MEMORANDUM OF AGREEMENT

ON THE USE OF THE

ELECTRONIC BUSINESS PERMITS AND LICENSING SYSTEM
(eBPLS) SOFTWARE

KNOW ALL MEN BY THESE PRESENTS:

This MEMORANDUM OF AGREEMENT is made and entered into by and between:

The DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY, a

Government agency created and existing by virtue of Republic Act (RA) No.10844, with principal
office address at C.P. Garcia Avenue, Diliman, Quezon City, represented by its OIC - Regional
Director, Mindanao Cluster 3, ENGR. ERLITO TANCONTIAN, herein referred to as the “DICT”;

and

The MUNICIPALITY OF LEBAK, duly organized and existing under and by virtue of the laws of
the Republic of the Philippines, with principal office at CITY/MUNICIPALITY ADDRESS,
represented in this agreement by its Mayor, HON. DIONESIO B. BESANA, hereinafter referred
to as the “MUNICIPALITY OF LEBAK”;

WITNESSETH:

WHEREAS, the DICT is a government agency mandated by law to be the primary policy,
planning, coordinating, implementing, and admi n istrative entity of the government that will plan,
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develop, and promote the national ICT development plan;

WHEREAS, as per the Department of the Interior and Local Government, Department of
Trade and Industry, and DICT Joint Memorandum Circular (JMC) No. 01 on the Revised
Standards in Processing Business Permits and Licenses in All Cities and Municipalities signed on
30 August 2016, Section 6.9.4.4, the DICT has been mandated to make available to qualified local
government units (LGUs) a software that can be used in the computerization of their
business permits and licensing system;

WHEREAS, under Section 11 (c.) of R.A. 11032 or otherwise known as “Ease of Doing
Business and Efficient Government Service Delivery Act of 2018”, which provides
that: Cities/Municipalities are mandated to automate their business permitting and licensing system
or set up an electronic BOSS within a period of three (3) years upon affectivity of this Act for a more
efficient business registration processes. Cities/Municipalities with electronic BOSS shall develop
electronic versions of licenses, clearances, permits, certifications or authorizations with the same
level of authority, which may be printed by business in the convenience of their offices. The DICT
shall make available to LGUs the software for the computerization of the business permit and
licensing system. The DICT, DTI, and DILG, shall provide technical assistance in the planning and
implementation of a computerized or software-enabled business permitting and licensing
system.

WHEREAS, the DICT has developed a cloud-based Electronic Business Permits and
Licensing System (eBPLS) Software and is the exclusive owner of the eBPLS Software;

WHEREAS, the MUNICIPALITY OF LEBAK is interested in the implementation of

business permits software which will computerize the processing of their business permit
applications and has decided to avail the software developed by the DICT;

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 WHEREAS, the HON. MAYOR DIONESIO B. BESANA of the MUNICIPALITY OF
LEBAK, PROVINCE OF SULTAN KUDARAT is duly authorized to represent and enter into this
MOA. A copy of the City/Municipal Resolution/Ordinance is hereto attached as Annex“A”;

WHEREAS, the DICT has offered to grant the MUNICIPALITY OF LEBAK the access/use
of the eBPLS Software as well as to provide the necessary service for its configuration, set-up and
testing, and the latter accept the said offer;

WHEREAS, this MOA is governed by RA No. 10173, “An Act Protecting Individual
Personal Information in Information and Communications Systems in the Government and
the Private Sector, creating for this purpose a National Privacy Commission (NPC), and
other purposes” otherwise known as “Data Privacy Act (DPA) of 2012” as well as the
Implementing Rules and Regulations (IRR) and its issuances by the NPC;

WHEREAS, MUNICIPALITY OF LEBAK shall ensure the confidentiality and integrity of the
data gathered from the public;

WHEREAS, MUNICIPALITY OF LEBAK shall appoint a Data Protection Officer (DPO) or

Compliance Officer for Privacy (COP) in compliance with DPA and specially NPC Circular No. 16-
01; and

WHEREAS, R.A.8792, otherwise known as "Electronic Commerce Act of 2000" was

enacted to facilitate domestic and international dealings, transactions, arrangements agreements,
contracts and exchanges and storage of information through the utilization of electronic, optical and
similar medium, mode, instrumentality and technology to recognize the authenticity and
reliability of electronic documents related to such activities and to promote the universal use of
electronic transaction in the government and general public.

NOW THEREFORE, for and in consideration of t h e foregoing premises, the parties hereto
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agree as follows:

SECTION 1. NATURE OF THE AGREEMENT

This Memorandum of Agreement (MOA) covers the provision of the eBPLS Software for
the exclusive use, adoption, and implementation of the MUNICIPALITY OF LEBAK.

SECTION 2. OWNERSHIP
The DICT reserves the ownership of all intellectual property rights inherent to the eBPLS Software.

1. The MUNICIPALITY OF LEBAK agrees not to use the eBPLS software in any other
manner except for the purpose it was provided for.

2. The eBPLS software shall not be sublicensed, sold, leased and rented, lent,
or given away to any government agency or other entities.

3. Copying of the eBPLS software by the MUNICIPALITY OF LEBAK should be for

backup and disaster recovery purposes only.

SECTION 3. DELINEATION OF FUNCTIONS AND RESPONSIBILITIES

A. Responsibilities of the MUNICIPALITY OF LEBAK:

1. Make available all the necessary data and information required for the build-up of
the required databases.

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 2. Determine and assign key personnel of permanent position who will use, operate,
and maintain the cloud-based system and to include the assignment of the
Systems Administrator holding a regular permanent position to ensure the smooth
implementation of the eBPLS.

3. Designate or appoint their own Data Protection Officer (DPO) and/or Compliance
Officer for Privacy (COP) to ensure compliance and protection against any data
breach.

4. Organize a Counterpart Project Team to be headed by a Project Manager who will

also serve as the MUNICIPALITY OF LEBAK Focal Person and will ensure
management commitment, participation and support, development of policy, and at
the same time, be responsible for assisting the DICT Project Team in its project
needs.

5. Provide the necessary workspace, ICT requirements, support personnel, and

office supplies for the DICT Project Team if ever they are requested by the
MUNICIPALITY OF LEBAK to provide technical assistance and support services.

6. Provide the required ICT resources such as workstations, back-up on premise or

cloud-based, servers, internet connectivity, software, network, and other
necessary hardware needed to implement the eBPLS.

7. Shoulder all travel expenses, hotel accommodations and other out-of-pocket

expenses of the DICT Project Team for the project activities that are to be
undertaken at the MUNICIPALITY OF LEBAK.

8. Provide monthly accomplishment and evaluation reports to the DICT during the
pilot stage and during its one-year implementation of the system.

B. Responsibilities of the DICT:

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1. Organize a DICT Project Team that will be responsible for undertaking all the
project-related activities.

2. Provide IT support in the configuration, set-up, and testing of the MUNICIPALITY

OF LEBAK eBPLS software.

3. Conduct users training for systems users and system administrator. The training
shall be limited to education and instructing the users on how to use, implement, and
operate the software.

4. Provide the necessary technical support during the implementation of the

system
(database build-up, hands-on training and pre-launching requirements).

SECTION 4. PROJECT IMPLEMENTATION SCHEDULE

The project is estimated to be completed in one (1) year as shown in the table below.

Activity Time Frame

E-Readiness Assessment 1 day
Execution of Memorandum of Agreement and Local Ordinance 3 weeks
System Orientation and Briefing 1 day
Users Training 3 days
Preparation for Hosting 2 days
Data Build-up 2 weeks
Pilot Implementation 3 months
Launching and User Acceptance 1 day
Implementation monitoring 1 year
Evaluation 1 week
Project Turnover / Closure

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SECTION 5. CONDITIONS OF EFFECTIVITY
This Agreement shall be governed by, and construed in accordance with " Republic Act (R.A.)
8792, otherwise known as "Electronic Commerce Act of 2000, R.A. 10173 or “The Data Privacy
Act of 2012”, and its issuances specifically National Privacy Commission (NPC) Circular 16-
01, dated 10 October 2016, and the R.A. 10175 or the “Cybercrime Prevention Act of 2012” and
to all other laws and issuances that are applicable to this Agreement.

SECTION 6. CONFIDENTIALITY
Both parties agree that each shall not disclose, transfer, use, copy, or allow access to any such
proprietary or confidential information obtained during the course of the project implementation to
any third parties, except when required by law or regulation, or is necessary to implement the
project. Any third parties who have obtained such proprietary or confidential information
are required to execute and bound by an undertaking of confidentiality.

SECTION 7. DISCLOSURE AND USE OF INFORMATION

The source code of eBPLS Software shall remain the property of the DICT. The MUNICIPALITY
OF LEBAK shall use the same strictly for purposes of implementation of the said project and is
prohibited from disclosing or transferring the same to third parties.

SECTION 8. TERM AND TERMINATION

This Agreement shall be terminated automatically and immediately in the event of any material
breach of its terms and conditions by any party who fails to correct, within thirty (30) days from
receipt of a written notice from the other party, the breach complained of.
Upon termination of this Agreement for any n, all rights, obligations and license granted to
reas o
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MUNICIPALITY OF LEBAK hereunder shall cease. All copies of the software, backups
and written resources in the possession and control of the MUNICIPALITY OF LEBAK
shall be destroyed/deleted by the authorized staff from the DICT.

SECTION 9. INDEMNITY
The MUNICIPALITY OF LEBAK agrees to indemnify and hold the DICT harmless from any and
all claims, demands, causes of action, damages, judgments, and attorney’s fees and costs
arising from the MUNICIPALITY OF LEBAK using, offering, selling, promoting, or distribution of
the source code of the eBPLS Software.

SECTION 10. LIMITATION OF LIABILITY

The eBPLS is provided on an “as is” basis, without guarantee of any kind, either expressed,
implied, or statutory, including without limitation, warranties that the eBPLS is free of defects, fit
for a particular purpose or non-infringing. Likewise, the DICT shall not be liable for any direct,
consequential or incidental loss or damage that the MUNICIPALITY OF LEBAK may encounter
in the use of the eBPLS Software.

SECTION 11. OTHER CONDITIONS

1. Delays in the project, which are due to force majeure or other circumstances
beyond the control of either the DICT or MUNICIPALITY OF LEBAK, will not be
taken against either of the parties.

2. Neither party will solicit for employment or hire the other’s current employees,
either directly or indirectly, during the term of the project and for twelve (12)
months thereafter, without first obtaining the other party’s written consent. 4
 3. Violation of any of the provisions herein stipulated will be a ground for outright
revocation of the agreement plus payment of damages at the option of the
offended party.

4. The eBPLS Software will be solely for use at the MUNICIPALITY OF LEBAK with
principal address at Poblacion 1, Lebak, Sultan Kudarat.

SECTION 12. SETTLEMENT OF DISPUTE

Any dispute or difference between the parties relating to their rights or obligations under this
Agreement shall first be referred for consideration by each party by notice in writing to the other
party. If the dispute or differences are not resolved within a period of sixty (60) calendar days, then
either party may submit the dispute for arbitration before the Philippine Dispute Resolution Center,
Inc. (PDRCI) by a tribunal of three (3) arbitrators in accordance to Republic Act No.
9285, otherwise known as the “Alternative Dispute Resolution Act of 2004”and the PDRCI
Arbitration Rules as at present in force.

SECTION 13. ENTIRE AGREEMENT

This Agreement represents the complete agreement of the DICT and MUNICIPALITY OF
LEBAK concerning the subject matter hereof. If any provision of this Agreement is held to be
unenforceable, such provision shall be amended only to the extent necessary to make it
enforceable.

SECTION 14. AMENDMENTS

Any amendment of the provisions in this Agreement shall be made upon mutual consent of both
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parties and expressed through a written instrument.

SECTION 15. SEPARABILITY CLAUSE

Should any stipulation, provision, or any part of this agreement be declared unenforceable or void
by an order or judgment of any court or tribunal, the other stipulations and provisions shall not be
affected and shall remain.

SECTION 16. ASSIGNMENT AND SUCCESSION

This Agreement shall be binding upon and inure to the benefit of both parties and their
respective successors and permitted assigns. However, neither party may assign or delegate its
rights and duties hereunder without the prior consent of the other party.

SECTION 17. GOVERNING LAW

The validity of this Agreement and the construction of its terms and conditions, interpretation
and enforcement of the rights and duties of the Parties shall be governed by the Laws of the
Republic of the Philippines.

SECTION 18. VENUE

The exclusive venue of all court actions or request for interim measures, should this become
necessary, shall be Quezon City, Philippines.

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 SECTION 19. EFFECTIVITY
This Agreement will take effect for a period of (1) One year immediately upon signing by
all parties and will continue to be in effect until the completion of the project, unless
otherwise revoked or terminated in the manner provided in this agreement.

IN WITNESS WHEREOF, the parties have hereto signed this Memorandum of Agreement on
this day of 2019 in .

For: For:
MUNICIPALITY OF LEBAK DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY

HON. DIONESIO B. BESANA ENGR. ERLITO TANCONTIAN

Mayor OIC - Regional Director
DICT Mindanao Cluster 3

SIGNED IN RESENCE OF:

THE P
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RUSTY J. VILO ENGR. MOHADJIRIN P. MATANOG

Administrative Officer IV DICT MC3 – eBPLS Focal Person
LGU Witness DICT Witness

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES }

S.S. }

BEFORE ME, personally appeared:

Government ID Date Place

Mayor Dionesio B. Besana TIN 928-471-895 07-05-2010

Known to me and to me known to be the same persons who executed the foregoing
Memorandum of Agreement and in behalf of their respective principals, and acknowledged to
me that the same is their free and deed and that of agencies they respectively represent.
This instrument consisting of eight (8) pages, including the page on which this
acknowledgment is written, has been signed on each and every page thereof by the
concerned parties and their witnesses, and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.
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Notary Public

Doc. No. ;
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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES }

S.S. }

BEFORE ME, personally appeared:

Government ID Date Place

Dir. Erlito Tancontian GSIS 006 0085 5503

Known to me and to me known to be the same persons who executed the foregoing
Memorandum of Agreement and in behalf of their respective principals, and acknowledged to
me that the same is their free and deed and that of agencies they respectively represent.
This instrument consisting of eight (8) pages, including the page on which this
acknowledgment is written, has been signed on each and every page thereof by the
concerned parties and their witnesses, and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.

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Notary Public

Doc. No. ;
PageNo. ;
Book No. ;
Series of 2019