CONTRACT CONTRACT NO. : LGCHKMXKRU1901 DATE: December 14th, 2019 ‘THE SELLER: LIUGONG MACHINERY HONGKONG CO., LIMITED ADDRESS: 23/F, Sing Ho Finance Building, 168 Gloucester Road, Wan Chai, Hong Kong TEL: (852) 3974-6912 / (852) 3971-0358 FAX: (852) 3753-3460 Sales contact : Genaro Trujillo, Carlos Martinez Email: gtrujillo@liugongna.com, cmartinez@liugongna.com THE BUYER: KRUMAQ S.A. DE CV. ADDRESS: Boulevard de las Naciones Km 14, s/n, Col. La Poza, CP 39370, Acapulco de Ju rez, Guerrero, México. Tel: +52-744-2000478 Email address: nogueda.krumaq@gmail.com Represented by: Mr. Homero Nogueda This contract is made by and between the buyer and the seller. Whereby the buyer agrees to buy and the seller agrees to sell the under-mentioned commodity according to the terms and conditions stipulated below: 1. COMMODITY AND PRICE ITEM) commopiTy Quantity UNIT PRICE AMOUNT (FOB USD) (FOB USD) ¥'LG766A/Other English Decals/Perkins tier 3 ngine/CARRARO Power huttle ransmission/CARRARO WD/Open Cab/Standard seat ith 2 inch seat belt/Standard |. tick/60 kg Counterweight/Single Backhoe Auxiliary Hydraulic Pipe/without Load Auxiliary Hydraulic Pipe/Front 14 and rear 24 ire/0.20 m*Backhoe lbucket/General Bucket 1.0 m* unit 43,950.00 43,950.00 ‘0B total amount 43,950.00 3% Discount -1,318.50 ea freight 2,000.00 insurance 101.10 [Total | 1units 44,732.60 (CIF MANZANILLO, MEXICO SAY IN WORDS: U.S DOLLARS FORTY-FOUR THOUSAND SEVEN HUNDRED THIRTY-TWO DOLLARS TH SIXTY CENTS ONLY ‘THE ABOVE PRICE IS UNDERSTOOD AS CIF MANZANILLO, MEXICO ACCORDING TO INCOTERMS 2010. 2. COUNTRY OF ORIGIN AND MANUFACTURER : China, Guangxi Liugong Machinery Co., Ltd. And Holding Subsidiaries 3. TERMS OF PAYMENT: By electronic transference, 50% of contract value (U$22,366.30) should be paid within 10 working daysin advance after contract signed, and the balarice 50% of total contract value (U$22,366,30) should be paid 15 days prior to the expected shipment date. The seller has the rights to suspend implementation of this contract in case that previously Issued invoices are not paid on time or the total amount. Seller's Bank information: Beneficiary : IUGONG MACHINERY HONGKONG CO., LIMITED ‘Advising bank: Bank of China (Hong Kong) Limited Add: 1 Garden Road, Hong Kong SWIFT Code : BKCHHKHH A/C: 012-875-9-268248-3 4, VALIDITY In case that part of or all goods under the contract are not shipped within 120 days since signing date due to the instruction given by buyer or reason caused by buyer (Including but not limited to delayed payment, failure of issuing eligible Letter of Credit and/or lack of shipping notice), original price and payment terms stipulated in the contract may not applicable to unshipped goods. Both parties shall enter into a supplementary agreement about the new price and payment terms. If both parties fail to conclude a supplementary agreement, unshipped part of the Contract shall be no more performed. 5. PACKING According to manufacturer's export packing standard, painted with anti-corrosion material (if needed) which is suitable for sea, railway and truck transportation. 6. TERMS OF SHIPMENT: . Time of Shipment: machine will be on board not later than March31", 2020. On condition that the seller has received the full payment 15 days in advance of shipment date. Port of Loading / Place of Receipt: port of Shanghai ,ChinaPort of Discharge / Place of Delivery: MANZANILLO, MEXICO Shipping Marks: N/M. Mode of Transportation: 1XCLG766AIN 1X40HQ CONTAINER Partial shipment: Allowed Transit shipment: Allowed Notice of shipment: The seller should send the notice of shipment not more than 2 working days after shipment by email or fax. 7. INSURANCE To be covered by the seller for 110% of invoice value against all risk(s) as per C.L.C. of the People’s Insurance Company of China. Any additional insurance amount and/or coverage shall be subject to Seller's approval and the extra insurance premium for Buyer's account. 8, DOCUMENTS REQUIRED: -Signed commercial invoice issued by the seller in 03 originals -Detailed packing list issued by the seller in 03 originals Full set of Bill of Lading. -Insurance Policy or Certificate covering All risks as per C.1.C. of the People’s Insurance Company of China 9, TAKE DELIVERY OF GOODS When commodity arrives at the destination station, the Buyer is obliged to take delivery of commodity ‘as soon as possible. Otherwise, any cost, including but not limited to demurrage, detention charge, extra fee or penalty for customs, shall be borne by the Buyer. In case the Buyer has delayed in customs clearance for more than 60 days (except when the Buyer moves the products to the Bonded Area), the Seller shall be entitled to take measure of the commodity, including but not limited to transferring, reselling, and requesting the carrier or the custéms to auction the commodity. Such protective measures will not waiver the Buyer's obligations under this Contract. Buyer shall also bear all the expense and cost related to the protective measures.10. WARRANTY We, LIUGONG MACHINERY HONGKONG CO., LIMITED , as the representative for the manufacturer ( GUANGXI LIUGONG MACHINERY CO., LTD,), hereby certify that the new products made by it to be free from defects in materials and/or workmanship when properly operated under normal conditions in the work for which itis designed, ‘A. WARRANTY POLICY (1) LiuGong provides a limited warranty for all machines against defects in material and workmanship. The Dealer must repair the machine, purchase any needed parts not in the dealer's stock and then submit a claim through LiuGong warranty system for reimbursement after the repair is completed to LiuGong (2) This warranty specifically excludes the repair spending and all liability for damages arising from loss of use or profits, incurrence of costs or expenses or injury to business, credit, reputation of financial standing and for all other direct or consequential damages. B, PERIOD. Standard Warranty: LiuGong provides limited warranty machine coverage for 1 year or 2000 hours from delivery date to the end user, or 30 months from the date of shipment from the originating factory, whichever occurs first, C. CONFIRMATION When asking for free replacement or claim, the user should offer clear photos of broken parts and report describing the accident with the signature of original reporter to LG for confirmation. The user should keep the broken parts for at least six months for manufacturer's check if necessary. D. EXCLUSION IN THIS WARRANTY (1) The cost of repairing, loss like debt, profits, credit, financial caused by machine’s downtime or other loss arising. (2) Lack of maintenance, including, without limitation: failure to inspect and maintain in accordance with LiuGong published schedules, improper repair, and the use of non-LiuGong parts not approved by LiuGong, (3) Abuse, including, without limitation: neglect, improper operation, misapplication, overloading, accident or alterations not approved by LiuGong.(4) Force of nature such as earthquake, flood or any other man-made damage or failure. (5) LiuGong reserves the right to make changes in the design of its machines without being obligated to make corresponding changes in previously manufactured machines, (6) The unauthorized alteration of machine differing from original factory setting, whatever for any reason. (7) Failing to submit the PDI and Warranty Registration in DMS system within 30 days from delivery to the customer. (8) Warranty claim form does not meet the minimum requirements. (9) LiuGong does not compensate for non LiuGong genuine replacement parts or parts replaced unnecessary due to misjudgment of the Dealer’s service technician, (10) During warranty, Owner shall report any warrantable failure to LiuGong dealer, and provide failure machine to LiuGong dealer or LiuGong dealer assigned service provider for inspection and repair, Warranty may be not applicable if owner obstruct relates failures inspection and analysis. (11) Damage ‘caused in transit from HQ to subsidiaries or dealers. When taking delivery of the machine and determining damage is caused by the quality of packaging or transit, dealer must seek assistance according to the “EQUIPMENT ARRIVAL and RECEIVING INSPECTION (INCLUDES INSPECTION PROCESS DAMAGE/SHORTAGE CLAIM PROCESS) Policy” (12) Damage caused by or attributing to storage in, transit, or rust and corrosion, failure to properly follow storage procedures, keep machine clean and free of damage caused by improper operation, application, maintenance, or repairs. (13) a. Batteries, lamp bulbs, fuses, gaskets and packing, belts, bucket teeth, glass, filter elements, grease fittings, rubber tracks, wire rope, brake linings, wiper blades, o-rings, fuel injectors/nozzles, tyre, friction plate, anti-freezing liquid, clamps, rubber pad, concrete pipes, concrete piston, wear ring, wear plate, mixer scaleboard, mixer blade, mixing boom, hopper scaleboard, discharge hopper _scaleboard, roller and other consumables, etc. b. Engines warranted by the manufacture. c. Replenishing anti-freezing liquid, oils and/or lubricants. d. Transportation, loaner or rental costs. e. Attachments and motive battery chargers not manufactured by either LiuGong or any of its, subsidiaries, provided however, LiuGong extends to the customer the benefits of any warranties (if any) of the manufacturers or suppliers of any of the excluded items. (14) Component Suppliers that handle and honor their own warranty separately from LiuGong’s machinewarranty in some regions i.e; Cummins, Weichai, Yanmar, Isuzu, Deutz Engines, Sinotuck chassis, Foton chassis, Isuzu chassis Cascade attachments, etc. The foregoing warranty is exclusive and in lieu of all other warranties whether written, oral, or implied. if there is no local supplier established or capable of the support, LiuGong will honor the warranty. (15) Operation of the equipment beyond its rated capacity or designed application will void all warranty terms. (16) Any part or component installed on a machine not sold by LiuGong. This includes machines not manufactured by LiuGong (17) No employee or representative is authorized to change this warranty in any way or grant any other warranty without written authorization from a member of LiuGong executive management. 11. INSPECTION AND CLAIMS (1) Claim can be raised for the quality and quantity which differs from the figures shown in delivery documents. (2) The Buyer is entitled to submit the claim of quantity within 20 days and of quality within 60 days, from the date of delivery of the commodity at the destination station. 12. FORCE MAJEURE The Seller shall not be responsible for the delay in shipment or non-delivery of the goods due to force majeure, which might occur during the process of manufacturing or in the course of loading or transit. ‘The Seller shall advise the Buyer immediately of the occurrence. 13. BANKING CHARGES All banking charges outside HONGKONG should be borne by the Buyer. 14, LATE DELIVERY AND PENALTY In case that the latest date of shipment has expired and the shipment didn’t not occur due to any reason caused by Buyer, including but not limited to late prepayment, not providing workable L/C or notice of shipment as required by contract: 1) If both parties want to implement this contract continuously, both parties need to sign asupplementary agreement and revise the latest shipment date. Anyhow, if the actual shipment occurs later than 90 days from the date of the original sales contract signed by both parties, the Buyer shall pay the penalty as the interest of stock machines to the Seller at the rate of 0.03% per day for the goods value un-shipped. The penalty is calculated from the 91 days after the original contract signed date. 2)|If both parties do not want to implement the contract by mutual consent (in case both parties could not make a consent about whether continue implementing the contract or not, it is deemed that both Parties shall not implement the contract any more), the Buyer shall pay 5% of the amount of un-shipped machine as the liquidated damages to the Seller and the contract will be terminated. 15. RETENTION OF TITLE CLAUSE Buyer acknowledges that Seller retains title of the commodities until the Buyer made full and complete Payment of the Contract Price. 16. NOTICE 16.1 Any notice between the parties shall be made in writing and sent to the other party’s as shown below, or to any other address as indicated by a party in writing, by hand, email, fax , mail or courier. The party shall be deemed to have been notified on the date evidenced on the respective return receipt or slip. 16.2 Either party shall notify the other party ten (10) days before the address changes. Any loss due to delayed notice shall be borne by the party in fault. This contract is made out in English and each party keep one original. It will come in force when {stamped or) signed by the two parties even signing through by fax or email. The copy one has equal effectiveness as the original. THE SELLER: ‘THE BUYER: ane on behalf of |LUGONG MACHINERY HONGKONG 00, LIMITED WERRERH RET LH No eda Lezanc Represented by: “bh” 2g & Represented by : Flomne Nogpec6 020%" “Authorized Signatare(s) Date: Dee.27, 2019 pate: 3O| Diciembre |2019 screenees 8