LEASE TO OWN AGREEMENT

between the

PROVINCIAL GOVERNMENT OF NUEVA ECIJA

and

PGNE LIVELIHOOD BENEFICIARY

KNOW ALL MEN BY THESE PRESENT:

This LEASE TO OWN AGREEMENT, hereinafter referred to as LTOA, made and

entered into this ___ day of _______ at _______________, Nueva Ecija,
Philippines, by and between:

The PROVINCIAL GOVERNMENT OF NUEVA ECIJA with office address

at Provincial Capitol Bldg., Brgy. Singalat, Palayan City herein represented by
______________________ in his capacity as the PROVINCIAL
ADMINISTRATOR and hereinafter referred to as the FIRST PARTY;

-and-

____________________________ , of legal age, married, with address at, Nueva

Ecija, and hereinafter referred to as the SECOND PARTY.

WITNESSETH:

WHEREAS, the Philippine Constitution declares that the State shall promote a
just and dynamic social order that will ensure the prosperity and independence of the
nation and free the people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living, and an improved quality
of life for all;

WHEREAS, the FIRST PARTY is empowered under the Local Government

Code of 1991 (General Welfare Provision, Section 16) to exercise the powers expressly
granted, those necessarily implied therefrom, as well as 
powers necessary, appropriate, or incidental for its efficient and effective governance,
and those which are essential to the promotion of the general welfare. Within their
respective territorial jurisdictions, local government units shall ensure and support,
among other things, the preservation and enrichment of culture, promote health and
safety, enhance  the right of the people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and technological  capabilities,
improve public morals, enhance economic prosperity and social justice, promote full
employment among their residents, maintain peace and order, and preserve the comfort
and convenience of their inhabitants;

WHEREAS, Sec. 294 of the Local Government Code of 1991 also provides,

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among others, that proceeds from the share of local government units in the National
Wealth “shall be appropriated by their respective Sanggunian to finance local
development and livelihood projects”;

WHEREAS, the FIRST PARTY, in recognizing that introducing income

generating activities will be instrumental in creating economic opportunities for Novo
Ecijanos, will engage in providing agri-based livelihood projects to identified
beneficiaries of the FIRST PARTY;

WHEREAS, the FIRST PARTY has identified the Micro Layer Farm
Livelihood Program as one of the abovementioned livelihood programs to be
cascaded to the SECOND PARTY;

WHEREAS, the FIRST PARTY believes that this program would be able to
give the SECOND PARTY a viable and stable income generating business/activity,
which would supplement their financial needs and would hopefully give them an
opportunity to become self reliant agripreneurs;

WHEREAS, the FIRST PARTY will enter into a Lease to Own Agreement
(LTOA) with the SECOND PARTY whereby the parties would agree on the specified
terms and conditions set forth hereunder;

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

Parties hereby agree as follows:

OBLIGATIONS OF THE PARTIES

Section 1. OBLIGATIONS OF THE FIRST PARTY

The FIRST PARTY shall:

1. Supply the Micro Layer Farm Module to the SECOND PARTY, wherein the
Module would include the following:
a. 1 unit of Galvanized Wire 12 Cages with waterer, 2 water gallon and
feeder
b. 48 Ready to Lay Hens, and
c. 3 bags of Layer Feeds

2. Provide initial Operational and Financial Management Training and

Technical Support to the Livelihood Beneficiaries;

3. Extend a 60-month Lease to Own Credit Facility (PAYMENT SCHEDULE

attached as ANNEX A) to the Livelihood Beneficiaries.

Section 2. OBLIGATIONS OF THE SECOND PARTY

The SECOND PARTY shall:
1. Attend all required Operational and Financial Management Training;

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 2. Manage and Operate the Micro Layer Farm with due care and diligence so as
to ensure the viability of the Program;

3. Fully implement and follow the Operational and Financial Management

Training conducted by the FIRST PARTY;

4. Not sell or purposely consume for their personal use the Ready to Lay Hens
provided in the Program, except the latter in case of death of the Hens due to
natural causes;

5. Commit to religiously follow their schedule of payment to the FIRST

PARTY; and

6. Have the legal authority to give warranties and fulfill the undertaking set out
in this Agreement.

GENERAL PROVISION

1. After receiving the live and healthy 48 Ready to Lay Hens from the FIRST
PARTY, the latter transfers its full control and to obligation to the SECOND
PARTY;

2. The FIRST PARTY will not warrant and will not exchange any defective/
dead hen(s) after the same is delivered and its custody already transferred to
the SECOND PARTY;

3. Should the SECOND PARTY fail to comply with his/her payment schedule
and/or fail to follow the Operational and Technical Management Guide (to be
determined and validated by the FIRST PARTY), the FIRST PARTY shall
have the right to unilaterally terminate and/or rescind this Agreement and
recover/ take back the Micro Layer Farm Module from the SECOND
PARTY;

4. The SECOND PARTY is expected to exercise “diligence of a good father of a

family” in taking care of the ready to lay hens. Death of the hens due to any
cause (natural or intentional) will not terminate/alter the obligation of the
SECOND PARTY to follow their payment schedule, except when such
change is initiated by the FIRST PARTY.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to

be signed in their respective names in _______________________________,
Republic of the Philippines, as of the day and year written above:

For the Provincial Government

of Nueva Ecija

_____________________ _____________________________

Administrator, Nueva Ecija Livelihood Beneficiary

SIGNED IN THE PRESENCE OF:

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_____________________ _____________________

ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES)
___________________________)S.S.

BEFORE ME, a Notary Public for and in the above jurisdiction, personally
appeared the following:

NAME COMPETENT EVIDENCE DATE/PLACE

OF IDENTITY ISSUED

known to me to be the named persons who executed the foregoing instrument and
acknowledged to me that the same is their own free will and voluntary act and deed.

This instrument consists of six (5) pages including this page wherein this
Acknowledgment is written, and is signed by the parties and their instrumental
witnesses on each and every page hereof.

WITNESS MY HAND AND SEAL, this _____ day of ______________

20__ at _______________________, Philippines.

NOTARY PUBLIC
Doc. No. ____;
Page No. ____;
Book No.____;
Series of 20__.

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 ANNEX A
PAYMENT SCHEDULE FOR NUEVA ECIJA PROVINCIAL FOOD COUNCIL
LIVELIHOOD BENEFICIARIES

MONTH AMOUNT 41 633.33

1 633.33 42 633.33
2 633.33 43 633.33
3 633.33 44 633.33
4 633.33 45 633.33
5 633.33 46 633.33
6 633.33 47 633.33
7 633.33 48 633.33
8 633.33 49 633.33
9 633.33 50 633.33
10 633.33 51 633.33
11 633.33 52 633.33
12 633.33 53 633.33
13 633.33 54 633.33
14 633.33 55 633.33
15 633.33 56 633.33
16 633.33 57 633.33
17 633.33 58 633.33
18 633.33 59 633.33
19 633.33 60 633.33
20 633.33 TOTAL 38,000.00
21 633.33
22 633.33
23 633.33
24 633.33
25 633.33
26 633.33
27 633.33
28 633.33
29 633.33
30 633.33
31 633.33
32 633.33
33 633.33
34 633.33
35 633.33
36 633.33
37 633.33
38 633.33
39 633.33
40 633.33

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