SOP Exhibits

Title:

Annex 1.A-Additional Franchise Capacity

SOP Number : BR-QM03

ANNEX 1.A

REQUIREMENTS FOR ADDITIONAL FRANCHISE CAPACITY

A. For Use of a Different Warehouse

1. Proof of ownership and/or leasehold rights over warehouse/mill such as Transfer Certificate of Title, Tax Declaration, Contract of Lease.

1.1 If property is owned by several individuals, Special Power of Attorney to be executed by co-makers authorizing applicants (co-owner) to manage warehouse/ricemill and apply for franchise).

2 Blue print, drawn to scale, warehouse plan (floor plan, front and side elevation plan) of all bonded warehouses utilized in the grains business duly certified by a registered engineer/architect. Indicate on the floor plan the materials used, actual space occupied by machine, office space, other merchandise storage, etc., and the portion applied for quedan financing, if not completely bonded.

3. Drawn to scale sketch plan (floor front side) of other warehouses utilized in the grains business indicating therein the portion not utilized as grains storage.

4. Location/vicinity plan of warehouses utilized in the grains business.

5. Two (2) postcard size pictures of warehouse/mill

6. The following shall be required if warehouse location is not within the vicinity.

6.1 Duly calibrated weighing scale
6.2 Moisture tester
6.3 Fire extinguisher
6.4 Solar drier or mechanical drier

7. Dry seal/impression of dry seal to be submitted by applicant after approval of franchise.

8. Adequate pest control measures to maintain the quality of the grains and their substitutes.

8.1 Fire extinguisher
8.2 Solar drier or mechanical drier

9. Warehouse should be rodent and birdproof.

10. Fixed partition with separate doors from outside of the warehouse to prevent the comingling of bonded and non-bonded stocks. Fixed partitions made of strong materials shall not be limited to concrete partitions but may also be a wall or separating medium made of wood, galvanized iron, lawanit, hogwire, sawali or similar materials with no door or opening except slate with narrow spaces in between for ventilation purposes. (Reference IDM No. DGBR-E-209).

11. Walled partitions segregating the different commodities i.e. grains and grains substitute stored in one warehouse.

12. Signboard measuring at least 75 cm in width and 135 cm in length, bearing his name or business name, license number and certificate of franchise number (to be secured after approval of application for franchise).

13. Bonds and insurance for storage in favor of NFA per Revised Rules and Regulations (to be secured after approval of franchise).

14. Franchise fee of P300.00 per warehouse.

15. Facility Inspection Report.

16. Inspection sketch of warehouse showing fixed partition (if any) and portion applied for quedan financing.

17. Statement of accounts/Provincial Clearance from the Provincial Auditor and signed by the Provincial Manager of Miller Contractor.