Sifma Agreement

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    Fla^, ' l r l i^ ^. .L^DEpARTMENToF=l,Vffiifi'Jl,"r"ill,BoiioTu*o.o."OFFICEOF THERFDDf NR, R,ll l,Cityof SanFerrranrtJ arnparrgaSOCIALIZEDNDUSTRIAL ORES,"'r*o to. o1-TffiuMENr GREEMENT

    olGoopHARVEST_98CF+:E+4#E+9rSEeQBArtoN(Name of S|FM^ |, \ rLuEH)

    (LocationfArea)

    o"n#'".i8ftit"%t)"t;,#*?,i#"S l"",T"'i,3?y n betwen rh o c,+*99+_u-aE!EqN,","""J'r""i"r-."ri"i"Jl" 5i::fj.lfgpfi"ii*"iiiiffi##*#Jb:l.i,il,"'.:i:l*'",i;ipqS;';1";1"3.[?-ji'""fl;ff::pilEs-l'H'ffTs.:;i,ffi".&",!!"n#&;.#:m"r:--=3for and in behalfof E EIARDS MA_* _""_ ",._i,ll!p.-R, wirnesioenc__ic6lEriEarefJi'"- r-'ool-q'.r!qi-Q0q,3ter.s!qs&.aze..ralcLod.gasQq:llq..pqsrqr.v,..- ,_"". ,.,",rrronoerazaHotelLorliqascenter, asiadir;.WITNESSETHTI-IAI-

    ,"""#l',!XiLt;,j?:.'"':":f:lTJ orsocidrizedndus(,iaroresr,antar,ons;i:?#":;Jiflil,l:i{flii?t?i:if:j".frr,,"fi1:t"","#,''j:;::n;::""o ,#,1jnff,"1,.?"|i"Jfr; I,ecuriverder o278. xe.urive,der ,,lutitlzationrotner or"i"i 'r"r;-;,ilI:" and cqulationsru.n r.o ou"topm"nr ,.:ili.."1ejilj,ilij,iix;,lH:";..""1,ffi,:Jsl:i",,1?:1,:?^ ..WHEREAS, the RED ands*"r,."j"Li"i,",'l;:i""jllJll:"jlXi,J::#ii:il"",:?:J::i#,?",T:GOOD HARVESTORCHMARKETINGCORPORA

    IrAliLw. t,ot'tizlsrruaHoroEnl Qll M. Dn r,rl(wtrNESS)

    I ExecutiveDG&i

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    - NOWTHEREFORE.orand n considerationf the oregoingremlses,noby virtueof P.D. No. 705. Executive rderNo.278 and ExecutiveOrder263whichp;escribeshe procduresn the processing nb approvalof applicationsor thedevetopmentr utillzation f forest andsand/or olest resources,he RED herebyaorees lo deyolve o the SIFMAHOLDER he responsibilityor managingQlqtt-undred'fflYffiectaresof public orest and locatedat Brav Pavsawan,Baqac!labA!, hereinafterefened o as the SIFMAAREA, he description nd boundariesof wltichare shown n theatlachedmapwhich ormspartof thisAGREEMENTThiSAGREEMENT hall emainn effect or a period f twenty-five25)years, r untiiDecember.1, 028.This AGREEMENI-hallbe for the establishmentnd managementf aolantation f trees or the production t wood and othernon-wood roducts upponmanufacturingand processing acilities and/or to supply wood and energyrequirements,ndshallbe subjecto he ollowingerms ndcondiiionsConditionsor SIFMAAreas

    1. The SIFMAHOLDERshallplant orest feespecies nd/ornon{imbersoecies uchas rattan, amboo, tc.,on at leastninetypercent 90%)oi theplantable rea, norespecif icallyn openanddenuded andandbrush and portions f the SIFMAAREA;PROVIDED'hat he SIFMA'HOLDERwill have plantedat least if lypercent 50%) of the SIFMAAREAwitha mintmum tocking enslly f f ivchtlndred 500)survivingseedlingspel hectarc within one (l) year from lhe grant ol_ullsAGREE=MEN; PROVIDEDTURTHER, hat the SIFMA HOLDERsllall have a cumulativeplanlalionestdbltshirrgoverlng dt ledstseventy five percent(75%) of the total SIFMA AREA on the secondyear,PROVIOED INALLY,lrat lre SIFMA 1OLDER hallhave ullyplanted he SIFMAAREAbeyond hirdyear,and in no case shall hestockingdensityof lhe SIFMAAI?EAbeyond he thirdyear be lowertl lan five hundred 500)saplings/tfeeser hectare. Cash cropsmaybe allowed or interplanting;ROVIDEDhiswil l not have an adverseelfect oD lhe rnain crop t|or causec v;ronmcnta' amagc such ,lSerosion. lrr addit ion hereto, he SIFMA -IOLDERmay devotenotmore than ten percent 10%) of the area or permanentagriculturalourDoses.No exoticspecies ntcsted Plri l ippineonditionshallbe ir]troducedinto he SIFMAAREA without he priorwritten learance f tl.reDENRSECRETN Y.-the SIFMA IIOLDF:R shall not cut trees, regardlessof speciesgrowing n areaswithslopesoF50% or over,and within he 20 meter-wide strips along banks of lre f ivcts and streamswith channels tleast ive meters n width

    2

    3.

    GOOD HARVESTORCHARDSMARKETINGCOR

    IIAI'L W. LOPIiZ OI{ M, DE I-I'ON(srFMAroLDER) al Executive ireclof

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    . ' . , ,4. Areasithropesf5oo/or.ore:i:l/l'i,iilJ:l?I;y'*?tSJlT;"l?Jgbanks of rivarsand streamswltn crIilTilii;i;;; bereflor treesshallbe retorestedv the sIFMAritiLoih, rv-hosnatt protect'maintarnand keep. "'"n. -"i^""-tollill.ti,rr'"^o"i "ou"i ft'u trFesDlanledhefeinormpansoriluu.m.ni's sn",. n hebenefilsobederivedromSIFMA

    ln" r ,o* HoLDERhal l ot ,over lheSIfMAAREA ranv orl iontrlui"*Jo-ottt"iLnousesnotauthorizecl

    nderheSIFMATlre SIFMAHbLDER hallprovidehe necessary anagemenltechnoloqv and llrancral services for the development andntattaoet-ncrtlf l l le Sll MA ARI-A

    5.

    7 The SIFMA floLDER shatl pursue all activit ies' ert-ainingo the' !f Fftilnnnga as a commitment o communitydevelopmenr8-TheS|FMAHoLDERsha||respectancjprotect ther ightsofhis/herworkersand emPloyeesc The SIFMA HOLDER slrall immediately

    prevent or arrest qullyerosiotls i lhirr l lc SIf MAARI:n

    '10'TheSIFMA|- loLDERShal |protect thenaturalandprotecl ionforest ' i f"iiv,i,ltiiilinl Srir"rn nEri'in

    "l"otoancewithcufrent-aws ndregulatlonsgovernlngea-r-;r-naturalforest type Naturallygrown treeswithin or adlacent o rn" r'"fvfn- nnf-n siraliirot be cut or harvested

    11 The SIFMAHOLDER hallproteclSIFM^nllEA from ?19:!.f ' : t tnnt'olher ormsof lorest lestructlon's well ls romencroachmen!1? Ilre SIFMAHOLDER hallnotelrgagerr rollt l l ivcclivrt ies jlhinoI {n

    the vicinity of the SIFMA AiiEA ;;; shail prolect lhe sard areafrom

    pollution.1.1. Ihe SIFMA -IOLDER hallnot unreasonablymped-e' onstruct r Inony "nn", ptuuunt assage hroughheSIFMAAREA'14. Ilre SIFMA l.tOt.DERshall prutectand conseNe rrnrqLre',are ot

    "ni", iqur"o t,uut' palmsand ;i ldl i fe identif ied-as-sucllnderexlstlng

    i"*i ,'rG"i"o *giiations' oundwithinheSIFMA REA1|1. The RED Shal| otalteror modify he boundaries r le^ga|tall lsof thesIFMA AREA once "t*oritrl"J;

    FnovlDED' that the-siFMA -loLDERhascompliedwith lre ermsandcondil ions f the SIFMA

    GOODHARVESTORCMARKETINGCORPO

    (WITNESS)

    loN

    ,:'

    FAli l, w. l.() l '1i7,Strun toloenl ExecutiveDirectorBy:

    C'c^ ^n

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    --'*17.

    20

    'tB.

    19.

    The REDsnall, n coopefAtion iih LaaalGove'nment nits' assisl hesiF-r,,ieorogn in th; developmentndexecutjon f thisagreement'The SIFMAHOLDERmay ranster,onvey r sellhis rights ver.theSIFMA n whoteor in parl' to any person'cooperative r assoclalronqualineoo trolda SlFlilA,subjecto theapproval f the PENRoor theREDas hecasemayoelhe DENR eserveshe ight o pelmit heuseopening t p9l911ojfl]" Srff 'nn oi publicnter6st; ROVIDED,hat heSIFMAHOLDER*itt Je oalc air'compensationoranydamageo mprovements'f any'occasioned YsuchPermlt.I l re SIFMA tOLL.rLt {l ra l lenLUutaUclre i lcLive anir 'pJ l iontwomen n the project lanning nd mplementationndsnallprovlaethemequalaccess10 heproject enefitsTlreSIFMAHOLDER hall ubmit o tlreDENRan AnnLral eporl facWiiieswnicnshall nclude, ut wil l not be limited o' the area fItantationeslablished, roduction stocking densily maflelrng'producl sage. arrngale priccs'payrncnt l lentals.and

    ]n9'.:t-=ine mainleninceof boundaries f theSIRMAAREAI he marntenanceii tiv "rliritv o prevent, etectarrct uppressiresand other ormsoliner6rest lstrJctiorl, rrd he protectionndmanagernentf naturaland otoLectlonoresls, f arry,wrl lr in lru Sll Mn nRLA l-or monrto' irrgpiirpL"d.liri" rir,,rq or.oin slrall llow rrv ulvaul.rrori/edoresofficerot duly autl lofizcdgovernmenlollcial e'rtry Inlo Ine 5ll rvrP'AREA or inlo any other irrtp[ovementr]trodLrcednd used lorDuroosesof SIFMAexecutiotr.nl l treesarld othercropsplarlted ndet hisAGREEMENTbelong othe SIFMA |-|OLOERwho sllal l l lave the right o lrarvest sell anduti l izesuch trees and crops,excepl hose etained or environmentalprotection nd ecological alancewhich must be maintaineoy-rnesri'rrlnuolorn as"part f thegovetnment'share The SIFMAr-rblofn *uy be allowedo explct logs, umberand other,forestpioJu"ti nu'ir".t"d from pilantatironsn the SIFMA AREA inlctordance with the government llocation ystem'subject oappmvalbY he SECRETARY-l'heDENR shall mposeno restriationsn theuse of the SIFMAandi-oroue,t "nts in the SIFMAAREAS as collateralor obtainingoansfoi t lre improvements f t lre SIFMA AREAS' subject o the prloraDDrovalf t l le RED.

    /a,, ,2l

    22

    R M. I) tt N

    (wrrNESS) (

    GOOD HARVEST ORCMARKETINGCORPOR

    l i^E|,, W. l,( ) l ' l , lz

    C-L+

    ExecutiveDirector

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    Upon heexpiration f thisAGREEMENT r upon ts ermination henpublic interestdemands,all permanent mprovementsntroduced,includingorest rops,shall emain n the SIFMAAREA but he SIFMAHOLDERshallbe entittedo fair compensationherefore.The SIFMAI-IOLDER may remove any temporary or semi-permanentstructurewithina reasonable eriod f t imeafterduenoticeFair compensationor any irnprovenents, hetl lerdue to the SIFMAI1OLDER or the Governrnent.shall be determined by a commitleecomposedof representativesf the RED and the SIFMAHOLDER,and a qualif led ndependent ppraiserwlrose appointment hall bel|rutually gree{j rpon y l le l lL:Darld he SIFMn IOLDER.As partof thegovern ent share, he SIFMA IOLDERshallpay o thegovernment he followingamountsas annual rentals or the use of thelands;Provicied,hat hesearllounts lrallbe subiect o periodic evlewand adiustrnents:For the first to the flftlrycar of the SIFMA2003 to 2008

    24.

    (frorn(komFof the sixth o the e th Yeal2009 1q 20.13

    -) ... No rentals

    ___) .. P300.00 efna.Forevery ear hereafter nti l he expiration f SIFMA(from 2014 1e-_2O2,a J .. P500.00 ef.ha.Annual entals re to be p;tid r1 lxr astwcel(of Juneor the astweel(of Seolemberof the vear at lhe DENR ofl lcewlrere he SIFMAwasissued-Failure o pay rentalswill constilutegrouncjs or cancellationof SIFI\'lA

    26. -l-hisAGI1EEMENT hall terminateupon the death of the SIFMAl-loLDERand all permanentmprovements,ncluding ightsover heforestplantation,hallbecome he properly f the estateof tl,e SIFlv4nIIOLDER. lt the heits arc qualif ied o hold the SIFMA' a newagreement between the RED and the surviving heirs to estate theSIFMA HOLDER be may executed or the remaioingperiodof theSIFMA, in accordancewith the requirements f the regulatlons;PROVIDED.hat he heirs ilearl application ithin ix (6)monthsafterthe deathof the SIFMAFlOlDER. lf the heirsare no1 ualif ledo holda SIFMA or if they do not elect to enter a new agreement, he eslateshall be entit led o conrperlsationor all permanents mprovemcntsthat may be paidby any pad entering new agreementwith he REDcover ig t l lc atnl .

    w. Lol'tiz

    GOOD HARVESTORCHARpSMARKETINGCORPORATTdN

    SIFMAHOLDFR OII, M. DI' I,TONI Executive irectof

    (wrrNESS)

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    Upon he cancellationf thisAGREEMENThroughhe fauttof theSlFlvIAHOLDER,a the improvements xisting lvitnintne StfrumAREAshall everto theandbecomehepropertyf thegovernment.In theevent hal a llewaqreemenloverjnghe area s;yecuteobvand between he new STFMA .tOLDfR shc "o.p"n.n," tnlgovernmentor hern..l-hisAGR_E-'EMENTay be renewedor another.td!nty{ive2S)yearsupo_nhe iling F pplicalionor enewal t east ix1ojmontnsrior oits iledupon heexpiralionf thisncREEMENT,he areacovered ylhis agreementts dispositjonha l)e governed y the regulationcrirfent t the i$le'Ihis AGREEMENTshall not be amended n any way exceptby thewritten nstrument ignedand agreed o by the RED'and h; SiFMAIIOLDER

    27.

    29

    28.

    30. In the eventof any defaultor breacl-tf any of the provisions f U.tisAGREEMENT by either party,the other party may. notice to the panyin defaults r breach, pecifysuch defaultor breachand require hesame o be rernedied ithin hirty 30)daysafterservice f notice31.Except or issuance nvelving ompcnsation hichare addressed rt rneaDove paragraphs, ny dispute between re DENR and the SIFMAHOLDER that cannotbc set ed by mulualaccordshall be relerred oarbitration hichshallbe hel. lat a mutuallv cccDteciocatior.l.

    Cityof San Femando,Pampanga, hit ippines,, i,Ft-. j ' . ._200!GOODHARVESTORCHARDSMARKETINGCORPORATTON

    (wTTNESS)

    R M. DIi LEONExecutive irector

    NESS)

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    AcllNp_yy!!_BGllE_ElllREPUBLTC F 1'l- lEPHILIPPINESCITYOF SAN FERNANDO : S.SPROVINCEOF PAMPANGA )

    BEFOREME,A NotaryPublic or arl n Cityof SanFernando' ampanga'Philippines, n the fit f. ? '' ft18!or ---- , followingherrrespective etlifi ationoppositelreirnames:NAME

    1. REGIDORM- DE LEON2. RAFAELW. LOPEZKnown to me to be the same personswho executedthe foregoing nstrument' anwho acknowledgeo me tl lat the same s their ree and voluntary ct and deed' aswell as the free nd voluntaryact an.l deeclof tlre entities epreselrtedherein

    The instrumenl, which is the SOCIALIZED INDUSTRIAL FORESTMANAGEMENTAGREEMENT, ot.rsisteven (7) pages ncludinghis pagewheretlre Acknowledgementsritten, nd is signedby the parties nd their nstrument neach page thereof-WITNESS BY HANDAND Sl.Al- ' at the placeand on lhe date flrstwrrtten

    c. )M. "lAX Q.E!I|. No/ 'J a 7Jl ( .L

    21204455

    DA A/PLACEDSSUEDJtt . L". tn 5 iL/,,-^ c )' t/

    u2h712003 Pasiq CitY

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    ooc. No.- J,,fPage No. (7Book No. ( 1NSeriesot. - .f aa.i -