Page 75 - Exhibit No. 13 Merit System and Promotion Plan
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                       8.     The PRAISE Committee is responsible for the development, administration,
                              monitoring and evaluation of the awards and incentives system of the Isabela
                              State University.

                       9.     The University encourages improved productivity and efficiency among the
                              faculty through appropriate recognition based on performance, innovations,
                              ideas and exemplary behavior.

                       10.    All permanent members of the faculty with regular  plantilla  items  who  meet the
                              criteria for each specific award is entitled to receive the award including those
                              whose  responsibilities  include  the  making  of  suggestions,  formulation of plans
                              and policies  or  making  recommendations  to  achieve  greater efficiency  and
                              economy in the Isabela State University.

                       11.    Recipients of honor awards is given preference in promotion and in training
                              grants and scholarships.

                       12.  Those personnel who have pursued and finished their degrees on their own,
                              whether BS, Master’s or Doctorate, shall be given a cash incentive of 5,000.00
                              for BS; 10,000 for MS/MM/MPA and 15,000 for  Ph.D./DPA,  chargeable to the
                              University  allocation  for  Staff  Development  coming  from  the  supplemental
                              budget.

                       13.    Establishment of a CSC-approved PRAISE shall be the basis for the grant of the
                              Productivity Incentive Bonus (PIB), other awards and incentives. The Annual
                              Praise Report shall be submitted by the University to the CSC Regional Office
                              concerned on or before the thirtieth of January to enable its faculty to qualify
                              for nomination to the CSC-sponsored national awards.

               II. OBJECTIVES

               General Objective


                       To encourage, recognize and reward employees, individually and in group, for their
               suggestions,  innovative  ideas,  inventions,  discoveries,  superior  accomplishments,  heroic
               deeds, exemplary behavior, extraordinary acts or services in the public interest and other
               personal  efforts  which  contribute  to  the  efficiency,  economy  and  improvement  in
               government operations, which lead to organizational productivity.


               Specific Objectives

               1)  To establish a mechanism for identifying, selecting, rewarding and providing incentives
               to deserving employees at the start of each year;
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