SF TRUCKING SERVICES

TRUCKING AND HAULING CONTRACT

KNOW ALL BY MEN BY THESE PRESENTS:

This Contract is made and entered this 8th day of April, 2024, at Surigao City by and
between:

SFD TRUCKING SERVICES., Sub-Contractor of RAM TRUCKING SERVICES., a

compacompany duly organized and existing under the laws of the Republic of the
Philippines, with principal office address at Brgy. Ladgaron, Claver, Surigao City,
represented herein by MS. SHIELA C. TARE, of legal age, married, hereinafter
referred to as the FIRST PARTY.

-and-

KNCR INDUSTRIES OPC., a company duly organized and existing under the Laws of
the Republic of the Philippines with office address at 8 Mabini Dagohoy Butuan
City,Agusan Davao del Norte represented by SHIELA CABRERA ANINO, of legal age,
married and a resident of 8 Mabini Dagohoy Butuan City Agusan Davao del Norte.
Hereinafter referred as the SECOND PARTY;

WITNESSETH THAT:

WHEREAS, as the FIRST PARTY, is the operating Sub-contractor of RAM TRUCKING

SERVICES in PGMC Nickel Project at Claver, Surigao Del Norte;

WHEREAS, the SECOND PARTY, is desirous to provide Dump Trucks for hauling and
loading services to the FIRST PARTY;

WHEREAS, as the FIRST PARTY, has accepted the offer of the SECOND PARTY to
render the service required by the FIRST PARTY subject to the conditions hereinafter
set forth;

NOW THEREFORE, for and in consideration of the foregoing premises, the parties
here to have agreed to enter into a contract of loading for barging and hauling of
nickel ore to the stock yard and to provide nesesscessary under the following terms
and conditions:

1. EQUIPMENT REQUIREMENT

The services agreed upon are the supply of the following equipment for the
loading and hauling;

1. Any CHINA DUMPTRUCKS units (10) ten-wheeler with 18.0 cubic meter
minimum capacity.

2. SCOPE OF WORK

The SECOND PARTY shall provide loading and hauling services of Nickel Ore
materials and shall be responsible for mining the ore from mine pit to mine
yard, stockpile are and deliver the same to the barge or LCT after the ore has
been properly prepared and cleared for shipping.
 Loading and hauling works specified by the FIRST PARTY at the following rates:

A. MINING RATE:

1. LOADING – Php 20.00 per cum³ per truckload per kilometer

distance HAULING - Php 2100 per cum³ per truckload per
kilometer distance

3. BILLING PERIOD AND PAYMENT TERM

Billing period shall be every 15th and 30th of month. Payment shall be within ten
(10) working days from submission of billing statement.

In case of discrepancy in the Billing Statement, the lower lower amount shall
be paid without delay and the difference shall be a subject to reconciliation. It
shall be immediately paid once reconciled. (ok)

4. LIABILITY LIMITATIONS

FIRST PARTY liability with respect to the contact shall be limited only to the,
SECOND PARTY and shall not extend to its employees and other parties.

5. SAFETY

For the safety of the facilities, vessels and personnel, SECOND PARTY shall
follow strictly the rules and regulations imposed by the Bureau of Customs,
Philippines ports Authority, Bureau of Mines, PGMC as well as of the
company.

Further, the SECOND PARTY shall abide with the Basic Occupational Safety
Health Standards being implemented by the Department of Labor and
Employment and the company.

The SECOND PARTY shall be fully liable for any loss, injury or death to any
person and damage to property that may arise during its performance of this
agreement, for whatever cause. Hence, the FIRST PARTY shall be free and
harmless for any damage, injury or death caused by any peril, or by any
person(s), including insurgency.

6. ENVIRONMENT

The SECOND PARTY shall ensure that the environment is properly protected
through strict compliance with the DENR-Environmental Management Bureau
guidelines. Heavy smoke belching, oil leaking, dilapidated units and defective
tires of equipment will, not be allowed to haul.

7. OTHERS
1. SECOND PARTY shall provide data and registration certificates and
special powers and attorney to operate (for not owned equipment), for
each equipment brought in the sites; SECOND PARTY ensure to have
direct agreement with owners for any non-owned equipment brought at
site;

2. SECOND PARTY shall at its own cost and expenses comply with the
provision of the minimum Wage Law, ordinance and regulation of any
national, provincial, municipal or other government authority; and shall
maintain SSS and Phil health coverage for all its employees including the
payment of premium of workers compensation, Medicare and other
benefits require by all existing labor laws;

3. SECOND PARTY shall ensure that the personnel involve shall be at least
18 years of age; this is the safety of its personnel and for the protection of
minors; with no derogatory records and of good health;

4. SECOND PARTY shall furnish FIRST PARTY complete records of

personnel including the submission of copies of drivers’ licenses;

5. SECOND PARTY shall ensure sufficient insurance coverage to protect

itself from other claims for damages or personnel injury including death,
which may arise from operations under this contract. Copy of such
insurance shall be filled with the FIRST PARTY and shall be subject to its
approval as to adequacy or protection;

6. The FIRST PARTY shall provide fuel and an exclusive depot for the trucks
and backhoes of the Second Party at the mine site for the account of
SECOND PARTY deductible from its billing considering that it has a
substantial number of units; (not ok)

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

8. The SECOND PARTY need to comply the R.A 9993 (Philippines Coast
Guard Law 2009) permitting the PCG to conduct pre-departure inspection
and verification in compliance with safety standards;

9. The SECOND PARTY shall submit to the FIRST PARTY, a list of all their
employees, indicating designation, employment status, contact number
and recent address every first week of the month. The FIRST PARTY shall
then submit the list to PGMC (thru its Human Resources Department) for
validation purposes. The PGMC-HR shall issue an official sticker to be
attached to the valid ID card of the employee. Any contractor/sub-
contractor employee without such issued sticker shall be denied entry or
access to
PGMC camp site and mine site;

10. No member of the family of the SECOND PARTY personnel shall be

allowed to live at the mine site;

11. The FIRST PARTY shall have the right to bar or remove any personnel of
the SECOND PARTY for any intentional violation of any safety rule or
regulation or his refusal to comply the same despite notice.
 8. CONTRACT EFFECTIVELY AND TERMINATION

This CONTRACT shall take effect for the year 2024 mining season operations only
and may be extended and renewed by mutual agreement of the parties.

Violation of any of the terms and conditions herein agreed is a ground for termination
of the CONTRACT without prior notice. Also, in case the SECOND PARTY fails to perform
the scope of work specified in this contract without any reasonable justification, or fails to
observe mine safety rules and regulations, or to comply with labor laws, rules and
regulations, and for fraudulent acts committed by the SECOND PARTY, the FIRST PARTY
shall have the right to terminate the contract without prior notice.

IN WITNESS WHEREOF, the parties hereunto affixed their signatures this 8th day of April,
2024.

SHIELA C. TARE – CEO

ACKNOWLEDGMENT

Before me, a Notary public for and in _______________ on this __

day of April 2024, appeared the foregoing affiant who exhibited to me his Passport with
number _______________ issued on ___________ in Butuan City as competent proof of
identity, known to me and to me known as the same person who executed the foregoing
contract for and in behalf of the corporation, and he acknowledged to me that the same is the
free and voluntary act and deed.

WITNESS MY HAND AND SEAL this __ day of April 2024 at ____________, Philippines.

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___________________________

Second Party
 ACKNOWLEDGMENT

Before me, a Notary public for and in Province of Surigao Davao del Norte on this __ day of
April 2024, appeared the foregoing affiant who exhibited to me his Passport with number
_______________ issued on _____________ in ________________ as competent proof of
identity, known to me and to me known as the same person who executed the foregoing
contract for and in behalf of the corporation, and he acknowledged to me that the same is the
free and voluntary act and deed.

WITNESS MY HAND AND SEAL this __ day of April 2024 at ____________, Philippines.

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Series of 2024

ACKNOWLEDEGEMENT

REPUBLIC OF THE PHILIPPINES CITY

OF SURIGAO

Before me, a Notary public for and in Surigao City, Surigao Del Norte on this _______

day of April 2024, appeared the foregoing affiants who exhibited to me their competent proof
of identity, as follows:

Name Identification Issued on Issued at

SHIELA C. TARE _______________ _____________

____________

SHEILA C. ANINO _______________ _____________

____________

Who are both duly authorized and representing their respective Company. Known to me and
to me known to be the same persons who executed the foregoing instrument and they
acknowledged to me that the same is their free act voluntary deed.

This instrument is consisting of four (4) pages including this page where the
acknowledgement is written, have been signed by the parties and witnesses on each and
every page thereof.

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

Doc. No. _________

Page No; ________
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Series of 2024