SOP Exhibits

Title:

Contract of Palay Milling

SOP Number : GM-PG08.A

ANNEX A

CONTRACT OF PALAY MILLING

KNOW ALL MEN BY THESE PRESENTS::

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I. SUBJECT MATTER

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II. DUTIES AND RESPONSIBILITIES OF NFA

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III. DUTIES AND RESPONSIBILITIES OF CONTRACTORS

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IV. COMPENSATION

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V. BOND

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VI. PROVISIONS COVERING SUBSTANDARD DELIVERIES

a. If, through no fault of NFA the milled rice deliveries does not conform with the required milling quality/specification, NFA shall accept the deliveries but shall subject the CONTRACTOR to a penalty of equivalent to NINETY CENTAVOS (P0.90) PER KILOGRAM of substandard rice delivered. HOWEVER, if from the substandard rice so delivered it is clearly apparent to NFA that the palay form was substituted with newly harvested palay or palay with inferior quality, the CONTRACTOR shall automatically be deemed in default under paragraph VIII hereunder.

b. xxx

VII. DELAYED DELIVERIES

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VIII. DEFAULT

1. xxx

2. Upon the occurrence of any of the foregoing event of default, the CONTRACTOR shall at the option of the NFA:

a. Pay the cost of the remaining undelivered recoveries and the sacks based on book value plus bank prevailing interest rate on medium and long term loans with Chattel Mortgage of 18% per annum at the time of payment; or

b. Restitute the undelivered stocks/sacks by delivering rice or palay or MTS plus pay bank prevailing interest rate on medium and long term loans with Chattel Mortgage of 18% per annum at the time of payment, such interest to be paid in kind (rice as the cases may be).

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IX. PROVISIONS APPLICABLE TO DELIVERIES COVERED BY ATD:

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X. SPECIAL PROVISIONS

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XI. VENUE

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IN WITNESS WHEREOF, the parties hereto affix their signature this ___ day of ______________
199___ at __________, Philippines.


NATIONAL FOOD AUTHORITY (MILLING CONTRACTOR)

_____________________________ ___________________________
REGIONAL MANAGER PRESIDENT/GEN. MANAGER

Signed in the presence of:

___________________________ __________________________