G & D EQUIPTMENT GROUP

INCORPORATED
Comp. Reg # CS2017218669

DUMPTRUCK & BACKHOE RENTAL & HAULING

CONTRACT SURIGAO MINE SITE

KNOW ALL MEN BY THESE PRESENTS:

This Contract Agreement for hauling made and executed by and between:

Daniel Espa, President of legal age, Filipino and a resident of Cotabato City, Philippines, doing
business under the name of G and D Equipment Group Inc., with business address located at
Salvani Street, City Heights, General Santo's City South Cotabato Philippines, hereinafter referred to
as the “FIRST PARTY”;

AND

________________, of legal age, Filipino,, and a resident of _______________ City, Philippines,

doing business under the name and style of _______________________, with business address
located at ______________________________________, Philippines, hereinafter referred to as the
“SECOND PARTY”;

W I T N E S S E T H THAT:

The FIRST PARTY is engaged in the mining site operations at Surigao Del Sur, Philippines
only which necessarily requires the loading, hauling and transporting of nickel ore and other minerals
from the mining area to stockpile yard and ultimately to the sea vessel;

The SECOND PARTY is engaged in the renting out dump trucks and other heavy equipment
that would serve the said requirements and needs of the FIRST PARTY;

WHEREFORE, based on the aforesaid premises, the parties herein have agreed and
covenanted to the following terms and conditions:

The services agreed upon are the supply of the following equipment for the loading and hauling of nickel ore.

1. ___ units Dumptrucks, ten wheeler with 20, 18, or 15 cubic meter minimum capacity.
2. ___ units Excavator.backhoe, with minimum capicity of 1.0 cubic meters.

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299
 G & D EQUIPTMENT GROUP
INCORPORATED
Comp. Reg # CS2017218669

1. The FIRST PARTY agreed to rent dump trucks owned and those sourced from third
persons by the SECOND PARTY, for a monthly rental fee of P150,000 per unit; the dump
trucks mentioned herein should be able to at least load 14 cubic meters of nickel ores and
the like;

2. The FIRST PARTY shall cause the approval of getting these dump trucks in and out of the
mining area to place of origin.

3. The FIRST PARTY shall pay rent equivalent to 50% of the monthly rental fee or in the
amount of P75, 000 per truck after two weeks of service to the SECOND PARTY and
another 50% or in the amount of P 75,000.00 per unit the following two weeks based on the
billing cycle.

4. The FIRST PARTY shall pay for the monthly salaries of the drivers in advance of 2 weeks
salaries if requested after two or three days of working at the site, amounting to p10,000
The said salary is P23,000 a month for the drivers respectively which they shall course
through the SECOND PARTY, who is duty bound to disburse the same to the driver and
helper less any deductions required by law such as but not limited to tax, SSS premium,
Phil health premium, etc. ;

5. The FIRST PARTY shall pay in the monthly salaries of the driver and the after two 2 weeks
of rendering their services thereof, to be disbursed by the SECOND PARTY in the manner
prescribed in the immediately preceding paragraph;

6. The FIRST PARTY shall shoulder the repairs and of light maintenance of the dump trucks
pertaining to oil and filter changes, tire vulcanizing and the like, the same to be considered
as minor repairs;

7. The SECOND PARTY shall shoulder the major repair and maintenance of the dump trucks
which are tire changes and engine and transmission repairs but the FIRST PARTY shall
shoulder the First P 25,000.00 of the said major repair on a per dump truck basis;

8. The FIRST PARTY shall provide free fuel and for each of the dump truck rented out by the
SECOND PARTY but the latter shall shoulder the tax due thereon equivalent to 2.5% which
shall be deducted from the billing;

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299
 G & D EQUIPTMENT GROUP
INCORPORATED
Comp. Reg # CS2017218669

9. The dump trucks herein mentioned, under normal circumstances and weather, should be
able to render service equivalent to ten(10) kilometers per trip daily (back and forth) as
maximum distance with a minimum of 12 round trips daily but the same should not exceed
eight (8 to 9) hours daily, destination of which shall be from the mine site/yard to stock pile
then to the loading bay;

10. The SECOND PARTY shall submit their billing to the FIRST PARTY every 15 th and 30th
day of the month, payment of which shall be made by the latter within five(5) days from
submission of the respective billing statement;

11. The SECOND PARTY shall see to it that nickel ore loaded should not fall below 50% of
the loading capacity of the dump truck, falling below it shall be deemed as under loading
and the corresponding deduction on the rental fee shall be made;

12. The SECOND PARTY shall cause the dumping of nickel ore / material in the area duly
designated by the FIRST PARTY otherwise it will not be counted for billing purposes;

13. The SECOND PARTY shall be equipped with a Delivery Report to be duly acknowledged
by the representative of the FIRST PARTY every delivery of nickel ore/material in the area
designated by the latter;

14. The parties herein understand that their mutual liability shall only be between them and
shall not extend to their respective representatives, employees and workers;

15. The SECOND PARTY shall follow strictly the rules and regulations imposed by the Bureau
of Customs, Philippine Port Authority, Bureau of Mines, as well as the company, for the
safety of facilities, vessels, and personnel;

16. The SECOND PARTY shall ensure that the environment is properly protected through
compliance of the Environmental Management Bureau Guidelines where heavy smoke
belching, oil leaks, dilapidated and defective tires are not allowed to haul;

17. The FIRST PARTY shall provide area for barracks and repair shop with access to power
and water lines at a minimal cost;

18. The SECOND PARTY shall provide the FIRST PARTY data and registration certificates
and copy of Special Power of Attorney executed by the owner of a dump truck authorizing
First Party to operate and rent out the same to the latter;

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299
 G & D EQUIPTMENT GROUP
INCORPORATED
Comp. Reg # CS2017218669
19. The SECOND PARTY shall come with a written agreement with the owners of the non-
owned equipment brought at the site;

20. The SECOND PARTY shall at her own cost and expense comply with the provisions of the
minimum wage law, COLA, ordinance and regulations of any National, Provincial, Municipal
or other government authority, and shall maintain SSS and Philhealth coverage for all its
employees working in the mining area, including the payment of premium of workers’
compensation, Medicare, and other benefits required by all existing labor laws

21. The SECOND PARTY shall ensure that the personnel she employed in the mining area
shall be at least 18 years of age, with no derogatory records and of good health;

22. The SECOND PARTY shall furnish the FIRST PARTY complete records of her personnel
including the submission of list of the name of drivers and helpers;

23. The SECOND PARTY shall ensure sufficient insurance coverage to protect herself from
other claims for damages of personnel injury including death, which may arise from
operations under this contract , furnishing the FIRST PARTY copies of insurance policies
for the latter to determine whether or not the insurance cover is adequate for the protection
of her workers, employees and representatives working in the mining area;

24. The FIRST PARTY shall provide fuel from its depots at the mine site, free of charge for the
dump trucks of the SECOND PARTY;

25. The SECOND PARTY must also be duly registered with the Bureau of Internal Revenue
(BIR) and issued approved BIR official receipts for the collections of payment;

26. The SECOND PARTY shall submit to the FIRST PARTY, a list of all their employees with
medical certificate and drug test for drivers and operators and indicating designation,
employment status, contact number, and recent address every first week of the month. The
FIRST PARTY shall then submit the list to its Human Resource Department for validation
purposes;

27. The FIRST PARTY shall issue an official sticker to be attached to the identification card of
the employees, personnel and representatives of the SECOND PARTY , without which the
employee concerned shall be denied entry or access ;

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299
 G & D EQUIPTMENT GROUP
INCORPORATED
Comp. Reg # CS2017218669
28. The SECOND PARTY shall provide operators as the case maybe, for heavy equipment
and drivers for dump trucks for the 24/7 operations, subject to eight (8) hour work in excess
thereof shall entitle the driver and helper an overtime fee chargeable against the FIRST
PARTY amount to be discussed before overtime is granted;

29. This contract shall take effect for the year 2017 during mining season operations only which
shall end in the month of October and may be extended and renewed by mutual agreement
of the parties; nevertheless, the FIRST PARTY shall ensure the SECOND PARTY
continues rental of the dump trucks but under a different contract conditions may change
some depending on the different sites and conditions herein mentioned by engaging the
SECOND PARTY to do some hauling services in another areas as the former may deem fit
during the months outside of the mining season operations;

30. The FIRST PARTY shall cause the termination of this contract in case the SECOND
PARTY fails to perform the works specified herein without any reasonable justification or
failure to observe mining safety rules and regulations, or any fraudulent acts committed by
the latter;

31. The SECOND PARTY shall not be liable for any failure or default in the performance of this
agreement for reasons beyond her control, including force majeure, and special risks.
However, the SECOND PARTY shall promptly notify the FIRST PARTY in writing of the
occurrence of any event constituting force majeure or special risks.

32. Violation of any terms and conditions herein agreed is a ground for termination of this
contract without prior notice;

33. In case of suit arising from this Agreement, the venue shall be in the competent court in
Butuan City only to the exclusion of other courts of equal jurisdiction;

34. Billing is every 1 to 15th of the month and 16th to 30th of the month, to be reconciled on the next day.
And after five (5) days will be the scheduled payment of the billing. All payments will be a BANK to
BANK Transaction, to be deposited to the BANK ACCOUNT of the SECOND PARTY;

ACCOUNT NAME: _____________________

ACCOUNT NUMBER _____________________

NAME OF BANK _____________________

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299
 G & D EQUIPTMENT GROUP
INCORPORATED
Comp. Reg # CS2017218669
IN WITNESS WHEREOF, the parties have hereunto fixed their signatures, this _____ day of
__________ ,2017

Signed
________________________ _________________________
FIRST PARTY SECOND PARTY
G and D Equipment Group Inc.
Daniel Espa President

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES

(In the City of Davao)

BEFORE ME, a Notary Public for and in above jurisdiction this,_____day of _______2017,
___________ personally appeared with ID No. _________Issued at ________________and
___________, personally appeared with ID No. ________ issued at ________________________
and ______________,all known to me to be the same person(s) who executed the foregoing
instrument and who acknowledged to me that the same is his free and voluntary act and deed.

This instrument consisting of one (6) page including this acknowledgment is written, has been signed
by the parties together with their instrumental witnesses, and refers to a Memorandum of Agreement

WITNESS MY HAND AND SEAL on the date and at the place first above written.

Doc. No. __________

Page No. __________ NOTARY PUBLIC
Book No. __________                                                                                           
Series of    2017

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Mailing Address: Suite no. 10, VKV Building, 233 Capitol Site, Villa Kananga Road, Butuan City, Agusan del Norte, Philippines;
Email: g_and_d.equipments@outlook.com; Cell# Gensan/ Daniel 09329593820 Cell# Davao/Gary 09062463374
Cell# Butuan-Surigao/John 09273546328 Cell# Cebu/Jason 09176296299