1. Intensive and Sustainable
Agriculture
Development Project

2. INDEX.
1. Objectives of the Project .................................................... 4
2. Methodology .......................................................................... 5
2.1 Marketing .................................................................... 6
2.2 Competitiveness ......................................................... 7
3. Rationale .................................................................................. 8
3.1 Social ............................................................................ 8
3.2 Environmental ........................................................... 8
3.3 Health........................................................................... 9
3.4 Economic .................................................................... 9
4. Project Development ............................................................ 10
4.1 Location ....................................................................... 10
4.2 Facilities ....................................................................... 11
4.3 Material Resources..................................................... 13
4.4 Human Resources. Project Director ...................... 14
4.5 Human Resources. Beneficiary farmers ................ 14
5. Novedades Agrícolas Supportive SME ............................. 16
6. Budget of the Project ............................................................ 17
7. Estimated Profit and Loss Account................................... 19
7.1 Total Payments........................................................... 19
7.2 Estimated Profit and Loss Account ....................... 20
8. Memorandum of Understanding ........................................ 23
2

3. Introduction
Intensive agriculture is an economic activity capable of absorbing unemployment
and generating wealth. Many countries with production and consumption shortage of
vegetables and fruit count with the agro-climatic conditions for the growth of a high
number of fruit and vegetable species under greenhouses.
Our company, Novedades Agrícolas, S.A. (www.novedades-agricolas.com),
with more than 30 years of experience, is specialized in turn-key projects for intensive
agriculture. We design, manufacture and install greenhouses and fertigation systems in
many countries all over the world.
Backed up by this experience, we would like to propose a project of technologic
transfer for the Intensive and Sustainable Agriculture Development Project – (DRAIS
from the Spanish version).
The living conditions in the rural population will improve, helping to modernize
the production structures, increasing the return from the land for farmers, generating
wealth and revitalizing the economy in the area.
The project includes a period to train the beneficiaries of the project using the
method of "learning by doing". For this purpose, there will be a classroom installed and
a technician from Novedades Agrícolas will remain at the place for one year. The
technician will be responsible for directing the project and guaranteeing production in
the greenhouse. He will teach and help the beneficiaries (and a local technician) to
become familiar with the technology transferred for the production of vegetables in the
greenhouse, fertigation and marketing of the food grown. This will guarantee the
SUCCESS and continuity of the project through time.
3

4. 1. Objectives
The main objective is “To introduce a replicable model of social and economic
development through a system of profitable farming production based on
technologic transfer and training of local workers”.
"Objectives and aims to reach”:
1. Assembling of greenhouses by the beneficiaries and local workers and directed
by a technician from Novedades Agrícolas, S.A.
2. Assembling and furnishing of a training classroom for the local staff where to
learn about farming technologies, fertigation, production of vegetables under a
greenhouse, marketing and management of an agricultural company.
3. Improving productivity and farmers' income.
4. Development of skills and abilities both in men and women who benefit from the
project. They will become familiar with new farming techniques under
greenhouse as well as they will be trained to manage an agricultural company.
5. Creation of stable and good-quality employment that turns into economic
development for the participating families, and reduction of unemployment.
6. Reactivation of rural economy through creation of small family exploitations and
cooperatives for the trading of vegetable and the purchasing of consumables
jointly.
7. Increased awareness in the employment of technologies and energies that are
harmless with the environment, following the philosophy of Sustainable
Development.
4

5. 2. Methodology
NOVEDADES AGRICOLAS S.A. will direct the whole project, compromising to
the fulfilment of the established objectives. The methodology will focus on
Cooperativism based on five pillars: Facilities, Agronomic training, Production,
Exploitation management and Marketing.
In order to optimize the results and produce with efficiency, it is required:
1.- A high level of quality in their installations that will allow them to grow
products of the highest quality in order to sell them in the most demanding
markets (hotels, supermarkets, restaurants, etc.).
2.- A level of agronomic knowledge high enough to turn them into expert
farmers step by step. It will be required that INVESTMENT is made on their
training, in order to achieve this high level within one year using the method of
"learning by doing".
3.- Optimum management of human resources based on the concept of “Good
Agricultural Practice”: Quality, harmlessness, traceability, etc.
At the same time, the new family companies will deal with:
1.- Purchase of consumables such as fertilizers, seeds, etc., in a joint way.
Their power to get lower prices will increase and their expenses derived from
the exploitation will reduce.
2.- The sale of products in a joint way under one brand only, optimizing the
marketing process, concentrating offer, granting a quality homogenization and
standardization, establishing plans of commercial promotion and trade-mark
creation, etc. In short, optimization of marketing and everything implied.
5

6. 2.1. Marketing
We understand that Marketing is one of the main questions in an agricultural
project, and the part that will decide its profitability. The training plan includes this
outstanding section to obtain a high return.
The marketing plan is based on:
1.- Direct sale to customers:
- Distribution wholesalers in marketplaces.
- Supermarkets buying service.
- Hotels buying service.
2.- Fruit quality:
- The aforementioned customers will only be offered fruit of the first quality.
Sub-standard production will be directed to popular markets.
- Fruit must have a quality good enough to be exported according to the criteria
of the most demanding markets (harmlessness, traceability, etc.).
3.- Trade-mark image:
- The production will be delivered in card-board packs.
- There will be only one trade-mark registered.
6

7. 2.2. Competitiveness
The project methodology is based on the principle of Competitiveness, that is to
say, on reaching efficiency in the use of the available resources and
developing personal motivation. This will help achieve high levels of
professionalism through the training in the use of new technologies in a modern and
intensive agriculture respectful with the environment using the method of "learning
by doing".
The methodology used in this project is based on the experience carried out in
Spain (Almería and Murcia) where protected Intensive Agriculture (mesh and plastic
greenhouses) cover over more than 40.000 has, most of them as familiar
exploitations where the production is put in the market through cooperatives.
CAMPO DE NÍJAR, 1.974-2.004 Almería, Spain.
Aerial photographs. 30 years of Intensive and Sustainable Agriculture Development
7

8. 3. Justification
3.1. Social
The Agricultural Project aims to be an esperience where participants can achieve
skills in the productive and labour fields that will allow them to carry out an
economic activity that guarantees a means of support for them and their families.
As a training centre, the project aims to achieve the following objectives:
 Stimulate socio-economic stability in the area.
 Act as a model and reference to modernize agricultural activity.
 Prepare rural population to face new production challenges.
 Make it easier to access new labour markets.
 Involve them in an efficient economy.
3.2. Environmental
The project will stimulate the production of sustainable crops of fruit and
vegetables, healthy and harmless. The new technologies used in agriculture are
respectful of nature. Take for instance the use of dripping irrigation, where water
or fertilizers are made use of without any waste for a higher benefit.
8

9. 3.3. Health
Another benefit derived from the project will be the improvement of health in the
area where it takes place. The gradual introduction of fresh fruit and vegetables
into the diet produced in their own fields and new plantations that will be started
in the future.
Adding a supplement of vegetables in the dairy diet helps to accelerate the
development of the brain in children, as it is revealed by a research carried out
by the staff at a British hospital. Four children with ages from 8 to 13 showed an
"incredible" improvement in concentration skills, reading, memory and mental
agility after having vegetables every day for a period of six months.
3.4. Economic
The project is economically feasible and sustainable. We have
considered a profit and loss account with payment in 20 years, period through
which the greenhouse structure is guaranteed. The final aim is to replicate this
model with the execution of other familiar exploitations and, maybe, new
companies capable of getting a position not only in the local market but also of
exporting their products to the main demanding countries.
On the other hand, intensive agriculture is characterized by the need of an
important workforce. In any development policy where employment is to be
created, intensive agriculture helps to generate employment and wealth for the
region.
The same way that has happened in Spain, lots of companies have appeared
around these exploitations and cooperatives. Although not specifically
agricultural, they are closely related to this activity, creating more employment
and wealth.
Evolution of area cultivated under greenhouse (hectares)
30000
25000
20000
15000
10000
5000
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
9

10. 4. Project Development
The aim of this project is to train a group of farmers to manage an agricultural
project. They must learn to grow the product under a greenhouse and to put it in
the market, creating 10 small companies with 2.000 m2 each. These 10
companies would associate in order to buy consumables, to get technical
assistance and market jointly their own crops under one brand and one trading
policy.
The project will be based on 10 productive areas of 2.000 m2 with one
greenhouse each (total 20.000 m2, that is, 2 hectares of greenhouse) since this
is the minimum area that would make a familiar company feasible.
4.1. Location
The suggested project will be built on an area of approximately 35.000 square
metres. The receiving organism will contribute with it to the project. Before the
area is selected, NOVEDADES AGRICOLAS S.A. will check the convenience:
the soil has the required quality, water is available, it is flat, and with access for
trucks to load the vegetables, estimated in more than 200.000 kg/year with a
production of 10 kg/m2.
It is of the utmost importance that the selected area for the greenhouse is
correct in order to guarantee feasibility and success.
México 5 Has México 40 Has.
10

11. 4.2. Facilities
Novedades Agrícolas, S.A. will be in charge of the main infrastructures:
 5 greenhouses with 4.032 m2 made up of four tunnels with 1.008 m2 (4 x 9,6 x
105 m = 4.032 m2), with plastic cover, zenithal and side ventilation, structure
supporting the crop, etc. and the necessary elements according to the
requirements of the area and based on cost optimization. It is important to
install only the strictly required materials to guarantee that the project is
profitable. Finally, each greenhouse will be divided in two sections with 2.016
m2 each (19,2 x 105 m) so there will be 10 clearly established areas with 2.016
m2 each.
 Training room, warehouse and filtering station. With an area of 144 m2 (9,6x15
meters), built with a structure similar to the greenhouse and covered with
metallic sheet. There will be a wall to separate the training room, with 96 m2,
from the warehouse and the filtering station, with 48 m2. The structure will be
closed using galvanized steel sheets and wire mesh. The building will include
electric wiring and light, and a small lavatory.
11

12.  Equipment for the training room: One blackboard, tables, chairs and everything
that is necessary to teach lessons.
 Toilets. Two portable lavatories will be installed within the area of the project.
 Irrigation equipment. The system chosen is dripping irrigation, since it is the
most adequate to preserve the environment and to save water. The structure
will be made up of dripping lines 1 meter apart with integrated drippers every 40
cm. The activation system will be semi-automatic and it will include a pumping
station and filtering and fertigation system.
 Electric generator. Whether electricity is available or not, a generator will be
included to guarantee the supply both for the irrigation system and the lights in
the training room.
 The generator will be placed 15 or 20 metres away from the training room in
order to avoid noise and fumes and it will be installed under a hut to protect it
from rain and vandalism.
105 metres
PUMPING STATION
38,4
1 AND CLASSROOM
9,6
2
15
3 7
4 8
5 9
6 10
12

13. 4.3. Material Resources
Novedades Agrícolas will supply all the consumables for the first cycle of the
project. The director will supply them at the right time. These are:
- Agricultural Consumables. This part includes all those materials normally
used in agricultural exploitations:
o The seeds of the species to grow will be cultivated in other sections of
the centre.
o The fertilizers necessary for the crops.
o Tools like hoes, pruning shears, etc.
o Phytosanitary products and sprayers for the plants.
o Threads and clips to hang the plants.
o Etc.
- Educational Material. All the material will be supplied in the country
language to make learning easier. However, it will be necessary to have a
local technician who will be trained to take over the director's place after the
first year is finished. This technician should speak English or Spanish and
act as a translator.
13

14. 4.4. Human Resources: Project Director
The project will be directed by a Spanish technician from NOVEDADES
AGRICOLAS S.A., who will travel and stay the time that will take to build the
centre and the 6-8 months required to train the participants. This person will
instruct both in the theoretical and practical questions of the course the
beneficiaries of the project and also a local technician who will take his place
when the first year is over.
Apart from this person, who will stay until the end of the first growing cycle in
the area where the project will be carried out, the Training Director of
NOVEDADES AGRICOLAS S.A. will travel two o three times to support the
technician during this period and to supervise and evaluate if the project goes
satisfactorily to achieve the objectives established.
4.5. Human Resources: Beneficiary farmers
The receiving organism will be in charge of the selection of participants. Apart
from the 10 farmers, one or two technicians will be eligible to be trained so that
the project can continue along the time.
These would be the conditions of the chosen beneficiaries:
- Length: The project will last 12 months; 2 for the assembling period and
training and 8 to 9 for the normal growing cycle (or two short cycles).
- Timetable: Each farmer or family selected will be responsible for their area
of 2.000 m2. Some days two or three hours will be enough and some others
they will have to work the whole day. There will be a 1-hour theoretical
session every day.
- Salary: In this period, the farmers-participants will receive a salary
proportional to the number of hours per day worked and the average salary
for a farmer in the area. This money will be refunded to the payer once the
14

15. crop has been sold. This salary would be paid until the first crop is collected
and should cover three objectives:
o Cover the basic needs of the participants’ families while the project
is started and vegetables start to grow.
o Guarantee that the farmers remain in the project and carry out the
tasks to look after the crops.
o Place the group of farmers in the economic context of an
agricultural exploitation.
o Help to understand the salary as an expense derived from the
exploitation.
The selection of the participants is fundamental for the success since the labour
force has the highest impact on the return, on the number of kilos per square
metre. They should be enterprising and hard-working, preferably young and
linked by close bonds to the region where they live. It would be advisable that
agriculture is traditional or already present in the family. Once the project has
started it would give a bad impression to change any of the participants.
It is of great importance the historic role played by women in rural areas.
Thanks to their strength, perseverance and patience it would be advisable to
include some women in the group.
15

16. 5. Novedades Agrícolas, Supportive SME
Our company, Novedades Agrícolas, S.A., received the XIII Prize "Supportive SME
2010" awarded by Fundación CODESPA. The prize was presented by His Royal
Highness the Prince of Asturias to our CEO Mr. Miguel Otón Martos. This prize
acknowledges publicly the compromise and sensitivity of SMEs regarding the
problems of developing countries. The awarded project treated to increase the
possibility of teenagers to access the labour market through a project of agricultural
training under greenhouses.
The Intensive and Sustainable Agriculture Development Project – DRAIS, can be
summarized in the following diagram. We hope you feel interested in it.
16

17. 6. Budget
BUDGET FOR THE INTENSIVE AND SUSTAINABLE AGRICULTURE DEVELOPMENT PROJECT DRAIS
OPTION A.
Greenhouse Model APA 20.160 m2
Irrigation equipment for 20.160 m2
Classroom and warehouse 144 m2
Classroom equipment and teaching material
Tools
Human resources
Travel
Consumables
TOTAL PROJECT .....................................................450.000 €
BUDGET DETAIL.
ITEM DESCRIPTION
EQUIPMENT
GREENHOUSE GREENHOUSE MODEL APA 25 5 x 4032 = 20.160 M2
5 GREENHOUSES DE 4032 M2 CONSISTING IN 4 TUNNELS 9,6 M WIDE AND 105 M LONG.
WITH TOP AND SIDE MANUAL VENTILATION, PLASTIC COVER AND ANTI-INSECT MESH ON
WINDOWS. 9,60 X 105 = 1.008; 1.008 X 4 = 4032 M2 (1*) SEE ANNEX WITH DESCRIPTION.
IRRIGATION SYSTEM IRRIGATION PUMP WITH GENERATOR
IRRIGATION EQUIPMENT CONSISTING OF RING FILTRATION SYSTEM, PUMPING SYSTEM
AND FERTIGATION SYSTEM INCLUDING AUTOMATISMS, 2 TANKS, AND THE ACCESSORIES
REQUIRED FOR INSTALLATION AND CORRECT RUNNING.
DRIPPING IRRIGATION SYSTEM FOR 20.160 M2, WITH INSERTED DRIPPERS EVERY 40 CM
AND LINES EVERY METRE, INCLUDING PVS PIPES, VALVES AND ACCESSORIES.
15 KVAS GENERATOR AND ACCESSORIES FOR INSTALLATION
PROTECTION STRUCTURE FOR GENERATOR.
17

18. CLASSROOM AND
CLASSROOM AND WAREHOUSE MODEL APC96S.
WAREHOUSE
CLASSROOM AND WAREHOUSE 144 M2, CONSISTING IN ONE TUNNEL 9,6 M WIDE BY 15 M
LONG, WITH TWO INNER DIVISIONS AND CLOSED BY METALLIC SHEET OF WIRE MESH.
9,60 X 15 = 144 M2.
SETTING UP OF ELECTRICITY IN CLASSROOM AND WAREHOUSE 144 M2
CONSTRUCTION 2 TOILETS
CLASSROOM
CLASSROOM EQUIPMENT (ONE BLACKBOARD, TABLES AND CHAIRS, CUPBOARDS).
EQUIPMENT
BLACKBOARD - 2 Units 180cm x 90 cm
TABLES - 12 Units 160 cm x 60 cm
CHAIRS - 24 Units
PROJECTOR - 1 Unit
DESK, BOOKSHELF, CUPBOARD. MISC.
TEACHING MATERIAL: BOOKS, DOCUMENTATION, CONSUMABLES …
MATERIAL RESOURCES
AGRICULTURAL CONSUMABLES (FERTILIZERS, PHYTOSANITARY PRODUCTS, TOOLS,
CONSUMABLES
WHEELBARROW, CLIPS AND THREAD, ETC)
AMMONIUM NITRATE, MONOAMMONIC PHOSPHATE, NITRATO DE POTASIO, MAGNESIUM
FERTILIZERS
SULPHATE, CALCIUM NITRATE
PLAGUE CONTROL, FUNGICIDE, INSECTICIDE, MITE KILLER, MANCOZEB, AMISTAR,
PHYTOSANITARY
DECICS, PREVICUR, CONFIDOR...ETC
HERBICIDES WEEDS CONTROL HERBICIDES, ADHERENTE,
VEGETABLE
SEEDS OR PILONES, TOMATOE, CUCUMBER, PEPPER, LETTUCE, SWISS CHARD, ETC
MATERIAL
TOOLS
TOOLS WHEELBARROW FOR COLLECTION 90 KG LOAD
FUMIGATION WHEELBARROW
MATTOCKS, RAKES, SPADES, PICKS, PRUNING SHEARS, WHEELBARROWS, FUMIGATION
BACKPACK, LADDERS, CLIPS, THREADS ...ETC
HUMAN RESOURCES
HUMAN RESOURCES AGRONOMIC ENGINEER - 12 MESES
SPANISH TECHNICIAN FOR THE ASSEMBLING AND STRUCTURE WORKS - 2 MONTHS
18

19. PROJECT DIRECTOR - 2 WEEKS, 1 PER VISIT
SUPERVISON AND FOLLOW-UP OF PROJECT - 1 YEAR
TRAVEL
TRAVEL TECHNICIAN AND AGRONOMIC ENGINEER
PROJECT DIRECTOR FROM NOVEDADES AGRÍCOLAS
TOTAL PROJECT (EUROS) 450.000 €
EXCLUDED
The present budget does not include the following concepts, which should be discussed
with the local organism benefitting from the Project. They should be analysed case by
case:
1 CIVIL WORKS: DIGGING, TRENCHES, FOUNDATION MATERIALS, CONCRETE FLOOR.
2 AUXILIARY STAFF DURING THE ASSEMBLING PERIOD (THE BENEFICIARIES OF THE PROJECT)
3 TRANSPORT (1X40'OT CONTAINER)
4 AGRONOMIC ENGINEER ACCOMODATION (12 MONTHS)
5 TECHNICIAN ACCOMODATION (2 MONTHS)
6 PROJECT DIRECTOR ACCOMODATION (TWO 1-WEEK VISITS)
7 LOCAL LABOR (12 MONTHS)
8 LOCAL AGRONOMIC TECHNICIAN (12 MONTHS)
19

20. This Project has a B option with only 2.000 m2, and a lower budget, that
could be used as a pilot project. This way, the first year it could be tested the
potential of Intensive Agriculture under greenhouse. Once the benefits and
feasibility are checked, option A (20.000 m2) could be implemented on the
second year.
BUDGET FOR THE INTENSIVE AND SUSTAINABLE AGRICULTURE DEVELOPMENT PROJECT DRAIS
OPTION B.
Greenhouse Model APA 2.000 m2
Irrigation equipment for 1.000 m2
Classroom and warehouse 144 m2
Classroom equipment and teaching materials
Tools
Human resources
Travel
Consumables
Sundries
TOTAL PROJECT ............................................ 150.000 €
20

21. 7. Estimated Profit and Loss Account.
7.1 Total Payments and Total Expenses – Yearly
Production.
Operative Total
Total expenses yearly
Year
Amortizatión (yearly expenses
1 24.234 40,320 64.554
2 24.234 40.320 64.554
3 24.234 40.320 64.554
4 24.234 40.320 64.554
5 24.234 40.320 64.554
6 24.234 40.320 64.554
7 24.234 40.320 64.554
8 24.234 40.320 64.554
9 24.234 40.320 64.554
10 24.234 40.320 64.554
11 16.175 40.320 56.495
12 16.175 40.320 56.495
13 16.175 40.320 56.495
14 16.175 40.320 56.495
15 16.175 40.320 56.495
16 16.175 40.320 56.495
17 16.175 40.320 56.495
18 16.175 40.320 56.495
19 16.175 40.320 56.495
20 16.175 40.320 56.495
404.090 40.320
21

22. 7.2 Results.
Scene 1:
Production of 10 Kg of vegetables per sq. Metre and price 0,5 €/Kg.
Total Kg. Total €
Total Yearly Total €
Year estimating estimating
Expenses € Turnover
10 Kg/m2 0,50 €/Kg
1 64.554 201.600 100.800 36.246
2 64.554 201.600 100.800 36.246
3 64.554 201.600 100.800 36.246
4 64.554 201.600 100.800 36.246
5 64.554 201.600 100.800 36.246
6 64.554 201.600 100.800 36.246
7 64.554 201.600 100.800 36.246
8 64.554 201.600 100.800 36.246
9 64.554 201.600 100.800 36.246
10 64.554 201.600 100.800 36.246
11 56.495 201.600 100.800 44.305
12 56.495 201.600 100.800 44.305
13 56.495 201.600 100.800 44.305
14 56.495 201.600 100.800 44.305
15 56.495 201.600 100.800 44.305
16 56.495 201.600 100.800 44.305
17 56.495 201.600 100.800 44.305
18 56.495 201.600 100.800 44.305
19 56.495 201.600 100.800 44.305
20 56.495 201.600 100.800 44.305
Sales € Results €
2.016.000 805.510
22

23. Scene 2:
Production of 15 Kg of vegetables per sq. Metre and price 0,5 €/Kg.
Total Kg. Total €
Year Total Yearly Total €
estimating Estimating
Expenses € Turnover
15 Kg/m2 0,50 €/Kg
1 64.554 302.400 151.200 86.646
2 64.554 302.400 151.200 86.646
3 64.554 302.400 151.200 86.646
4 64.554 302.400 151.200 86.646
5 64.554 302.400 151.200 86.646
6 64.554 302.400 151.200 86.646
7 64.554 302.400 151.200 86.646
8 64.554 302.400 151.200 86.646
9 64.554 302.400 151.200 86.646
10 64.554 302.400 151.200 86.646
11 56.495 302.400 151.200 94.705
12 56.495 302.400 151.200 94.705
13 56.495 302.400 151.200 94.705
14 56.495 302.400 151.200 94.705
15 56.495 302.400 151.200 94.705
16 56.495 302.400 151.200 94.705
17 56.495 302.400 151.200 94.705
18 56.495 302.400 151.200 94.705
19 56.495 302.400 151.200 94.705
20 56.495 302.400 151.200 94.705
Sales € Results €
3.024.000 1.813.510
23

24. Scene 3:
Production of 20 Kg of vegetables per sq. Metre and price 0,5 €/Kg.
Total Kg. Total €
Total Yearly Total €
Year estimating estimating
Expenses € Turnover
20 Kg/m2 0,50 €/Kg
1 64.554 403.200 201.600 137.046
2 64.554 403.200 201.600 137.046
3 64.554 403.200 201.600 137.046
4 64.554 403.200 201.600 137.046
5 64.554 403.200 201.600 137.046
6 64.554 403.200 201.600 137.046
7 64.554 403.200 201.600 137.046
8 64.554 403.200 201.600 137.046
9 64.554 403.200 201.600 137.046
10 64.554 403.200 201.600 137.046
11 56.495 403.200 201.600 145.105
12 56.495 403.200 201.600 145.105
13 56.495 403.200 201.600 145.105
14 56.495 403.200 201.600 145.105
15 56.495 403.200 201.600 145.105
16 56.495 403.200 201.600 145.105
17 56.495 403.200 201.600 145.105
18 56.495 403.200 201.600 145.105
19 56.495 403.200 201.600 145.105
20 56.495 403.200 201.600 145.105
Sales € Results €
4.032.000 2.821.510
In any of the three sceneries the profit and loss account is positive and
the return would refund the investment, generating wealth and employment in
the region, and improving the knowledge and capabilities of the local people.
24

25. 8. Memorandum of understanding.
By one side, NOVEDADES AGRICOLAS, S.A. a Spanish company duly incorporated under
Spanish law, and addressed in Mazarrón, Murcia (Spain) in Carretera de Mazarrón al Puerto
Km. 2,5 – hereinafter NA -.
By other side, __________________, addressed in _______________________________ - here
in after ________-.
Hereinafter each referred to as a Party and collectively as the Parties.
EXPOSE
1. NA is a company with expertise in designing, manufacturing, supplying, and installing
of projects for intensive agriculture and projects for development of rural areas.
2. NA and _____ propose to work together to develop and carry out a project related to
intensive agriculture in a specific area.
3. According to the before said, the Parties have agreed to outline this Memorandum of
Understanding (MOU) according to the following
TERMS AND CONDITIONS
A. The Parties agree to work together co-operatively to progress a project as set out in
Annex A (the Project), in the territory of _______ including negotiating and executing
the follow-on agreements required to formalise the arrangements and investments
(Follow-on Agreements) in relation to the carrying out of the Project, prior to the
termination date of this MOU.
B. It is the intention of the Parties that on the termination date of the present MOU, all
Follow-on Agreements will be complete and that each Party will execute the Follow-on
Agreements and carry out any obligations that each Party may have under the Follow-
on Agreements. Nevertheless, the Parties agree that this MOU does not place any
binding obligation on the Parties to enter into the proposed Follow-on Agreements.
C. The Parties declare that the performance of this MOU and the Follow-On Agreements
are in accordance with the terms of or will not contravene any prior agreement with
third parties.
D. This MOU will terminate on the earlier of:
a) One (1) year from the date of the Agreement.
b) An insolvency event happening in respect of either Party.
25

26. Such date may be extended by the mutual agreement of the Parties by writing.
E. Confidential Information shall mean, regardless of its form and whether written or oral:
all commercial financial, business, technical or legal information or know-how relating
to NA; any intellectual property owned by any Parties; all information remarked and
identified as confidential by any Party. Each Party shall keep reserved and confidential
all Confidential Information disclosed by one to another.
F. The confidentiality obligations attached to this MOU do not extend to information
which was in the public domain, or which becomes part of the public domain otherwise
than as a result of any unauthorised activity or omission of a Party and/or the Parties.
Further, the confidentiality obligation do not extend to information that was already in
the possession of the Parties, was not subject to the obligations of this MOU and or was
obtained from Parties not subject to this MOU.
G. All such Confidential Information shall only be used for the purposes of the Project.
H. Unless agreed otherwise in writing by the Parties the confidentiality obligation shall
survive the termination of this MOU and shall continue for a period of two (2) years
after the termination of this MOU.
I. The copyright in project specific documents and other project specific information shall
be owned by NA. Each Party retains copyright in its intellectual property of the general
application relevant to its proprietary technology.
J. Neither Party may terminate this MOU without having made all reasonable efforts to
finalise the Follow-on Agreements. On termination, none of the Parties will be entitle to
receive any kind of good, compensation or indemnification from the other Party, based
on this MOU.
K. This agreement shall be governed by the laws of Spain.
L. If the Parties’ representatives are unable to resolve a dispute arising out of this MOU,
then each Party or his/her nominee shall meet and attempt to resolve the matter. If
agreement cannot be reached, the dispute shall be determined by the courts of Murcia
(Spain).
In Mazarrón, Murcia (Spain), signed this ___ day of ____, 2011 by:
Novedades Agrícolas, S.A ***____________________
Name: Name:
Signature: Signature:
Company Stamp: Company Stamp:
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