Proposed Joint Venture Project with Liza Paz Javier for Joint Venture for Crematorium and Columbarium

Her is a draft of proposed draft of Lease cum % of sales for crematorium (in a JV lease) with City of San Fernando in La Union;  

MADEL IPAREVIEW NA SA COUNSEL

This Agreement, entered  into by and between:

       Liza de la Paz Javier  married to ________________Javier, with residences at ____________________herein represented by Ma. Luisa Javier, hereintafter known as

      LANDOWNER

                                                                                                   and

    CCC    , a corporation established and subsisting under the Philippine laws with Principal Offiice  at  Angono Rizal   herein ein represeented  by______

_________as per its Board Resolution No ___dated hereinafter  referred to as the   DEVELOPER AMANGER

WITNESSESETH

      Whereas:    Objectives and background

      1.   The country was hit by Pandemic Covid 19 for which there is a need to rapidly dispose off infected bodies through cremation within 12, hours;  the nearest

            crematorium being in Antipolo City;  the Angono Crematorium is overloaded

      2.  The current cemetery is now filled and some areas have been closed  due to overcrowding;

      3.  The number of dead keeps on growing

       4    The landowner has an indle 668 square meters covered by TCT ___which can be transformed into something productive ( mention the title number and technical description)

   6.  The group of companies of the  DEVELOPER MANAGER  is engaged in the crematorium business, having built and operated 3 crematoria:    Angono, Calamba and Pangasinan

         FOR AND IN CONSIDERATION OF THE ABOVE PREMISES, the parties have hereunto agreed covenanted to enter into the following agreement

  1.  Nature -    Cash sharing which shall be divided every quarter

                        Cremation 

                         AMOUNT       and  30% of net sales of cremation (except for indigent, infant, bone cremation)   - 

                      Less:        

                                        Marketing expense                    10%    -    2,500.00

                                        Total                                          

                                       Expenses:

                                                Fuel x  40 liters x  P40.00    =  P1,600.00 (may increase depending on fuel prices)  6.4%

                                                Depreciation                         =   2,000.00              8%

                                                Labor      3%                         =     750.00              3%

                                               Urn                                         =    2,000.00           8%

                                              Electricity                                =       300.00          `1.2

                                                  Total                                   =      5,030..00        20.12
  

                                       

                    

                     FOR THE ASH CRYPTS (COLUMBARIUM)   70:30 cash sharing net of cogs and commission

                      Quantity:  Maximum of 10,000 ash crypts to be constructed abutting the front fence of the cemetery 7 layers with  roof made of _______materials

                                       with 3.25 meters pathwalk, to be shared 80:20 net of cost of goods sold,  for 50 year lease usufruct to be priced not lower than P30,000 for the 

                                       50 year lease, (top AB and  GH layer)  and P1,000 per year on 5 year lease for the indigent

                                      Collection on such basis net of COGS and other expenses shall be remitted treasurer every quarter

                                      Amount deductible:

                                     Commission -                                   10% of the gross

                                    Maintenance fee 5 year advance -   10% of the gross

                                   Cogs                                                    4,000.00

             1. In no instance shall there plots or area sharing only cash sharing

             2.  Only the developer shall be in charge of running the operations.

            3.  In this respect the Grant Right of way shall be respected

2.  Areas and exact location:

                  Crematorium  300 sm at ___________________________ show sketch at the 668 sm

                 Columbarium  total linear meters:

                           Fence                                                      220

                          At the ROW (668 sm)                                90

                                                                                          310/0.3     1,033 x 7

Documentation:   Joint Venture (MOA)

4    Permits: and sharing of the same

      Shall be the responsibility of the Land owner  (Barangay, Mayors Pe however the fees shall be paid by the MANAGER DEVELOPER

     Expenses shall be shared on 70:30 basis and deducted in advance from share for:  Mayors permit and real estate taxes

5.  Commencement and duration of construction

     The construction of the  crematorium shall commence upon:

             1.  Issuance of Municipality Resolution

             2.  Signing of the Moa

             3.  Certified plan showing location of the crematorium and and columbarium

             4.  Barangay and municipal mayors permit

             

    Duration of construction 120 days from the latest issuance  of requirements for Number 5.  Any delay shall merit 1/20% for every day of delay."

    Construction of columbarium shall commence not later than 120 days after start of crematorium operation of batches of 1,000 units

6.  Start of operation:

      1.  Operation can commence upon issuance of  Temporary Operating Permit issued by City Healh Office and thereafter 

           obtaining the ECC through the help of the City (exempted)

          Requirements:

         1.  Building permit

         2.  Occupancy permit

         3.  BFP certification

         4  Sanitary Permit

        5.  Certificate of Training for Machine Operators

7.  Specifications of crematorium machine and building

     1.  Building with an area of ____________

        1. Waiting area   50 sm with chairs ( AC)

        2.  CR   20 sm  (male and female separate(

        3.  Cremation room 80 sm good for two machine

        4.  Store room for discarded casket 100 sm Total area 280

     2.   Cremation Machine:   specifications

        Description:

           1. Primary / Combustion Chamber

           2. Secondary Chamber

          3. Primary and Secondary Diesel Burners

          4. Steel Structures

          5. High temperatures cast table refractory, Ceramic fiber and Fire bricks

         6. Main door with Hydraulic control

        7. Ash collector door

        8. Chimney line with insulations

       9. Electrical wirings and controls
 
        10. Temperature controller thermocouple

       11. Diesel day tank and piping

           MACHINE SPECIFICATION

          1. Technology – Korea

         2. Made – Philippines

        3. Materials – From Germany, Japan, Korea, Malaysia and Philippines

        4. Electrical Components and Controls – From Japan, Germany and Korea

        5. Total weight – 4 Tons

ELECTRICAL COMPONENTS SPECIFICATION

       PARTS BRAND MODEL

        Circuit breaker SCHNEIDER MCCB E2100H 50A 2P

        Circuit breaker SCHNEIDER MCB IC6ON C 10A

       Temperature controller DELTA DTA9696RO

       Relay OMRON MY4NJ

       Relay OMRON MY2NJ

       Automatic Voltage Regulator WIXIM 10KVA single phase

      Over load relay OMRON LRD – 07

     Over load relay OMRON LRD – 12

     Magnetic Contractor SCHNEIDER

     6. Total power – 3,500 watts

    7. Power supply – 230 volts, 60Hz.

   8.Phase - Single

DETAILS SPECIFICATION

CHAMBER

1. Primary Chamber

- Type : Cabinet

- Material : Casing : Steel

- Wall and Floor : Ceramic Fiber and Castable

- Ceiling : Ceramic Fiber (capable of withstanding heat of up to 2,500°c)

- Control Temperature : 850°c – 1,100°c

- Acce
ssories : Bronze – Plated door, sash outlet box, process observation window

2. Secondary Chamber

   - Type : Circle type

   - Material : Ceramic Fiber & Castable

   - Control Temlerature : 850°c – 1,100°c

   - Air supply : Rotate at the secondary chamber with the angle of 45°

      

BURNER

      1. MAIN BURNER

      Type : Fuel Injection

      Fuel : Diesel Oil

      Quantity : 1 set

      Control Range : 37,800 – 378,000 Kcal / hr.

       Control Method : Automatic Adjuster for air / fuel mixture

2. AFTER BURNER

     Type : Fuel Injection

     Fuel : Diesel Oil

    Quantity : 1 set

    Control Range : 37,800 – 378,000 Kcal

8. Security:

   The same has been provided in the total amount of P1.6 million as consideration for the grant of right of way dated and paid:

              Loan -                                                  P400,,000

              Payment for consideration of ROW   P1,200.00

             The same shall be recouped by deducting 10% of the Land owner share every month

 9. Duties and responsibility

    Both:

   1.  To abide and comply with this joint venture agreement.

   2.  To communicate as businessman and shun courts and lawyers..

   Land owner:

  1.  Security of the  property

  2.  Keep the developer manager safe from law suit and interference by  its JV partner Unisun

  3.  To continue its business of plot sales and interment

  4.  To up its maintenance expenditures and efforts so that the columbarium may be sold

  5.  Provide free egress ingress without need of demand;

  6.  Engage in marketing activities for the sale of cremation and columbarium for which it can get maximum commission of 10%

  7.  Cooperate and be one with developer manager for this project

   Developer:

   1.  Building and maintenance of crematorium

  2.  Share the office space  at crematorium

  3. Promptly pay for the electric and water bills

  4.  PUrchase and install the ash crypts

  4.  Market the  project

  5. Maintain office staff to operate and maintain the crematorium

  6.  Record keeping of the ash crypts

   

9.  Termination

   Since this is covered by PD 957 and EO 648, termination upon completion of project is not allowed

  However if serious breaches are committed  during construction which include but not limited to

     1.  Delay of compliance beyond the 100 days

     2.  Machine is not per specifications

     3. Inability to operate the machine due to fault in manufacture and specifications

    termination may be instituted by the Lessor upon due notification and due notice.

   However if it is not the fault of the Lessee which include but not limited to:

    1.  Inability to by the municipality  council to agree; to grant a resolution/ordinance

    2.  Non issuance of TOP

    3.  Objection by SMC, SM and the adjoining  subdivision

   the  Lease may be terminated and the equipment and or amount spent by the LESSEE be returned.without need of demand

10   Pricing

    Initial pricing shall be as follows. provided however that pricing changes shall be guided by the principle of those who have less in life shall have more;

    may be resorted to not more than 1x a year, and justified only by 10%+ increase in prices of fuel and electricity

                          For all                                P25,000 + free urn (marble) no pick up no embalming

                                                                    +P5,000 for embalming

                                                                   +  P5,000 for pick up anywhere near the city  (25km radiius)

                                                                 P12,000 infant

                                                                P12,000 bone and body parts

                                                                  + P20,000 for covid case

                                                                 P15,000 indigent

                                                                lease of P1,000 per year minimum of 5 years for indigent

                                                              PAYABLE IN CASH

      50 year lease usufruct of ash crypts                                                             

                                                          A                         45.000.00                     

                                                          B                        50,000.00   

               

                                                         C                        55,000..00  

                

                                                          D                      60,000.00

                                                           E                      55,000.00                     

                                                           F                      50.,000.00                    

                                                           G                     45,000.00        

            

N.B  The price  is subject to review depending on supply and demand

11.  Representation and warranties

     1.  That the signatories herein stated are duly authorized by their respective boards to enter into this agreement;  especially that Liza Javier has the authority

           and capacity to represent the de la Paz estate

     2.  That the Lessee has been engaged in this business for more than 15 years (cremation) and has financial capability and expertise to enter

         into this agreement

    3.  That the machine being purchased by the DEVELOPER MANAGER is of high quality from a reputable supplier whose experience in the industry is for 20 years

    4.  That the LAND OWNER  entered into  this agreement, in good faith and shall not be involved in third party claims and suits (especially from competitors

         and the DEVELOPER MANAGER shall defend the former against whomsoever at his expense

    

    6.  The land owner shall not go to courts to settle an issue and shall communicate amicably with developers otherwise a fine of P100,000 shall be paid by

          the same for every occasion

12.  Boiler plate provisions

     1.  Separability -  In case of legislation and or court decisions that render any provision of thisi contract void or illegal, this shalll apply only to that provision and

                               and shall not render the entire contract void or illegal

    2.  Assignability and transferability  - the provision of this agreement shall be applicable and shall subsist to assingns, agents, heirs and successors in interest

    3.  Clarity of terms and thorough review -  the parties were guided by their respective counsel and terms and conditions explained in the dialect or language that

         is clear to them thereby avoiding litigation

   4.   Jurisdiction -  this agreement is under the jurisdiction of MTC of Angono and RTC of Binangonan.  However arbitration is the first recourse

   5.  Amendment -   Any party may request for an amendment with a prior 30 days notification  However, amendment can only over certain provisions and all of hte

                                agreement

   6.  Notification -  Either party may notify in writing (SMS or gmail) the other party

   7.  Acts of God -   Either of the party is exempted from compliance especially the penalty provision if there is an act of God:

                               1.  Typhoon

                               2.  Earthquake

                               3.  Tsunami

                               4.   Insurrection by NPA, Rev Govt

                               5.  Covid resurgence  of 20 or more in the City or other pandemic -   ASF, MERS, bubonic plague, etc. 

  8.  Confidentiality - contents of this agreement shall not be divulged to third parties

  9.  End of the agreement 

      It shall end when 95%5 of the  columbarium has been sold for the columbarium project;   the crematorium  project shall continue in perpetuam until such time that

     the  developer manager can do TPM of the  crematorium and  keep this in top operating condition

    The parties have hereunto set forth their HANDS this ___day of ___at __________________________