SERVICE CONTRACT

Sugarcane Research and Development and Extension Services

KNOW ALL MEN BY THESE PRESENTS:

This Contract made and entered into by and between:

PHILIPPINE SUGAR RESEARCH INSTITUTE FOUNDATION,

INC., is a non-stock, non-profit foundation duly organized and existing by
virtue of the laws of the Republic of the Philippines, with principal place of
business at PHILSURIN EXPERIMENT STATION, VMC COMPOUND,
Victorias City, Negros Occidental; represented in this act by its Director
General MARIA REGINA B. MARTIN, and hereinafter referred to as
PHILSURIN;

- and -

UNITED ASIAN DRAGON MANPOWER SERVICES CORP., a

corporation duly organized under and by virtue of the Republic of the
Philippines with principal address at L31 B1 Rosas St. San Antonio Valley
17, Talon, Las Piñas City, represented herein by its president and Chief
Executive Officer SUSAN D. DELA CRUZ, hereinafter referred to as the
CONTRACTOR.

WITNESSETH: That -

WHEREAS, PHILSURIN needs a qualified independent contractor with

substantial capital or equipment in the form of tools, equipment, machinery and
other work materials which are necessary in the conduct of its legitimate
business to render the Sugarcane Research and Development and Extension
Services;

WHEREAS, the Contractor represents that it is qualified and has in its

regular employ workers/employees to perform the required services for the
period September 01, 2021 up to August 31, 2022;

WHEREAS, the Contractor is qualified and has offered to render the

above services to PHILSURIN and the latter finds the Contractor’s offer to be
acceptable subject to the terms and conditions as hereinafter provided;

NOW THEREFORE, for and in consideration of the following premises,

the parties hereby covenant and agree as follows:

1. Scope of Services - PHILSURIN hereby engages the services of the

Contractor and the latter undertakes to render Sugarcane Research and
Development and Extension Services which shall be performed and
accomplished by the Contractor strictly as specified:

1. AGRONOMY. Cutback, planting, fertilization, weeding &

cultivation, ratooning, cutting, plot weighing, sampling, data
gathering, milling of samples of AYT’s, and special studies and
propagation for PYT’s and AYT’s.
 2. BREEDING. Hybridization, Tassel source, FT1, FT2, nursery
seedling care and maintenance; molecular-assisted nobilization
in sugarcanes; molecular characterization of varieties.

3. GERMPLASM. Harvesting, sampling, data gathering and crop

maintenance operations such as cultivation, field clearing of
germplasm collection; M2 , PYT, FVT experimental set ups.

4. MICROPROPAGATION & TISSUE CULTURE LABORATORY.

Aseptic manipulation of cultures (explant, media change,
separation, rooting). Washing and sterilization of culture bottles,
laboratory disinfection and maintenance, media assistant and
sterilization, Decontamination and disinfection of contaminated
cultures, soil media preparation, separation of plantlets for
bunching, picking of plantlets, plantlets maintenance:
fertilization, weeding, pruning, hardening.

5. ADMINISTRATIVE OFFICE.
Driving of vehicles inside and outside main station, janitorial
works, messengerial jobs and other miscellaneous activities;
data management and sorting of station’s financial expenses.

6. Pathology. Screening for disease resistance under laboratory

and field conditions and through molecular assisted selection;
diagnosis for diseases and pest disorders.

7. Soils -. Soil analysis: plant tissue analysis; sugar cane juice and
fiber analysis, fertilizer: fertilizer material and lime analysis.

8. YVT and HYV Propagation and Dispersal. Commercial testing

of promising varieties in different locations, cutback, planting,
fertilization, weeding, cultivation, ratooning, cutting, seed piece
preparation, loading of new HYV’s for dispersal.

9. PCS Primary Seed Farm and Rearing of Plantlets. Soil media

preparation, pricking, hardening, care and maintenance of
plantlets, planting, rouging of off-types, irrigation, herbicide and
insecticide spraying, hand weeding, fertilization, cultivation,
cutback and ratooning.

2. Performance and Discipline - To carry out the undertakings specified in the

immediately preceding section, the Contractor shall assign to PHILSURIN the
necessary personnel and provide adequate equipment and apparatus to
efficiently accomplish the work and services undertaken herein by the Contractor
in order to obtain the results desired by PHILSURIN. The Contractor represents
that its personnel complement shall be in such number as will be sufficient to
cope with the requirements of the services and work herein undertaken, and that
such personnel shall be physically fit and of good moral character. The contractor
likewise represents that the equipment, apparatus, supplies and materials it will
provide at its own expense shall be of adequate quantity to render Sugarcane
Research and Development and Extension Services.

Contractor shall have the sole control of the manner and means of performing
and carrying out the duties and undertakings under this contract and it shall
perform the same according to its own means and methods of work.
Correspondingly, it shall direct the performance of its workers/employees
designated to carry out the services under the contract. Additionally, Contractor
will be responsible for and supervise all workers covered by this contract either
personally or through it designated supervisor/s.

3. Obligations of the Contractor – The Contractor shall have the following

obligations under this Contract:

(a) To provide adequate management and supervision in

PHILSURIN’s work premises who shall administer the Contractor’s employees
with respect to the manner and the method by which work should be done by the
Contractor’s employees.

(b) To provide its employees all tools and equipment necessary for the
performance of the services under this Contract.

(c) To provide the necessary identification cards to its workers at its

own expense.

(d) To provide its employees all safety gears and equipment necessary
for the performance of the services under this Contract and as required by
Section 8 of DOLE Department Order No. 18-A and the provisions of the
Occupational Health and Safety Manual of the Department of Labor and
Employment.

(d) To pay its workers all wages, benefits, service incentive leave, rest
days, overtime pay, holiday pay, 13th Month Pay, social security and welfare
benefits in accordance with the relevant minimum wage order and provisions of
labor laws.

(e) To inform its employees before the first day of work of all the terms
and conditions of employment and to make its employees sign an employment
contract containing a specific description of the job, work or service to be
performed by the contractual employee, the place of work and terms and
conditions of employment, including a statement of the wage rate applicable to
the individual employee, the term or duration of employment, which shall be co-
terminus with this Contract, or with the specific phase for which the contractual
employee is engaged, as the case may be. Work shall not commence unless
the Contractor submits to PHILSURIN the signed individual employment
contracts of Contractor’s employees.

(f) To submit to PHILSURIN copies of all pay sheets signed by all

employees within 5 days after payroll date.

(g) To submit to PHILSURIN copies of all contracts of employment of

all its employees before the first day of commencement of services.

(h) To submit to PHILSURIN copies of all quitclaims of Contractor’s

employees within 5 days from termination of employment, whenever appropriate.

(i) To comply with all the requirements of labor laws and regulations
on valid independent contracting.

4. Representations and Warranties – PHILSURIN hereby enters into this

Contract on the basis of the following representations and warranties made by
the Contractor:
 (a) The Contractor has substantial capital or investment in the form of
tools, equipment, machineries, work premises among others which relates to the
job, work or service to be performed under this Contract.

(b) The Contractor exercises the right to control the manner and the
method by which its employees do their work under this Contract by assigning a
supervisor.

(c) The Contractor has complied with the requirements of the

Department of Labor and Employment on valid independent contracting and is
listed in the registry of contractors and subcontractors of the Department of Labor
and Employment. The Contractor has likewise submitted his registration papers
to the Company in compliance with the Company’s accreditation requirements.

(d) The Contractor binds itself to comply with the reportorial

requirements of the Department of Labor and Employment in accordance with
Section 15 of Department Order No. 18-A.

(e) The Contractor binds itself to respect its employees’ right to self-
organization, collective bargaining and peaceful concerted action and security of
tenure.

(f) The Contractor has NOT and binds itself NOT to require its
employees to sign, as a precondition to employment or continued employment
any of the following documents:

(f.1) antedated resignation letter

(f.2) a blank payroll
(f.3) a waiver of labor standards including minimum wages and
social or welfare benefits
(f.4) a quitclaim releasing PHILSURIN or the Contractor from any
liability as to payment of future claims
(f.5) a contract fixing the period of employment of employees to a
term shorter than the term of the contract between PHILSURIN the
Contractor.

5. Contract Price - For and in consideration of the performance of the

services to be rendered under this contract, PHILSURIN will pay the Contractor a
package sum of Pesos: Ten Million Four Hundred Thousand Pesos (₱
10,400,000.00), Philippine Currency, inclusive of Value Added Tax.
6. Terms of Payment - PHILSURIN shall pay the Contractor the foregoing
consideration by progress billing based on accomplishment reports submitted by
the Contractor, i.e., 25%, 50%, 75% = Total of 100% completed.
7. Performance Bond - Upon execution of this Contract, the Contractor
shall secure a performance bond in the amount of Pesos: Three Million One
Hundred Twenty Thousand (₱ 3,120,000.00) Philippine currency to secure the
faithful performance of all obligations under this Contract.
8. Labor Liability Bond–Upon completion of this contract, the Contractor
shall secure a labor liability bond in the amount of ten percent (10%) of the
contract price to answer for any possible claims for unpaid wages, holiday pay,
premiums, etc., by the Contractor’s employees filed against PHILSURIN. The
liability bond shall be secured from a reputable bonding company duly approved
by the Company and shall cover a three-year period from the date of the end of
contract.
9. Effectivity and Duration - This Contract shall take effect on September
01, 2021 and shall remain in full force until August 31, 2022 unless earlier
terminated by either party as herein provided.
In the event of breach of any provisions of this Contract by either party, it is
understood that the offended party shall have the absolute right to terminate this
contract at any given time without prejudice to whatever rights and remedies the
offended party may have against the offending party under applicable laws.
10. Pre-Termination -PHILSURIN may pre-terminate this Contract at any
time and for cause by giving a 15-day written notice of termination to the other,
specifying the date of termination desired.
11. Miscellaneous Provisions - It is understood herein that the relation
created between the parties under this contract is purely that of a client-
independent contractor relationship. No agent, employee or worker of Contractor
shall be deemed to be employee, agent or worker of the Company, and
PHILSURIN shall in no case be considered the employer of the Contractor’s
employees, agents or representatives. The Contractor shall provide PHILSURIN
with documents such as applications for employment by its employees and
appointment letter of the contractor confirming their status of regular employment
therewith. Accordingly, the Contractor shall be solely responsible to all its
employees and there shall not be any liability or responsibility upon PHILSURIN
for wages and/or any damages or injuries sustained or claimed by any employee
of the Contractor arising out of the services performed pursuant to this contract,
and shall at all times save PHILSURIN Company therefrom.
11.1 The Contractor shall take all precautions necessary and shall be
responsible for the safety of its employees designated to perform the
services under this contract. All work shall be done at contractor’s risk and
shall be responsible for any loss or damage to materials, tools and/or
other articles used or held for use in connection with this contract.

PHILSURIN shall not be responsible for the death of, disease

contracted or injury received by the Contractor’s employees or laborers,
and for any damage done by or to them from any source. Damage caused
by the Contractor or its employees to PHILSURIN’s property shall at
once be repaired by the Contractor at its own expense and to the
satisfaction of PHILSURIN whose decision shall be final. In the event of
failure of the Contractor to repair such damages at once, PHILSURIN
may repair the same and deduct the entire cost of such repairs from the
payments due to the Contractor. The Contractor however shall be given
reasonable notice of the demand for such repair and shall be further
appraised of the nature of the damage and the probable cause thereof.
11.2 The Contractor shall take necessary precautions and exercise due
care and diligence in the execution of the undertaking so as not to cause
injury, damage or losses to persons and property and shall at all times
save PHILSURIN from any claim for damages arising therefrom. In this
connection, the Contractor shall, within ten (10) days from demand,
indemnify PHILSURIN for whatever payments, fines and damages it is
made to pay or suffer by reason of the contractor’s failure to fully
indemnify PHILSURIN on time, the full amount thereof shall be deducted
from any payments due the Contractor.
11.3 The Contractor shall comply with all laws, local or national, City or
municipal ordinances and all government regulations, insofar as binding
upon the parties hereto and shall obtain the licenses required in
connection with the performance of the services herein mandated.
 11.4 The Contractor shall have exclusive discretion in the selection,
engagement and discharge of its personnel, employee or agents. The
Contractor shall likewise have exclusive control over the means and
methods by which the services mandated herein shall be performed and
PHILSURIN Company shall have no participation or interest therein
whatsoever except as to the results thereof. The Contractor hereby
warrants that it will perform the required work or services in such manner
as will be consistent with the achievement of the result herein contracted
for.
11.5 The Contractor undertakes to pay the wages or salaries of its
workers and personnel, as well as all other benefits, and duly remit all the
required SSS, Pag-Ibig and PhilHealth premiums to appropriate
government agencies, in accordance with the provisions of the Labor
Code and other applicable laws and decrees and the rules and regulations
promulgated by competent authorities, assuming all responsibility therefor.
The Contractor further undertakes to submit to PHILSURIN an affidavit or
sworn statement of its duly authorized representative to the effect that the
Contractor has paid all the wages or salaries due its employee or
personnel for services rendered by them.
12. Taxes - The Contractor shall, for its own account, pay all taxes, fees,
dues and other impositions that shall become due as a result of the works or
services herein [provided.
13. Assignment and Sub-Contracting - The assignment/sub-contracting by
the Contractor of this Contract or of any interest therein or any monies due or
may become due to Contractor by reason of the terms hereof without the written
consent of PHILSURIN shall be void. In case of assignment/sub-contracting by
the Contractor of any part of this Contract with the written consent of
PHILSURIN, the Contractor assumes full responsibility and remains fully liable
for the work of said Assignee/Sub-contractor to the extent described elsewhere in
this Contract.
14. Non-Liability Clause - It is hereby understood that in case of any disruption
in the Company operation due to circumstances beyond its control or acts of God
such as, but not limited to strikes rendering PHILSURIN Company unable to
provide the task/services previously required of the Contractor, PHILSURIN shall
be free from any claim whatsoever by reason of its failure to provide such
services arising from its previous requirements.

15. Venue of Action - Should it be necessary that an action be brought in court

to enforce the terms of this Contract of duties and rights of the parties thereto, it
is agreed that the proper courts should be the Courts of Bacolod City to the
exclusion of any other Courts.

IN WITNESS WHEREOF, the parties have signed these presents on this _____
day of _____________, 2021.

PHILIPPINE SUGAR RESEARCH UNITED ASIAN GRADON

INSTITUTE FOUNDATION, INC. MANPOWER SERVICE CORP.
(PHILSURIN) (CONTRACTOR)

MARIA REGINA B. MARTIN SUSAN D. DELA CRUZ

Director General President & CEO
 SIGNED IN THE PRESENCE OF:

_________________________ __________________________

REPUBLIC OF THE PHILIPPINES )

CITY OF BACOLOD ) S.S.

BEFORE ME, personally appeared this _____ day of

__________________ 2021 Maria Regina B. Martin, with Passport No.
P3F36505A issued at DFA Bacolod on _______ and Susan dela Cruz with TIN
No. 008-300-886 issued at _________________ on ___________ both known to
me and to me known to be the same persons who executed the foregoing
instrument consisting of _8_ pages including this page and acknowledged to me
that the same is their free act and voluntary deed.
WITNESS MY HAND AND SEAL on the date and place first above written.
NOTARY PUBLIC
Doc. No. ________;
Page No. ________;
Book No. ________;
Series of 2021.