Draft Memorandum of Agreement

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MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement made and entered into by and between:

The PROVINCIAL GOVERNMENT OF NUEVA VIZCAYA, duly organized and existing


under the laws of the Republic of the Philippines, with principal office address at the Provincial
Capitol Compound, Bayombong, Nueva Vizcaya, represented by its Provincial Governor,
HONORABLE CARLOS M. PADILLA, hereinafter referred to as the “FIRST PARTY;

and

The SAINT MARY’S UNIVERSITY, an academic institution duly organized and existing
under the laws of the Republic of the Philippines, with office at Bayombong, Nueva Vizcaya,
represented by its University President, DR. JOHN OCTAVIOUS S. PALINA, hereinafter
referred to as the “SECOND PARTY”;

WITNESSETH

WHEREAS, the FIRST PARTY is pursuing the establishment of the “Processed Fruit Toll
Packaging Center” under the Shared Service Facilities (SSF) program of the Department of
Trade and Industry Nueva Vizcaya to strengthen the food processing and packaging industry in
the province through the provision of a food packaging facility to ensure the marketability of
local products in compliance with government regulatory standards;

WHEREAS, the FIRST PARTY entered into a Memorandum of Agreement and Usufruct
Agreement with the Department of Trade and Industry Nueva Vizcaya; FIRST PARTY being
the Cooperator of the said project;

WHEREAS, the SECOND PARTY was identified by the FIRST PARTY as a key partner in
the establishment of the said project, in terms of management and operation;

WHEREAS, the SECOND PARTY herein has expressed its willingness to undertake the
management and operation of the aforementioned project;

NOW THEREFOR, for and in consideration of the foregoing premises and of the mutual
covenants and stipulations hereafter set forth, the FIRST PARTY and the SECOND PARTY
hereby agree to the following;

Section 1. Brief Description of the SSF Project


1. Title: Processed Fruit Toll Packaging Center
2. Specific Site/Location: Saint Mary’s University Compound, Bayombong, Nueva Vizcaya
3. Beneficiaries: All MSMEs including students within the province may avail of the said
SSF facility
4. Cost Estimate:
ITEM UNIT COST TOTAL COST
1 Unit - Horizontal Band Sealer ₱ 30,000.00 ₱ 30,000.00
1 Unit - Automatic Form Fill Sealing 370,000.00 370,000.00
Machine for 3 sides (for powder/granule
products)
1 Unit - Vacuum Packaging Machine 60,000.00 60,000.00
1 Unit - Chest Type Freezer 40,000.00 40,000.00
TOTAL ₱ 500,000.00 ₱ 500,000.00
*N.B. including additional SSF Equipment as may be approved

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Section 2. Rights, Duties and Responsibilities of the FIRST PARTY
1. Turn over the SSF equipment (as approved and delivered by DTI) to the project site
designated by the SECOND PARTY and have the same received and acknowledged in
writing by the SECOND PARTY;
2. Grant the SECOND PARTY free use of the SSF equipment;
3. Conduct periodic inspection and monitoring of the condition of the SSF equipment in
order to promptly identify any problem and accordingly come up with the appropriate or
needed remedial measures. This shall be reflected in the Manual of Operations to be
prepared by the FIRST PARTY and the SECOND PARTY;
4. Monitor and evaluate the operations of the SSF project, particularly in terms of
production and financial condition thereof;
5. Provide, when necessary, additional technical support capacitating the SECOND
PARTY to sustainably manage and operate the SSF in accordance with the objectives of
the Project; and,
6. Institute any appropriate actions against the SECOND PARTY in case of material
breach of the provisions hereof.

Section 3. Rights, Duties and Responsibilities of the SECOND PARTY


1. Provide the necessary facilities to house the SSF and other support facilities such as
power, as well as working capital and personnel;
2. Acknowledge in writing the receipt of the SSF delivered by FIRST PARTY to its
designated project site;
3. Operate and manage the SSF in accordance in accordance with the SSF Operations
Manual;
4. Conduct periodic preventive maintenance work to keep the SSF in good working
condition;
5. Secure an insurance for a period of two (2) years from date of delivery of the SSF, to
cover loss or damage caused by fire, theft, earthquake, lightning, floods, and other Acts
of God;
6. Take care of the SSF as good father of the family and ensure its protection from loss or
damage;
7. Submit to FIRST PARTY the required Periodic reports on SSF production and financial
conditions in accordance with the schedule set forth in the Manual of SSF Operations;
8. Undertake not to lease, mortgage sell, transfer, or dispose of the SSF subject hereof;
9. Upon the termination of this MOA, return to the FIRST PARTY, without need of
demand, the SSF, in working condition, taking into consideration possible wear and tear
arising from the normal usage thereof; and,
10. Shall indemnify FIRST PARTY for any and all expenses incurred to restore the SSF to
its working condition, in case of deterioration thereof due to abuse, fraud or negligence
on the part of the SECOND PARTY.

Section 4. Effectivity - Upon signing of the Memorandum of Agreement.

Section 5. Memorandum of Agreement Termination/Recession - If the SECOND PARTY


fails to comply with any of its rights, duties and responsibilities as set forth in this agreement, the
FIRST PARTY will terminate the MOA and recall all SSF Equipment.

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IN WITNESS WHEREOF, the parties have hereunto set their hands this ____ day of
___________ 2021 in _________________________, Philippines.

Provincial Local Government of Saint Mary’s University


Nueva Vizcaya

By: By:

CARLOS M. PADILLA DR. JOHN OCTAVIOUS S. PALINA


Governor University President
Province of Nueva Vizcaya Saint Mary’s University

SIGNED IN THE PRESENCE OF:

JUDITTE L. ASUNCION _____________________________


Witness Witness

ACKNOWLEDGEMENT

Republic of the Philippines)


Municipality of Bayombong) S.S.

BEFORE ME, a Notary Public for and in _________________, this __ day of ____________
2021, personally came and appeared the following:

Name Valid ID Place/Date Issued

Dr. John Octavious S. Palina _________________ ___________________________


Hon. Carlos M. Padilla _________________ ___________________________

Known to me and to me known to be the same persons who executed the foregoing instrument
and acknowledged to me that the same is their free and voluntary act and deed.

WITNESS MY HAND ND SEAL.

Doc. No. ______;


Page No. ______;
Book No. ______;
Series of 2021.

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