< DATE >

Ms. JENNIFER T. TAN

VP & Division Procurement Manager
SAN MIGUEL PUREFOODS COMPANY, INC.

Mr. RAFAEL BUENAVENTURA A. CASTILLO

AVP & BBC Head of Logistics
BRANDED BUSINESS CLUSTER

The JMT Corporate Condominium

ADB Avenue, Ortigas Center, Pasig City

Subject: OFFER SHEET FOR 20’ / 40’ CONTAINERIZED MOVEMENTS

Dear Ms. Tan / Mr. Castillo:

This refers to the Containerized Transfer Service Agreement which will cover on <EFFECTIVITY
PERIOD> between Branded Business Cluster (the “Business Unit”) and Gothong Southern Shipping Lines,
Inc. (GSSLI)

PHP/Container (DOOR-TO-DOOR)
Tier 1: Tier 2: Tier 3: Tier 4: Tier 5:
ORIGIN DESTINATION
1-39x20' 40-74x20' 75-99x20' 100-124x20' >125x20'
Monthly Monthly Monthly Monthly Monthly

FRONTLOAD (20' CV)

BBC - DRY
CDO 32,000.00 32,000.00 32,000.00 32,000.00 32,000.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
CANLUBANG, LAGUNA
DAVAO 38,500.00 38,500.00 38,500.00 38,500.00 38,500.00
GEN. SANTOS 38,500.00 38,500.00 38,500.00 38,500.00 38,500.00
CDO 31,800.00 31,800.00 31,800.00 31,800.00 31,800.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
MANGGAHAN, PASIG
DAVAO 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
GEN. SANTOS 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00
CDO 31,800.00 31,800.00 31,800.00 31,800.00 31,800.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
MAYBUNGA, PASIG
DAVAO 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
GEN. SANTOS 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00
CDO 31,000.00 31,000.00 31,000.00 31,000.00 31,000.00
CEBU 32,000.00 32,000.00 32,000.00 32,000.00 32,000.00
GEN. TRIAS, CAVITE
DAVAO 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
GEN. SANTOS 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
CDO 32,500.00 32,500.00 32,500.00 32,500.00 32,500.00
CEBU 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00
ANTIPOLO, RIZAL
DAVAO 37,500.00 37,500.00 37,500.00 37,500.00 37,500.00
GEN. SANTOS 37,000.00 37,000.00 37,000.00 37,000.00 37,000.00
CDO 31,800.00 31,800.00 31,800.00 31,800.00 31,800.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
NAVOTAS
DAVAO 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
GEN. SANTOS 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00
CDO 31,800.00 31,800.00 31,800.00 31,800.00 31,800.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
MEYCAUAYAN, BULACAN
DAVAO 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
GEN. SANTOS 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00
CDO 31,800.00 31,800.00 31,800.00 31,800.00 31,800.00
CEBU 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
IMUS, CAVITE
DAVAO 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
GEN. SANTOS 36,500.00 36,500.00 36,500.00 36,500.00 36,500.00

Page 1 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
General Terms and Conditions:

1. Rates are VAT-Exclusive;

2. Maximum weight: 20.5 metric tons* per 20’, 15 metric tons* per 40’; 0.642 metric tons per CBM
(*Gross Weight)
3. Billings shall be made on a monthly basis. Payment Term - 30 Working Days from receipt of Invoice
by proponent;
4. Fill rate should be 100%:
- % Fill Rate = (Actual Volume Delivered On Time / Actual Volume Ordered) X 100%
- Minimum & maximum number of days from origin warehouse to arrival at any required destination
warehouse is detailed below:

Leadtime from
Warehouse
Date of Pickup (in days)
Destination
MIN MAX
Bacolod 3 4
Cebu 2 3
CDO 3 5
Iloilo 3 8
Masbate 1 1

* Full Vessel Schedule is shown in Annex B

Note: Above table is Sample Only. Kindly provide your own sailing leadtime.
- GSSLI and Business Unit to closely coordinate and agree on delivery date. GSSLI to advise Business
Unit on vessel arrival and possible delivery date. Business Unit should advise at least a day before
delivery for GSSLI to secure the required number of trucks.
5. Timely reporting on the movement of container vans shall be observed at all times. Reports needed
are as follows:
I. Loading confirmation – frequency: every vessel departure
a. Number of Container Vans
b. Actual Time of Departure
c. Estimated Time of Arrival on Port Destination
d. Estimated Delivery based on the estimated time of arrival
II. Sailing Status – frequency: every vessel departure
a. Location
b. Delays
III. Report of Actual Time of Arrival – frequency: upon vessel arrival on port of
destination
IV. Report on Actual Delivery to Customer/Consignees – frequency: every delivery
a. Number of Container Vans
b. Delivery Date
6. An updated Vessel Schedule shall be provided by GSSLI every week
7. Container van specifications as mandated by Business Unit’s QA shall be followed for all transfers;
8. Booking reservation is at least __ days before vessel estimated time of departure (ETD);
9. Booking confirmation is at least __ days before vessel estimated time of departure (ETD);
10. Booking cancellation should be done __ days before pick-up date;
12. Pick -up schedule is __ day before vessel estimated time of departure (ETD);
A specified quantity of CVs shall be delivered to warehouse commencing on the __ (1st, 2nd, 3rd,
etc) day of port arrival.
13. Shipper and consignee shall provide electrical power during pick-up and delivery;
14. Temperature Range Requirement: – Chilled: 5C; Ice Cream: -25C;

Page 2 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
 15. Pick-up and delivery site should have a three-phase outlet with 440 volts, 30 amperes or three
phase with 220 volts, 60 amperes. Kindly advise provider prior to booking if the above is not
available for proper adjustments;
16. Cargo liability of GSSLI per 20’ is Php______, Php____ per 40’;
17. Insurance coverage is from pick-up point up to delivery point;
18. Quantity discrepancies between the invoice and the actual physical stocks being delivered to the
customer, and dampened/damaged/wet stocks due to mishandling will be charged GSSLI based
on actual quantity at the current list price. Claims must be filed to GSSLI within __ days of discovery.
This will be subject to investigation to establish cause of damage or mishandling;
19. Penalties charged to Business Unit by customers and additional costs incurred by Business Unit in
fulfilling on-time deliveries to customers and additional incidental charges (port storage fees,
demurrage, etc.), by reason of any delay attributable to GSSLI in delivering the products, shall be
charged to GSSLI. For the avoidance of doubt, only the following causes of delay shall be
considered by the parties as reasonable, for which no penalties shall be charged to GSSLI: extreme
weather conditions, port congestion, and traffic. All other causes of delay shall be deemed
unreasonable and Business Unit reserves the right to deduct the amount of such penalties and
from the receivables of GSSLI . Should there be claims of unreasonable delayed deliveries; GSSLI
shall be afforded seven (7) days from receipt of the formal claims report to explain. Business Unit
shall validate the formal explanation report, and shall revert to GSSLI within the next seven (7)
days. On the succeeding seven (7) days, Business Unit and GSSLI shall have a discussion on the
results of the review and the corresponding charges to GSSLI .

The basis of delivery must be established based on RDD (required date of delivery);
20. Business Unit may, in its discretion terminate and/or cancel its conformity to this offer sheet without
cause; provided that it gives GSSLI at least fifteen (15) days prior written notice;
21. This offer sheet shall be effective from <EFFECTIVITY PERIOD>.

Kindly indicate your acceptance of this Offer Sheet by signing below and sending back a copy to us.

Very truly yours,

< NAME OF FREIGHT FORWARDER >

< NAME OF AUTHORIZED REPRESENTATIVE >

Page 3 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
ANNEX A: Applicable Charges

Applicable Charges Php or Qty UOM

Free Storage ___ Days

Demurrage/storage Php _________ Per 20’/40’ per day, and will

be applied on the __th day
and thereafter

Valuation Fee __% of declared value in excess

of Php________

Gensel Rental Php ________ Per day

Gensel Fuel Php ________ Per hour

Detention Fee (tractor Php ________ Will be applied beyond __

head/primemover) hours of arrival in
warehouse

Bobtail __% Of trucking fee

Plug-in Fee Php ________ Per hour

Hustling Php ________ per transfer for advance

pickup or deferred delivery
Additional helper Php ________ Per person per 20’/40’

Additional trucking fee for (Pls see annex of trucking

pick-up and delivery outside rates)
city limits

Chassis demurrage (Jack- Php_______ Per day

up)

Cancelled or aborted trip ___% Of the trucking rate

provided container van was
already dispatched and on
its way to the customer's
positioning site for loading.

Plug-in technician Php_______ Per day

Step-up Transformer Php_______ Per day

Truck Demurrage ___% of the trucking rate; to be

incurred after the allowable
___ hrs stay of the truck

Page 4 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
ANNEX B: Vessel Schedule

STEAMING
VESSEL ORIGIN DESTINATION TIME PORT TIME
Vessel #1
Day 1 - - __ hours __ hours
Day 2 - - __ hours __ hours
Day 3 - - __ hours __ hours

Note: Above table is Sample Only. Kindly provide your own vessel schedule.

Page 5 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
ANNEX C: Trucking Rates Outside City Limits

ROUTE RATE/TRIP
Route 1 -
Route 2 -
Route 3 -
Route 4 -

Page 6 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head
Annex D: Service Level Agreement

KPI Targets Penalties

Charging of delivery-related
penalties (non-delivery, late
On Time Delivery - Zero incident of backlogs delivery)

Charging of delivery-related
Truck/Container Van - 100% availability penalties (non-delivery, late
Availability - Zero incident of backlogs delivery)

On time dispatch Based on agreed lead time

Charging of invoice amount

Delivery Liquidation/POD - 15 days for unliquidated invoices

Page 7 of 7
Conformity is given but only from <EFFECTIVITY PERIOD>

Jennifer T. Tan Rafael Buenaventura A. Castillo

Division Procurement Manager BBC Logistics Head