MEMORANDUM OF AGREEMENT

KNOW ALL MEN BY THESE PRESENTS: This Memorandum of Agreement executed on the _____ day of __________, 2011, at ___________________ City, Philippines, by and between: The Civil Service Commission Regional Office No. _____, a Constitutional Commission existing under the 1987 Philippine Constitution and applicable laws of the Republic of the Philippines, with principal office at _______________________________________________________, _______________ City, herein represented by Director ____________________, in his/her capacity as Director IV; - and The Department of HealthCenter for Health Development ____________________ Region, a national government agency existing under the laws of the Republic of the Philippines, with principal office at ____________________________________________, _____________________City, represented by _________________________________, in his/her capacity as Director IV; - and The _____________________________________________________________, a national government agency existing under the laws of the Republic of the Philippines, with principal office at ________________________________, __________________ City, represented by Director __________________________, in his/her capacity as Director IV; -andThe ______________________________________________________________________, an organization of ______________________ personnel, constituted by virtue of ________________________________ and duly registered with the Securities and Exchange Commission, herein referred to as the Proponent Entity, with principal office at ___________________________________, _______________ City, represented by _____________________________________, in his/her capacity as _____________________________; -andThe BOTIKA PARA SA TAUMBAYAN (BpT) of the _________________________, ______________ City located at ____________________________, _________________ City, represented herein by its Operators, _______________________________ and _________________________; WITNESSETH, that: WHEREAS, the 1987 Constitution of the Philippines mandates that the State shall protect and promote the right to health of the Filipino people and instill health consciousness among them;

WHEREAS, under Section II, Article XIII, the State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all people at affordable cost; WHEREAS, Republic Act No. 6675 (Generics Act of 1988) prescribe further that it is the policy of the State to ensure the adequate supply of drugs and medicine with generic name and at a lowest possible costs; WHEREAS, the 1991 Local Government Code of the Philippines recognizes and prescribes the relationship between the Local Government Unit (LGU), and Peoples Organization (PO), Non-Government Organization (NGO) and the Private Sector (PS) which may exist within the framework of devolution and decentralization and the latters role as partner in the delivery of basic services; WHEREAS, the Department of Health (DOH) is implementing reforms to increase the access of indigent/marginalized Filipinos to low priced generic over-thecounter (OTC) drugs and five (5) prescription drugs through the Botika ng Barangay (BnB). WHEREAS, the DOH Administrative Order No. 64 s. 2003 has provided the Policy Guidelines on the operationalization of the Botika ng Barangays under the Centers for Health Development, particularly those that will be given seed capital by way of medicines; WHEREAS, the Civil Service Commission (CSC) with the aim of extending the benefits of the BnB Program to government personnel as well as helping every Filipino to have access to low priced generic medicines, adopted the Botika ng Barangay Program as the CSC Botika Para sa Taumbayan Project under the DOHNCPAM Botika ng Barangay Program which shall establish 300 Botika Outlets nationwide; WHEREAS, a Memorandum of Agreement (MOA) has been executed on September 20, 2010 by and between the CSC and DOH providing for the roles and responsibilities of the agencies involved; WHEREAS, a separate MOA is needed to identify the specific roles, duties and responsibilities of the entities involved as well as define the terms and conditions in the operation of the Botika Para sa Taumbayan (BpT) under the DOH-NCPAM Botika ng Barangay Program; NOW, THEREFORE, for and in consideration of the foregoing premises, the Parties agree, as they hereby agreed, that the following shall be observed: Article I. Roles, Duties and Responsibilities

Section 1. CSC Regional Office. The concerned CSC Regional Office (CSCRO) shall have the following roles, duties and responsibilities: 1. Identify Recipient Agencies from among the government agencies under their jurisdiction which would operate the BpT Outlet and to receive from the DOH seed capital of P 50,000.00 worth of medicines pursuant to CSC Office Memorandum No. 53, s. 2010.

2. Coordinate with the Department of HealthCenter for Health Development (DOHCHD) in their respective jurisdictions matters involving the implementation of the project which includes conduct of orientation to identified government agencies, conduct of Botika Operators Training, and other related activities. 3. Coordinate with the Office for Personnel Management and Development (OPMD) of the CSC on administrative matters like submission of project status and other reports, providing feedback, and other relevant undertakings. 4. Provide recipient agencies with assistance in terms of pertinent information and guidance on the processes involved and the documents required by the DOH in the registration process to ensure timely and successful implementation of the project. 5. Regularly monitor the operations of the Botika Outlets specifically to gather information relative to the flow of stocks and provide OPMD with feedback to be used in the procurement of drugs sold at the Botika. 6. Perform other duties that may be requested by the OPMD or assigned by the Commission. Section 2. DOHCHD. The Department of HealthCenter for Health Development concerned shall have the following roles, duties and responsibilities: 1. Conduct, in coordination with CSCRO, orientation to government agencies identified by the CSCRO as Recipient agencies on the basic information about the Botika Para sa Taumbayan Under the DOHNCPAM Botika ng Barangay Program. 2. Conduct Training for the operators of the Botika Outlets of Recipient Agencies identified by the CSCRO. DOH-CHD should coordinate with CSCRO on the schedule, venue and other nuances of the Botika Operators Training. 3. Receive from CSCRO applications for Special License to Operate (SLTO) the Botika as submitted by Recipient Agencies and forward the same to the BFAD. DOH-CHD should coordinate with CSCRO on the documentary requirements to ensure speedy issuance of the SLTO to the Recipient Agency Botika Outlet. 4. Assist the CSCRO and Recipient Agencies by providing a list of duly registered and available Pharmacists who may be hired by the Botika Outlet to supervise its operations in compliance with pertinent DOH rules. 5. Distribute seed capital of P 50,000.00 worth of generic medicines enumerated under the BnB Program to duly qualified recipient agencies. DOHCHD should coordinate with CSCRO to ensure the orderly and proper distribution of the seed capital to qualified recipient agencies. 6. Supply the Botika Outlets with stock replenishment following the procedures in Article IV hereof.

7. Monitor the implementation of the project in terms of the operations of the Botika Outlets and submit regular reports to DOH Central Office specifically the NCPAM. 8. Perform other duties specified elsewhere in this Memorandum of Agreement and as directed by DOHNCPAM.
Name of Recipient Section 3. Recipient Agency and Proponent Entity. The _____________________ otherwise known as the Recipient Agency and the Name of Proponent Entity ___________________________ otherwise known as the Proponent Entity shall have the following roles, duties and responsibilities: Agency ______________

1. Coordinate with CSCRO on its intent to participate in the Botika Project as recipient agency which shall receive the P 50,000.00 worth of medicines as seed capital to operate the BpT Outlet. Provide CSCRO with information on the Proponent Entity which shall handle the daily operations of the Botika Outlet. 2. Submit to the CSCRO at least two (2) names of its Botika Operators who should attend the Botika Operators Training to be conducted by the DOH CHD. 3. Provide the space, which should comply with BnB requirements, to be setup as Botika Outlet. Recipient Agency and Proponent Entity are not precluded from providing additional amenities which may be considered essential to the operations of the Botika Outlet. 4. Hire or secure the services of a Licensed Pharmacist who would supervise the operations of the Botika Outlet. The Supervising Pharmacist is required to be physically present in the Botika Outlet for at least 2 hours at least twice a month. 5. Submit pertinent documents including copies of this MOA duly executed as documentary requirements for the issuance of the Special License to Operate the Botika Outlet. 6. Provide for a mechanism on the proper accountability and security of the Botika Outlet including its stocks, records and other implements to ensure profitability and sustainability in relation to Article III hereof. 7. Coordinate with CSCRO on the receipt of the seed capital and the replenishment of stocks and abide by the procedures set in place by CSCRO and DOH-CHD for the orderly distribution and replenishment of stocks. 8. Ensure Outlets compliance with DOH Guidelines particularly as regards retail pricing. 9. Submit through the CSCRO reports that may be required by the DOH-CHD, DOH-NCPAM, CSCOPMD or other authorized government agencies. 10. Perform other functions that may be requested by the CSC or DOH from time to time.

Section 4. Botika Operators. Notwithstanding the specific duties and functions that the Recipient Agency/Proponent Entity may assign, the Botika Operators shall have the following duties and responsibilities: 1. Attend the Botika Operators Training conducted by the DOH-CHD and acquire the necessary knowledge and skills to carry out the proper management of the Botika Outlet. 2. Manage the day-to-day operations of the Botika Outlet which includes the dispensation of generic drugs, preparation of reports, safekeeping of stocks, and other activities to ensure the availability of generic medicines to the general public. 3. Comply with DOH-CHD Guidelines on the dispensation of drugs. Allow the Supervising Pharmacist to assist them in the dispensation of regulated drugs as well as on other operational matters like the proper recording of drug dispensation, adverse drug reaction, preparation of reports and the like. 4. Submit to the Recipient Agency/Proponent Entity on a regular basis report on the operations of the Botika Outlet which includes stock flow which information shall likewise be regularly submitted to the CSCRO to aid in the procurement of drugs for replenishment. 5. Perform other functions that may requested by CSC or DOH. Article II. Initial Orders/Pump Priming Distribution of Drugs and Medicines to the BpT

1. The CHDs shall be directly responsible in issuing the initial deliveries of the procurement agent (PITC) to the different BpT under its catchment area within three days from the receipt of CHD of the PITC delivered goods regardless of fund source (whether from the BpT itself or from a donor/lending institution). The CHDs will use Requisition and Issue Slip (RIS) in issuing drugs to the BpTs. 2. The duly signed original RIS indicating receipt of the drugs by the BpTs shall be collated by the CHDs and shall be submitted to the Pharma 50 PMU. 3. The Pharma 50 PMU shall collate the proofs of receipt by the BpTs forwarded by the CHDs and shall promptly submit these to the procurement agent (PITC) for the purpose of liquidating the (PCSO or from the BpT itself) funds. Article III. Accountability and Security Requirements 1. An accountable person from the Recipient Agency and the Proponent Entity must be explicitly identified and shall be responsible in accounting the BpT to assure custodial fidelity of assets and properties.

2. The BpT and the proponent entity must establish appropriate security measures in assuring the protection of BpTs assets. 3. The BpT operators shall be primarily responsible and accountable on the maintenance of the BpT and the assets thereat, including sales. Article IV. Stock Replenishment Procedure 1. The BpT shall replenish their stocks by procuring from suppliers registered by the CHD with the approved CHD established drug prices. 2. The BpTs shall furnish the CHDs their request for replenishments by submitting a list of drugs that needs to be ordered, with the corresponding required quantities and a certificate that funds are available (the corresponding checks are attached) to cover such request. The request should be made quarterly with deadlines that shall be established by the CHD and signed by the BpT accountable officer/operator. 3. The CHD shall undertake a public bidding that will lead to the determination of registered suppliers for BpTs and the corresponding unit prices of the Pharma 50 PMU approved BpT drugs, (i.e. acquisition cost from the CHD registered BpT supplier and the allowable BnB selling price) that will be applied by the BpTs. Furthermore, the CHD shall be authorized to request the PITC for price list of drugs and to request the latter to procure the essential drugs for the BpTs, whenever it is more advantageous to the government. 4. The CHD shall be responsible for monitoring the deliveries made by the registered suppliers if such are covered with the appropriate Quality Assurance documents such as, Certificate of Product Registrations or Batch Certificates to the BpTs. 5. The CHD (and/or through its duly recognized third party organization) shall serve as a holding office for the Checks/Money that shall be issued/released by the BpT in favor of the DOH-CHD Registered BnB Supplier or the PITC as payment for incoming deliveries. The CHD shall transmit the Checks to the DOH-CHD Registered BpT Supplier or the PITC once the deliveries of BnB drugs are received by the BpTs from the CHD as a holding area. 6. The CHD (and/or through its duly recognized third party organization) as a holding office for the Checks Issued/Money remitted by the BpTs and as a holding area for the BpT drugs delivered in favor of the physical protection and security of the said transient properties and assets. Separate records and accounting should thus be maintained for this purpose. 7. The DOH-CHD shall notify the different BpTs that the requested funded BpT drugs were already delivered at the CHD and are for pick-up by the BpTs within a schedule determined by the CHD.

8. The DOH-CHD shall issue the drugs intended for the BpTs using a Requisition and Issue Slip (RIS) citing therein the Check No. issued by the BpT, the invoice or delivery receipt issued by the DOH-CHD Registered Supplier or PITC, the type/description of the drugs, the corresponding quantity, the corresponding acquisition price and the corresponding allowable selling price. 9. Only drugs reflected on the approved list of drugs to be dispensed specifically for BpTs as covered by the appropriate DOH issuance and have passed the BFAD Quality Assurance Protocol should be procured by BpTs subject to the review and approval of the CHD. Article V. Drug Price Determination and Drug Supplier Authorization

1. The CHD shall invite eligible/registered drug suppliers for BpTs at least twice a year to submit price offers for the Pharma 50 PMU approved drug list within the framework of sealed public bidding. 2. The CHD, in coordination with the Pharma 50 PMU Unit shall determine the lowest responsive bids and the results of which shall be forwarded to the BpTs. 3. The lowest responsive bidders shall be given Notice of Awards by the CHD, which grant them authority to enter into Contract Agreements with the BpTs. 4. The submitted unit price offers should have a validity of at least six (6) months. 5. The performance of drug suppliers of BpTs from participation in the public bidding until Contract Execution shall be monitored and any deviation of performance that will adversely affect the operations of the BpT shall be reflected as a derogatory remark that would result to downgrading or revocation of the drug suppliers registration/eligibility. 6. The CHD, in coordination with the Pharma 50 PMU, shall promptly and regularly inform the BpTs the list of authorized BpT drug suppliers and the corresponding approved acquisition price and selling price of the BpT drugs. 7. The BpT Authorized Suppliers must agree that the products they sell to the BpTs are subject to post market surveillance of the Bureau of Food and Drugs and are subject to pre-delivery inspection and testing as may be conducted by the CHD. Article VI. Fund Management Conditions for the BpT 1. The BpT shall be authorized to earn income as a result of the PHARMA 50 PMU established mark-up that is added to the acquisition cost of drugs and medicines procured by PITC or through the CHDs unit price determination bidding process.

2. The sales proceeds (minus the mark-up for drugs) of BpT shall be used solely for the purpose of re-ordering drugs and medicines and adjunct needs of the BpT subject to the conditions that may be set by their respective CHD Director. 3. To assure the sustainability of the BpT, one-third (1/3) of the total income shall serve as infusion fund for procurement of BpT drugs and medicines, and the rest of the income shall be used as BpT operating expenses and incidental expenses for BpT operators. 4. The BpT shall submit quarterly financial reports to the CHDs on the status of the implementation of BpT. Such report should contain these basic informations sales and stock inventory at the end of each quarter. Article VII. Rational Drug Use 1. The BpTs shall be monitored by a supervising pharmacist and shall at all times adhere to rational drug use practices in dispensing medicines. 2. The quantity of medicines to be dispensed shall be in accordance with the prescribed therapeutic regimens so as to preclude possible selling of OTC drugs in bulk to a single patient. 3. The BpT operator and the supervising Pharmacist shall assure that no BpT drugs shall find their way to the trade for reselling. Article VIII. Project Monitoring 1. CHDs and PHARMA 50 PMU shall be the lead units in monitoring the performance of BpTs, notwithstanding and without prejudice to a similar role that the LGU proponent may undertake. 2. The CHD shall provide instructions and training to the BpT operators and other stake holders to assure compliance to standards and regulations. 3. The CHDs and PHARMA 50 PMU shall have the authority to check on the records of the BpT at any given time, notwithstanding and without prejudice to the regulatory functions of the Bureau of Food and Drugs. 4. BpTs must maintain the integrity and transparency of their records and shall be made available whenever asked by the CHD concerned, the PHARMA 50 PMU and other regulatory units. 5. Monitoring reports shall be periodically submitted by the CHDs to PHARMA 50 PMU Project Executive Officer every quarter or as often as practicable. Article IX. Other Conditions 1. Any amendments or modifications hereto shall be subject to mutual agreement of the parties in writing.

2. None of the parties hereto may assign in whole or in part any of its obligations/responsibilities without the prior written approval of the other parties. 3. To assure sustainability and preclude wastage, the equivalent money amount of the drugs initially awarded to the Botika Para sa Taumbayan shall be returned to the Government (if seed capital is provided) should the operator or the manager of the BpT decides to close its operations. Article X. Effectivity

This Agreement shall be effective upon the signing hereof by the parties concerned. IN WITNESS WHEREOF, the Parties hereto affix their signatures on the date and place written above. Civil Service Commission Regional Office No. ______, _________________ City By: Department of Health Center for Health Development, ____________________ Region By: _________________________________ Director IV

_________________________________ Director IV

_____________________________________________ Recipient Agency By: ___________________________________ Director IV

______________________________________________ Proponent Entity By: ___________________________________ General Manager

Botika Para sa Taumbayan Operators

__________________________________________ Botika Operator

__________________________________________ Botika Operator

Signed in the Presence of: ________________________________________

(Name)

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(Name)

________________________________________
(Position)

___________________________________
(Position)

ACKNOWLEDGEMENT REPUBLIC OF THE PHILIPPINES) ) S.S. BEFORE ME, a Notary Public for _________________________________________, this ______ day of __________________________ personally appeared the following with their respective Community Tax Certificates: Affiant JOSE P. PIDAL Head, CSCRO JUAN D. CRUZ Head, DOHCHD JOSE P. RICORDIA Head, Recipient Agency JOSE P. PATOLA Head, Proponent Entity BERNARDA C. JERSONA Botika Operator NONOY T. BALIDA Botika Operator C.T.C. No. Issued at Issued on

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known to me and known to be the same persons who executed the foregoing instrument (10 pages inclusive of this page) and who acknowledged to me that the same is free and voluntary act and deed and that of the entities which they respectively represent. IN WITNESS WHEREOF, I have set my hand and affixed my seal on the date and place first above-written. Doc. No. : _____; Page No. : _____; Book No. : _____; Series of _______;