SERVICES CONTRACT OF AGREEMENT

THIS CONTRACT OF AGREEMENT made on January 06, 2018

BETWEEN : AVP FLEET CARGO HAULERS INC.

Unit 607 8000 Plaza Residence, Plaza Lacson Sta. Cruz, Manila

AND : LORENZO LOBUSTA

BACKGROUND:

Subject to your successfully passing Company requirements with the findings that you are
physically, mentally and medically qualified for the SERVICES you have applied for, we are hiring
you as a Independent Contractor DRIVER under the following terms and conditions:

TERMS AND CONDITIONS

1. ENGAGEMENT

 This CONTRACTUAL AGREEMENT is for a period of 1 year , commencing on January 4,

2018, and terminating on January 03, 2019.

 This CONTRACTUAL AGREEMENT is covered for a period of 1 year covering from January
04, 2018 to January 03, 2019 , unless we notify you in writing on or before the later date
that your service will be continued.

CONTRACTOR’S OBLIGATIONS
 During the subsistance of this contractual agreement, it is your duty to abide by all
existing rules , regulations and policies at all times.
 You are required at all times to observe and carry out faithfully and diligently the duties
and responsibilities that are assigned to you by the company through its representative.
 Work discipline is essential to any business organization. Hence , you are required to
maintain a high standard of work discipline and good order while at work at all times.

 The drivers and helpers, at all times in the course of service, MUST:
(a) Act Honestly and always in the best interest of the Company.
(b) Follow all lawful and proper directions of the company in respect to carrying out of the
duties.
(c) Co-operate and assist management and company employees.
(d) Conduct yourself in a manner that promote the image, reputation and goodwill of the
company, in all dealings with the clients and customers
(e) Be courteous and attentive to clients and customer.

 The driver/helper MUST NOT

(a) smoke inside the workplace, inside the trucks, warehouse and plant.
(b) consume alcohol or take prohibited drugs while in the workplace;
(c) come to work intoxicated and/or;
(d) come to work under influence of prohibited drugs

SERVICE FEE

 Your service fee as an independent contractor driver is -14% of NET EARNINGS OF EACH
TRIP given by the Company

a. TAX of 12% and With Holding Tax of 5% shall be deducted in the rates given by the
independent CONTRACTOR Driver.
b. TOLL Fees of each trip shall also be deducted on the rates.
c. All benefits such as Contribution of SSS , Pag-Ibig , Phil-health is included in
percentage rate collected to the company.
d. Communication allowance of each driver and helper must be given every trip.

FORMULA OF COMPUTATION FOR DRIVER

Gross Income – (VAT 12%) – (5 % withholding tax) – (toll fee & Misc. Expenses)
 = NET INCOME X 14%.

SAMPLE COMPUTATION

Gross Pay (14,000

Less: Vat (12 % ) = 700

W/Tax (5%) = 504
Toll/Misc. = 0
=================
NET Income = P12,796
X 14% = P 1,791.44

 Driver and helper Meal Allowance is Php 150.00 pesos per trip per head and within 24
hours.

 Additional Meal Allowance every day for Standby at Warehouse having delivery but no
unloading after 24 hours

TERMINATION OF CONTRACT

 The Company reserve the right to terminate your service contract at anytime during this
period.

It is hereby understood and recognized that the company shall have full and conclusive
direction and control of the management of its business and operations including , but not limited
to, the right to change assignment of independently contracted drivers from one assignment to
another as deemed most advantageous to the organization, to promote order and discipline in its
operation, including the right to introduce changes in methods, operating practices, facilities and
equipment , and enforce operational rules and regulations.

OTHER TERMS AND CONDITIONS :

DRIVER
1. Driver shall ensure that they carry out the instruction and follow the AVP Fleet Cargo safe
work procedures.

2. Driver shall be in charge of their own safety while they are on the road conducting any
operation.

3. Driver shall conform to local rules and regulation and be responsible for customer’s goods
during the operation. He shall report to the supervisor when encounter any abnormalities
during the operation.

A. Driver’s Safe Work Procedure

1. Before Operation
a. All drivers shall check the vehicles using the pre-operation checklist before
commencing the operation.
b. All checklists shall be compiled and properly file for future auditing purposes.
c. Drivers shall report all defects to supervisor and supervisor to call for
maintenance.
d. Driver shall strictly follow local transport rules and regulation.
e. Driver shall always bring along his driving license.
f. Driver shall only drive company registered vehicle that complies with local rules
and regulations.
g. Driver shall be trained in client’s emergency response to ensure that he is well
verse in the immediate actions.
h. Driver shall be trained in using the fire extinguisher and first aid in case of any
emergency.
i. Driver shall ensure that they have the relevant knowledge of the cargo to be
carry (Material safety Data sheet, transport emergencies plan and training
conducted, emergency equipment etc).
j. Driver shall ensure all documents such as ORCR, deed of sale, confirmation and
decisions permits from LTO and LTFRB of trucks and trailer must be carry at all
times.

2. During Operation
a. Driver shall not smoke during operation.
b. Driver shall wear seatbelt at all times during operation.
c. Driver shall not have any combustible material in the cabin.
d. Driver shall not be under the influence of alcohol or medicine during operation.
e. Driver shall report any emergency to the supervisor through phone.
f. Driver shall ensure that human life is of the most importance during any emergency.
g. Driver shall not be going into the tank at all time during operation.
h. Driver shall not exceed the customer fatigue management rules and regulations.
i. Driver shall comply with client site rules and regulations.
j. Driver shall not use handphone during operation. He shall stop the vehicle before using
the handphone.
k. Driver shall not stop for any unknown reason during operation.
l. Driver shall only travel by the stipulated road and not to side track.
m. Driver shall only take breaks at the allocated rest areas whereby they will consume
their meals.
n. Driver shall check the seal of the container during the break times to ensure that they
are intact.
o. In case of bad weather (storm, heavy down pour), traffic accidents etc, driver shall
inform the supervisor for advice.
p. Driver shall not be carrying other passenger other than the co-driver, escort or
supervisor.
q. Driver shall bring along necessary Personal Protective Equipment (PPE) to be worn at
respective site.
r. Driver shall not attempt to conduct any repair which will use flame during
maintenance.
s. Driver shall ensure that they have attend the low risk driving course and to attend
refresher when required.
t. Driver shall ensure that there are regular maintenance conducted on the vehicle.
u. Driver shall keep the head light on at all times so that other vehicle will be able to
easily identify them.

3. After Operation
a. Keys of the truck shall be return to office or well kept.
b. Log register or log book to be update (if available).
c. Any defects found during operation shall inform the supervisor and call for
maintenance .
d. Any major defects found, the truck shall not be used and truck to be labelled
malfunction to prevent others from using it.
e. All properties , equipment , fuel , and tools including damages , theft and loss of
cargo, truck and trailers resulting to gross negligence and mistakes shall be held liable
to pay all damages.
 Non-disclosure Agreement.
You agree that all records and documents of the company and information pertaining to its
business or affairs are confidential, and that no unauthorized disclosure or reproductions of the
same will be made by you at anytime during or after your employment with the company.

Kindly indicate your conformity to the above terms and conditions by affixing your signature in
the space provided below.

Sincerely yours,

Allan T. Pastor
President & General Manager

CONFORME

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