SOP Exhibits

Title:

Contract of Rice Remilling

SOP Number : GM-PG08.A

ANNEX B

CONTRACT OF RICE REMILLING

KNOW ALL MEN BY THESE PRESENTS::

XXX

I. SUBJECT MATTER

xxx

II. DUTIES AND RESPONSIBILITIES OF NFA

xxx

III. DUTIES AND RESPONSIBILITIES OF CONTRACTORS

xxx

IV. COMPENSATION

xxx

V. BOND

xxx

VI. PROVISIONS COVERING SUBSTANDARD DELIVERIES

a. If through no fault of NFA the Remilled rice deliveries does not conform with the required remilling 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 rice was substituted with inferior quality, the CONTRACTOR shall automatically be deemed in default under paragraph VIII hereunder.

b. xxx

VII. DELAYED DELIVERIES

xxx

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 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 MTS plus interest of 18% per annum at the time of payment, such interest to be paid in kind (rice as the cases may be).

c. xxx

IX. PROVISIONS APPLICABLE TO DELIVERIES COVERED BY ATD:

xxx

X. SPECIAL PROVISIONS

xxx

XI. VENUE

xxx

XII. DURATION CLAUSE

xxx



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


NATIONAL FOOD AUTHORITY (MILLING CONTRACTOR)

_____________________________ ___________________________
REGIONAL MANAGER PRESIDENT/GEN. MANAGER


Signed in the presence of:

___________________________ ___________________________