The Minister of Natural Resources
        The Governor of Central Bank
        The Minister of Justice
        The KKK National Secretariat

1.    A KKK Integrated Land Resource Management Program is hereby adopted as part and parcel of the KKK strategy to transform idle and logged-over areas into Land Investment Trust (LIT) packages through the financial instrumentation of such areas into equity issues to be known as "SHARES IN KABUHAYAN" fully guaranteed as to principal and returns by the government. These areas approximately covering 1.5. million hectares shall be declared by the President as alienable and disposable through separate proclamation and shall be developed into agro-industrial estates under this Program.

2.    The Program shall include the sourcing system, use of funds system, pass-through system, and risk-management system. The detailed operations plan and scheme of implementation of these systems shall be submitted to the President by the KKK National Secretariat for approval within thirty (30) days upon effectivity of this LOI.

3.    The program shall have an initial front end investment of P200 million to be sourced out from the PDMF allocation for 1983 recoverable from the revenues the Program will generate.

4.    The KKK National Secretariat shall oversee the operations and administration of the Program in accordance with the KKK Integrated Land Resource Management Program guidelines and the provisions of Sec. 5, par. 7 of the Securities Act of 1982 and shall thereby effect the necessary coordination with the Ministry of Natural Resources on the disposition of public lands under this Program.

Since 19.07.98.