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SECURITY SERVICES CONTRACT

KNOW ALL MEN BY THESE PRESENTS

This contract executed and entered by and between:

FEMJEG SECURITY AND ALLIED SERVICES, a single proprietorship dulyorganized under existing laws of the Republic of the Philippines, with business addressat Door 103, Abecar Building, Ramon Magsaysay Avenue, Davao City, represented byits proprietress, FLORA B. MORALES hereinafter referred to as the "AGENCY",

NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY (NEDA) RegionalOffice XI, an establishment existing under the laws of the Philippines with officeaddress at Km. 7, SPED Area, Bangkal, Davao City represented by MARIA LOURDESD. L1M, in her capacity as the NEDA XI Regional Director, hereinafter referred to as the"CLIENT";

WITNESSETH

WHEREAS, the AGENCY is a duly licensed and bonded security guard agencyoperating under the provision. of Republic Act No. 5487 otherwise known as the PrivateSecurity Agency Law, as amended by Presidential Decree 1919;

WHEREAS, the CLIENT desires to engage the services of the AGENCY for thepurpose of maintaining law and order at its premises at Km. 7, SPED Area, Bangkal,Davao City by protecting and guarding its properties and said place from theft, robbery,destruction or damages to properties, as well as, protecting its officers and employees,visitors and guests from assault, harassment, threat or intimidation and other harmfulacts; enforcing and implementing its orders, directives, memoranda, rules, policies andregulation relative to the maintenance of security and safety threat;

NOW THEREFORE, for and in consideration of the foregoing premises and ofthe mutual covenant and provision hereinafter set forth, the parties hereto have agreedand do hereby mutually bind themselves in this contract as follows:

CE AND LOCATION

me AGENCY shall provide security guard services to the CLIENT at its officebuilding and premises located at Km. 7, SPED Area, Bangkal, Davao City.

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FUNCTIONS AND DUTIES OF GUARDS

The guards are to maintain peace and order at aforementioned office buildingand premises; to watch, safeguard and protec~ the properties of the CLIENT, itsemployees and guests from theft, robbery, destruction or damage; to protect thedirectors, officers, employees, visitors and guests of the CLIENT from assault,harassment, threat or intimidation and to strictly enforce and implement orders,directives, memoranda, rules and regulation of the CLIENT aimed at maintainingsecurity safety thereat;

GUARD FORCES

The AGENCY shall provide the CLIENT with four (4) contracted guards whoshall each render eight (8) hours work per day including Saturdays, Sundays andholidays. The number of contracted guards may be increased or decreased at

anytime upon written request of the CLIENT and so with the number of guardinghours;

4. QUALIFICATION OF THE GUARDS

Each of the security guards to be assigned by the AGENCY to the CLIENT mustbe:

a. Of good moral character and reputation, courteous, alert, trustworthy andwithout criminal and police records.

b. Military-trained, disciplined, physically and mentally fit, with age not lessthan 23 but not more than 60 years old.

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c. Competent, efficient, experienced, bonded, duly licensed and properlyscreened and cleared by PNP, NBI, and other government offices issuingclearances for employment.

d. In proper uniform at all times and armed with a duly licensed firearm asspecified by the CLIENT with sufficient ammunition at all times during his tourof duty.

e. In possession of such other qualifications as required under Republic Act No.5487, as amended ..

MODE OF PAYMENT

For and in consideration of the services and during the effectivity of this contract,the CLIENT shall pay the AGENCY the amount of Fifteen Thousand Sixty OnePesos and 22/100 Only' (Php 15,061.22) per guard per month for eighthours of services rendered daily including Saturdays, Sundays andHolidays. The payment shall be made in the account of the AGENCY every 15th

and 30th of the month. The AGENCY should strictly follow the new wage rateeffective May 1, 2012 and corresponding premiums on SSS, Pag-ibig andPhilhealth, and to submit a revised cost breakdown that would be incorporated inthis contract and a performance bond to ensure compliance of the conditions setin this contract.

he~ENCY shall furnish the. CLIENT proof of remittances of the premiums inthe prejious billings of SSS, Pag-ibig, and Philhealth of the assigned security, as a pre-requisite in the release of payment for services rendered by the

AGENCY to the CLIENT for the following month's quincena billing.

6. RATE OF GUARD

The AGENCY shall pay its guards salaries not lower than the applicable wagerates may be duly promulgated by the Regional Tripartite Wage and ProductivityBoard (RTWPB).

7. SUPERVISION AND CONTROL

The AGENCY shall exercise discipline, direct supervision, control andadministration over its guards in accordance with law, ordinances and pertinentgovernment rules and regulations, as well as, the rules and policies laid-down bythe CLIENT on the matter. The CLIENT however, shall from time to time, giveinstructions to the guards for proper safeguarding of CLIENT's installations,offices, machineries, vehicles, equipment, furniture, and such other propertiesfound in the premises or compound of the CLIENT against theft, pilferage,

-sanitary standards, and other unlawful acts committed by its personnel oroutsiders.

8. EQUIPMENT AND UNIFORM

The guards that the AGENCY shall provide shall be equipped with duly licensedfirearms, sufficient ammunition, nightstick, uniform and other paraphernalia forsecurity.

9. LIABILITY TO GUARDS AND THIRD PARTIES

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The AGENCY is not an agent or employee of the CLIENT and the guards to beassigned by the AGENCY are in no sense employees of the latter as they are, forall intents and purposes, under contract with the AGENCY. Accordingly, theCLIENT shall not be responsible for any and all claims for personal injury ordeath caused to any of the guards or to any third parties where such injury ordeath arises out of or in the course of guards' duties.

10. WARRANTY

The AGENCY shall be responsible for the losses or damages to the properties ofthe CLIENT, its employees and guests occurring or taking place inside thebuilding and within the ground premises of the NEDA-RDC XI Center during thetour of duty of the guards of the AGENCY which is made known in writing by theCLIENT to the AGENCY within forty-eight (48) hours from the time of discovery,provided that, such losses or damages are due or traceable sQlely to thenegligence on the part 'of the security guards without contributory negligence onthe part of the CLIENT, its employees or guests. All properties brought out by theemployees of the CLIENT outside the premises of the office with correspondingissued gate pass, in case of office equipment and trip tickets/request fortransportation in case of office vehicles, which were damaged or lost byemployees concerned in the actual performance of their duties outside the office,are excluded from coverage of this contract. The AGENCY shall indemnify theCLIENT after a proper and thorough investigation shall have been conducted by

aeAGENCY and the police authorities and/or license law enforcement agencies

tha such losses or damages are due to negligence on the part of the securitygua ds without any contributory negligence on the part of the CLIENT. TheA NCY shall not be liable for losses or damages due to fortuitous events orforce majeure beyond the contr?1 of the guards to prevent.

11. REPLACEMENT OF GUARDS

The CLIENT may have a guard changed or replaced at any time whose work itfinds or believes to be below standard, or whose conduct is unsatisfactory, or isprejudicial to its interest, as may be determined by the CLIENT. The judgment ofthe CLIENT on such matters shall be final and binding and should the AGENCYrefuse, the former may consider the same as valid cause for the termination ofthis contract.

12. TERM OF CONTRACT

This contract shall take effect starting May 1, 2012 and shall remain in fullforce for a period of three (3) years from the said date to April 30, 2015.

13. The CLIENT reserves the right to rescind, to terminate or abrogate this contractwith the AGENCY in any of the following instances:

a. Gross and willful negligence on the part of the AGENCY resulting to materialand financial losses to the CLIENT, its employees and guests.

b. If the AGENCY is found to have submitted a falsified license, as well as, otherfalsified documents and reports.

c. When the AGENCY has been found to engage in activities that are dangerousto public safety and"welfare or inimical to national security.

d. Notorious and incessant display or discourteous and rude manners by theAGENCY security guards resulting into conflicts with CLIENT officials,employees or guests.

e. When the AGENCY has been found to have substantially not fulfilled its partof the contract.

f. If the AGENCY is found to be violating any of the provisions of section 1 ofthe Rules and Regulations implementing Republic Act No. 5487 as amendedby P.O. 1919.

14. Either party may terminate this contract for legal cause at any time by writtennotice given to the other party not later than thirty (30) days prior to the intendeddate of termination.

15. In case of litigation arising from or in connection with this contract, venue of actionshall be in the proper Court of Davao City.

IN WITNESS WHEREOF, the PARTIES have hereunto set their hands this___ day of 2012 in Davao City, Philippines.

FEMJEG SECURITY ANDALLIED SERVICES

By:

FL\QRA B. MORALES

prietress

NATIONAL ECONOMIC ANDDEVELOPMENT AUTHORITY XI

By:

'd1Y.. ~ .a. J-'MARIA LOURDES D. LlMRegional Director

Republic of the PhilippinesCity of Davao

ACKNOWLEDGEMENT

}}S.S.

BEFORE ME, a N~tary PU~{i, for and in the Ci~y of Davao, P~ilippine.s, person~lIyappeared on 1 5 2(; ~ 2012, the following persons with their respective

C~o.-}rr~..· ¥< Tax Certificates, to' wit:./ .L/ "'/L/1...--'t ..~ 71v.. ~ ;6' ,J....:../ FL RA/S. MORALES MARIA LOURDES D. [1M

crt No. 05988433 06112606

Place Issued Davao City Davao CityDate Issued January 3, 2012 January 26, 2012Known to me to be the same persons who executed the foregoing instrument and theyacknowledged to me that the same are their own free voluntary act and deed.

WITNESS MY HAND AND SEAL on that date and place above written.

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Doc. No. (07

Page No.--nBook No. cz;j111Series of 2012

AfTY. ANGELA PATRICE A. ESPI::JO·J)I/\(~

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