SOP Exhibits
Title:Handling Services Contract

SOP Number : GM-G003
HANDLING SERVICES CONTRACT


KNOW ALL MEN BY THESE PRESENTS:

This contract, made and executed at _________________________, Philippines this _______ day of ____________________________________, by and between:

NATIONAL FOOD AUTHORITY (NFA), a government agency created pursuant to Presidential Decree No. P.D. # 4, as amended by Presidential Decree Nos. 1485 and 1770, with principal place of business at Matimyas Building, No. 101 E. Rodriguez Sr. Avenue, Quezon City, Philippines, represented herein by its Regional Manager _________________, Region ______, herein referred to as NFA.
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I. W I T N E S S E T H :
WHEREAS, NFA needs the services of laborers to handle the movement of stocks of grains and by-products in its warehouses, ricemills, etc. and to load/unload grains to/from the trucks;

WHEREAS, the Contractor has offered to supply sufficient labor force and undertake the aforementioned labor services in the handling of NFA stocks;

NOW, THEREFORE, for and in consideration of the foregoing premises and the terms and conditions set forth, the parties hereto have agreed as they hereby agree as follows:


A. SUBJECT MATTER

That the nature and description of the services to be rendered shall be as follows:
II. OBLIGATIONS OF THE CONTRACTOR

1. To provide the necessary, sufficient, and efficient labor force for the loading, unloading, piling, weighing and rebagging and other handling activities in the warehouse, trucks and other NFA owned and utilized stations and to undertake the sweeping of loose grains in trucks and warehouses, and placing them in bags including sewing and weighing of the rebagged loose grains;

2. To exercise extra-ordinary diligence in handling stocks by not using hooks (gancho) or any instrument that may cause damage to containers and stocks;

3. To observe safe and proper piling of stocks and good warehousekeeping practices. In case of the collapse of any stock pile due to improper piling, damages and expenses incurred in the repiling should be shouldered by the Contractor;

Contractor, however, shall not be liable for repiling expenses and damages if pile collapse is due to earthquake and other acts of nature or force majeure;

4. To file a Performance Bond in the form of GSIS Surety Bond in favor of NFA in the amount of ______________________ (P ________), Philippine Currency equivalent to 10% of the estimated annual collection from NFA, before undertaking the services contemplated hereunder. Said bond shall guarantee the faithful performance of the Contractor’s obligations and shall answer for the liability of the Contractor for the following:

If the bond is not sufficient to cover the Contractor’s liabilities under this Contract, he shall likewise be personally liable for whatever is the deficiency. The bond shall remain in full force and effect notwithstanding the termination of the Contract until all his obligations and liabilities are fully satisfied, any provision to the contrary notwithstanding. 5. The Contractor shall be held liable for any losses and damages (based on replacement cost) of NFA stocks/container (empty sacks), and equipment entrusted to them while undertaking the labor services agreed for any cause whatsoever not attributable for force majeure or not imputable against NFA; 6. For violation of the terms and conditions hereof, the Contractor shall be liable for liquidated damages in the amount of not less than P_________ which shall be paid without prejudice to his payment of other damages and expenses that NFA may suffer as a consequence of such breach;


III. OBLIGATIONS OF THE NFA

1. The NFA shall provide all the necessary facilities/equipment in the proper and safe handling of grains such as empty sacks, sewing thread or twines, needles or bag closing machines, wooden platforms (andamyo) or bag conveyors, baling machines, and the likes;

2. The NFA undertakes to pay the Contractor the amount of _______________________________ (P____________) per 50 kilogram bag per move, and guarantees to pay on time for the actual services rendered. The payment shall be made at NFA office upon submission of the vouchers(s) with the required supporting documents and subject to the usual NFA accounting and auditing rules and regulations.


IV. SPECIAL PROVISIONS 1. The NFA shall have the right at any time to conduct inspection of stocks being handled. NFA’s right to inspection shall not in any way diminish the liabilities of the Contractor for losses/damages as provided herein;

2. The NFA reserves the right to terminate this agreement anytime and to engage the services of other persons or entities if, in its judgment, the Contractor is not capable of performing the work in accordance with the demands/requirements of the NFA. Provided, however, that the NFA shall first notify the Contractor in writing five (5) working days prior to contracting the services of other persons. In this event, the Contractor shall pay the NFA the difference in rates, if any, between the rates prescribed in this contract and the rates of its contract with the third party;

3. The Contractor herein is for all legal intent and purposes an independent Contractor and no employee-employer relationship shall exist between the NFA and the Contractor and its laborers whatsoever. The Contractor shall be responsible for all accounts and claims of its employees and laborers pursuant to labor and social legislations;

4. The Contractor shall pay its workers/laborers/pahenantes at least the minimum wage rate prevailing in the area and the contractor’s non-compliance thereto shall constitute a ground for the termination of this contract;

5. The Contractor shall periodically submit a report to NFA on the wage rate paid to worker in the amount of P __________________ per 50 kilogram bag per move;

6. In case of court litigation arising from breach of this contract, the Contractor shall be liable for attorney’s fees and cost of litigation. V. DURATION OF THE CONTRACT

This Contract be in full force and effect until ______________________ subject to the usual requirements herein agreed upon, provided however, that NFA has the discretion and option to terminate this Contract any time if in its opinion the performance of Contractor is not deemed satisfactory.


VI. VENUE OF ACTIONS

Actions arising out of or relating to this Contract shall be filed only with any of the competent courts of Quezon City.

IN WITNESS WHEREOF, the parties hereby affixed their signatures on the date and place first above-written.
NFA Provincial Manager Contractor’s Witness

FUNDS AVAILABLE:


____________________________
Provincial Accountant


A CK N O W L E D G M E N T

Republic of the Philippines)
_______________________ ) S.S.

BEFORE ME, a Notary Public and in __________________________ personnaly appeared this ______ day of _________________, Manager ___________________________ in his capacity as Regional Manager of the National Food Authority (NFA) with Community Tax Certificate No. __________________
issued at __________________ on ________________________ and ______________________________, in his capacity as representative of the Contractor, with Community Tax Certificate No. ____________ issued at __________________ on the foregoing Handling Services Contract consisting of five (5) pages including this one wherein the acknowledgment is written, signed by the parties and their instrumental witnesses on each and every page hereof, and they acknowledged that the same is their free and voluntary act and deed, as well as that of the entity he/she represents.

IN TRUTH WHEREOF, I have hereunto set my hand and affixed my notarial seal on the date and place abovewritten.

Doc. No. _________
Page No. _________
Book No. ________
Series of 2000.