DATED 16TH DAY OF APRIL, 2018.

BETWEEN

TLCH TRADING ENTERPRISE

(BR NO: 002149436-D) … the First Party

AND

YU SHENG TIMBER TRADING

(BR NO: SA0015391-P ) … the Second Party

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AGREEMENT
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MESSRS FATIMAH ZAHRA & CO,.

ADVOCATES & SOLICITORS.,
NO.3A-3, 3RD FLOOR,
BLOCK C, PLATINUM WALK,
NO.2, JALAN LANGKAWI,
53300 SETAPAK,
KUALA LUMPUR.

NO. TEL: 03-41429888

NO. FAX: 03-41429999
 AN AGREEMENT made this : 16 April 2018

Between

TAN LIM CHOON (NRIC NO. 700804-01-5097) trading as TLCH Trading Enterprise (Business
Registration No: 002149436-D) and having a place of business at No. 1-1-18, Diamond
Square, Jalan 1/50 Off Jalan Gombak, 53000 Kuala Lumpur. (hereinafter referred to as “the
First Party”) of the one part.

And

Name_IC trading as YU SHENG TIMBER TRADING (Business Registration No: SA0015391-P )

and having a place of business at Lot 170, Batu 14, Hulu Langat, Jalan Sg, Tekali, Hulu Langat,
Selangor (hereinafter referred to as “the Second Party”) of the other part.
WHEREAS: -

A. The First Party herein is the sub-contractor to LARAS PADU (Business Registration
No. JM 0734293-U), which has duly obtained the approval from Pejabat Pengarah
Perhutanan, Negeri Selangor as per their letter dated 23rd August, 2016, (vide reference No.
(2) dlm.PHNSEL.05/10.2.44) to extract timber from the concession held under “Tawaran
membalak terbuka di laluan Projek Talian Penghantaran 275/132KV dari PMU Kg. Pandan ke
Ampang East, sebahagian Kompartmen 74, 75 dan 78 Hutan Simpan Hulu Langat dan Tanah
Kerajaan Seluas Lebih kurang 59.24 Hektar, Blok Fasa 2” (hereinafter referred to as “the said
area”)

B The First Party has requested from the Second Party an advance payment of Ringgit
Malaysia : THREE HUNDRED THOUSAND (RM 300,000.00) in order for the First Party to use
it as capital fund on the expenses for the extraction work aforementioned.

C. In consideration of the Second Party, at the request of the First Party, paying
advance on the terms convenants and conditions appearing herein to the First Party the
sum of monies more particularly identified in Section 4 of Schedule A hereto (hereinafter
referred to as “The Said Monies”) and in consideration on the First Party repaying the said
monies with the timber logs extracted from the said area in the manner and at the times set
out in Section 5 to 7 of Schedule A, the Second Party hereby agreed to pay the said monies
in advance and the First Party hereby accepts the advance payment herein set out on the
terms, convenants and conditions herein appearing.

D. The First Party on signing this Agreement hereby acknowledges the receipt of the
advance payment and the said execution of his signature on this Agreement by the First
Party shall be a sufficient acknowledgement of receipt of all of the said monies by the First
Party.

E. The First Party undertakes and convenants that he shall faithfully set-off the advance
payment with the timber logs extracted from the said area in the manner and at the times
set out in Section 5 to 7 of Schedule A
F. In the event the First Party neglects, delays, refuses and/or omits to repay the said
monies as herein expressly convenanted, the First Party shall, on the expiry of the time
limited for setting-off in full of the said monies by providing timber logs as stipulated in
Section 7 of Schedule A hereto herein be forthwith deemed to be in breach,
notwithstanding whether or not any demand shall have been first made by the Second
Party.

G. The Second Party hereby convenants that provided that the First Party faithfully
performs his duties and obligations herein, that he will not call in the said set-off payment
earlier as herein provided SAVE and EXCEPT that in the event of breach by the First Party as
provided in Clause F herein the Second Party’s right as set out in Clause G shall forthwith
crystalise and thereupon this clause shall no way modify, affect or otherwise restrict the
Second Party in his full exercise of his said rights.

H. In the event the First Party failed to provide the sufficient amounts of timber logs in
order to set-off the sum of the said monies, the said monies shall forthwith becomes due
and increase in amount of 3 times to Ringgit Malaysia : NINE HUNDRED THOUSAND (RM
900,000.00). The Second Party shall have all those rights as set out in the said Clause G
herein and shall have the right to act as therein provided.

I. Time shall be of the essence of this Agreement.

J. Any notice given to the First Party by the Second Party shall be in writing and shall be
deemed to have been given and the First Party shall be deemed to have received it on proof
of posting,

K. Nothing in this Agreement shall preclude or prevent the First Party from making
earlier payment with the timber logs extracted from the said area provided such earlier
payment is for the full amount of the advanced payment outstanding and provided that no
breach shall have occurred prior to such payment,

L. The Schedule A attached hereto shall be taken read and construed as an integral part
of this Agreement,

M. The First Party hereto acknowledge that the Second Party is not a professional
money lender but is a business partner who has agreed to pay in advance for the timber
logs at the First Party’s request to assist the First Party. The First Party further covenants
that in the event of breach occasioned by him, he shall not claim as a defence to frustrate
the Second Party’s legitimate rights that the Second Party is a money lender within the
Moneylenders Ordinance.

N. Words importing the masculine gender shall be deemed to include the feminine and
neuter genders and words importing the singular number include plural and vice versa.

IN WITNESSETH WHEREOF the parties hereto have hereunto set their hands the day,
month and the year first above written.
SIGNED by the First Party )
In the presence of :- )
)
) ……………………………………………………….
) TAN LIM CHOON
) NRIC No. 700804-01-5097
Director, TLCH Trading Enterprise

SIGNED by the Second Party )

In the presence of :- ) ………………………………………………………
)
) NRIC No.
Director, Yu Sheng Timber Trading
 Schedule A
Section
1 Date of this Agreement 16th April 2018
2 Name & address of the First Party TLCH Trading Enterprise
(BR No: 002149436-D)
No. 1-1-18, Diamond
Square, Jalan 1/50 Off Jalan
Gombak, 53000 Kuala
Lumpur.
3 Name & address of the Second Party YU SHENG TIMBER
TRADING
(BR No: SA0015391-P )
Lot 170, Batu 14, Hulu
Langat, Jalan Sg, Tekali, Hulu
Langat, Selangor.
4 The advance payment RM300,000.00
5 Repayment Duration One (1) year from the date
of Agreement.
6 Total Repayment to the Second Party RM300,000.00 worth of
timber logs extracted from
the said area
7 Manner of Repayment between the Parties: For all log extraction (Mixed
Hard Wood) at the average
price of RM800-00 per ton;

Roughly 380 ton in total