Republic of the Philippines PALOMPON INSTITUTE OF TECHNOLOGY 6538 Palompon, Leyte Telefax (053) 555-9841 E-mail: pit [email protected]

A CONTRACT FOR THE SUPPLY, DELIVERY, AND HANDS-ON OF VARIOUS MUSICAL INSTRUMENTS

KNOW ALL MEN BY THESE PRESENTS:

This contract made and executed this 2nd day of November 2015 at Palompon, Leyte, Philippines by and between Palompon Institute of Technology, duly represented in this act by DR. ANGELITA F. PAJARON, Officer-ln-Charge , hereinafter referred to as the Client;

and

Better Components Incorporated, organized and existing under and by virtue of the laws of the Philippines with an office address at corner Juan Luna and Juan de la Cruz Street, Davao City and duly represented in this act by Mr. Romeo J. Antonio Jr, Product Demonstrator, hereinafter referred to as the Supplier;

WITNESSETH THAT:

Whereas, the Client desires to purchase brand new musical instruments to be used by the faculty and students of the Palompon Institute of Technology for its educational and cultural activities;

Whereas, the Supplier is a corporation registered with the Securities and Exchange Commission with Registration Number 02001 dated 21, 2001;

Whereas, the Supplier is willing and capable of supplying all the brand new musical equipment described under Paragraph 1, Section 1 hereof.

NOW THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants and provisions hereinafter set forth, the parties hereto agree and do hereby mutually agree as follows:

SECTION 1 SUPPLIER RESPONSIBILITIES

1. Supply the Client with brand new musical instruments with specifications as follows :

QTY UNIT ITEM DESCRIPTION

1 piece A 1 unit Acoustic Guitar, CG101, Yamaha 1 piece Bajo de Arco

/ piece Banduria 2 piece Bass , Size 26 3 piece Bugle Mouthpiece, Size 7c and 1 Bugle 1 pair Conga 1 set Cowbells with Stand 2 piece Cymbals with Stand 4 piece Dabakan 14 pair Drumhead, Size 14 1 set Gabang/Gambang 1 piece Gambal 1 piece (Dabakan) 2 piece Laud 5 piece Lyre 2 unit Octavina 1 set Sarunay 4 unit Telescopic, Microphone Unidirectional 4 unit Telescopic, Microphone Stand 1 set Tictac with Stand

2. Warrant the following:

2.1. Each must have all the components and perform the function Is specified in Section VI (Schedule of Requirements for the procurement of science laboratory equipment) and Section VII (Terms of Reference)

2.2. The delivery period shall be from 30-45 days after the issuance of the Notice to Proceed.

2.3. A staff who shall serve as a contact person whenever problem/s may arise, shall be provided.

2.4. The required cabling of all the musical instruments shall be installed.

2.5. On-site hands-on training shall be provided to the Client's staff for 8 hours covering the use, operation, repair and maintenance of all equipment.

2.6. Two (2) copies of the manual of operation and repair of each equipment shall be furnished.

2.7. Technical assistance shall be given in case of breakdown of the musical instrument il 2.8. Availability of spare parts shall be made available. 2.9. The equipment shall be shipped free of charge.

2.10. On- site testing of the equipment shall be provided.

2.11. Each piece of equipment shall have a warranty period of one (1) year. SECTION 2 CLIENT RESPONSIBILITIES

1. Provide a safe room complete with lighting and ventilation facilities to house all the equipment.

2. Provide accommodation for the Supplier's staff for any required hands-on training and on-site stay for any training extension request.

SECTION 3 FINANCIAL TERMS

1. The contract price for all musical instruments shall be four hundred sixty nine thousand five hundred pesos (P469,500.00)

2. The mode of payment shall consist of two batches as follows :

2.1. After the delivery, installation and hands-on training of the Client's staff as specified in Section 1 of this agreement, the Client shall pay eighty percent (80%) of the contract amount.

2.2. After the acceptance of the equipment by the request party, the Client shall pay twenty percent (20%) of the contract amount.

2.3. Ten percent (10%) of the amount of each payment shall be withheld by the Client. The retained amount shall be paid to the Supplier after the lapse of the warranty period together with the performance bond. Below is the schedule of deduction for each payment.

2.3.1 After the delivery, installation and hands-on training, 10% out of 80% of the cost of the contract (10% of P375,600) in the amount of thirty seven thousand five hundred sixty pesos (P37.560.00) shall be withheld by the Client. After acceptance, 10 % out of 20% of the contract price (10% of P93, 900) in the amount of nine thousand three hundred ninety pesos (P9, 390.00) shall be withheld. A total of forty six thousand nine hundred fifty pesos (P46, 950.00) shall be withheld.

SECTION 4 WARRANTY, MAINTENANCE, AND SUPPORT

1. Warranty. The Supplier shall provide a warranty period of one (1) year from the date of acceptance.

2. Maintenance and Technical Support. The Supplier shall provide on-site /off- site technical support to the client within the contract period.

3. Post-Warranty Maintenance and Support Services. Online/ on-phone support shall be provided to the Client. All on-site support expenses after warranty period shall be shouldered by the Client.

IN WITNESS WHEREOF, the parties, through their duly authorized representatives have hereunto set their hand this 2nd day of November, 2015 at Palompon, Leyte, Philippines. PALOMPON INSTITUTE OF TECHNOLOGY BETTER COMPONENTS INCORPORATED (CLIENT) (SUPPLIER)

By: By: r\A F.CPAJARON

ROMEO-3 ANTONIO JR Product Demonstrator

SIGNED IN THE PRESENCE OF:

1. 2. C-

CERTIFIED AS TO THE AVAILABILITY OF FUNDS:

SARAH FRANCES C. BATE CAO for Finance ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES CEBU CITY ...... )Sc.

At the place -above-mentioned this day of November, 2015, personally appeared before me:

AJARON TIN NO.

ROMEO ANTONIO JR. TIN NO. (/?!- OOP Product Demonstrator

Known to me and to me known, through their respective proof of identity above-indicated, to be the same persons who executed the foregoing instrument known as a contract for the supply, delivery, hands-on of various musical instruments, consisting of five (5) pages, including this page, where the acknowledgement is written, and acknowledged before me that they are authorized by the respective entities they represent; and that they freely and voluntarily signed the same.

WITNESS MY HAND AND SEAL, at the place and on the date first above-written. \ YA ATT*TKIM DOC. NO. A/onjry Public for Cebu City* Book No. o Until December 31, 2015 Page No. Suite 3b JL BIdg., Don Jose Avila St. Series of 2015 Capitol, Cebu City 6000 Philippines Telephone number (6222) 2660516 Roll No. 54316 - Not. Com. No. 166-08 PTR No. 71164*8 January 6. 2D15, Cebu City IBP No. 966577 Ja-utary 6, 2015, Cebu City viCLE Compliance No. ill - 00124*1. April 19 VICLE Compliance No. IV- 0018273, April 23, V.