SOP Exhibits
Title:ETS-Deposit Agreement

SOP Number : TS-ES12

Exhibit 2

e-TRAde TRADING SYSTEM
Deposit Agreement


KNOW ALL MEN BY THESE PRESENTS:

This AGREEMENT, executed this _____ day of ____________, 1999 by and between the National Food Authority, a government owned and controlled corporation created pursuant to P.D. 4 as amended, with principal place of business at Matimyas Building, 101 e. Rodriguez Sr. Avenue, Quezon City, represented by Provincial Manager Kitem P. Kadatuan, hereinafter referred to as FIRST PARTY;
-and-

_______________________________, Farmers Organization duly accredited of business at ____________________________________, duly represented herein by its resolution dated _____________________________ which is hereto attached as Annex “A”, and holder of NFA Master Passbook No. ____________ hereinafter referred to as SECOND PARTY;

(In case of Individual Farmer)

______________________________, of legal age, married/single, residing at ___________________________________________, holder of NFA Individual Passbook No. _______________________, issued at ______________________________, on ______________________________; hereinafter referred to as SECOND PARTY;

WITNESSETH

WHEREAS, the First Party is mandated to promote the integrated growth of the grains market industry;

WHEREAS, one of the modes of realizing the mandate is the Electronically Relayed Agricultural Products (e-TRADE) Trading System where the First Party provides corn farmers access to marketing data and linkages with corn buyers at the right time and right place for better prices;

WHEREAS, the First Party has the infrastructure, computer network and manpower to serve as depository of corn produce as linkage between the corn farmer and the buyer and as attorney-in-fact in case of failure of a market match;

WHEREAS, the Second Party is interested to participate in the e-TRADE Trading System to avail of the highest possible price for its/his produce;

NOW THEREFORE, for and in consideration of the forgoing:

I. Second Party - hereby agrees to deposit his corn produce and the NFA to accept the deposit in trust under the following terms and conditions:

1. The Second Party shall deliver its/his yellow corn stocks not less than 50 bags of 50 kg/bag to the NFA designated warehouse; 2. The variety/quality of the corn shall be Grade A Yellow Corn, more specifically described as follows: 3. The First Party may co-mingle the stocks with other stocks deposited under the project; 4. The First Party shall provide free storage for the first 30 calendar days reckoned from the date of actual deposit as indicated in the Warehouse Stock Receipt (WSR); 5. That after the first 30 days the First Party shall charge and the Second Party shall pay storage fees determined by the First Party. 6. That after 30 calendar days from the date the stocks were deposited the Second Party must either sell under the project at the highest buying price or withdraw his stocks; 7. That in case the Second Party shall withdraw his stocks, he shall pay storage fee, where applicable, and handling fee determined by the First Party; 8. That unsold stocks when withdrawn by the First Party shall be subject to shrinkage allowance which accounts for loss in weight of the deposited stocks while in storage; 9. That First Party is not under any obligation to buy the deposited stocks;

I. The Second Party shall sell its/his deposited stocks thru the e-TRADE Trading System under the following terms and conditions:

1. Upon deposit of stocks, the Second Party shall determine its/his selling price and indicate it in its/his Offer to Sell; 2. Offer to Sell is valid until revised; 3. Revisions shall take effect the day following the revisions; 4. Sale is completed upon full payment of the stocks by the buyer; 5. Handling and transport cost from the designated depository warehouse to Metro Manila shall be deducted from the proceeds of the sale; 6. First Party shall inform the Second Party of the sale and shall pay the Second Party the proceeds of the sale, less Handling and Transport Cost and Storage Fee, within two (2) days from sale;

I. In Case the offer of Second Party is not matched by a buyer and the deposited stocks is unwithdrawn after thirty (30) days from the date of deposit, the Second Party hereby name, constitute and appoint the First Party as its/his true and lawful attorney, to SELL and TRANSFER at the highest price offered by any buyer at the time the sale is made, and Second Party hereby give and grant unto its/his attorney full powers and authority to do and perform all and every act requisite or necessary to carry into effect the foregoing authority to sell.

Further Second Party agrees to pay the storage fees above indicated.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures this ___________ of ____________________ 1999 at ___________________________.


NATIONAL FOOD AUTHORITY NAME OF FO/FARMER
By: By:

Provincial Manager FO Authorized Representative


Witnessed by:
_______________________________ _______________________

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 Deposit Agreement and Special Power of Attorney 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 four (4) 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.