<p><span style="font-family:courier new,courier,monospace">WHEREAS the Insured employs or is about to employ the persons named in the Schedule hereto (hereinafter called the Employees) in the respective capacities specified therein and has made to ALLLIEDBANKERS INSURANCE CORP. (hereinafter called the Company),a written statement or statements and declaration the information in which is the basis of the Contract &nbsp;and is to be considered as incorporated herein and has paid to the Company the premium stated in the Schedule.</span></p>

<p><span style="font-family:courier new,courier,monospace">NOW THIS POLICY WITNESSETH that, if within the period of guarantee or during any subsequent &nbsp;period in respect of which premium shall &nbsp;have been accepted &nbsp;by the Company, any of the Employees, shall, whilst acting in the capacity set opposite the name of such Employee in said Schedule, commit any or acts of FRAUD or DISHONESTY (which act &nbsp;are hereinafter called the acts insured against) the Company will make good to the Insured any financial loss which the Insured shall thereby directly sustain up to an amount not exceeding for all the acts insured against committed during the whole period of the subsistence of this &nbsp;Policy by the defaulting employee the sum set opposite the name of such Employee in said Schedule (subject to the deduction or set-off hereinafter mentioned).</span></p>

<p><span style="font-family:courier new,courier,monospace">PROVIDED that such act insured against is discovered not later than six months after the resignation, dismissal, retirement or death of the defaulting Employee, not later than three months after the termination of this Policy as regards such Employee whichever be the earlier.</span></p>

<p><span style="font-family:courier new,courier,monospace">PROVIDED ALSO that any money which shall be due to the defaulting Employee from the Insured shall be set off against the amount agreed to be made good under this Policy and the balance of such last mentioned amount shall be the only sum payable by the Company, and that all money which at any time after the discovery of the default of the employee shall come into the power of the Insured shall be employed by the insured in making good the amount of the claim under this Policy.</span></p>

<p><span style="font-family:courier new,courier,monospace">IT IS HEREBY FURTHER AGREED that any alterations in or additions to said Schedule which may be with the consent of the Company, shall on payment of an additional premium in respect of any increased liability, be deemed to be incorporated in this Policy.</span></p>

<p><span style="font-family:courier new,courier,monospace">PROVIDED ALWAYS that if defalcations arising from acts insured against extend over a period during which the amount set opposite &nbsp;to the name of the defaulting Employee has been altered or realtered, the Company&#39;s liability in respect of any part of such period shall not exceed the amount set opposite his name in respect of that part of the period, nor shall it exceed, in respect of the whole period, the largest of the amount set opposite his name in respect of any part thereof.</span></p>

<p><span style="font-family:courier new,courier,monospace">PROVIDED LASTLY, AND IT IS HEREBY DECLARED that this Agreement is entered into on the understanding that the Company shall alone be liable to answer and make good any claim hereunder and that no Officer of the Company shall in manner be personally liable or subject to any action, claim or demand by reason of his having signed this Agreement.</span></p>

<p><span style="font-family:courier new,courier,monospace">C O N D I T I O N S</span></p>

<p><span style="font-family:courier new,courier,monospace">1.&nbsp;&nbsp; &nbsp;This Policy shall be void as to any of the Employees affected:</span></p>

<p><span style="font-family:courier new,courier,monospace">(a)&nbsp;&nbsp; &nbsp;If any suppression or misstatement of any fact affecting the risk of the<br />
Company be made at the time of effecting this Policy or subsequently; or</span></p>

<p><span style="font-family:courier new,courier,monospace">(b)&nbsp;&nbsp; &nbsp;If the precautions and checks for securing accuracy of accounts and limiting<br />
the amount of money received by or entrusted to any of the Employees at any<br />
one time, shall not be duly observed and put in practice on the part of the Insured in accordance with said written statement or statements; or</span></p>

<p><span style="font-family:courier new,courier,monospace">(c)&nbsp;&nbsp; &nbsp;If there be any change in the circumstances and conditions of the employment of any of the Employees without in every case the consent or sanctions of the Company, signified by endorsement hereon; or</span></p>

<p><span style="font-family:courier new,courier,monospace">(d)&nbsp;&nbsp; &nbsp;If the insured shall continue to entrust an Employee with money or any other property whatsoever after having discovered the commission at any time by the said Employee of any act insured against.</span></p>

<p><span style="font-family:courier new,courier,monospace">In all cases where this Policy is void, or ceases to be in force, in respect of any employee, all money paid to the Company in respect of such employee shall be<br />
forfeited.</span></p>

<p><span style="font-family:courier new,courier,monospace">2. &nbsp;The Company shall not be liable for any loss, due to an act insured against, committed by the same Employee, shall have come to the Insured or to any Representative of the Insured to whom is entrusted the duty of superintendence over the said Employee.</span></p>

<p><span style="font-family:courier new,courier,monospace">3.&nbsp;&nbsp; &nbsp;That Insured shall give notice in writing to the Company of any act insured against, committed by an Employee, immediately after the same shall have come to the knowledge of the Insured or of the Insured?s representative as aforesaid, stating the method of the fraud, the nature and extent of the loss so far as can be ascertained, and the last known address of the said Employee.</span></p>

<p><span style="font-family:courier new,courier,monospace">4.&nbsp;&nbsp; &nbsp;Every claim under this Policy shall be lodge with the Company within two months after the date of such notice accompanied by full particulars and satisfactory proofs of the loss (verified if the Company shall so require by statutory declaration), and when any such loss has been made good and satisfied by the Company this Policy so far as regards the defaulter shall wholly cease and determine as to any further obligation of the Company.</span></p>

<p><span style="font-family:courier new,courier,monospace">5. &nbsp;The Company shall be entitled, at its own benefit, in the name of the Insured or otherwise, to prosecute all claims and exercise all rights of action competent to the Insured, against any of the Employees, in respect of any acts insured against in connection with which it may have made a payment under this Policy; and the Insured shall give to the Company all such information and assistance as be reasonably required for maintaining any such claims or rights.</span></p>

<p><span style="font-family:courier new,courier,monospace">6.&nbsp;&nbsp; &nbsp;The Insured shall, if required by the Company, give information and furnish evidence to the Criminal Authorities of any act or acts insured against, committed or supposed to have been committed, by any Employees, in consequence of which a claim may be made under this Policy and Insured shall if so required by the Company, forthwith prosecute the Employees for such acts, subject to the payment by the Company of all expenses necessarily incurred by the Insured in such prosecution.</span></p>

<p><span style="font-family:courier new,courier,monospace">7.&nbsp;&nbsp; &nbsp;The Company shall only be liable to contribute pro rata with any other guarantee, whether by policy or otherwise, held by the Insured, whether such guarantee be now held by the Insured or be hereafter taken or acquired; and the Insured shall be bound to advise the Company of every such guarantee, and of any limitation, discharge or termination thereof.</span></p>

<p><span style="font-family:courier new,courier,monospace">8. &nbsp; &nbsp; ACTION OR SUIT CLAUSE - if a claim be made and rejected and an action or suit be not commence either in the Insurance Commission or any Court of competent jurisdiction within twelve (12) months from receipt of notice of such rejection, or in case of arbitration taking place as provided herein, within twelve (12) months after due notice of the award made by the arbitrator or arbitrators or umpire, then the claim shall for all purpose be deemed to have been abandoned and shall not thereafter be recoverable hereunder.</span></p>

<p><span style="font-family:courier new,courier,monospace">CANCELLATION CLAUSE - This Policy shall be cancelled by or on behalf of the<br />
Company except in accordance with and pursuant to the provisions of Section 64 and 65 of the Insurance Code. &nbsp;In the event of such cancellation, the Company shall refund the paid premium less the earned portion thereof to the insured. &nbsp;Likewise, the policy may be cancelled on the short rate basis set forth in the short cancellation table at the request of the assured.</span></p>

<p><span style="font-family:courier new,courier,monospace">9.&nbsp;&nbsp; &nbsp;All notices including lodgments of claims required to be given by the Insured to the Company shall be given in writing to the Company at its Manila address or provincial branches address.</span></p>

<p><span style="font-family:courier new,courier,monospace">10.&nbsp;&nbsp; &nbsp;The Company or the Insured may at any time cancel either this Policy in its entirely or the guarantee herein &nbsp;provided in &nbsp;respect of any particular Employee or Employees by written notice served upon or sent by registered mail to the other party and specifying therein the effective date of such cancellation. &nbsp;If the notice be served by the Company such date shall not be less than twenty five days after such service or if the notice be sent by registered mail by the Company such date shall not be less than thirty days after the date borned by the sender?s registry receipt. &nbsp;In case of cancellation by either party the Company shall return to the Insured a proportionate part of the premium corresponding to the unexpired term as the case may be of this Policy in its entirely or of the guarantee herein provided in respect of any particular Employee or Employees but in the event of payment by the Company of a loss on account of discovered after such cancellation the Insured shall refund to the Company the part of such return premium applicable to such Employee. &nbsp;The Company shall not be liable of any act hereby insured against discovered later three months after the cancellation of this Policy in its entirely nor shall the Company be liable in respect of any loss on account of any particular Employee or Employees discovered later than three months after the cancellation of the guarantee here in provided in respect of such Employee or Employees.&nbsp;</span></p>

<p><span style="font-family:courier new,courier,monospace">11.&nbsp;&nbsp; &nbsp;It is hereby declared and agreed that the provision of Article 1250 of the Civil Code of the Philippines (Republic Act No. 386) which reads:</span></p>

<p><span style="font-family:courier new,courier,monospace">&quot;-In case an extraordinary inflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment,&quot; &nbsp;shall not apply in determining the extent of liability under the provision of this policy.</span></p>

<p><span style="font-family:courier new,courier,monospace">12.&nbsp;&nbsp; &nbsp;OMNIBUS CLAUSE - &nbsp;All applicable provisions of Presidential Decree No. 612, otherwise known as the Insurance Code, are deemed to have been incorporated in this policy, certificate or contract of insurance and will supersede any agreement/condition inconsistent &nbsp;therewith.</span></p>

<p><span style="font-family:courier new,courier,monospace">13.&nbsp;&nbsp; &nbsp;None of the provisions, conditions and terms of this policy shall be waived or altered except by endorsement signed or initialed by an authorized official of the insurers and issued in accordance with the provisions of Section 50 of the Insurance Code.</span></p>

<p><span style="font-family:courier new,courier,monospace">14.&nbsp;&nbsp; &nbsp;ARBITRATION CLAUSE - &nbsp;All differences to the amount of any loss or damage covered by &nbsp;this Policy shall be referred to the decision of an arbitrator to be appointed by the parties in difference or if they cannot agree upon a single arbitrator &nbsp;to the decision of two arbitrators one to be appointed in writing by each of the parties with (3) three days after having been required in writing so to do by either of the parties or incase of the parties or in case of disagreement between the arbitrators to the decision of an Umpire to be appointed in writing by the arbitrators before entering upon the reference. &nbsp;TheUmpire shall sit &nbsp;with the Arbitrators and preside at their meetings. &nbsp;The makings of an award as provided herein shall be a conditions precedent to any right of action against the Insurers only in cases of differences as to the amount of a liability actually arising out of this Policy.</span></p>

<p><span style="font-family:courier new,courier,monospace">15.&nbsp;&nbsp; &nbsp;SETTLEMENT OF &nbsp;CLAIMS - The amount of any loss or damage for which an insurer may be liable, shall be paid within thirty days after proof of loss is received by the insurer and ascertainment of the loss or damage is made either by agreement between the insured and the insurer or by arbitration; but is such ascertainment is not &nbsp;had or made within sixty days after such receipt by the insurer of the proof of loss, then the loss or damage &nbsp;shall be paid within ninety days after such receipt. &nbsp;Refusal or failure to pay the loss or damage within the time prescribed herein will entitle the assured to collect interest on the proceeds of the policy for the duration of the delay at the rate of twice the ceiling prescribed by the Monetary Board, unless such failure or refusal to pay is based on the ground that the claims is fraudulent.</span></p>

<p><span style="font-family:courier new,courier,monospace">16.&nbsp;&nbsp; &nbsp;RENEWAL CLAUSE - &nbsp;In accordance with Section 66 of Presidential &nbsp;Decree No. 612, otherwise known as the Insurance Code, unless the Company at least forty five days in advance to the end of the Policy period, mails or delivers to the Assured at the address shown in the Policy, notice of its intention not to renew the Policy or to condition its renewal upon reduction of limits or elimination of coverages, the Assured shall be entitled to renew the Policy upon payment of the premium due on the effective date of renewal.</span></p>

<p><span style="font-family:courier new,courier,monospace">IMPORTANT NOTICE</span></p>

<p><span style="font-family:courier new,courier,monospace">1.&nbsp;&nbsp; &nbsp;The &nbsp;INSURANCE COMMISIONER with offices in Manila, is the Government Official In charge of the enforcement of all laws relating to Insurance and has supervision over Insurance companies. &nbsp;He is ready at all times to render assistance in settling any controversy between an Insurance Company and a Policyholder relating to insurance matters.</span></p>

<p><span style="font-family:courier new,courier,monospace">2.&nbsp;&nbsp; &nbsp;For your own protection you are requested to read this Policy in full, including its conditions, and, if it is not in accordance with your intentions, to return it immediately for corrections.</span></p>
