MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Memorandum of Agreement is made and entered into this 25th day of July 2008 in
the City of Cagayan de Oro, Misamis Oriental, Philippines by and among;

KORDEORO CORPORATION, a private corporation duly organized and existing under

the laws of the Philippines, with principal business address at 2nd floor, Jaraula-Brinas Bldg.,
Serina st., Carmen, Cagayan de Oro City, herein represented by its President, MRS ASAHAN
T. LAUSAN by virtue of a Board Resolution hereto attached as Annex “A”, hereinafter referred
to as the ‘FIRST PARTY’.

-AND-
HIGA-ONON TRIBAL COMMUNITIES of Barangays Basak and Lantud, Municipality of
Talakag, Province of Bukidnon, herein represented by its duly authorized representative, DATU
LANTONG LIANAN D. BALANSI, by virtue of Resolution No. 01 Series of 2008 hereto attached
as Annex ‘B’, and hereinafter referred to as the “SECOND PARTY”;

NATIONAL COMMISSION OF INDIGENOUS PEOPLE, a government agency under

the Office of the President and created by virtue of Republic Act. No. 8371, otherwise known as
the Indigenous Peoples Right Act (IPRA) of 1997, with Central Office Address at 2nd Floor, N.
Dela Merced Bldg., Corner West-Quezon Avenues, Quezon City, represented by its Chairman,
HON. EUGENIO A. INSIGNE, and hereinafter referred to as the “THIRD PARTY”.

WHEREAS, the FIRST PARTY is a Corporation engage in the business of Agro-

Industrial Production;

WHEREAS, the SECOND PARTY is a Tribal Community belonging to the Bukidnon

Tribe and has pending application for the issuance of their Certificate of Ancestral Domain title
involving the Barangays Basak and Lantud, Talakag, Bukidnon, with an approximate Area of
Five Thousand Hectares more or less (5,000) Has., more or less;

WHEREAS, the SECOND PARTY has accepted the program of activities presented by
the FIRST PARTY during the Community Consultative Assembly;

WHEREAS, the THIRD PARTY is the primary government agency mandated and talked
under R.A. 8371 for the formulation and implementation of policies, plans and programs to
promoted and protect the rights and well-being of the IPs/ICCS;

WHEREAS, section 57 of R.A. 8371 provides the IPs/ICCs shall have the priority rights
in the harvesting, extraction, development or exploitation of any natural resources within the
ancestral domain. A non-member of the IPs/ICCs concerned may be allowed to take part n the
development and utilization of the natural resources for a formal and written agreement is
entered into with the IPs/ICCs concerned or that the community, pursuant to its own decision
making process has agreed to allow such operation, provided finally, that the NCIP may
exercise visitorial powers and take appropriate action to safeguard the rights of the IPPs/ICCs
under the same contract.

NOW, THEREFORE, for and in consideration of the foregoing premises, the PARTIES
have agreed, as by these presents, do hereby agree to be bound by the following terms and
conditions, to wit;

1) EFFECTIVITY: That this Agreement shall take effect upon the issuance by the NCIP of the
Certification Precondition.

2) COVERAGE: The SECOND PARTY shall make available to the FIRST PARTY such
portion of their Ancestral Domain for the Agro-industrial Production as determined by the
 latter after the conduct of the actual survey in Barangays Basak and Lantud, Talakag,
Bukidnon.

3) DURATION: The duration for this agreement shall be 25 years, renewable for another
period not exceeding 25 years only (maximum of 50 years only);

4) CONSENT: Upon the signing of the MOA, it is understood that the SECOND PARTY has
already given their consent in favor of the FIRST PARTY.

5) OBLIGATION OF THE FIRST PARTY:

a. EMPLOYMENT OPPORTUNITY: In hiring for the manpower services that the project
shall require, the FIRST PARTY shall ensure equal opportunities for admission to
employment, both skilled and unskilled, to the members of the SECOND PARTY of
the host Barangay, in any capacity commensurate to qualifications and fitness.
b. SALARIES/WAGES: The Second Party shall provide the manual laborers which the
First party may need for its project, it shall be the first party who will pay for the labor
cost at the rate of Php 207/day per laborer through the Second Party (Labor wage
190 per day: SSS/PHILHEALTH. Php. 17.00per day),
c. ANNUAL RENTAL: The FIRST PARTY shall pay an annual rental of Php
8,000.00/hectare per year on the areas that are already develop/planted provided that
the said area is located within the 250 meters from the National Highway
develop/planted area.
d. CONSTRUCTION OF TRIBAL HALL: The FIRST PARTY shall help financed the
construction of the Tribal Hall of the SECOND PARTY.
e. WATER AND ELECTRICITY; The FIRST PARTY shall provide water and electricity
to one family/five (5) hectares that is already developed/planted it is understood that
the FIRST PARTY shall assign one family member of the SECOND PARTY for every
five hectares develop/planted.
f. RELOCATION: Before the actual operation/s on the area affected, the FIRST PARTY
shall ensue that a proper relocation/resettlement plan shall be in place for the transfer
of the affected individual of family within the ancestral domain, excluding burial/sacred
grounds.
g. SUPPORT TO FESTIVAL: The FIRST PARTY shall provide for an annual financial
support in the amount of Php 25,000.00 for the two barangays.
h. SUPPORT TO CADT AND ADSDPP: The FIRST PARTY shall finance the
processing of CADT and ADSDPP formulation of the SECOND PARTY, the amount
of which will be determined by the Work and Financial Plan being prepared by the
NCIP BUT IN NO CASE HSALL EXCEED THE AMOUNT OF 3 Million Pesos.
i. Recognize and respect the rights, interests of the SECOND PARTY in the their
ancestral domain in accordance with their customs and traditions and the provisions
of R.A. 8371 and its implementing Rules and Regulations as well as the relevant
orders and issuances made by NCIP;
j. CASH ADVANCE: The FIRST PARTY shall grant to the SECOND PARTY a Cash
advance of one (1) Year of the rentals, net of development area, upon issuance of the
Certification Precondition by the NCIP.
k. To ensure that there are available funds for the salaries and wages, the company will
deposit One Million Pesos in the Bank.
l. Each Family shall have a work area equivalent to at least 5 hectares; 1 Led man and
5 laborers;
m. To develop the ancestral domain into an Agro-Industrial area for Banana, Rubber
Trees, Cassava and Corn.
n. Payment of Php 500.00 per net developed area hectare for educational plan and for
other welfare of ICCs/IPs.
o. Donate a baby carabao to each Barangay Basak and Lantud annually;
p. To help IPs for First Aid medicine and provide one midwife in the community to serve
pregnant women.
 q. If constructed within the 5,000 hectares area, the hydro-electric system shall be the
exclusive property of t FIRST PARTY.
6) OBLIGATIONS OF THE SECOND PARTY: Upon effectivity of the agreement the SECOND
PARTY hereby undertakes to:
a. Submit a resolution giving its free and prior informed consent to the FIRST PARTY:
b. Be responsible and warrants that reasonable efforts will be extended to the end in
view that the project of the FIRST PARTY within its Ancestral Domain shall be
peaceful and free from any harassment or interferences that may hinder the
operations of the FIRST PARTY, including the safety of its personnel and
consultants;
c. Manage its ancestral domain consistent with the culturally and environmentally
sound and sustainable practices;
d. Comply with policy and security regulations of FIRST PARTY and made known to
the community, provided that the same is not inconsistent with existing laws and
regulations, affecting the life, safety and health of the members of the SECOND
PARTY;
e. To use financial support received from FIRST PARTY, in a manner as to improve
and preserve the culture and practices of the SECOND PARTY as an indigenous
Cultural Community.
f. The Second party shall recognize the representative of the First Party as an adopted
Datu in the Ata Tribe under the name of Datu Patungo Lausan;
7) ROLE OF NCIP. As a “Third Party” to this agreement, the NCIP shall observe in addition to
those mandated law, the following duties and responsibilities;
a. To protect and promote the interest and well-being of the indigenous peoples with
regard to their beliefs, customs, tradition and practices;
b. To monitor that the terms and conditions as stipulates in this agreement be
respected and shall impose sanctions or penalties for non-compliance and/or
violations of the same in accordance with the provisions of R.A. 8317 and other
related Orders and Issuances of the NCIP;
c. To exercise its visitorial rights as guardians of the rights of IPs/ICCs;
d. In case of dispute, to act as mediator and keep parties arrive at a reasonable
settlement.

8) TRANSFERABILITY/NON-TRANFERABILITY OF CONSENT. The Free and Prior Informed

Consent granted to the FIRST PARTY for a particular proposed policy, program, project or
plan, as general rule, shall not be transferable to any other party, except in case of merger,
reorganization, transfer of rights, acquisition by another entity, or joint venture and the prior
written concurrences/consent of the IPs/ICCs to the merger, reorganization, transfer of
rights, acquisition by another entity, or joint venture has been obtained: Provided, that there
will be no changes in the original policy, program, project, or plan and; Provided, further, that
the same shall not prejudice the interest, rights and welfare of the concerned IPs/ICCs.
Provided finally, that the terms and conditions of this MOA shall bind the new proponent
without necessarily executing another MOA.

9) MODIFICATION. Any modification/s of this agreement shall not be binding unless all parties
concur in writing.

10) PENALTIES AND SANCTIONS. Any person/party who willfully violates or fails to comply
with his duty or obligation under the provisions of the MOA may be proceeded in
accordance with the customary laws and practices of the SECOND PARTY and sanctions
may be imposed in accordance therewith; Provided, that the sanctions are not excessive,
cruel and degrading, and without prejudice to the exhaustion of conciliation and mediation
efforts by the NCIP in the exercise of the latter’s visitorial and injunctive powers;

11) SAVING CLAUSE. This agreement shall not in any manner adversely affect the rights and
benefits of the SECOND PARTY under other laws, awards, customs and agreements.
12) SEPARABILITY CLAUSE. In case any provision/s of this agreement or any portion thereof
is held or declared unconstitutional or invalid by a competent Court or body, the other
sections or portions hereof which are not affected shall continue to be in full force and effect.

13) All permanent structures shall be given by the FIRST PARTY in favor of the SECOND
PARTY after the operation has been deemed totally completed.

IN WITNESS WHEREOF, the PARTIES hereunto set their hands this 25th day of July
2008 at Cagayan De Oro City, Philippines.

FIRST PARTY
KORDEORO CORPORATION

BY:

___________________
ASAHAN T. LAUSAN
President

SECOND PARTY
HIGA-ONON TRIBAL COMMUNITIES OF BARANGAY BASAK AND LANTUD

BY:

__________________________
DATU LANTONG LIANAN D. BALANSI
Tribal Chieftain

Signed in the Presence of:

_____________________________________
DATU TOMMIE J. LABAON
NCIP REGIONAL DIRECTOR

______________________________________
Representative from Community
 ACKNOWLEDGEMENT

Republic of the Philippines)

City of Cagayan de Oro )

BEFORE ME, a Notary Public for and in the above jurisdiction, personally appeared with
their Community Tax Certificates:

CTC Date of Issuance Place of Issuance

ASAHAN T. LAUSA 24348852 1-7-08 AGUSAN DEL SUR
DATU LANTUNG LIANAN D. BALANSI 2268197 6-25-08 TALAKAG, BUKIDNON

All known to me to be the same persons who executed the foregoing instrument consisting of
9 pages, and the page on which this ACKNOWLEDGEMENT is written, signed by the Parties and
their instrumental witnesses on each and every page hereof and which each one acknowledged to
me as their own free and voluntary act and deed.

WITNESS MY HAND SEAL on this 25th day of July 2008 at Cagayan de Oro City,
Philippines.

Doc. No. __461_

Page No. __93__
Book No. __92__
Series of 2008
 NATIONAL COMMISSION ON INDIGENOUS PEOPLES
(NCIP)

BY:

HON. EUGENIO A. INSIGNE

Chairman

SIGNED IN THE PRESENCE OF

____________________________ __________________________

ACKNOWLEDGEDMENT
Republic of the Philippines)
____________________) S.S.

BEFORE ME, a notary public of _________________________________ on the

______ day of ______________________ 2008 at
______________________________________, personally appeared;

CTC No. Date/Place of Issue

Eugenio A. Insigne _____________ ____________________________

Known to me and to me know to be the same person who executed the foregoing
Memorandum of Agreement consisting of ten (10) pages including this page where my
acknowledgement is written, signed by the parties and their instrumental witnesses each and
every page hereof and acknowledge to me that the same in his/her own free and voluntary act
and dee.

WITNESS MY HAND AND SEAL this ______ day of ________________ at

_____________________________, Philippines.

Doc. No. ______

Page No. ______
Book No. ______
Series of 2008
 Resolution
Series of 2008

RESOLUTION AUTORIZING Datu Lantong/ Lianan D. Balansi to sign in the Memorandum of

Agreement (MOA) between the Higa-onon Tribes of Barangay Basak, Lantud, Talakag,
Bukidnon: all in the Municipality of Talakag and KORDEORO CORPORATION.

WHEREAS, it was agreed during the special meeting held at Tribal Hall, Lantud,
Talakag Bukidnon, on July 20, 2008 to authorized a representative to sign in the Memorandum
of Agreement (MOA).

WHEREAS, there are 55 Tribal Council of Elders of two Barangays developing their
area of project to KORDEORO CORPORATION, based on their (MOA) Memorandum of
Agreement of two parties.

WHEREAS, through customary process of 55 Tribal Council of Elder leaders elected

Datu Lantong/Lianan D. Balansi.
BE IT RESOLVED, as it is hereby resolved to authorized entered into by the Indigenous
Cultural Communities of Barangay Lantud, Basak, Talakag, Bukidnon; and KORDEORO
CORPORATION.
Now Therefore, as in motion by Datu Timbangan/Cornelio Dalumpay duly sended by
Datu Panundiyungan/Ruben Balansi.
RESOLVED FURTHERE, to furnish copy of this Resolution offices concerned of their
ready references.

Datu Makabulig/Camilo H. Perma Datu Kabugatan/Dionesio Binudlay

Datu Gunting Kilat/Ruel Binatlao
Datu Kaamulan/Jose D. Laba-on
Datu Panundiyunan/ Ruben Balansi
Datu Saripada/Honorio Sampalay
Datu Dibarusan/Alejandro Sampalay
Datu Aloyudan/Felimon Laba-on
Datu Dimasangkay/Danny Sampalay
Datu Kasango-an/Casiano Sampalay
Datu Kasango-an/Manuel Doongan
Datu Sanghuran/Loreno Talaytay
Datu Balagwan/Bernabe Linamay
Datu Makahusay/Juan Anampa
Datu Dimasangkay/Ninong Laba-on
Datu Masikampo/Cildan Cabaring
Datu Mangoda/Berto Balansi
Datu Makabanhaw/Pablito Piawan
Datu Makamaymay/Alex Ugsalan
Datu Dibarusan/Rosito Doongan
Dato Ina-ama/Rito Daguyanan
Datu Landigan/Romeo Binudlay
Datu Dimasangkay/Mamare Sango
Datu Tumanod/Macarlo Binanday
Datu Batalan/Manuel Laba-on
Datu Limbobongan/PotoyDoongan
Poon Ha Datu/Mana-Mang Panonggo
Datu Basmala Manso
Datu Panundiyungan/Balaw Huyamag
Datu Salamin/Meganio Dalumpay
Datu Dimakiling/Jonathan Laundi
Sultan Tagoloan/Borantawan Malang
Datu Timbangan/Cornelio Dalumpay
Datu Alamada/Necasio Dalumpay
Datu Kasandigan/PedroPerma
Datu Sangkopan/Mamical Rampatan
Datu Manlunit/Florencio Tangapan
Bae Kalimudan/Besing Cabaring
Bae Makatabang/DeliaR. Perma
Bae Maumin/Emilda Tangapan
Bae Kapinahikan/Lorena P. Bandoy
Bae Gonsi Ko Tulugan/Tita Linama
Datu Kaliyagan/ Danilo Linamay
Datu Dala/Victor Binanaday
Datu Panaluba/Rudy Balansi
Sultan Ligi/Mongay Ampo-an
Datu Kaluwasan/Pol Laba-on
Bae Salimbangon/Elena Ampo-an
Bae Sinambong/Elsa L. Onday
Bae Mahusay/Lina Laba-on
Radia Muda/Leo Laba-on
Datu Imbatal/Ramil Balansi
Datu Latunan/Aurelio Balansi
Bae Samporona/Rosita L. Balansi
Datu Ta Maigtang/Sozimo Silay

SUBSCRIBED AND SWORN to before me this 21st day of July, 2008

Doc. No. 326

Page No. 66
Book No. 92
Series of 2008
 KORDEORO CORPORATION
2ND Floor Jaraula – Brinas Bldg., J.B. Serina
Carmen, Cagayan de Oro City
Tel # 088-858-5905, 0929-286-4899

SECRETARY CERTIFICATE

I Ms. Mely L. Pantullana, legal age, Filipina, Single, with Resident and postal address
Purok 1, Poblacion, Sibagat, Agusan del Sur. Duly sworn to hereby certify that I am Corporation
Secretary of Kordeoro Corporation. A corporation duly registered with Security and Exchange
Commission, Reg. No. CS200828527, date 9th day of May 2008, (40%:60%).

The initial meeting by the Board of Director of the said Corporation the 10th day of May
2008. The following to resolutions were unanimously approved a legal quorum being present
and voting.

Resolution Nos. 001 – 2008

1. The special power authorized of signatory to the Datu Patungo B. Lausan, Treasurer for
all document and M.O.A.
2. Newly open Bank Account for current, ATM, Save, Credit Card and Letter of Credit at
Cagayan de Oro and Talakag.
3. 7,000 hectare of ancestral domain area of Brgy. Basak, Lantod, Bisigan, Tignapoloan
and Dagumbaan, Talakag, Bukidnon, make M.O.A., Development, Certificate of
Precondition (CP), make title of CADTI of NCIP.
4. Newly the Mayor’s Permit, DTI Business Name Registry, NCIP, BIR Registry and
concerned Governments Permit.
5. Ancestral Domain Title Beneficial is Datu Patungo B. Lausan on the CADTI Title.
6. Newly Election Follow to:

Chairman Kim, Sang-Woo

President Lausan, Asahan T.
Treasurer Lausan, Patungo B.
Secretary Pantullana, Mely L.
Director Kang, Jong-Seok

7. Shall be Registry of the Logo of KORDEORO CORPORATION, D.T.I.

8. The President MRS. ASAHAN T. LAUSAN have signatory to MOA. If the chairman KIM
SANG-WOO absent.

Done this 10th day of May 2008 at Cagayan De Oro City, Philippines.

The Chairman The Corporate Secretary

Kim, Sang-Woo Mely L. Pantullana
CTC. No. 12221652 CTC. No. 24348851
8th May 2008, CDO City Jan. 7, 2008, Sibagat Agu. Del Sur

SUBSCRIBED AND SWORN to before me this 13th day of May, 2008