SOP Exhibits

Title:

Memorandum of Agreement

SOP Number : GM-PR30

Exhibit 1

MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement, made and executed this ________________ day of _______________ 20__ in _____________________, Philippines by and among:

The PROVINCIAL GOVERNMENT OF ____________________, a local government unit with principal place of business at the Provincial Capitol, _________________ represented herein by its Governor, ______________________ herein referred to as LOCAL GOVERNMENT UNIT OF ________________.

-and-

The NATIONAL FOOD AUTHORITY (NFA), an agency of the government created pursuant to Proclamation No. 1081 by virtue of Presidential Decree No. 4 as amended by PD Nos. 1484 and 1770 with office and place of business at ______________ represented herein by its Regional Manager, _____________________herein referred to as NFA.

WITNESSETH

WHEREAS, NFA is the government agency tasked with, among others, ensuring the food security of the nation as well as to stabilize the supply and price of grains;

WHEREAS, the LGU _______________ has launched the ______________________ which provides financial and technical assistance to rice farmers in selected municipalities in ______________ with the goal of increasing rice sufficiency in the province;

WHEREAS,

the

LGU

_________________ collects a portion of farmers’ produce as payments of their loan (Payment-in-Kind) and requested NFA’s assistance in the procurement of its collections in palay form;

WHEREAS, the palay procurement program of NFA will be further accelerated and enhanced through the ________________ project of LGU ___________ through the latter’s collections from its farmer-beneficiaries in palay form;

NOW THEREFORE, for and in consideration of the foregoing premises, and their mutual covenants hereinafter set forth the Parties hereby agree the following terms and conditions:

I. OBLIGATIONS OF LGU:

1. LGU - __________ shall assign / designate its representative authorized to transact business with NFA. This shall be made explicitly in writing to the NFA Provincial Office of _________ stating therein the name/s of their representative/s with identification.

2. LGU - __________ shall secure a Deed of Assignment from the loan beneficiaries and shall have the responsibility of monitoring the legitimacy of the farmers.

3. That LGU - __________ thru its authorized representative shall deliver the collected palay stocks to NFA designated warehouse.

II. OBLIGATIONS OF NFA:

1. Under this Agreement, NFA shall only procure palay deliveries collected by LGU - __________ from farmers who have availed of the _________ Project loan assistance based on the Deed of Assignment submitted with the MOA.

2. NFA shall procure at the current support price, with corresponding procurement incentives, with 14% Moisture Content and Purity A level.

Palay deliveries falling below this specification shall also be accommodated subject to price adjustments computed in accordance with the current NFA Equivalent Net Weight Table for standard palay specification. Further, procurement of stocks above 14% MC shall be subjected to the drying capability of the procuring province. The LGU - _______ shall be charged the appropriate drying fees per bag input based on the approved drying rate.

Procurement incentives under this agreement shall consist of the current drying and delivery incentive if delivered to NFA warehouse. The CDIF shall not be given under this program.

3. Stocks procured shall be payable in check under the name of LGU - __________ following the usual voucher system. This is in line with the bank’s policy which allows only first endorsement on checks.

III. OTHER PROVISIONS

1. Schedule of deliveries/designated receiving warehouse shall be agreed upon by both the Provincial Manager of NFA and LGU - _________ authorized representative.

2. That the parties hereto agree that the documents to be used in documenting the transactions are the Warehouse Stock Receipt (WSR) and Purchase Receipt (PR). All entries therein duly acknowledged by the LGU - __________ authorized representative shall be deemed conclusive to the parties for the purpose of reconciliation.

3. Should there be any LGU - ___________ collected palay deliveries unacceptable by NFA, the latter shall specify the reasons for non-acceptance.

4. This Memorandum of Agreement shall take effect immediately and shall be circularized to the concerned NFA provincial offices and LGU - ___________ upon the signing hereof by the NFA Regional Manager and the Governor. This shall be effective for a period of one year (1) year starting _______ and until ________..

WITNESS WHEREOF,

the parties have hereunto set their signatures in this Memorandum of Agreement this _______ day of __________, 20___ in _____________.

LOCAL GOVERNMENT UNIT OF NATIONAL FOOD AUTHORITY

___________________

____________________________ ____________________________

Provincial Governor Regional Manager

By authority of the Sanguniang Panlalawigan per SP Resolution No. __________ dated ___________.

Signed in the Presence of:

____________________________ ____________________________

Provincial Manager, NFA- ____

ACKNOWLEDGEMENT

Before me, _______ , a Notary Public for and in ________, personally appeared (names of parties) exhibiting to me their (Community Tax Certificates and government issued IDs), known to me and to me known to be the same persons who executed this Memorandum of Agreement and they acknowledge to me that the same is their free and voluntary act and deed, as well as the entities they represent.

This MOA consists of 4 pages, including this page where the Acknowledgement is written.

Witness my hand and seal this _____ day of _____ , 20___

NOTARY PUBLIC

Doc. No. ________

Page No. ________

Book No. ________

Series of 20__.