SOP Exhibits

Title:

MOA-LGU

SOP Number : GM-DN18

Exhibit 1

MEMORANDUM OF AGREEMENT
RICE SUPPLY PROGRAM PURSUANT TO EXECUTIVE ORDER NO. 51


This Agreement made and entered into this ____ day of _______________, 19 ____ at Quezon City, Philippines, by and between:

The NATIONAL FOOD AUTHORITY (NFA), an agency of the government created pursuant to PD No. 4 as amended by PD No. 1485 and PD No. 1770 with principal place of business at __________________________________________, represented herein by MR/MS. (name and designation , hereinafter referred to as NFA.

AND

The (name of government office/agency) , a department, bureau, office, agency or instrumentality of the national government/Government Owned and Controlled Corporations/ office under the Armed Forces of the Philippines/Philippine National Police which provides rice to its employees as a form of incentive or non-monetary benefit or use rice in connection with its functions, with principal place of business at ___________________________________ represented herein by MR/MS. (name and designation) , hereinafter referred to as the GOVERNMENT OFFICE/AGENCY.

WITNESSETH

WHEREAS, NFA is the government agency charged with, among others, ensuring the nation with adequate supply and distribution of grains;

WHEREAS, under Executive Order No. 51, the NFA shall be the primary supplier or source of rice requirements of government entities which grants rice as a form of incentive or benefit to its employees or use rice in connection with their functions;

WHEREAS, in order to provide the incentive/benefit to its employees or use rice in connection with its functions, the GOVERNMENT OFFICE/AGENCY has requested NFA for the purchase of rice;

NOW, THEREFORE, for and in consideration of the foregoing, the parties hereto hereby agree as follows:

I. OBLIGATIONS OF THE NFA:

1. The NFA shall sell rice to the GOVERNMENT OFFICE/AGENCY upon submission of the following requirements:

a. list of employees/beneficiaries. This shall be used by the NFA in determining the government office/agency’s monthly rice requirement.

b. list of authorized representative(s) with corresponding picture(s) and specimen signature(s).

The lists may be amended through a written notice from the Head of the GOVERNMENT OFFICE/AGENCY to be submitted to the NFA prior to any rice purchase.

c. Letter request or Purchase Order signed by the Head of Office/Agency indicating the quantity and quality of rice to be purchased and the preferred mode of withdrawal. This shall be required for every purchase that the office/agency shall make.

2. The NFA shall sell only the best quality rice stocks available at the time of purchase.

3. The NFA shall inform the GOVERNMENT OFFICE/AGENCY accordingly of the date of withdrawal/delivery and the location of the warehouse where the stocks shall be withdrawn.

4. The NFA shall bill the concerned government office/agency based on actual stock issuances including delivery fee, if any. The bill shall indicate the deadline for payment which shall be on the fifteenth day f from the date the letter request/PO was received by the NFA.

II. OBLIGATIONS OF THE GOVERNMENT OFFICE/AGENCY

1. The GOVERNMENT OFFICE/AGENCY undertakes to provide the NFA with the documents enumerated in Section I.1 which shall be required for the operationalization of the rice supply arrangement.

2. The GOVERNMENT OFFICE/AGENCY undertakes to fully withdraw the stocks purchased within five (5) working days after issuance of the Authority to Issue (AI). Any unwithdrawn balance beyond the prescribed 5-day period shall be deemed cancelled.

3. The GOVERNMENT OFFICE/AGENCY undertakes to pay to the NFA the full amount of the rice purchased including delivery fee, if any, within fifteen (15) days reckoned from the date the letter request/Purchase Order was received by the NFA. Payment shall be made in cash, Manager’s Check/Cashier’s Check payable to the NFA. Agency Checks shall be accepted provided the check shall have been cleared at the expiration of the 15-day period..

4. In case of failure to pay the full amount to the NFA within the prescribed 15-day period, the GOVERNMENT OFFICE/AGENCY undertakes to pay an additional one percent (1%) interest per month or a fraction thereof based on the amount due up to a maximum of six (6) months.

5. If the amount remains unpaid after the six-month period, the GOVERNMENT OFFICE/AGENCY undertakes to pay a penalty equivalent to two percent (2%) of the unpaid amount per month which shall be imposed on top of the 1% interest charge until the rice purchased has been fully paid.

III. SPECIAL PROVISIONS

1. Rice purchases under the program shall be limited to twice a month only.

2. The total quantity of rice purchased for the month shall not exceed the monthly requirement of the GOVERNMENT OFFICE/AGENCY as determined by NFA based on the list of employees/beneficiaries submitted. Requests to purchase additional rice stocks in excess of the monthly requirement shall be subject to the approval of the NFA Administrator.

3. No subsequent request to purchase rice shall be approved unless the previous rice purchase has been fully paid.

4. The NFA shall not be under any obligation to deliver the rice stocks purchased by the GOVERNMENT OFFICE/AGENCY. However, the NFA may accede to requests for delivery of stocks subject to availability of NFA trucks and accessibility of the delivery point through land routes.

Delivery of stocks to one preferred designated drop-off point within 30-km radius from the NFA source warehouse shall be free of charge. Beyond the 30-km radius, a corresponding delivery fee shall be charged to the concerned government office/agency based on the approved NFA hauling rates in the area.

House to house delivery shall be allowed subject to a delivery fee of P5.00/bag within 15-km radius from the NFA source warehouse. Beyond 15 kilometers, the delivery fee, which should not be lower than P5.00/bag, shall be determined and approved by the concerned Regional Office based on the prevailing hauling rates in the area.

5. The weight/quantity/quality of stocks as received and acknowledged by the GOVERNMENT OFFICE/AGENCY’s authorized representative/s on NFA official documents shall be final and binding and shall be the basis for billing and reconciliation;

IV. OTHER CONDITIONS:

1. Should NFA be constrained to resort to court action to enforce or safeguard its rights and interest under this Agreement, the GOVERNMENT OFFICE/AGENCY shall be liable to NFA for attorney's fees in an amount equivalent to twenty percent (20%) of total claims, exclusive of interest, damages, and expenses of litigation.

2. The terms and conditions of this Agreement may be changed, modified or additional stipulation may be added upon mutual agreement in writing by the parties. Any supplementary agreement shall form an integral part of this Agreement and shall describe and specifically refer to the particular provision of this Agreement which is being changed, modified or superseded.

3. It is clearly understood that failure of NFA to demand compliance with any of the terms and conditions of this Agreement or any act of liberality shall not be construed or considered as a waiver on the part of the NFA of the enforcement of this Agreement nor shall it relieve the concerned government office/agency of its obligations provided herein.

V. DURATION:

This Agreement shall be effective _______________________________ and shall be valid and binding for a period of one year. No extension or renewal of this Agreement shall be valid and binding without the written consent of both parties.

Either party, however, may terminate this Agreement without need of judicial action and without prejudice to any right to damages in the event that there is a breach of contract committed by the other by giving the other party a thirty (30) day prior written notice thereof, setting the reason or ground relied upon, particularly specifying the breach complained of. Upon such termination, the GOVERNMENT OFFICE/AGENCY shall settle its accountabilities with the NFA and any overdue and unpaid account shall be subject to a penalty as provided herein

VI. VENUE:

The parties agree that in case of litigation the venue of action for any cause or causes of action that may arise from this Agreement shall be exclusively laid in the proper courts of _____________________________only.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures on the date and at the place above-written.

NATIONAL FOOD AUTHORITY GOVERNMENT OFFICE/AGENCY

BY: BY:


______________________________ ________________________________
Regional/Provincial Manager Head of Office


SIGNED IN THE PRESENCE OF:



_________________________ ____________________________


A C K N O W L E D G E M E N T



Republic of the Philippines)
__________________________) S.S


BEFORE ME, Notary Public for and in _____________________, this ________ day of ______________________, 1999 personally appeared:

Name CTC No. Date/Place Issued

________________ ____________ __________________
________________ ____________ __________________
________________ ____________ __________________
________________ ____________ __________________


known to me to be the same persons who executed the foregoing instrument which is a Memorandum of Agreement and they acknowledged to me that the same is their own, free and voluntary act and deed as well as that of the institutions they represent.

The foregoing instrument consist of five (5) pages including this page on which this Acknowledgment is written, and each and every page of which has been signed by the aforesaid parties, their witnesses, and sealed with my notarial seal.

IN WITNESS THEREOF, I have hereto set my hand and seal on the date and place above written.



NOTARY PUBLIC


Doc. No. _____;
Page No. ______;
Book No. _____;
Series of 1999.