SOP Exhibits

Title:

Purchase Order

SOP Number : GS-PD04

In the event that Supplier fails to make complete delivery within the specified period or if he fails to replace deliveries rejected for failure to conform with specifications within five (5) working days from date of rejection, liquidated damages equivalent to 1/10 of 1% of the value of undelivered/rejected items shall be imposed on the Supplier for every day of delay up to a maximum of thirty (30) days. If after the thirty (30)day extension period, the Supplier still fails to satisfactorily deliver goods, he/she shall be considered in default.

In case of default, the performance bond shall be automatically forfeited and the Supplier shall be liable to pay liquidated damages which in no case shall exceed 15% of the total contract price. Moreover, NFA shall have the option to purchase undelivered items from other suppliers and any price difference shall be charged to supplier in default.

In addition, Supplier shall be liable to pay 15% of the contract price should NFA resort to court action to enforce the provisions of this agreement.

Supplier authorizes NFA to deduct the liquidated damages from any of its receivables from NFA.

CONFORME:


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Signature over printed Name


PERFORMANCE BOND - if total amount is P10,000 and above, the Supplier shall, within five (5) banking days from the date of receipt of the approved PO, post a Performance Bond in the form of either Cash, Bank/Manager’s Check payable to the NATIONAL FOOD AUTHORITY in the amount equivalent to five percent (5%) or a surety bond callable on demand issued by the GSIS in the amount equivalent to thirty percent (30%) of the total agreed price to assure faithful compliance with the terms and conditions of the Purchase Order and to answer for any damages or penalties that may be suffered by the NATIONAL FOOD AUTHORITY by reason of any violation/s in the terms and conditions of the Purchase Order.