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CONTRACT FOR THE SALE OF ELECTRICITY

This Contract, made and executed this ___ day of August, 2018, by
and between:

SEMIRARA MINING & POWER CORPORATION, a


corporation duly organized and existing under Philippine
laws, with address at 2 nd Floor, DMCI Plaza, 2281 Chino
Roces Avenue Extension, Makati City, represented by its
_________________, MR. __________________________,
and hereinafter referred to as the SELLER;

- and -

STEEL CORPORATION OF THE PHILIPPINES, a


corporation duly organized and existing under Philippine
laws, with address at Km. 140 Barangay Munting Tubig,
Balayan, Batangas, represented by its Chairman & CEO,
MR. ABETO A. UY, and hereinafter referred to as the
BUYER;

WITNESSETH

WHEREAS, the SELLER is duly licensed by the Energy Regulatory


Commission (“ERC”) as a Retail Electricity Supplier;

WHEREAS, the BUYER is the owner of a plant facility (“the Facility”)


located at Munting Tubig, Balayan, Batangas, which had been issued a
C ERTIFICATE OF C ONTESTABILITY by the ERC;

WHEREAS, the BUYER is allowed to source its electricity supply


from retail electricity suppliers under the Retail Competition and Open
Access (“RCOA”) provisions of Republic Act No. 9136, otherwise known as
the Electric Power Industry Reform Act of 2001 (“EPIRA”);

WHEREAS the SELLER has agreed to supply to the BUYER, and the
latter has agreed to procure from the former, the electricity requirements of
the Facility under RCOA upon the terms and conditions hereinafter set
forth;

NOW THEREFORE, for and in consideration of the mutual covenants


and agreements hereinafter set forth, the PARTIES have mutually agreed
as follows:

1.0 Salient Features.

Type of Plant Coal-fired steel manufacturing plant

Term of Contract Two (2) years from (commencement date)

Contract Quantity Metered quantity secured from the Central


Registration Body (“CRB”) under EPIRA
Delivery Point Power and energy shall be delivered at the
Steel Corp. Sub-station, Balayan, Batangas
with delivery voltage of 69 kV

Generation Fee Rate Php3.40/kWh (2019); Php3.00/kWk (2020)

2.0 Obligations of the SELLER.

2.01 The SELLER shall exclusively supply all the electricity


requirements of the BUYER based on metered quantities of the Facility,
and warrants continuous availability except for interruption due to: (a)
Force Majeure; (b) transmission, sub-transmission, distribution failure in
the Luzon Grid that will prevent the SELLER from delivering electricity to
the BUYER; (c) prolonged suspension of the Wholesale Electricity Spot
Market (“WESM”) that will prevent the SELLER from delivering electricity to
the BUYER; (d) other causes analogous to the foregoing.

2.02 The SELLER shall cause the registration of the BUYER with
the CRB as an Indirect WESM Member for the Facility pursuant to the
WESM Retail Rules.

2.03 The SELLER shall prepare and submit the Switch Request,
and all supporting documents, to the CRB, and undertake all necessary
action to secure the switch approval for the Facility.

2.04 The SELLER shall be responsible for declaring the Bilateral


Contract Quantity (BCQ) to the Market operator to cover the metered
quantities of the Facility, and for furnishing the BUYER with a copy of the
metered quantities of the Facility as secured from the CRB.

3.0 Obligations of the BUYER.

3.01 The BUYER shall pay the generation fees, and charges related
to the distribution of power from the SELLER’s trading node to the
BUYER’s delivery point, without necessity of demand on or before the 30 th
day of the month following the subject billing period, or within fifteen (15)
days from receipt of the electric power bill, whichever comes later,
provided however, that in the event the BUYER disputes an electric power
bill, it shall serve notice to the SELLER within the fifteen (15) days from
receipt of the billing, but at the same time, the BUYER shall pay an amount
equivalent to the last undisputed billing.

3.02 The BUYER shall provide all necessary documents requested


by the SELLER for the purpose of securing (a) the registration of the
former with the CRB as an Indirect WESM Member, and (b) the Switch
Request from the CRB.

3.03

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