2014

TRANSPORTATION
AGREEMENT
CONTRACT
THIS IS A CONFIDENTIAL DOCUMENT AND IS INTENDED ONLY FOR THE VIEWING
OF ALL RELATED PARTIES.

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ROAD TRANSPORTATION AGREEMENT
MADE AND ENTERED INTO

BETWEEN

AFRICAN SPEAR TRADING 089cc

REG No: 2006/226948/23

(Transport Management Company)

Represented by: AVISH SINGH

1 La Colina, Ballito Gardens

Ballito

4420

AND

______________________________

REG No: ___________________

(Transport Contractor)

Represented by: _____________________

______________________________

______________________________

______________________

_______________

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 WHEREAS

The MANAGEMENT COMPANY has agreed to enter into a haulage agreement with the
CONTRACTOR in terms whereof the CONTRACTOR shall provide trucks to transport COAL
Commodity’s within KZN.

WHEREAS

The Management Company has agreed to utilize the trucks of the Contractor to transport COAL
within KZN and THEREFORE the parties have agreed to conclude a haulage agreement the
terms of which are as follows:

INTERPRETATIONS:

Reference to the masculine gender includes the feminine and the singular shall include the
plural. The contract refers to this contract and the schedule attached hereto. The date of
commencement of this contract shall be date on which the last party appends its signature to the
contract.

1. DUTIES AND RESPONSIBILITIES OF THE TRANSPORT CONTRACTOR

1.1 The Contractor shall provide the Management Company with 5 (34 Ton – Side Tippers) trucks as
annexure A.

1.2 The trucks supplied by the Contractor shall be used to convey COAL within KZN on a
daily basis for the duration of the contract.
1.3 The Contractor shall provide the Management Company with two (2) drivers per truck on
an alternative basis.
1.4 The Contractor shall ensure that the trucks are insured against any or all eventualities
which may flow from the performance of the contract.
1.5 The Contractor shall maintain the trucks and ensure that they are in a roadworthy
condition for the duration of the contract.
1.6 The Contractor shall be responsible for all the liabilities which may arise from
contraventions of the Road Traffic Act and all other related Transport Legislative
measures.
1.7 The Contractor shall be responsible for the provision of safety apparel to the drivers of
the trucks throughout the duration of the contract.
1.8 The contractor will accept from the Transport Management Company from time to
time including but not limited to the location, as per annexure 1, that the dispatch
area/drop off point may change, this will be communicated prior. Change of distances
in access of 15km on the total round trip will be adjusted accordingly on the transport
rate as per annexure 1.
1.9. 30 Day notice to be given for withdrawal of vehicles.

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2. DURATION OF THE CONTRACT

This contract shall be for a period of ONE (1) years commencing on the date of signature by
the duly authorized parties to this agreement on a 24/7 basis.

3. PAYMENT OF THE SERVICES RENDERED

The Management Company shall pay the Contractor the sum as per annexure A . Such
payment shall be made to the bank account of the Contractor 14 Days after submitting of
PODs to Management Company.

4. Diesel

180 LITERS PER TRIP, SUPPLIED FREE.

5. BREACH OF CONTRACT

In the event of a breach of this contract the party who committed the breach shall be called upon
to remedy the breach within the time period agreed to between the parties to remedy such
breach failing which the defaulting party shall be summoned to effect damages occasioned by
such breach.

6. NON VARIATION

The parties agree that this contract is the sole memorial of the agreement and no terms or
conditions shall be varied unless such variation shall be reduced into writing and be signed by
the Parties or their nominees.

7. ARBITRATION

The parties agree that in the event of a dispute regarding any of the terms and conditions of this
contract, the parties shall endeavour to solve the dispute in an amicable manner failing which
they shall refer, The dispute to an arbitrator who should be an advocate or a lawyer with 10 (Ten
years experience) in commercial litigation.

8. JURISDICTION

Parties agree that subject to the provision of clause 6 above and in terms of Section 45 of the
Magistrate Court Act, the Magistrate Court shall have exclusive jurisdiction over any dispute
arising from this Contract.

9. INSURANCE

The Contractor acknowledges and agrees that it is responsible for procuring insurance in respect
of all products in transit for each consignment and that each consignment is adequately insured
.The Contractor shall procure at minimum third party vehicle insurance for all vehicles used to
carry out the services

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10. DOMICILIM CITANDI ET EXECUTANDI

The parties choose the address at which the correspondence and /or all documentation shall be
delivered as follows:

THUS DONE AND SIGNED AT UMHLALI ON THIS THE 10TH DAY OF OCTOBER 2013

SIGNATURES: FOR THE TRANSPORT MANAGEMENT COMPANY.

______________________________________

FOR AND ON BEHALF OF AFRICAN SPEAR TRADING 089cc.

WITNESSES:

1._________________________

FOR AND ON BEHALF OF

WITNESSES:

1._________________________

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Annexure 1: Transportation Rates

Commodity COAL
Number of Trucks required 5
Number of Loads Based on 30 Days 75
Type of truck 34 TON SIDE TIPPERS
Payment terms 14th Of every Month
GIT Insurance Required R350 000
Operating Hours(Loading and Off-Loading) 24/7
Operating Days Full Month
Number of Drivers Required 2Drivers per Truck
Contract Duration 1 year, renewable
Contract Commencement Date ASAP
Diesel Supplied
Free(1.7km/1liter, 180 liters Supplied free per trip)

Collection and drop off Rate

ROUTE

LOAD – ex Mine-Newcastle (284KM RTRIP) R 120.000.00

OFFLOAD- Vryheid

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 NON-CIRCUMVENTION NON-DISCLOSURE AGREEMENT (NCNDA)

Whereas the undersigned Parties desire to enter into a working business relationship
to the mutual and common benefit of the parties, including each party’s parent /
holding company subsidiary(s) / affiliate company(s), partners, associates,
assignees, successors, funding sources, underwriters, customers (all herein referred
to as “Affiliates”) and desire to bind themselves to an obligation of confidentiality as
regards their sources, contacts and connections, each agrees to the following:

CONDITIONS OF NON-CIRCUMVENTION:

1. This is to re-affirm that each of the name parties as individuals and as duly
authorized officers of the named corporations, separately and individually,
hereby to keep numbers and addresses, telephone information of the banks,
trusts, lenders or borrowers, funding sources, lending institutions,
corporations, buyers, sellers, groups and individuals introduced by either
parties or affiliates. Such information is considered the property of the
introducing party and shall remain so for the term of this agreement.

2. The parties acknowledge that no effort shall be made to circumvent the terms
of this agreement in an attempt to gain commissions, fees, remunerations, or
considerations to the benefit of the other parties, while excluding equal or
agreed to benefits to the other party.

3. The parties will not solicit or accept and business from the other parties
Affiliates.

4. It is also understood that a party cannot be adjudged to be in violation, i.e. to

have circumvented, if actions were involuntary due to situations beyond their
control, e.g. prior knowledge or possession of information regarding a specific
source(s).

CONDITIONS OF NON DISCLOSURE

The parties have concluded that the following understanding should establish the
conditions under which the confidential information of the parties can be disclosed
and exchanged.

1. The Confidential information may include, for example, business plans, data
reports, methods of doing business, customers lists, financial reporting,
studies, findings and ideas, but is not limited to these items.

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 2. The parties intend to maintain the trade secret of this respective Confidential
Information.

3. The parties shall designate or mark confidential nature of its Confidential

Information as “Confidential” or in some other appropriate manner, so that the
other party is aware that its receipt is governed by the terms of this
agreement. In the event of verbal disclosure, each party shall promptly inform
the other party if such disclosure is confidential. In addition, all program
materials and vendor names are considered Confidential Information.

4. Each party shall exercise reasonable care to prevent disclosure of the party’s
confidential Information to any third party. Internal dissemination of the
Confidential Information shall be limited to those employees whose duties
justify their need to know such information and then only on a basis of clear
understanding by these employees of their obligation to maintain the trade
secret status of such information and to restrict the use of such information
solely to the use granted to the other party under this agreement.

5. The parties shall not use the Confidential Information disclosed by the other
party under this Agreement for any purpose except for the evaluation of
commercial business. Upon request by either party, the other shall return all
Confidential Information.

6. Nothing hereinabove contained shall deprive either party of the right to use or
disclose any information:

a. Which is, at the time of disclosure, generally known to the trade or the
public;

b. Which becomes at a later date generally known to the trade or the

public through no fault of either party and then only said later date;

c. Which is possessed by either party or is subsequently independently

developed by either party, as can be demonstrated by written or other
tangible evidence; or

d. Which is disclosed to either party in good faith by a third party who has
an independent right to such information.

GENERAL CONDITIONS

1. The agreement shall be valid for ten (10) years from the date shown below and
should apply to any and all transactions entertained by the parties hereto,
including subsequent follow-up, repeat, extended or renegotiated
transactions, as well as the original transaction, regardless of the success of
the project.

2. This agreement is not valid unless signed and exchanged by the respective

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 parties of this transaction.

3. This document shall in no way be construed as being an Agreement of

partnership in such a way that any of the individual parties to this Agreement
shall have any claim against any separate dealings, ventures, or assets of any
other party, nor shall any party be liable for any other party’s commitments or
liabilities in business or personal dealings or situations.

4. This Agreement shall be governed by the laws of and enforceable in South

Africa, any controversy or claim arising out of or relating to this Agreement, or
breach thereof, and which is not settled in between the parties and arbitration
as provided under the laws of the location of the parties, with a non-exclusive
choice of arbitration in Johannesburg under the rules of the Court of
International Arbitration and the exclusive choice of the laws of South Africa,
and this clause is deemed transferred to any successor in title to the Client.
Judgment upon the award rendered by the arbitration may be entered in any
court having jurisdiction thereof, plus any and all court costs, attorney fees
and any other costs or charges reasonable necessary to adjudicate the
controversy.

5. The parties hereunder acknowledge that they have read this Agreement and
by their initials and signature confirm that they have full and complete
authority to execute this document for and in the name of the party for which
they have given their signature.

6. The parties agree that facsimile / electronic copies of this agreement will be
considered the same as originals.

Essentially, the spirit behind the agreement is one of mutual trust and
confidence and the reliance upon each other to do what is fair and equitable.

This agreement shall be effective on the date shown below and constitutes
upon execution by the parties a legally binding agreement.

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IN WITNESS WHEREOF, the parties have caused this Non-Circumvention and Non-
Disclosure (NCND) Agreement to be executed on 10th October 2013.

PARTY 1

______________________
Signature
Mr Avish Singh
African Spear Trading 089 cc
1 La Colina
Ballito Gardens
Ballito
South Africa

PARTY II

______________________
Signature
Name & Surname:
Address:
Company Name:
Company Reg:
e-mail address:
Mobile No.:

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