EQUIPMENT LEASE AGREEMENT

KNOW ALL MEN THESE PRESENTS:

This Equipment Lease Agreement is entered into by and between
AEGIS TRUCKING & HAULING SERVICES, with office address located at P11 Navalca, Brgy. San Juan, Surigao City, herein represented by its General
Manager/Proprietor PATRICIO P. PINGOY, herein after referred as FIRST
PARTY;
AND
_____________________________, a sole-proprietorship engaged in
hauling/trucking
services,
with
office
address
located
at
___________________________________, represented by its General Manager/
Proprietor __________________, hereinafter referred to as the SECOND PARTY.
WITHNESSETH:
WHEREAS, the FIRST PARTY has an existing Mining and Hauling
Contact Agreement(s) with ARSENIA TRUCKING & HAULING SVCS. AND AD
MINERAL TRADING, a subcontractor of PGMC, located at Brgy. Cagdianao,
Claver, Surigao del Norte, to fulfill the provisions of the said Contract(s),
FIRST PARTY desires to lease DUMP TRUCKS, BACKHOES and OTHER
OPERATING EQUIPMENT from the SECOND PARTY.
WHEREAS, The SECOND PARTY, is desirous to provide hauling
services to the FIRST PARTY;
WHEREAS, the SECOND PARTY will provides, at least (10) units of
DUMP TRUCKS with a minimum capacity of 14 cubic meter dump boxes and
(2) units backhoes with 1.2 cum bucket and willing to lease the same to
the FIRST PARTY.
WHEREAS, The FIRST PARTY has accepted the SECOND PARTY to
render the services required by the FIRST PARTY subject to the condition
herein after set forth;
NOW THEREFORE, for and in consideration of the foregoing premises,
the parties here to have agreed to enter a contract of hauling Nickel Ore
subject to the following terms and conditions:

CONSIDERATION
For use of Units of Dump Trucks and Units of Backhoes and other heavy
equipment for the said purpose, the FIRST PARTY obligates to pay the
SECOND PARTY the following rental rates:
NICKEL ORE 3 6 kilometers P25.00 per Cubic
distance
Kilometer for
Medium/high grade

Meter

per

BACKHOE/EXCAVATOR 1.2 CUM P2,500.00/HR. @ 12 HRS/DAY

BUCKET
Billing period shall be every WEEK and payment will be made after THREE (3)
TO FIVE (5) working days from the submission of the billing;
The SECOND PARTY and the FIRST PARTY shall agree on methods
how to verify the accuracy and truthfulness of the total cubic meters of ores
delivered and/or hours used or truckloads met with the use of the abovementioned equipment.
WITHOLDING TAX
The FIRST PARTY shall deduct a creditable Two (2) Percent
Withholding Tax from Mining/Hauling activities from the Billing of the
SECOND PARTY.
RELATIONSHIP
The FIRST PARTY is not in any way responsible to the operators,
drivers, helpers, and all persons working with the SECOND PARTY and the
SECOND PARTY hereby frees and releases the FIRST PARTY, its
incorporators, directors, officers and successors-in-interest from any harm
liability, suits, actions, arising out or from suits relative to the services
rendered, compensation, contacts, and non-payment of social benefits and
all social legislations pertaining to the said workers.
LIMITATIONS OF LIABILITIES

FIRST PARTY's obligation shall only be limited to the SECOND PARTY and no
other party shall be involved. In cases there are different parties involved to
the Second Party, First Party will never be held liable for any conflict or
disputes they have within. There will be no employee-employer relationship
between the staff/workers of SECOND PARTY and the management of the
FIRST PARTY;
Drivers and maintenance staff of the SECOND PARTY shall be liable on all
accidents caused by reckless imprudence, poor monitoring of truck
conditions or any form of negligence that results to death, injury, or any
event of the same nature;
The SECOND PARTY shall pay the to its own employees all compensation
mandated by law such as but not limited to SSS, Phil-Health, and Taxes;

The SECOND PARTY shall free the FIRST PARTY in all form of claims or accidents
caused by their employees such as but not limited to Drivers, Operators,
Maintenance Staff, and other workers;
PRIORITY
The SECOND PARTY must give priority to the members of indigenous people
in hiring its employees whenever appropriate and necessary.
DILIGENCE
The SECOND PARTY, including all its employees, must observe and exercise
extraordinary diligence, during the duration of this agreement/contract, to prevent
harm to all persons and damage to the equipment of the FIRST PARTY and/or third
persons.
COMPLIANCE
All persons employed by the SECOND PARTY must at all times adhere to the
rules and regulations imposed and set forth by the FIRST PARTY.
MOBILIZATION AND DEMOBILIZATION
On Mobilization and Demobilization, FIRST PARTY and SECOND PARTY agreed to
equally divide the expenses on mobilization and demobilization from Port of Surigao
City to Mining Site and Vice-versa.
SECOND PARTY shall provide in its own the Mobilization and Demobilization of their
units from place of origin to Port of Surigao City and Vice-versa;

During Off-season (if there is a declared off-season), FIRST PARTY will give schedules
of trips from Mining Site to Port of Surigao City for the Demobilization. Failure of the
SECOND PARTY to comply with the given schedules for Demobilization, the FIRST
PARTY will not be responsible for the Demobilization of the SECOND PARTY's trucks
and equipments;
In-cases they will decide to pull-out their trucks during the tenure of this contract or
outside the given schedule of the Demobilization, SECOND PARTY in their own
expense can make arrangement on the demobilization of their units;
Clearance from the FIRST PARTY is required in all units that will be pulled-out for as
long as it is within the effectivity of this contract;
FIRST PARTY will have the right to retain or seize the units of the SECOND PARTY
who decided to pull-out their trucks for as long as they have outstanding
responsibility to FIRST PARTY. SECOND PARTY must settled all their liabilities to the
FIRST PARTY before the equipment be pulled-out;
EFFECTIVELY
This CONTRACT shall take effect upon signing of both parties and will be valid for
one mining season
This CONTRACT will be renewable after every mining season but will be subject to
approval of both parties
PRIOR NOTICE
The SECOND PARTY shall serve written notice to the FIRST PARTY in case it
will pull out any dump trucks, backhoes or any equipment at least Thirty (30) days
prior to the pull out of the same.
This contract may be amended or terminated due to the following reasons:
a) Cessation of business or bankruptcy
b) Forced war hostilities
c) Force majeure or circumstances beyond the control of either or both of the
parties
d) Mutual agreement
e) In cases of poor performance and intentional disobedience to company
operational rules and regulations, the FIRST PARTY will give "warning letter" to
address such issue. Continuous practice of SECOND PARTY of such damaging
activities, FIRST PARTY will send Notice of Contract Cancellation which will be
affective fifteen days upon receipt of the SECOND PARTY. This is to protect the
interest of FIRST PARTY in all forms of noxious activity in its area.

IN WITNESS WHEREOF, we hereby set our hands at the Philippines, this ___ day of
________ ,2015
By:

By:

AEGIS TRUCKING & HAULING SERVICES

____________________________
PATRICIO P. PINGOY
General Manager/Proprietor
Manager/Proprietor

HENRY LIM
General

Witness:
ROMULO A. MASALIHIT,
___________________________________
_________________________________

ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

City of Surigao
)
S.S.

At Surigao City, Philippines, on this ________________________________

personally appeared THE PARTIES, with their respective proofs of identity, all known
to me to be the same persons who executed the foregoing instrument and
acknowledged that the same is their free act and voluntary deed.
This instrument consisting of THREE (5) PAGES, including the page where this
acknowledgement is written, sealed by my notarial seal, and relates to
EQUIPMENT LEASE AGREEMENT.
WITNESS MY HAND at the same place and on the same date above written.

Doc. No. __________________;

Page No.__________________;
Book No.__________________;
Series of __________________;