MEMORANDUM OF UNDERSTANDING

Between

THE PEOPLES COMMITTEE OF BINH DINH PROVINCE VIET NAM

AND

VNCAP,
VIET NAM CHILDREN'S ASSISTANCE PROGRAM
OREGON, USA

1998

I. INTRODUCTION

This agreement is the first of four (4) phases of this project between The People's Committee of Binh Dinh Province and VNCAP: Viet Nam, Children's Assistance Program (referred to as VNCAP) to develop a Center for Vocational Training and Special Education.

II. BACKGROUND

Handicapped, homeless, orphans suffer great losses in comparison with children of the same-age. They need care and help from individuals and organizations like VNCAP, who have charity as their goal in Viet Nam.

All children deserve and have a right to get a proper education regardless of their circumstances in life. An educational training center will help the children of this Province to become healthy and productive citizens of Viet Nam. The concept of this Center relies upon the principle that the children of the country are the wealth of the Nation.

There are thousands of handicapped, homeless, orphan children in Binh Dinh Province. Many of them are illiterate and unemployed. Some children suffer severely from difficult situations and need assistance first.

Therefore, the building of a Center for handicapped, homeless, orphan children in Binh Dinh Province is very necessary and a deeply humanitarian project.

This document offers The Commitment of responsibility of:

VNCAP
in the USA.
Representative: Mr. Francis E. Betz , Chairman and Founder.
Address: 7620 SW Sage Place Beaverton, OR  97008 USA

AND

The People's Committee of Binh Dinh in Viet Nam.
Representative: Mr. Vu Hoang Ha Vice-Chairman
Address: 01 Tran Phu St., Qui Nhon City,
Binh Dinh Province, Viet Nam

Both sides commit to carrying out the following responsibilities:

1.0: VNCAP

RESPONSIBILITIES:

1. Funding (the building of a Vocational Training and Special Education Center for handicapped, homeless, and orphaned children in Binh Dinh Province and / or building and remodeling building(s) on an established site in Binh Dinh Province.
   
2. Center name: Vocational Training and Special Education Center
   
3. Object: Including handicapped, homeless, orphans age six (6) to eighteen (18) years of age.
   
4. Number of students: 150 individuals (boys and girls) (limit for sleeping) on a year round basis. These children are residential temporary students. The Center may train an additional number of non-residential children.
   
5. Length of time for the project: This is a twenty-year (20) project in four (4) five year (5) phases starting in the year 2000 to 2020. After each five-year (5) phase the contract is re-negotiated on issues, i.e. maintenance and further development of the project.
   
6. In the first phase from 2000 to 2005 VNCAP ensures the construction of a 2000m² building and / or remodeling of any building(s) on an established site in Binh Dinh Province, and equipment for the Center (approximately $390,000 USD), and the first year and the next four (4) years total operating expenses (this includes any allowance paid to the local Vietnamese staff) not to exceed $110,000 USD per year to maintain 150 residential children (not to exceed the cost of $2.00 USD per child per day).
   
7. The Center shall have accommodation for the children and overseas volunteers.
   
8. VNCAP shall be responsible for any allowance paid to the local Vietnamese Center staff.
   
9. The Center is expected to earn income from various projects and use this income to sustain the students, maintain the operation and maintenance of the Center, and increase the number of students served. This is not the main purpose of the Center. The Center is expected to operate within the budget guidelines as described in this MOU).
   
10. The Board of Directors of VNCAP must ratify the Center proposal, (including any changes, modifications, or addenda), and the MOU before the final contract is signed. The Board shall respond, in writing, within thirty (30) days of receiving all documents from The People's Committee of Binh Dinh Province.
    
11. VNCAP will operate bank accounts in US dollars in Qui Nhon for the receipt and management of funds received from the USA and other sources for this project and other projects that may be established.
    
12. VNCAP Representative is responsible for any overseas volunteers at the Center.

2.0: THE PEOPLE'S COMMITTEE OF BINH DINH PROVINCE

RESPONSIBILITIES:

1. Providing a location for construction of the Center. The land and any structures on the site provided are considered part of like contribution of the People's Committee of Binh Dinh Province. There is no cost to VNCAP.
   
2. The area of' land shall be no less than 8,000-10,000m² to ensure sufficient space for classrooms, workshops, dormitory, kitchen/dining, administrative functions, recreation, dispensary, and staff and overseas accommodation.
   
3. The land shall be suitable to provide access to learning recreation, and good health.
   
4. Arranging multiple entry/exit visas for: leaders of VNCAP, other professionals, and individuals visiting, evaluating, and carrying out this project.
   
5. Contacting authoritative agencies, in Viet Nam, to complete all necessary paperwork to ensure the success of this project.
   
6. Facilitates a positive and productive working relationship and timely completion of all necessary legal and working documents between the local and national governments.
   
7. The People's Committee of Binh Dinh Province provides a representative, acceptable to both sides, to work directly with the representative of VNCAP. This is part of its contribution to this project.
   
8. The People's Committee of Binh Dinh Province ensures that they will facilitate the free interchange of communication between overseas staff of VNCAP and local citizens, according to the laws of Viet Nam and the USA, to ensure the complete success of this Center project.
   
9. The People's Committee of Binh Dinh Province ensure that all donations, material, and supplies, in any form, either from inside Viet Nam or from overseas shall have no duty or tax placed upon such items, in order to assist the Center in becoming fully operational and to lower the overall financial costs for the construction and operation of the school.
   
10. The People's Committee of Binh Dinh Province assists VNCAP to expedite clearance of any donations, material and supplies through Ports of Entry into Viet Nam.
    
11. Ensures that the governmental taxing agencies of Binh Dinh Province and Viet Nam agree not to collect taxes on the operation of the Center for the first 10 years (or longer) of the operation to ensure the success of the project and assist the Center in reaching its goal of training the maximum number of students.
    
12. The People's Committee of Binh Dinh Province Shall respond, in writing, within thirty (30) days of receiving all documents from VNCAP.
    
13. The Province representative assists with the arrangement of necessary vehicle licensing, Vietnamese driver's license, and driving permits that VNCAP needs to carry out this project. This is subject to the regulations of Viet Nam law.
    
14. Ensure establishment of positive communication by telephone, fax, E-mail or letter.
    
15. The People's Committee of Binh Dinh Province is responsible for the local Vietnamese Center staff salaries.

This MOU, after approval, is the first legal basis that both sides will use to set-up a feasible plan for working out this project.

This MOU is a legal document provided to VNCAP to enlist support and financial resources for the construction, maintenance, and operation of the Vocational Training and Special Education Center.

The ten (10) MOU originals are in English and Vietnamese languages. Three (3) copies in each language for The People's Committee of Binh Dinh Province and two (2) copies in each language for VNCAP.