SECURITY SERVICES AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Security Services Agreement made and entered into this 20th day of June
2017, at Muntinlupa City, Philippines by and between:

GZN SECURITY AGENCY, an agency duly organized and existing under and
by virtue of the laws of the Republic of the Philippines, with business office at Block
9 Lot 5 General Nakar Street, Soldiers Hill Village, Muntinlupa City, Philippines,
represented in this transaction by its General Manager, Mr. Peter Mar C. Ganzon,
MBA, hereinafter referred to as the AGENCY;

-and-

TIERRA NUEVA VILLAGE HOMEONERs ASSOCIATION, INC. , a company duly

registered and existing under and in accordance with laws of the Republic of the
Philippines, with address at Cupang Muntinlupa City herein represented by its
representative ELVIRA M. ARCIAGA, hereinafter referred to as the CLIENT.

WITNESSETH:

WHEREAS, the CLIENT is desirous of engaging the services of the AGENCY for
the purpose of guarding and protecting the properties of the CLIENT at TIERRA
NUEVA VILLAGE located at Cupang, Muntinlupa City from theft, pilferage, robbery,
fire, intentional damage, trespass or other unlawful acts;
WHEREAS, the AGENCY is duly licensed company to render private security
guard service throughout the Philippines under Republic Act. No. 5487, otherwise
known as The Private Security Agency Law as amended by Presidential Decree
Nos. 11 and 100 and has offered to provide the CLIENT with the services of private
security guards for the purpose of safeguarding and protecting the properties and
installation of the CLIENT and to maintain peace and order in and immediately
around the construction premises;
NOW, THEREFORE, for and in consideration of the foregoing premises and of
the mutual covenants and stipulations hereinafter set forth, the parties hereto do
hereby agree as follows:
Article I Agencys Obligations
1. That the AGENCY shall provide and detail to the CLIENT with TEN (10)
qualified, uniformed and properly armed security guards to be assigned at
posts within its premises who shall continuously provide security services
twelve (12) hours a day, seven days a week including Sundays and Holidays.
Commented [CF1]: Kindly add, the agency is registered
with the Department of Labor and Employment (DOLE) as a
licensed independent service contractor pursuant to
Department Order No. 18-02 with License No____________
and has substantial capital or investment and adequate
personnel to perform the services contemplated in this
AGREEMENT under its own account and responsibility.
Under the law, contracting or subcontracting shall be
legitimate if the following circumstances concur:
1.The contractor or subcontractor carries on a
distinct and independent business and undertakes to
perform the job, work or service on its own account
and under its own directions of the principal in all
matters connected with performance of the work
except as to the results thereof.
2.The contractor or subcontractor has substantial
capital or investment.
Hence, the suggestion.
Commented [CF2]: Put #2 in #1 for clearer syllogism.

2. That the AGENCY shall adopt and implement an effective security system
inside the premises of the client for twenty four (24) hours a day, seven (7)
days a week, including holidays.
3. The security guards to be assigned and/or posted by the AGENCY to the
CLIENTS premises shall be qualified, uniformed and duly licensed as private
security guards in accordance with Republic Act No. 5487, as amended by
Presidential Decrees No. 11 and 100, as well as with the implementing rules
and regulations of the Philippine National Police.
Commented [CF3R2]: That the AGENCY shall
provide and detail to the CLIENT with TEN (10)
qualified, uniformed and properly armed security
guards to be assigned at posts within its premises
who shall continuously provide security services
twelve (12) hours a day, seven days a week
including Sundays and Holidays.
I recommend to delete this clause. Under the Labor Code,
the normal hours of work of ANY employee shall not exceed
8 hours a day save when the exceeding hours is subject to
overtime pay.

Anyway, it is understood that the AGENCY shall undertake

to provide 24 hour security to the CLIENTS premises.
Commented [CF4]: This is better worded as
WARRANTY of the AGENCY.
4. That the AGENCY hereby undertakes to guard the premises of the CLIENT and
assumes responsibility for the proper performance of duty of the security
guards employed by it and shall be solely responsible for any act of omission
by the said guards during the security duty hours and shall further ensure that
all specified posts are always manned during the time required.

5. The AGENCY shall maintain and make available a guard reliever and/or
replacements when the need arises, such as in the case of absences and
shortage of relievers. However, the AGENCY shall have the option to extend
the working hours of any guards present at the premises to cover the post of
the absentee but such extension shall not compromise the safety and security
standards of the AGENCY and that of the CLIENT.

6. That the AGENCY guarantees that only screened, trained and licensed
security guards who have proven honesty, integrity and of good moral
character and without criminal or police records shall be detailed and
assigned to the premises of the CLIENT. In addition to the foregoing
requirements, the guards assigned to the CLIENT should posses the following
qualification;

4.1 Must not be less than 18 years old but not more than 50 years old.
4.2 Must be at least 5 feet and 5 inches in height.
4.3 Must be physically and mentally fit.

7. The CLIENT, in coordination with the AGENCY shall have administrative

supervision and control over the guards and may give instructions to the
guards pertaining to the company rules, policies and regulations. Commented [CF5]: I recommend to delete this clause.

In this arrangement, the AGENCY may be construed to be

8. The CLIENT reserve the right to request, and the AGENCY shall comply with
such request, for the replacement of any security, WHO in the judgment of
the CLIENT is found wanting in qualification, competence, honesty, or
integrity or whose continued presence may be prejudicial to the interest of
the CLIENT; the CLIENTS judgment in such respect may not be questioned by
the AGENCY.
9. That the AGENCY shall provide at its own expense the necessary firearms,
ammunitions, hand-held radios and other paraphernalia for security purposes
taking into consideration the safety requirements of the CLIENT. Likewise, the
AGENCY shall provide all the service essential to the performance of its duties
such as periodic inspection, investigations in case of irregularities and other
related activities.
the employer of the security personnel, not the client. Thus,
for your protection in case an issue in the future arises.
Under the law, the test for employer-employee relationship
are the following:
1.Right to hire or to the selection and engagement of the
employee.
2.Payment of wages and salaries for services.
3.Power of dismissal or the power to impose disciplinary
actions.
4.Power to control the employee with respect to the means
and methods by which the work is to be accomplished. This
is known as the right-of-control test.
The above-mentioned is exclusive to the AGENCY which
will be the employer of the security personnel, not the client.

10. That the AGENCY undertakes to employ for its own account all the security
guards necessary to carry out the services herein agreed upon and to pay
the proper wages or salaries and government mandated contributions of the
said security guards.
The client may stipulate its own regulations for compliance
by the AGENCY through its personnel. The AGENCY shall
be liable for grievances of the CLIENT towards the security
personnel.

11. That the AGENCY shall not be liable to the CLIENT or to any person for the
personal obligations or indebtedness of the guards assigned to the CLIENT.

Article II Representations and Warranties

1. That the AGENCY represents and warrants that all its security guards will meet
the requirements of the Private Security Agency Law and its implementing
rules and regulations for the performance of the security services subject to
this Agreement.
2. It is understood and agreed that the security guards or any person of the
AGENCY assigned to the premises of the CLIENT are in no way to be
considered as employees of the CLIENT. As such, the AGENCY hereby
warrants to fully and faithfully complying with the provisions of the New Labor
Code, as well as with all other Presidential Decrees. Letter of Instructions,
General Orders, Laws, Rules and Regulations pertaining to the employment
of labor now existing, PROVIDED that such contracted SECURITY RATES
conform with regulations, orders, decrees and directives issued by any
government authority or any agency having jurisdiction over the activity of
the AGENCY.

3. Administration, discipline, and supervision of the security guards to be

assigned by the AGENCY under this Agreement shall conform to Republic
Act. No. 5487, otherwise known as the Private Security Agency Law and the
implementing rules and regulations prescribed there under by the Chief of
the Philippine National Police as well as those of the AGENCY.

4. That the AGENCY shall retain exercise that sole exclusive and absolute right,
as employer, to select, rotate, reassign, suspend, layoff, terminate and/or
impose disciplinary action over the individual watchman or security guard
assigned by it to the CLIENT. It is further understood that the AGENCY shall
select, engage and discharge its employees or agents and otherwise direct
and control their services and the determination of wages, salaries or
compensation of its employees shall be within its sole and full control.

Article III Loss and Damages

1. That the AGENCY shall assume full responsibility for any loss due to theft,
robbery, pilferage and trespass which the CLIENT may suffer, during watch
hours of the AGENCYS assigned security guards provided that such loss and
damage are clearly establishes to be due to or by reason of the fault or
negligence of the guards in the performance of their duties. The AGENCY
however shall not be held liable in cases where such loss and/or damage
was principality due to force majeure, fortuitous events or incidents beyond
the control of the guards or to any of the following causes;

a. Where such loss occurred inside a closed and/or locked warehouse,

office room and/or building, wherein normal conditions the guard/s
had no access except where it has proven that the door or any part
of the building had been forcibly opened and that said loss is reported
to the guard immediately upon discovery;

b. When the property claimed to have been lost or damaged were kept
in an open space or storage and were not duly turned over to the
AGENCY or its authorized representative for physical inventory and
proper recording or although not kept in an open space or storage
but have been issued to the CLIENTS employees, who therefore,
become directly responsible for their use, care and safeguarding or
safekeeping;

c. Where such loss was the result of any or all of the following: robbery on
hand, mob violence, tumultuous affrays, acts of dissidence, war,
insurrection or revolution, demonstration and/or rallies;

d. Where the items reported lost were small and pocketable and where
the CLIENT had not expressly required and authorized the searching of
all Personnel who enter and leave his establishment, and;

e. fWhere the loss occurred or was discovered within twenty-four (24)

hours after departure of a visitor or visitors of CLIENT where personal
vehicle and/or luggage of any kind were not authorized/instructed by
the CLIENT to be searched.
 f. Those committed by CLIENTS representatives or employees (inside
job) or in conspiracy with other CLIENTS employees.

2. The CLIENT obliges itself to report in writing to the AGENCY through its Duty
OIC the existence of any loss or damage to the CLIENTS properties within
twenty-four (24) hours after its occurrence or discovery. Otherwise, the CLIENT
shall be considered to have waived its right for claim against the AGENCY for
such loss or damage. The personal effects or properties on individual
employees left by them anywhere inside the CLIENTS premises are excluded
from the coverage of this Agreement.

3. The CLIENT shall not deduct, pending acceptance by the AGENCY, any
amount from the billing of the latter to the former for any compensable loss
or damage. However, once the liability of the AGENCY is established and
accepted, the CLIENT may immediately bill the AGENCY for the values of any
loss or damage, until the loss or damage suffered by the CLIENT shall have
been fully compensated.

4. That the AGENCY shall not be liable for any loss or damage due to force
majeure or to fortuitous events, nor for the acts of the guards while performing
tasks on instructions and/or instance of the CLIENT other than those specified
in this Agreement, or where such loss of properties not within the security
responsibility of the AGENCY, for property that have not been turned over to
the security guards for safeguarding.

5. That in cases wherein the AGENCY is requested or obligated by the CLIENT to

conduct special investigation other than the prescribed functions of the
AGENCY as defined in this service agreement, the CLIENT shall pay all
expenses and other related expenses necessary in conducting the said
investigation.

Article IV Renumeration

1. That for and in consideration of the services to be rendered by the AGENCY

to the CLIENT by virtue of this Agreement shall pay unto the AGENCY the sum
of PHILIPPINE PESOS: PhP NINETEEN THOUSAND FIVE HUNDRED PESOS ONLY (PhP
19,500.00) per guard for twelve (12) hours duty per day for thirty (30) days
month period excluding EVAT/RVAT. All regular holidays, including the 31st
day of the months that have 31 working days shall be billed accordingly. All
billings shall be payable within five (5) days after receipt of billing.

2. That the contract rate of PHILIPPINE PESOS: NINETEEN THOUSAND

FIVE HUNDRED PESOS (PhP 19,500.00) shall have an annual escalation subject
to negotiation and shall be approved by the client.

3. In case the CLIENT fails to pay the AGENCY for two (2) consecutive pay
periods, the amount owing shall bear interest at the rate of twelve percent
(12%) per annum to be computed from the date the amount falls due until
full paid, without prejudice to the right of the AGENCY to cancel or terminate
the contract for security services.

Article V Terms and Conditions

1. Should any lawful order be enacted, decreed or promulgated during the

term of this Agreement which would increase the AGENCYS cost for
rendering the services called for hereunder, the CLIENT hereby expressly
agrees that it will not prevent the AGENCY in requesting for the corresponding
adjustment to the aforementioned rate.

2. This Agreement shall be for the period of one (1) year and shall take effect
June 20, 2017 and shall continue to enforce until June 20, 2018 unless
otherwise sooner terminated by either party in writing by giving prior thirty (30)
days notice.
 3. Should there be no written notice of termination upon the expiration of the
term of this contract, this contract will be automatically extended for a period
of thirty (30) days from the expiration unless thirty (30) days prior to the
expiration of the term, the CLIENT notifies the AGENCY of its intention to renew
this Agreement and upon terms and conditions duly agreed upon by the
parties.

Article VI Miscellaneous Provisions

1. That the CLIENT shall seek the authority of the AGENCY in cases of relocating
or transferring of security guards to escort cash or valuables from the CLIENTS
establishment to destination within the city limit and return for which Mission
Orders shall be issued to the guards in compliance with the Philippine
National Police.

2. That either party who violates this Agreement shall reserve the right to bring
the case before any court which has jurisdiction over the case for litigation
and shall be liable to pay for damages to include attorneys fees and other
legal expenses derived hereto.

3. That the representatives of the parties respectively warrant that they had
been duly authorized to sign in behalf of their companies.

4. Paragraph headings for convenience of reference only and shall not be

referred to in connection with the interpretation of this Agreement.

5. Neither this Agreement nor any of the rights or obligations of the parties
hereto arising hereunder shall be transferable to either party to any third
party without the prior written consent of the other party. The AGENCY shall
not subcontract any of its rights or obligations hereunder at any time.

6. No modification, waiver or amendment of any provision of this Agreement

shall be effective unless and until it shall be reduced to writing and signed by
both parties.

7. This Agreement shall be binding upon the Administrator, executors,

successors and assigns of the parties hereto.

IN WITNESS WHEREOF, the parties herein have hereunto affixed their signature
on this ________ day of _______________________ at Muntinlupa City, Philippines.

By: By:

GZN SECURITY AGENCY TIERRA NUEVA VILLAGE HOMEOWNERS

ASSOCIATION, INC.

________________________ _________________________
PETER MAR GANZON, MBA ELVIRA M. ARCIAGA
General Manager President

SIGNED IN THE PRESENCE OF:

______________________ ______________________
Jonathan P. Jordan Alma V. Laureano
 ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES )

CITY OF ___________________ ) S.S.

Before me, the undersigned Notary Public in and for the City of _______________, on
this day personally appeared the following:

Name CTC No. Date Place Issued

GZN SECURITY AGENCY Muntinlupa City

Peter Mar Ganzon Muntinlupa CIty
____________________ _____________________
____________________ _____________________

Known to me to be the same persons and the same are their act free will
and deed of their respective principals. I further certify that the foregoing
instruments relate to a Security Services Agreement, that it consists of six (6) pages,
including this page.

IN WITNESS WHEREOF, I have set my hand and affixed my Notarial Seal at

____________________ on this ______ day of ____________________________.

NOTARY PUBLIC
Doc. No. _______
Page No. _______
Book No. _______
Series of _______