Exhibit 10.18
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Air Lestari Sdn Bhd Level 23rd, Bangunan Darul Ehsan, Jalan Indah, Seksyen 14, Lestari 40000 Shah Alam, Selangor Darul Ehsan www.airlestari.com.my Tel: +603-5513 8898 email: admin@airlestari.com.my |
| TO : | KAINAN SDN BHD |
20-1F, Jalan Setia Perdana BF U13/BF,
Bandar Setia Perdana,
40170 Shah Alam, Selangor
Ref: Dato' Whitney Tan Ann Nee
Tel : +603 5882 7272
Email: info@kainan.com.my
| PO No : ALSB/LOA/PROJECT/001 | ||
| Date : 27 January 2026 |
| Date: |
PURCHASE ORDER
| Item Description | Amount (RM) | |||
| Engineering, Procurement, Construction, Installation and Commissioning of a 7.2 MLD Water Reclamation Plant at Factory F3WT (Top Glove) The Purchase Order (PO) issued is based on Kainan Sdn Bhd proposal submitted to Air Lestari Sdn Bhd received on 28 October 2025. This PO is to confirm the appointment of Kainan Sdn Bhd for the Engineering, Procurement, Construction, Installation and Commissioning for the 7,200 m³/day (7.2 MLD) Water Reclamation Plant at Top Glove Sdn Bhd Factory 3WT. | 8,325,050.00 | |||
| Total (RM) | 8,325,050.00 | |||
| Sales & Services Tax | — | |||
| GRAND TOTAL (RM) | 8,325,050.00 |
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Notes:
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| 1) | The above amount shall be defined as Contract Sum with an amount of Ringgit Malaysia: Eight Million Three Hundred Twenty-Five Thousand Fifty only (RM8,325,050.00) only. |
| 2) | Delivery Period: Eight (8) months after PO date. |
| 3) | Delivery Address: Top Glove Sdn Bhd F3WT |
| 4) | Payment Terms: Payment shall be made within sixty (60) days from the date ALSB receives a valid invoice and relevant progress certificate following the signed User Acceptance Note (UAN). |
| 5) | Terms & Condition: As attached |
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| AIR LESTARI SDN BHD | AGREED AND ACCEPTED BY: | |
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| NAME: Dato' Saipolyazan M Yusop | NAME: DATO' WHITNSY TAN ANN NEE | |
| POSITION: Director | COMPANY STAMP: | |
| DATE: | DATE: 12/02/2026 |
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TERMS AND CONDITIONS
| 1 | CONTRACT SUM & SCOPE | Fixed Lump Sum: The total Contract Sum for the EPCC portion is fixed at RM 8,325,050.00 (Ringgit Malaysia: Eight Million Three Hundred Twenty-Five Thousand Fifty Only), inclusive SST and other taxes. Scope: This sum is a Fixed Lump Sum and includes all costs for engineering design, procurement, construction, installation and commissioning. Regulatory Compliance: The Contractor is responsible for all statutory approvals, including LUAS abstraction licenses and DOE compliance. |
| 2 | DETAILED PAYMENT MILESTONES (EPCC PHASE) | Progress payment and claim submission: Each progress report and claim shall be submitted according to the approved project schedule and agreed timeline. Progress report shall be verified and endorsed by ALSB's representative and recorded for future claim submission. Payment for the entire project will only be paid upon issuance of User Acceptance Note by Air Lestari Sdn Bhd. A maximum of 95% claim will be paid within 60 days of complete report compilation from Milestone 1 until 6. - Milestone 1 (10%): Execution of LOA and Preliminary Works - Milestone 2 (15%): Completion and approval of Detailed Engineering Design (DED). - Milestone 3 (35%): Delivery of major equipment to site. - Milestone 4 (20%): Completion of physical installation and M&E works. - Milestone 5 (10%): Successful Testing and Commissioning (T&C). - Milestone 6 (10%): Issuance of the User Acceptance Note (UAN) and handover. |
| 3 | RETENTION SUM | Retention: 5% Retention Sum shall be deducted from each progressive claim, to be released in full upon expiry of the 24-months Defects Liability Period (DLP). |
| 4 | TIME FOR COMPLETION & PENALTIES | Completion Date: Works must be completed within eight (8) months from site possession. LAD: Failure to complete the works by the deadline will result in Liquidated and Ascertained Damages (LAD) at a rate of RM 9,576.00 per day. |
| 5 | PERFORMANCE GUARANTEES & WATER QUALITY | Capacity: The Contractor guarantees a production capacity of 7,200 m³/day (300 m³/hour). Quality: Reclaimed water must consistently meet the National Standard for Drinking Water Quality (NSDWQ). Warranties: Major equipment must carry manufacturer warranties, and membranes must carry a performance warranty for a minimum of three (3) years for RO. |
| 6 | INSURANCE REQUIREMENTS | Prior to site possession, the Contractor must maintain: - Contractor's All Risks (CAR): For the full contract sum. - Public Liability Insurance - Workmen's Compensation & SOCSO: For all personnel. - Professional Indemnity: For design works. |
| 7 | TERMINATION & DISPUTE | Default: ALSB may terminate with 14 days' notice for abandonment or failure to meet quality standards. Dispute: Any unresolved disputes shall be referred to the Asian International Arbitration Centre (AIAC) in Kuala Lumpur. Governing Law: These terms are governed by the Laws of Malaysia |
| 8 | DEFINITIVE AGREEMENT | A Definitive Agreement shall be signed within one (1) month of the date of this PO |