Page 55 - Exhibit No. 13 Merit System and Promotion Plan

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Section X. PENALTY PROVISION

a. A grantee who fails to enroll during the approved term and/or duration of his/her
study leave without reasonable cause as indicated in Section II, Item
10 shall reimburse the University all remuneration including allowances
received during the term.

b. A grantee who finished the degree on official time or as a University Scholar
or sponsored by other agencies, and who refuses to render the required
period of return service shall be obliged to reimburse all financial support,
assistance (scholarship, allowances, stipend) received from the University for
the whole duration of the approved study leave.

c. In case the official or employee fails to render in full the service obligation
referred to in the contract on account of voluntary resignation, optional
retirement, separation from the service through his/her own fault, or other
causes within his/her control, he/she shall refund the gross salary,
allowances and other benefits received while on study leave.

d. In case the grantee fails to finish the degree program within the prescribed
duration and resume office, the grantee shall refund 100% all the benefits, thesis
or dissertation allowance through salary deduction, except with valid reasons.

e. Failure to finish the degree, the grantee is still required to render return
service as stipulated in the contract; and during the rendition of the service
required and five (5) years thereafter, the grantee is barred from attending
seminars, workshops, trainings and related activities and from further
availment of study leave, grants and related services, and shall reimburse fifty
percent (50%) of all benefits and remunerations if on official time only; and
one hundred percent (100%) of benefits, remuneration as well as financial
grants/support for those with University scholarship/grants.

f. Those who will finish their degree ahead of time shall be given an incentive,
subject to existing staff development policies.

g. A grantee of foreign scholarship/fellowship/sabbatical leave/post-doctoral
leave who fails to return to the University shall, in addition to the full payment
of all assistance or remuneration received from the University, be required to
pay 10% interest and shall be dismissed dishonorably from the University.