Contract- growing of pili

KNOW ALL MEN BY THESE PRESENTS:

This Agreement is entered into this 28th day of January 2015 and executed by and between:

J. EMMANUEL PASTRIES, as represented by its owner, JOSEPH GALSIM LOMIBAO of legal age, married, Filipino and MARIA LYDIA PEREZ LOMIBAO of legal age, married, Filipino and with office address at 178 Jacana St. RJ Village, Haring, Canaman, Camarines Sur, hereinafter referred to as the FIRST PARTY.

-and-

____________________________, of legal age, married, Filipino and with postal address at _________________________________, hereinafter referred to as the SECOND PARTY.

WITNESSETH:

WHEREAS, the FIRST PARTY is providing Pili Seedlings, to be planted and raised on idle land in order for its owner/s and/or their heirs, assigns or other successors-in-interest to become future suppliers of pili nuts to J. Emmanuel Pastries;

WHEREAS, the SECOND PARTY is the absolute and registered owner of a parcel of land consisting of ____ hectares, more or less, located at __________________________________________________ and covered by Transfer Certificate of Title No. ___________ , issued by the Registry of Deeds of (Name of Town or City);

WHEREAS, the SECOND PARTY has offered the aforementioned titled land to the FIRST PARTY and wanted that the agreement be reduced in writing for the mutual benefit and protection of both parties;

WHEREFORE, both the FIRST PARTY and the SECOND PARTY have mutually agreed to enter into this contract out of their own free will and volition, without any threat, violence, force or undue influence on any of their part and under the following terms and conditions to wit, that:

OWNERSHIP

1. The SECOND PARTY attests to what appears in the title of the real property that he is the legitimate and registered owner or co-owner of a parcel of an agricultural land, covered by TCT No. ____ , with an area of more or less ____ has., located in ___________________________. The same is hereby being offered to be planted with Pili Seedlings by and/or upon the monitoring of the FIRST PARTY, in accordance with the Manual: Pili Planting Standards, which is hereto attached as Annex “A”.

2. In case of co-ownership, the SECOND PARTY shall submit a copy of the legal instrument evidencing the approval of his other co-owner/s, giving

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authority to the SECOND PARTY to enter into this agreement; a certified true copy of which shall be hereto attached and marked as Annex “B”.

PLANTING SCHEME

3. Pili Seedling and seedlings of plants for inter-cropping shall be provided by the FIRST PARTY with the Pili seedlings to be planted at a distance of 30 feet by 30 feet on the land of the SECOND PARTY under any of the following schemes:

a) The Pili Seedlings and that of the plants to be intercropped shall be delivered by the FIRST PARTY to the SECOND PARTY and the same shall be planted or caused to be planted by the SECOND PARTY at his own expense; or

b) The Pili Seedlings and seedlings of other plants to be inter-cropped shall be planted or caused to be planted on the aforementioned land of the SECOND PARTY at the expense of the FIRST PARTY, and all the expenses incurred by the latter in planting the seedlings shall be deducted in staggered manner from the payment of the supply delivered and sold by the SECOND PARTY to the FIRST PARTY; and the same must be in accordance with the stipulations stated under the caption Mode of Payment below.

The expenses to be incurred by the FIRST PARTY shall be reflected on its report to the SECOND PARTY.

4. The water supply during the planting and growing of the Pili Trees shall be provided by the SECOND PARTY. If in the event that there is scarcity of water supply in the area, the SECOND PARTY shall cause the drilling of well for agricultural operations and other personal consumptive uses.

5. The SECOND PARTY has agreed that during the first two years upon planting of the pili trees, the area/s where the Pili trees are located shall not be used for pasturing, maintenance and production of any agricultural livestock; otherwise, the SECOND PARTY shall be liable for any and all damages that may be inflicted on the plants.

6. SECOND PARTY shall maintain a record of the data of the planted Pili seedlings; and those seedlings that do not survive shall be immediately reported by the SECOND PARTY to the FIRST PARTY and the latter shall send a replacement for the withered plants and the SECOND PARTY shall cause the planting of the said replacement in the soonest possible time.

7. The replacement for the seedlings that do not survive shall be planted or

caused to be planted by the SECOND PARTY at his own expense; unless otherwise, for compelling reason and upon due notice by the SECOND PARTY to the FIRST PARTY, the planting of all the replacements shall be done or caused to be done by the FIRST PARTY, for free for the first ten (10) trees and for a fee to cover for the cost of seedling/s and transportation for the next succeeding number of replacement/s.

8. The SECOND PARTY is giving permission and consent to the FIRST PARTY including its duly authorized representative/s to enter the agricultural area at any reasonable time of the day where the pili trees and other crops are located.

9. The FIRST PARTY through its agricultural engineer shall closely monitor the planted Pili Seedlings, until the same have reached the age of one year upon planting.

10.The SECOND PARTY shall notify the FIRST PARTY at least fifteen (15) days in advance of the scheduled harvest of the other crops planted between the Pili trees and is obligated to sell at least 80% or more to the FIRST PARTY.

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11. The FIRST PARTY has the sole discretion to decide as to what plant/s to be intercropped

OBLIGATIONS

12.The FIRST PARTY is expected to perform the following:

a) Provide or source out organic fertilizers to the SECOND PARTY for the Pili Seedlings and other crops;

b) Provide technical assistance in the planting and monitoring;c) Provide free seminar/s for the proper growing and handling of Pili Trees

and fruits;d) To give payment for every Pili supply to be delivered by the SECOND

PARTY, in accordance with the rate prescribed by the FIRST PARTY or to the prevailing rate at the time of the delivery, whichever is higher;

e) To give payment for the delivered, classified and approved harvest of the inter-cropped plants.

f) To faithfully abide by the provisions of this contract;g) To pay for all the expenses incurred by the FIRST PARTY if the SECOND

PARTY backs out from this agreement, without prejudice for the payment of damages.

13.The SECOND PARTY shall diligently observe and perform the following obligations:

a) To water and to take care of the planted pili seedlings and other inter-cropped plants;

b) To diligently apply the organic fertilizer properly on every Pili tree, in accordance with what has been prescribed in the manual;

c) To apply due diligence in the recording of the data required of the record sheets to be provided by the FIRST PARTY;

d) To inform the FIRST PARTY before deciding to cut down a Pili tree;e) To apply due diligence in the recording of the data; f) To inform the FIRST PARTY when the crop will be harvested; thus,

allowing the latter to see the crop yield;h) To deliver and sell at least 80% of the yield to the FIRST PARTY, only;i) To faithfully abide by the provisions of this contract and to diligently

observe the guidelines set forth in the Manual. j) To reimburse all the expenses incurred by the FIRST PARTY if the

SECOND PARTY backs out from this agreement; or the land subject of this contract is determined to have been owned by another person other than the SECOND PARTY, without prejudice for the payment of damages.

TERMS

14. The term of this agreement shall be for a period of fifteen (15) years from the date of the first Pili harvest.

15. During the existence of this contact, the SECOND PARTY and his heir/s or assign hereby agree and bind themselves to deliver at least Eighty Percent (80%) of its yield to the FIRST PARTY.

16. If in the event the SECOND PARTY has decided for compelling reason to lease or dispose of the land, the FIRST PARTY is hereby being given the option to exercise the right of first refusal.

17. Without prejudice to paragraph no. 13 above, the SECOND PARTY during the existence of this contract may lease or dispose of his aforementioned land, provided that the lessee/buyer should be informed of the existence and enforceability of this contract; and the fact that the lessee/buyer should obligates himself as successor-in-interest to continue to abide by the stipulations herein set forth with the FIRST PARTY, until the expiration of this agreement. Otherwise, all the SECOND PARTY, the lessee or the buyer of the land where the Pili trees were planted shall be solidarily liable

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to pay the additional amount of Five Hundred Thousand Pesos (Php.500,000.00), Philippine currency, per hectare, aside from and in addition to the amount of damages to be awarded by the court.

DELIVERY

18. The harvested Pili nuts and other crops shall be delivered by the SECOND PARTY directly to the place to be assigned by the FIRST PARTY. The SECOND PARTY must strictly observe the required quality standards for the delivered products, as clearly prescribed in the Manual or annex “A” hereof.

19.That the FIRST PARTY has the right to assess and classify whether or not the delivered Pili nuts and other harvested crops are fit for consumption. Any harvested crop deemed unfit for human consumption by the FIRST PARTY shall be returned to the SECOND PARTY as “rejects” and should be properly disposed.

20. If the SECOND PARTY could not make the delivery of the harvested Pili nuts and other crops to the FIRST PARTY, the latter shall, upon request by the former, pick up the harvested Pili nuts from the place of the SECOND PARTY; provided that, the volume of the harvested Pili nuts for pick-up shall not be lower than _____ kilograms. Provided further that the expenses to be incurred for such undertaking shall be deducted by the FIRST PARTY from the payment of the pick-up Pili nuts.

21. That in order to discourage the mishandling of the Pili fruits and other crops, the FIRST PARTY has the right to assess and classify whether or not the delivered Pili nuts and other crops are fit for human consumption.

MODE OF PAYMENT

22. The payment for every delivery of harvest shall be made by the FIRST PARTY to the SECOND PARTY in the form of bank check, on the day of the delivery or within three (3) days thereafter.

23. That all the expenses to be incurred by the FIRST PARTY in planting the seedlings shall be deducted from the payment by FIRST PARTY to the SECOND PARTY, in staggered manner and under the following modes:

a) For the Pili Trees – deduction of the input cost of the FIRST PARTY shall be made from the payment of the supply delivered by the SECOND PARTY to the former during the first year of harvest season of the planted Pili trees.

b) For the inter-cropped plants – fifty percent (50%) input cost of the FIRST PARTY shall be deducted from the payment of the first delivery made by the SECOND PARTY and the remaining balance shall be deducted from the payment of the second delivery; unless otherwise, the SECOND PARTY decides to give full payment of his obligation during his first delivery.

24. The SECOND PARTY has the option whether or not to pay for the fertilizers and seeds upon their delivery in order to avoid incurring accumulated liabilities with the FIRST PARTY.

DISPUTES RESOLUTION

25. During the existence of this contract, the FIRST PARTY shall not be made answerable or liable to any dispute, conflict or labor issues that may arise between the SECOND PARTY and his workers.

26.In case of breach of any of the aforementioned stipulations or disagreement in the interpretation of any provision of this contract, as

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well as to other disputes relating to issues such as maintenance obligations, etc., the venue of the case where the said issue/s are to be resolved shall be in the City of Naga.

That this contract may be renewed or extended at the option of both parties.

IN WITNESS HEREOF, the parties in this Contract have hereunto set their hands this 28th day of January 2015, in the City of _________, Philippines.

For J. Emmanuel Pastries: For the SECOND PARTY

___________________________ __________________________ MARIA LYDIA P. LOMIBAO General Manager/Owner

___________________________ __________________________ JOSEPH G. LOMIBAO Proprietor

Signed in the presence of:

_______________________________ _____________________________ENGR. ABELARDO R. BRAGAS OIC-Regional Executive Director Department of AgricultureRFO 5, Bicol

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)City of Naga.………..……..…...)S.S.

BEFORE ME, this ____ day of January 2015, personally appeared the following persons, exhibiting their Identification Cards:

1. __________________________ LTO Driver’s License: _________________ , issued on _____________________________ at _________________________ . 2. _____________________________ LTO Driver’s License: __________________, issued on ___________________________ at ___________________________.

Known to me to be the same persons who executed the foregoing Contract Growing of Pili, which instrument consists of _____ (__) pages including the page on which this acknowledgment is written, signed by the parties and their instrumental witnesses on each and every page hereof and acknowledge that the same are their free acts and deed.

NOTARY PUBLIC Doc. No._____;Page No._____;Book No._____;

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Series of 2015.

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