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Safety Management Agreement

Project name: National Grid Corporation of the Philippines - Navotas


Substation Project
Employer / Contractor : SLDCC company (hereinafter referred to as Party A)
Partner : Mr. Yao Yuan and company (hereinafter referred to as Party B)

Agreement period:
In view of Party A as the contractor for the NGCP Navotas Substation Project,
Party B is responsible for the construction of the above projects as the partner.
In order to clarify the safety responsibilities, rights and obligations of both
parties in the process of project implementation, improve the safety and
civilized management level of the construction site, ensure the safety and
health of personnel, ensure the safety of equipment and the environment, and
combine the characteristics of this project, fully negotiated by both parties.
Consistently, sign this agreement.
I. Management responsibility of Party A
1. To take responsibility for safety supervision and management of this project,

follow“Five Rules” in accordance with the principle of “who is used, who is


responsible, and who manages”, executing the supervision, coordination,
management for safety work of the project.
2. For the staff involved in the project, Party A shall conduct safety education

training and technical safety before the admission. Supervise and inspect
the implementation of safety technology at the end of the daily operation of
Party A after the commencement of construction.
3. Party A shall have the right to review the construction organization

measures, safety measures and technical measures formulated by Party B,


and verify the conditions for the commencement of the safe construction of
the project, as well as assist Party B in handling the project
commencement permit procedures.
II. Management and responsibilities of Party B.
1. Party B is the subject of safety responsibility of this project. It must strictly
implement the laws, regulations and standards pertinent to safety, respect
and obey Party A's safety rules and regulations and management methods,
accept Party A's supervision and management. Additionally, Party B should
be responsible for the safety and the conduct of the personnel involved in
the project.
2. Party B shall provide relevant materials in accordance with Party A's

requirements, accept safety qualifications and conditions inspection, and


be responsible for the authenticity, legality and validity of the materials.
3. Party B must handle or supervise the social insurance and accidental injury

insurance for all employees involved in the project (including the personnel
of Party B, the staff assigned to Party B, etc.). The age, physical condition
and qualifications of the staff of Party B must comply with the relevant
regulations of the state and industry.
4. Party B must start construction after obtaining the commencement permit

procedures approved by Party A, and ensure that the construction process


is carried out strictly in accordance with the approved safety technology
program.
5. Party B must conduct safety management, education training and safety

activities in accordance with regulations.


6. Party B shall strictly abide by and implement the laws and regulations

related to fire safety of the state, local governments and industries.


III. Safety management system of Party A
1. Party B shall provide the personnel of the unit with occupational health

protection conditions that meet the requirements of laws, regulations, and


industry standards to ensure the health of the personnel of the unit.
2. Party B shall strictly control the environmental impact of the construction.

The waste shall be disposed of in accordance with the contract, and shall
comply with the relevant laws and regulations and the procedures and
methods prescribed by Party A.
3. Party B shall take all reasonable measures to prevent the personnel from
any violations of the law and order, and affect the harmony and stability of
the project.
4. Party B shall be fully responsible for the safety of all personnel, facilities

and equipment in the construction project as well as the living, office,


processing, storage and construction areas under its jurisdiction;
5. The main person in charge of the special operation unit and the safety

management personnel shall be qualified by the relevant competent


department for their safety knowledge and management ability; the special
operation personnel must be certified to work;
6. The quantity and quality of construction machinery, tools and safety

protective equipment used in this project must meet the construction needs
and be qualified by qualified inspection units;
7. Responsible for education and ensure that employees strictly implement

safety rules and regulations and safety operation procedures, inform the
workplace of risk factors, preventive measures, accidental emergency
measures and the use of "four new" safety technology features and safety
protection measures ;
8. It is forbidden to use the processes and equipment that endanger the

construction safety that are explicitly eliminated or prohibited by the state.


9. If the cross-operation may endanger the safety of the relevant parties, it is

necessary to sign a safety management agreement with the relevant


parties, clarify their respective safety management duties and safety
measures to be taken, and designate full-time safety management
personnel to conduct safety inspection and coordination.
10. After a safety accident occurs, the relevant personnel at the scene of the

accident shall immediately report to Party A. They shall not conceal or


report, misrepresent or delay reporting, and shall not intentionally destroy
the scene of the accident, destroy relevant evidence, and promptly take
effective measures to organize rescue and prevent accidents as well as
reduce casualties and property losses.
11. Obey the management and supervision of Party A, take the initiative to

cooperate with Party A's work, promptly make rectification, closed-loop


confirmation and reply to the problems raised by Party A; and at the same
time, take the initiative to accept the rectification, fines issued by Party A
according to the relevant penalty clauses of the contract.
IV. Liability for breach of contract
1. If Party B cannot guarantee the truthfulness, legality and validity of the

submitted qualification materials, Party A will have the right to request Party
B to make rectifications or terminate the contract, and record the bad
behavior.
2. When people on site find that the actual safety technical quality and ability

of Party B's staff cannot meet the needs of the project, Party A has the right
to request Party B to replace the personnel.
3. When it is found that the equipment, tools, safety facilities and safety

equipment carried and used by Party B do not meet the national and
industrial safety standards, Party A has the right to order the rectification,
and the necessary expenses are deducted from the project.
4. Party A has the right to retreat and fire the personnel who have seriously

violated the management and regulations. During the construction period,


the number of Party B personnel violating the rules and regulations for
three times will be cleared from the field.
5. Party A will have the right to terminate the contract when Party B has a

serious violation, or the cumulative number of violations is sufficient to


affect the safety of the project and the contract cannot be performed
normally.
6. Party A shall have the right to terminate the contract if the contract fails to

perform properly due to Party B's liability for serious injury and above safety
accidents, damage to important equipment, fire accidents, major
environmental pollution accidents and other circumstances which require
termination of the contract as stipulated in the contract or its relevant
annexes.
7. The SLDCC Safety Department, when performing safety

supervision/supervising duties, finds that there is a possibility that causes


serious dangerous behaviors in personal and equipment safety accidents,
and has the right to issue instructions for stoppage and rectification, and to
impose corresponding penalties.
8. After the event of a safety accident, Party A and Party B shall respectively

bear the corresponding accident liability and economic responsibility


according to the responsibilities of the relevant government departments.
9. When Party B fails to pay the accident fine or shoulder the liability for

compensation for the safety accident, Party A has the right to deduct the
payment from the safety and health insurance of the security ring. If the
amount of the risk bond is not enough, it can be deducted from the project
price. .
V. Others
The original of this agreement is in duplicate and shall be executed by
Party B and Party A's project authorities.
Terminology interpretation
Five highlights: “Access”, “Responsibility”, “Stability”, “Supervision”,
“Acceptance”.

Party A’s project leader: Party B’s project leader:

Date of signing: Date of signing:

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