MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

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

The NATIONAL FOOD AUTHORITY (NFA), an agency of the Government

created pursuant to Presidential Decree No. 4 as amended by Presidential Decree
No. 1485 and Presidential Decree No. 1170 with office address at Urbiztondo, San
Juan, La Union, represented herein by its Regional Manager II PIOLITO C.
SANTOS hereinafter referred to as “NFA”,

and

The PROVINCIAL GOVERNMENT of LA UNION duly constituted under

existing laws of the Republic and with principal office at Provincial Capitol, San
Fernando City, Philippines, herein represented by the Honorable Governor
RAPHAELLE VERONICA ORTEGA-DAVID herein referred to as PREMIUM
PROVIDER – “PGLU”.

WITNESSETH:

WHEREAS, marketing is a major problem of our palay farmers forcing them

to sell to middlemen who usually take advantage of them by offering a very low
price, thus, decreasing their income;

WHEREAS, the government through the NFA recognizes the need to assist
these farmers in marketing their produce by linking them with LGUs and Legislators
or other government agencies which can provide additional financial price support
premium on top of the government procurement support price of P19.00/kg;

WHEREAS, the NFA, cognizant of the above has adopted a program dubbed
as the PALAY MARKETING ASSISTANCE FOR LEGISLATORS AND LOCAL
GOVERNMENT UNITS (PALLGU) PROGRAM which will enable palay farmers to
maximize their income and at the same time provide an opportunity for the Local
Government Units (LGUs) and the Legislators to serve their farmer-constituents.

WHEREAS, the NFA and the PGLU, in accordance with their respective roles
in nation-building have agreed to enter into an agreement and launch the PALLGU
Program that will benefit both the farmers and users and ultimately redound to the
interest of the country;

WHEREAS, the PGLU will provide a subsidy amounting to

_________________________________ Philippine Pesos (P_____) from their
appropriation in the General Fund Budget FY 20____.

WHEREAS, by virtue of Sangguniang Panlalawigan Resolution No. ______,

Series of 20_____, Hon. Governor RAPHAELLE VERONICA ORTEGA-DAVID was
authorized to enter into an agreement with the National Food Authority for
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implementation of Palay Marketing Assistance for Legislators and Local Government
Units (PALLGU) Program in the Province.

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

of the mutual covenants and stipulations hereinafter set forth, the parties hereto have
agreed as they hereby agree as follows:

OBLIGATIONS OF THE NFA:

1. Procures palay from Farmers' Organizations (FOs) and individual palay

farmers (IF) at the existing NFA support price per kg plus the premium to
be provided by the PGLU and store the same at a designated warehouse;

2. Furnishes the PGLU with a photocopy of the Warehouse Stocks Receipt

(WSR) and Purchase Receipt (PR) as proof of availability of stock deposit
intended for the PGLU;

3. Undertakes the necessary warehouse maintenance and pest control

measures to ensure minimum weight loss of palay stocks; and

4. Returns the premium amount deposited by the PGLU immediately after

the agreed date of availability of palay stocks in case NFA fails to
purchase the required volume and/or quality specifications of the said
PGLU.

OBLIGATIONS OF THE BUYER:

1. Submit to the NFA a Letter of Intent (LOI) addressed to the concerned

NFA Branch Office indicating therein, among others, the following;

a. Premium amount offered per kg palay

b. Equivalent volume of palay for the total fund to be provided
c. Intended IF/FO beneficiaries, if any
d. Agreed date/period of availability of fund

2. Provides the NFA Branch Office where the stocks shall be procured and
stored with the total amount of premium within five (5) working days after
signing of this MOA.

OTHER PROVISIONS:

1. The Guidelines on the Implementation of Palay Marketing Assistance

Program for Legislators and Local Government Units (PALLGU) shall
be made an integral part of this Agreement for compliance of the
parties concerned.

2. The NFA and the LGU may from time to time or as the need arises
make the necessary amendments to this Agreement for the effective
enforcement of the terms and conditions hereof;

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 3. This Agreement shall take effect upon the execution by the parties and
shall remain effective until rescinded in writing within sixty (60) days
prior written notice by either party, subject to obligations of parties that
may have been incurred pursuant to this Agreement.

IN WITNESS WHEREOF, the parties have hereunto set their hands this ____
day of _____________________, 2022 at _________________________________
Philippines.

NATIONAL FOOD AUTHORITY PROVL GOVERNMENT OF LA UNION

BY: BY:

PIOLITO C. SANTOS Hon. RAPHAELLE VERONICA ORTEGA-DAVID

Regional Manager Governor

SIGNED IN THE PRESENCE OF:

FREDERICK B. DULAY Hon. ___________________________

Branch Manager PGLU Representative

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 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

_______________, PANGASINAN)

BEFORE ME, a Notary Public, this ____ day of _______, 2022 personally
appeared:

NAME GOVERNMENT ISSUED ID

________________________ _ ________
PIOLITO C. SANTOS__ _ __ NFA ID_NO._________

known to me and to be the same persons who executed the foregoing instrument
which is a Memorandum of Agreement and they acknowledged to me that the same
is their own, free and voluntary act and deed as well as that of the institution they
represent.

The foregoing instrument consists of four (4) pages including this page on which this
Acknowledgement is written, and each and every page of which has been signed by
the aforesaid parties, and their witnesses, and sealed with notarial seal.

IN WITNESS THEREOF, I HAVE HEREUNTO SET MY HAND AND SEAL on the

date and place above written.

__________________________
Notary Public

Doc No._____________________
Book No.____________________
Page No._____________________
Series of 20__________________

Memorandum of Agreement (PALLGU)

NFA – PLGU ________________

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