Procuring Entity: POLYTECHNIC UNIVERSITY OF THE PHILIPPINES (“UNIVERSITY” for brevity)

TERMS AND CONDITIONS

1. The AWARDEE shall be responsible for the source(s) of his supplies/materials/equipment and shall make deliveries in accordance with the schedule,
quality and specifications of the award and purchase order. Failure by the AWARDEE to comply with the same shall be ground for cancellation of the
award and purchase order issued to the AWARDEE.

2. The AWARDEE shall pick up purchase order(s) issued in his favor within three (3) days after receipt of notice to that effect. A fax transmission shall
constitute as an official notice to the AWARDEE. To avoid delay in the delivery of the requesting agency’s requirement, all DEFAULTING AWARDEES
shall be precluded from proposing or submitting a substitute sample.

3. The period of delivery shall commence from the time of receipt of the Notice to Proceed. The AWARDEE must deliver the goods within the period
stipulated in the purchase order.

4. If delays are likely to be incurred, the AWARDEE must notify the UNIVERSITY in writing. It must state therein the cause/s and duration of the expected
delay. The UNIVERISTY may grant time extensions, at its discretion, if based on meritorious grounds, with or without liquidated damages. In all cases, the
request for extension should be submitted before the lapse of the original delivery date. The maximum allowable extension shall not be longer than the initial
delivery period as stated in the original contract. (Manual of Procedures for the Procurement of Goods and Services)

5. All deliveries by the AWARDEE shall be subject to inspection and acceptance by the UNIVERSITY. All necessary laboratory tests undertaken by the
UNIVERSITY on the item(s) shall be for the account of the supplier. The UNIVERSITY reserves the right to reduce the price in case of non-conformity of
the product(s)/item(s) with the technical specifications reflected in the purchase order.

6. The terms and conditions of the original contract shall not be changed or modified, except when changes or modifications will redound to the advantage of
the UNIVERSITY without incurring any additional cost.

7. The AWARDEE shall hold the UNIVERSITY free and harmless from and against any and all claims, demands, suits, and causes of action, including
without limitation, claims for consequential and other damages incurred by third party due to or arising from all acts or omissions of the AWARDEE, its
employees, personnel, agents and/or representatives in connection with the performance of its obligations under this agreement.

8. The AWARDEE expressly warrants that the delivery of the product(s)/item(s) will conform to and shall be in accordance with the specifications provided in
this agreement and will be free from defects and deficiencies. Any defective item(s) / product(s), therefore that may be discovered by the UNIVERSITY
within three (3) months after acceptance of the same, shall be replaced by the AWARDEE within seven (7) calendar days upon receipt of a written notice to
that affect.

9. The AWARDEE shall warrant and make good any technical defects during the warranty period and shall make any and all remedial works required at its
sole expense. The AWARDEE shall undertake the repairs of any form of defects within twenty-four (24) hours from notice of said defect;

10. The AWARDEE warrants to comply with all government auditing and accounting rules and regulations relating to government project and payment thereof;

11. All duties, excise and other taxes and revenue charges, if any, shall be for the AWARDEE’s account.

12. All transactions are subject to withholding of creditable Value Added Tax (VAT) per Revenue Regulation No. 10-93.

13. Payment shall be processed after and upon submission of the required supporting documents, in accordance with existing government accounting rules and
regulations. Please note that the bank transfer fee, if any, shall be chargeable to the contractor’s account.

14. If the AWARDEE fails to deliver any or all of the items within the period(s) specified in the purchase order, the UNIVERSITY shall, without prejudice to
its other remedies under this agreement and under applicable laws, be entitled to liquidated damages, a sum equivalent to one-tenth of one percent of the
total amount of the undelivered items for each day of delay. Once the cumulative amount of the liquidated damages reaches ten percent (10%), the
UNIVERSITY may rescind or terminate the agreement, without prejudice to other courses of action and remedies available under the circumstances. (IRR-
A Section 68, Annex “D” of Republic Act No. 9184 (R.A. No. 9184) otherwise known as the Government Procurement Reform Act)

15. The UNIVERSITY shall terminate the contract for default when any of the following conditions attend its implementation:

a. There being no force majeure, the AWARDEE fails to deliver any or all of the goods within the period(s) specified in the contract, or within any
extension thereof granted by the UNIVERSITY pursuant to a request made by the AWARDEE prior to the delay, and such failure amounts to at
least ten percent (10%) of the contract price;

b. As a result of force majeure, the AWARDEE is unable to deliver or perform any or all of the goods or services, amounting to at least ten percent
(10%) of the contract price, for a period of not less than sixty (60) calendar days after the receipt of the notice from the UNIVERSITY stating
that the circumstance of force majeure is deemed to have ceased;

c. The AWARDEE fails to perform any other obligation(s) under the contract; or

d. The AWARDEE, in the judgment of the UNIVERSITY, has engaged in corrupt, fraudulent, collusive or coercive practices in competing for or
in executing the contract. (Paragraph III, Annex “I” of the 2016 IRR of R.A. No. 9184)

16. The UNIVERSITY reserves the right to impose administrative penalties upon the AWARDEE when he commits any of the acts which constitute as an
offense or violation under Section 69, Article XXIII of Republic Act No. 9184. Likewise, in addition to the foregoing penalties, the UNIVERSITY reserves
its right to blacklist the AWARDEE for offenses or violations committed during competitive bidding and contract implementation, pursuant to the Uniform
Guidelines for Blacklisting or Manufacturers, Suppliers, Distributors, Contractors, and Consultants. (Appendix 17 of R.A. No. 9184)

Conforme:
Signature over Printed Name

Date