Supervisor and the Shop
Steward, the grievance must be referred to the Chief Shop Steward and
the Section Head or Department Head within 3 days. The Section Head
(or Department Head) and the Chief Shop Steward also have a period of
3 days within which to resolve the grievance. If no satisfactory decision
is reached at this stage, the grievance shall be referred to the next level.

STEP 2. The Human Resource Department of the PBL shall endeavor to resolve
the grievance within five (5) days from the date the grievance was referred to him
and/or discuss the grievance with the end in view of settling the same with the
employee concerned and/or the Chairman of the UNION Grievance Committee.
If the grievance is not resolved within the said period or the same is decided not
to the satisfaction of the employee or the UNION, the grievance may be referred
to the General Manager within five (5) days from the lapse of the 5-day period
for the HR Manager to resolve the same, or from the date the employee or the
UNION received notice of the HR Manager’s decision.

STEP 3. The General Manager shall endeavor to resolve the grievance within
seven (7) days from referral to him, and may call upon the President of the
UNION for the purpose. Should he fail to resolve the grievance within the period,
or should the employee be not satisfied with his decision, the grievance may be
referred to arbitration in accordance with Section 4 hereof.

SECTION 4. Arbitration -

a) The arbitration of unsettled grievances shall be made by an Arbitrator who

shall be chosen as follows:

The COMPANY and the UNION shall each submit five (5) names of
qualified/competent arbitrators. A representative each of the UNION and the
COMPANY shall then proceed to strike out a name alternately from the list of ten
(10) names until two (2) names remain. From these two names shall be chosen
by lot the Arbitrator. The decision of the Arbitrator on a grievance presented
before him in accordance with the provisions of this Agreement shall be final and
binding upon the COMPANY, the UNION and the employee or employees
concerned, except in those cases where appeals of an Arbitrator’s award is
permitted by law.

SECTION 5. Arbitrator’s Decision - It shall be the Arbitrator’s obligation to the

COMPANY and the UNION to make the best effort to rule on cases within thirty (30)
days after the hearing.

SECTION 6. Appeal - Except as may otherwise be provided by law, there shall be

no appeal from an Arbitrator’s decision on a grievance presented before him in
accordance with the provisions of this Agreement and the decision shall be final and
binding on the UNION, on all bargaining unit employees and on the COMPANY.

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SECTION 7. Company Grievances - Any grievance of the COMPANY against the
UNION or its members, shall be brought directly by the COMPANY to the UNION
President, and/or Grievance Committee and then to arbitration, if need be, as provided
above.

SECTION 8. Time-Off – The Company shall allow the UNION representatives such
time-off with full pay as may be necessary for the handling of grievances, arbitration and
conciliation proceedings.

SECTION 9. Access to Company Premises - The COMPANY agrees that all UNION
officers and Shop Stewards, and a reasonable number of UNION members acting within
their specific area of assignment; and responsibilities shall have access to the
COMPANY and Team premises and facilities for any of the following purposes:

(a) To investigate any grievance that has arisen;

(b) To ascertain whether or not this Agreement is being observed:

(c) To interview for a reasonable time stewards of the UNION;

(d) To post official UNION notices on the bulletin board designated by the
COMPANY for such purpose;

(e) To attend officially convened UNION meetings being held within

COMPANY premises; and

(f) Such other purposes as may be consonant with the promotion of good
relations between the COMPANY and the UNION;

provided, however, that such right of access shall be exercised judiciously and does not
interfere with the conduct of the COMPANY or Team’s operations; and provided, further,
that such UNION representatives desiring access to COMPANY premises shall, at all
times, secure the prior permission of the COMPANY.

SECTION 10. PBL Offseason – The normal yearly offseason from September to
December of every year shall be scheduled anytime between September to December
depending on the amount of games played in the playoffs; provided, however, that in
the event business exigencies require the shortening or extension of the offseason,
such shortening or extension shall be conveyed to and discussed with the UNION. The
COMPANY shall give the UNION advance notice of at least one (1) month before the
scheduled PBL offseason; provided that the COMPANY shall draw up a list of sections
or departments that will go on leave for the duration of the shutdown; provided further
that should the COMPANY recall any of these employees to work during the shutdown,
the days worked by such recalled employees shall be considered as overtime work.

ARTICLE XI
SALARIES AND BASKETBALL RELATED INCOME

SECTION 1. Basketball Related Income. - Basketball Related Income (BRI) for a

Salary Cap Year means the aggregate operating revenue received or to be received for
or with respect to such Salary Cap Year by the COMPANY, including any of its
subsidiaries. Subject to the foregoing, the BRI shall include, but not be limited to, the
following:

a) Regular Season gate receipts, net applicable of taxes, surcharges,

imposts, facility fees, and other charges imposed by governmental or
quasi-governmental agencies other than income taxes, and net of all
reasonable and customary Team and Related Party ticket-related
expenses and premium seating ticket expenses related thereto.

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 b) All proceeds of any kind, net of reasonable and customary expenses
related thereto, from broadcast or exhibition of, or the sale, license, or
other conveyance or exploitation of the right to broadcast or exhibit, PBL
preseason, Regular Season, and Playoff games and other PBL-related
off-season games involving Players, highlights or portions of such games,
and non-game PBL programming on any and all forms of radio, television,
telephone, internet, and any other technologies, whether presently existing
or not, anywhere in the world, whether live or on any form of delay.

c) All proceeds of any kind from Exhibition games including at least one PBL
Team, net of Taxes and all reasonable and customary game, pre-season
and training camp expenses.

d) All playoff gate receipts of any kind, net of Taxes, arena rentals to the
extent reasonable and customary, and all other reasonable and customary
expenses.

e) Fifty percent (50%) of the gross proceeds, net of fifty percent (50%) of
Taxes, and net of fifty percent (50%) of all reasonable and customary
Team and Related Party expenses related thereto, from the sale of a fixed
arena signage within or outside of the arena in which a PBL Team plays,
including without limitation, such proceeds received or to be received by a
Related Party.

f) Fifty percent (50%)of the gross proceeds of any kind, net of fifty percent
(50%) of Taxes, and net of fifty percent (50%) of all reasonable and
customary Team and Related Party expenses related thereto, from the
sale, lease, or licensing of luxury suites calculated on the basis of actual
proceeds received by the entity including, without limitation, proceeds
received or to be received by a Related Party that sold, leased, or licensed
such luxury suites.

SECTION 2. Calculation of Salary Cap and Minimum Team Salary.

a) Salary Cap.

i. For each Salary Cap Year during the term of this Agreement, there
shall be a Salary Cap. The Salary Cap each Year covered by the
Term of this Agreement will be equal to 50% of Porjected BRI for
such Salary Cap Year, less Projected Benefits for such Salary Cap
Year, divided by the number of Teams scheduled to play in the PBL
during the Salary Cap Year.

ii. The Salary Cap for a Salary Cap Year will be in effect commencing
the first day of the Salary Cap Year (July 1) and shall continue
through and including the last day of the Salary Cap Year (June 30)

b. Minimum Team Salary.

i. For each Salary Cap Year covered by the term of this Agreement,
there shall be a Minimum Team Salary equal to 90% of the Salary
Cap for Such Salary Cap Year.

ii. In the event that a Team’s Team Salary for a Salary Cap Year as of
the start of the Team’s last Regular Season game of that Salary
Cap Year is less than the applicable Minimum Team Salary, the
PBL shall cause the Team’s roster during the Regular Season
covered by the Salary Cap Year equal to the shortfall. The UNION
shall provide the NBA with its proposed per-player distribution of
any such shortfall within 30 days after the completion of the Audit
Report for such Salary Cap Year. The PBL shall cause the Team to
make the required payments, less all amounts required to be

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 withheld by any governmental authority, within 30 days after the
receipt of the proposed distribution from the UNION in accordance
with the preceding sentence.

iii. Nothing shall preclude a Team from having a Team Salary in

excess of the Minimum Team Salary, provided that the Team’s
Team Salary does not exceed the Salary Cap plus any additional
amounts authorized.

SECTION 3. Determination of Salary. - For purposes of determining a player’s

Salary, the following rules shall apply:

a) Deferred Compensation. - All Player Contracts entered into, extended, or

renegotiated after the date of this Agreement shall specify the Season in
which any Deferred Compensation is earned. Deferred Compensation shall
be included in a player’s Salary for the Salary Cap Year encompassing the
Season in which such Deferred Compensation is earned.

b) Signing Bonuses - For purposes of determining a player’s Salary, the term

signing bonus includes i.) any amount provided for in a Player Contract that is
earned upon the signing of such Contract, and ii.) at the time of a trade of a
Player Contract, any amount that, under the terms of the Contract, is earned
in the form of a bonus upon the trade of the Contract.

c) Loans to Players - If any such loan bears no interest, then the interested
shall be imputed on the outstanding balance at a rate equal to the difference
between the Target Rate and the actual rate of interest to be paid by the
player and such imputed interest shall be included in the player’s Salary. No
loan made to a player may exceed the amount of the player’s Salary for the
then-current Salary Cap Year that is protected for lack of skill. All loans must
be repaid through deductions from the player’s remaining Current Base
Compensation over the years of the Contract that is fully protected for lack of
skill.

d) Incentive Compensation. - Any Performance Bonus shall be included in

Salary only if such Performance Bonus would be earned if the Team’s or
player’s performance were identical to the performance in the immediately
preceding Salary Cap Year.

e) International Player Payments - There shall be no discrimination between

local players and international players with respect to payment. The rules that
apply to natural born Filipinos or naturalized Filipinos also apply to
International Players.

SECTION 4. First Round Picks. - First Round Picks shall be included in the team
Salary of the Team that holds his draft rights at 120% of his applicable Rookie Scale
Amount. In the event that a First Round Pick signs with a non-PBL team, the player’s
applicable Rookie Scale Cap Hold Amount shall be excluded from the Team Salary of
the Team that holds his draft rights, beginning on the date he signs such non-PBL
contract or the first day of Regular Season, whichever is later.

SECTION 5. Incomplete Roster. - If any time from July 1 through the day prior to the
first day of the Regular Season a Team has fewer than 12 players, the Team’s Team
Salary shall be increased using the formula found in annex C of this proposal.

SECTION 6. Long Term Injuries. - Any player who suffers a career-ending injury or
illness, and whose Contract is terminated by the Team in accordance with the PBL
waiver procedure, will not be excluded from his Team’s Team Salary

ARTICLE XII
LEAVES OF ABSENCE

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SECTION 1. Sick Leave - In case of illness by any player, he shall be allowed as
many sick leaves or absences as needed for him to fully recover and be able to play for
his Team again. There shall be no limit to the number of sick leaves as long as the
player can prove to his team through medical reports or doctor’s notes that he is sick
and needs time off from playing to recover from his illness.

SECTION 2. Emergency Leave - The PBL agrees to grant emergency leave with
full pay to players covered by this Agreement on any of the following cases:

(a) in case of serious illness of legitimate spouse, child, father, mother,

brother or sister.

(b) in case of death of legitimate spouse, child, father, mother, brother, sister,
or in-laws.

(c) in cases of earthquake (intensity 4 or more in the Richter (Scale) causing

damage to property or injury to the person of the employee or in cases of
fire, typhoon (signal no. 2) or flood posing an immediate danger to the
property or family of the employee, provided, however, that in the wake of
such calamities when the property of the COMPANY shall also have been
damaged, then the rights provided herein shall not apply.

The above cases or conditions warranting the grant of emergency leaves are subject to
verification and final approval by the COMPANY. It is understood that all unused
emergency leaves shall not be convertible into cash.

SECTION 3. Union Leave - The COMPANY agrees to grant to employees who are
UNION officers or members a combined total of Fifty (50) days UNION leave with pay
and another Thirty-seven (37) days UNION leave without pay for the purpose of
attending labor seminars and conferences, upon recommendation by a sponsoring
federation, organization, or educational institution and prior approval by the COMPANY.
It is expressly agreed, however, that in no case shall any one UNION officer or member
be on UNION leave exceeding fifteen (15) working days a year, unless for very special
reasons, an extension is necessary, in which event prior consent by the COMPANY is
required. No more than two (2) UNION officers or members shall at the same time, be
on UNION leave. Unused UNION leave shall not be cumulative or convertible to cash.

SECTION 4. Paternity Leave - Paternity leave of fourteen (14) days shall be

granted to qualified employees.

ARTICLE XIII
MEDICAL, DENTAL AND HOSPITALIZATION BENEFITS

SECTION 1. Hospitalization Benefits - The COMPANY shall provide players

within the bargaining unit with hospitalization and medical benefits as agreed by the
parties; provided that the maximum amount insofar as dreaded disease is Fifty-five
Thousand Pesos (P55,000.00) and normal disease should be included up to Twenty
five Thousand Pesos (P25,000.00) It is understood, however, that the annual medical
check-up included in the aforesaid program shall be conducted for those who shall
become permanent after the signing of this Agreement only after twelve (12) months
from date of permanency.

The COMPANY will enrol qualified players to a Health Maintenance Organization

(HMO) Program up to the covered amount as mentioned above with the effectivity of
coverage thereof to the said HMO Program after the signing of this Agreement.
Employees’ qualified dependents, up to a maximum of three dependents per qualified
player.

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SECTION 2. Dental Benefits - The COMPANY shall continue to maintain a dental
clinic to provide dental services to each player. The clinic shall also maintain stock and
emergency medicines for the benefit of the employees. Dental services free of charge
shall be granted to the players consisting of prophylaxis, extraction and all kinds of
routinary treatment of dental cavities and ordinary filling.

SECTION 4. Optical Benefits - The COMPANY agrees to shoulder the full cost of
eyeglasses (up to the maximum amount of P2,000.00) prescribed by and purchased
from the COMPANY Ophthalmologist once during the effectivity of this Agreement for all
players of the PBL. For any player whose eye refraction has changed drastically during
the term of this Agreement as certified to by the COMPANY Ophthalmologist, the
COMPANY agrees to pay for the new lens that may be prescribed by said
Ophthalmologist.

ARTICLE XIV
OTHER BENEFITS

SECTION 1. Company Uniforms - The COMPANY ensures that each Team

provides to their players Team Uniforms a year as follows:

(a) Team Jerseys

(b) Basketball Shoes
(c) Athletic Gear
(d) Facemasks

SECTION 2. Group Life and Accident Insurance - The COMPANY agrees to extend
all covered players a Group Life Insurance Plan, (with accidental death and
dismemberment coverage) at a face value of One Hundred Forty Thousand Pesos
(P140,000.00).

SECTION 3. Gift Certificates - In celebration of the Christmas season, the

COMPANY shall grant to each player within the bargaining unit a gift certificate worth
P30,000.00 which shall be given at least a week before December 25.

SECTION 4. Bereavement Benefit - In the event an player dies, the COMPANY

shall grant his legitimate dependents, upon showing adequate proof of kinship, a
bereavement benefit of P200,000.00. The sum of P200,000.00 shall be given to the
player, if married, upon the death of his/her legitimate spouse or children. If the player
is unmarried, the sum P200,000.00 shall be given to him/her for the death of his
parents. It is understood that only one payment shall be claimed and made for each
case of death.

SECTION 5. Retirement Benefits - Retirement benefits shall be granted to all

players in accordance with the provisions of the Retirement Plan, subject to the
qualification that effective January 1, 1994, the base rate for computing the benefits
shall be increased from seventy-five percent (75%) to one hundred percent (100%) of
the final monthly salary. The rate of retirement benefits per year of service effective 1
January 2000 shall be as follows:

10 years - 65%
11 years - 70%
12 years - 75%
13 years - 80%
14 years - 85%
15 years - 90%
16 years - 95%
17 years - 100%
18 years - 105%

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 19 years - 110%
20 years & above - 115%

SECTION 6. Educational Subsidy - The COMPANY shall grant a yearly educational

subsidy of P50,000.00 to every player covered by this Agreement who either is himself
officially enrolled and pursuing a course in a school recognized by the Department of
Education and Sports, or has a legitimate child who is so enrolled. To be entitled to this
benefit, which is payable at least a week before the school opening, the player must
submit to the COMPANY satisfactory proofs of his or his child’s enrollment within a
reasonable period prior to claiming the benefit.

SECTION 7. Rice Subsidy - All covered players shall be granted rice subsidy
equivalent to One Thousand Fifty (P1,050.00) per semester.

ARTICLE XV
SEPARABILITY CLAUSE

The provisions of this Agreement are separate and independent from each other and
are not to be construed or interpreted as having restrictive or expansive effect upon the
meaning, interpretation or execution of any other provision of this Agreement, either
implicitly or explicitly, unless it is so specifically provided.

Should any part of this Agreement be declared invalid because of conflict between its
provisions and any provision of any present or future law, statute, government decree,
rule or order, such invalidity shall not affect the remaining valid portions of this
Agreement.

ARTICLE XVI
EFFECTIVITY AND DURATION

SECTION 1. Period - This Proposal shall take effect from March of 2021 until March
of 2026, unless sooner renegotiated by the parties.

SECTION 2. Binding Effect - The terms of this Agreement shall remain in force
during the negotiations for a new agreement and until such new agreement is finally
reached and entered into. During its effectivity, this Agreement shall be binding upon all
employees of the COMPANY within the bargaining unit and shall not be modified by
court action or by concerted activity of the UNION, its members and said employees.

ARTICLE XVII
RATIFICATION

SECTION 1. Ratification – The UNION assures the COMPANY that this Agreement
has been duly ratified and approved by the membership of the UNION.

IN WITNESS WHEREOF, the parties hereto by their respective representatives affix

their signatures on this 13th day of June, 2007 at Taguig City, Metro Manila, Philippines.

_____________________________ _____________________________
Corporation PBL-AU

By: By:

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_____________________________ _____________________________
General Manager President

_____________________________ _____________________________
Human Resources Manager Vice-President

_____________________________ _____________________________
Manufacturing Manager Secretary

_____________________________ _____________________________
Finance Manager Treasurer

Assisted by: Assisted by:

_____________________________ _____________________________
Legal Counsel National President

_____________________________
Legal Counsel

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