DHSUD HOACD Form No.

2021-003C

PLAN OF FEDERATION

This Plan of Federation executed and entered into on this (day, month and year)
at (place of execution), by and among:

(Association A), a homeowners association duly organized and existing under the
laws of the Republic of the Philippines, with principal office at (address),
represented herein by its President, __________________, hereinafter referred
to as "(reference for Association A)”;

and

(Association B), a homeowners association duly organized and existing under the
laws of the Republic of the Philippines, with principal office at (address),
represented herein by its President, __________________, hereinafter referred
to as "(reference for Association B)”;

(reference for Association A) and (reference for Association B) are hereinafter

referred to as the "Constituent Associations”

TERMS

WHEREAS, the respective Board of Directors of the Constituent Associations

deemed it prudent and in the best interests of each association and its
respective members that (Association A) and (Association B) federate into an
alliance association to be known as (Name of Federation) with principal office at
(address) and (territorial jurisdiction), in order to advance their long-term
strategic interests;

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

Constituent Associations have mutually agreed and hereby agree to accomplish
the Federation as follows:

The Federation shall become effective on (date) following the issuance by the
Department of Human Settlements and Urban Development (DHSUD) of a
Certificate of Incorporation of the Federation subject to compliance.
 DHSUD HOACD Form No. 2021-003C

At and after the Effective Date, all of the legal consequences set forth with Rule
VIII of the Revised Implementing Rules and Regulations of RA 9904
(Department Order 2021-007, Series of 2021)shall take effect with respect to
the federation, including the following:

a. The separate existence of (Association A) and (Association B) shall still

exist.

b. (Association A) and (Association B) shall continue to possess all its rights,

privileges, immunities and powers and shall continue to be subject to all
its duties and liabilities prior to the Federation.

c. Upon effective Federation date, all respective rights, assets and other
properties of the Constituent Associations including but not limited to, all
real and personal properties, contractual rights, licenses, privileges,
property rights, claims, bank deposits, accounts receivables, credit lines,
supplies, equipment and such other assets shall still belong to (Association
A) and (Association B).

d. The respective Articles of Incorporation and Bylaws of the Constituent

Associations shall continue to be the Articles and Bylaws of (Association A)
and (Association B) until thereafter changed or amended in accordance
with law.

e. The directors of the Constituent Associations continue to be the directors

of (Association A) and (Association B), each to hold office in accordance
with their respective Articles of Incorporation and Bylaws until their
respective successors are duly elected and qualified.

f. That by purpose of having a unified goal, this Federation shall adopt the
rights, obligations and powers set forth in its Articles of Incorporation.

g. That there are equal shares of capital from Constituent Associations for its
common fund for projects to be developed by the Federation.

h. That the Federation shall comply with the requirements of non-stock

corporation in the course of its operation.

The effectivity of this Plan of Federation shall be subject to the approval of the
Department of Human Settlements and Urban Development.

AGREEMENTS

The Constituent Associations hereby undertake to:

a. Secure the conformity and approval of this Plan of Federation by the

majority of the Board of Directors and the majority members of the
association in their respective special meetings called for such purpose.
 DHSUD HOACD Form No. 2021-003C

b. Jointly exert their best efforts to secure the approval of the Federation
and its related transactions from the government authorities.

Prior to Effective Date, the Constituent Associations shall conduct their

respective affairs in substantially the same manner as previously conducted and
shall continue to preserve said affairs as a going concern. However, each
(Association A) and (Association B) shall give each other immediate notice of
any claim, event or transaction which could or does materially and adversely
affect their respective affairs, properties or financial condition.

The Constituent Associations shall execute and deliver, or cause to be executed

and delivered, all deeds and other instruments and shall take, or cause to be
taken, all such other and further acts desirable in order to fully carry out the
intent and purposes of this Plan of Federation.

Unless otherwise required by law or regulation or as may be agreed upon by the

parties, each of the Constituent Associations will use its best efforts to keep
confidential any information obtained from the other party, and in the event the
Federation is abandoned or not consummated, (Association A) and (Association
B) shall return all documents and other written information and materials
obtained in connection herewith.

All fees, costs and expenses relating to only one party shall be borne exclusively
by the party incurring the same. All common costs and expenses shall be equally
borne by each of the Constituent Associations.

SPECIAL PROVISIONS

This Plan of Federation has been approved by the respective Boards of Directors
of the Constituent Associations and shall be submitted to their respective
members for approval in accordance with law and the respective Bylaws of
(Association A) and (Association B); provided, that the approval of this Plan of
Federation by the majority of the members of (Association A) and (Association
B) will constitute an authorization to their respective Board of Directors by
majority vote to amend, modify or supplement this Plan of Federation; provided
further, that such amendment, modification or supplement shall not substantially
change the terms of the Federation.

As soon as practicable after the Effective Date, (Federation Name) shall apply for
and avail itself of the federation incentives or other similar incentives granted by
 DHSUD HOACD Form No. 2021-003C

the DHSUD and other government agencies, as may be applicable or allowed

under existing law, rules and regulations.

Upon approval of this Plan of Federation by the required votes of members of

(Association A) and (Association B) during their respective meetings called for
the purpose, the attached Articles of Federation marked as Annex "A " hereof
and made as an integral part of this Plan of Federation shall be executed by
(Association A) and (Association B), to be signed by the (President/Vice
President) and certified by the Secretary of each of (Association A) and
(Association B) setting forth this Plan of Federation the number of voting for and
against this plan of Federation, respectively.

In the event that the Federation is not consummated for whatsoever reason,
each of (Association A) and (Association B), their respective members and
directors shall hold each other free and harmless from any and all liabilities and
damages arising from or incurred by reason of the non-consummation of the
Federation.

IN WITNESS WHEREOF, the Constituent Associations have signed this Plan of

Federation at the place and on the date above written.

Association A Association B

By: Authorized Signatory By: Authorized Signatory