<p style="text-align:justify">Whereas, the Insured named in the Schedule hereto has made to <strong>ALLIEDBANKERS INSURANCE CORPORATION </strong>(hereinafter called &ldquo;the Insurers&rdquo;) a written proposal by completing a Questionaire which together with any other statements made in writing by the Insured for the purpose of this Policy is deemed to be incorporated herein.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">Now this Policy of Insurance witnesseth that subject to the Insured having paid to the Insurers the premium mentioned in the Scheduled and subject to the terms, exclusions, provisions and conditions contained herein or endorsed hereon, the Insurers shall indemnify the Insured the manner and to the extent hereinafter providing.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">This insurance applies whether the insured items are at work or at rest or being dismantled for the purpose of cleaning, overhauling or of being shifted within the Premises or in the course of the aforesaid operations themselves, or in the course of subsequent re-erection, but in any case only after successful commissioning.</p>

<p style="text-align:justify">&nbsp;</p>

<p><strong>General Exclusions</strong></p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify">The Insurers will not indemnify the Insured in respect of loss or damage directly caused by, or arising out of:</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, a group of malicious persons or persons acting on behalf of or in connection with any political organization, conspiracy, commandeering, requisition or destruction or damage by order of any government de jure or de facto or by any public authority;</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->nuclear reaction, nuclear radiation or radioactive contamination;</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->wilful act or wilful negligence of the Insured or his representative.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">In any action, suit or other proceeding where the Insurers allege that by reason of the provisions of Exclusion a)above any loss, destruction or damage is not covered by this insurance, the burden of proving that such loss,&nbsp;&nbsp;&nbsp;&nbsp; destruction or damage is covered shall be upon the Insured.</p>

<p style="text-align:justify">&nbsp;</p>

<h1>General Conditions</h1>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->The due observance and fulfillment of the terms of this Policy in so far as they relate to anything to be done or complied with by the Insured and the truth of the statements and answers in the Questionaire and Proposal made by the Insured shall be a condition precedent to any liability of the Insurers.</p>

<p><span style="font-size:10.0pt">&nbsp;</span></p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->The Schedule and the Section(s) shall be deemed to be incorporated in and form part of this Policy and the expression &ldquo;this Policy&rdquo; wherever used in this contract shall be read as including the Schedule and the Section(s). Any word or expression to which a specific meaning has been attached in any part of this Policy or of the Schedule or of the Section(s) shall bear such meaning wherever it may appear.</p>

<p style="margin-left:0cm"><span style="font-size:10.0pt">&nbsp;</span></p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->The Insured shall at his own expense take all reasonable precautions and comply with all reasonable recommendations of the Insurers to prevent loss or damage and comply with statutory requirements and manufacturer&rsquo;s recommendations.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->a) Representatives of the Insurers shall at any reasonable time have the right to inspect and examine the risk and&nbsp; the Insured shall provide the representatives of the Insurers with all details and information necessary for the assessment of the risk.</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p style="margin-left:31.5pt">b) The Insured shall immediately notify the Insurers by telegram and in writing of any material change in the risk&nbsp; and cause at his own expense such additional precautions to be taken as circumstances may require to ensure safe operation of the Insured items and the scope of cover and/or premium shall, if necessary, be adjusted accordingly.</p>

<p style="margin-left:31.5pt">&nbsp;</p>

<p>No material alteration shall be made or admitted by the Insured whereby the risk is increased, unless the continuance of the insurance be confirmed in writing by the Insurers.</p>

<p>&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->In the event of any occurrence which might give rise to a claim under this Policy, the Insured shall</p>

<p style="margin-left:18.0pt; text-align:justify">a)&nbsp; immediately notify the Insurers by telephone or telegram as well as in writing, giving an indication as to the&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; nature and extent of loss or damage.</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->take all steps within to minimize the extent of the loss or damage.</p>

<p style="margin-left:36.0pt; text-align:justify">c)&nbsp; preserve the parts affected and make them&nbsp;&nbsp;&nbsp; available for inspection by a representative or surveyor of the Insurers;</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->furnish all such information and documentary evidence as the Insurers may require;</p>

<p style="margin-left:36.0pt; text-align:justify"><!--[if !supportLists]-->e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->inform the police authorities in case of loss or damage due to burglary or sabotage.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">The Insurers shall not in any case be liable for loss, damage or liability of which no notice has been received by the Insurers within 14 days of its occurrence. Upon notification being given to the Insurers under this condition, the Insured may carry out the repairs or replacement of any minor damage; in all other case a representative of the Insurers shall have the opportunity of inspecting the loss or damage before any repairs or alterations are effected. If a representative of the Insurers does not carry out the inspection within a period of time which could be considered adequate under the circumstances, the Insured is entitled to proceed with the repairs of replacement.</p>

<p style="margin-left:18.0pt; text-align:justify">The liability of the Insurers under this Policy in respect of any insured item shall cease if said items is kept in operation after a claim without being repaired to the satisfaction of the Insurers, or if temporary repairs are carried out without the Insurers&rsquo; consent.</p>

<p style="margin-left:18.0pt">The amount of any loss or damage for which an Insurer may be liable, under this policy, 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 if such ascertainment is not had or made within sixty days receipt by the Insurer of the proof of loss, then the loss or damage shall be paid within ninety days after such receipt.&nbsp; Refusal or failure to pay the loss or damage within 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 claim is fraudulent.</p>

<p style="text-align:justify">&nbsp;</p>

<p><!--[if !supportLists]--><span style="font-size:10.0pt">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><!--[endif]--><span style="font-size:10.0pt">The Insured shall at the expense of the Insurers do and concur in doing and permit to be done all such acts and things as may be necessary or required by the Insurers in the interest of any rights or remedies, or of obtaining relief or indemnity from parties (other than those insured under this Policy) to which the Insurers shall be or would become entitled or subrogated upon their paying for or making good any loss or damage under this Policy, whether such acts and things shall be or become necessary or required before or after the Insured&rsquo;s indemnification by the Insurers.</span></p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify"><!--[if !supportLists]--><span style="font-size:10.0pt">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><!--[endif]--><span style="font-size:10.0pt">All differences as to the amount of any loss or damage covered by this Policy shall be referred to the decision of an arbitrator&nbsp; to be appointed by the parties in difference or if they cannot agree upon a single arbitrator to the decision of two arbitrators one to be appointed in writing by each of the parties within thirty (30) days after having been required in writing so to do by either of the parties or in case or disagreement between the arbitrators to the decision of an umpire to be appointed in writing by the arbitrators before entering on the reference and an award by the arbitrator or arbitrators or umpire shall be a condition precedent to any right of&nbsp; action against the company.</span></p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">8.&nbsp;&nbsp; If the proposal or declaration of the Insured is not true in any material respect, or if a claim is in any respect&nbsp;&nbsp; fraudulent, or if any false declaration&nbsp; is made or used in support thereof, or if any fraudulent means or devices are used by the Insured or any acting on his behalf&nbsp; to obtain any benefit under this Policy, or if a claim be made and rejected and an action or suit be not commenced 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.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">9.&nbsp;&nbsp; If at the time any claim arises under this Policy there be any other insurance covering the same loss, damage or liability, the Insurers shall not be liable to pay or contribute more than their ratable proportion of any claim for such loss, damage or liability.&nbsp; If such other insurance is subject to any condition of advantage to the Insurers this Policy shall be subject to such conditions in a like manner.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">10.&nbsp;&nbsp; This insurance may be terminated at the request of the insured at any time, in which case the Insurers will retain the customary short-period rate for the time this Policy has been in force.&nbsp; This insurance may equally be terminated at the option of the Insurers by seven days&rsquo; notice to that effect being given to the Insured in which case the Insurers shall be liable to repay a ratable proportion of the premium for the unexpired term from the date of cancellation.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">However, no notice of cancellation shall be effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following:</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->conviction of a crime arising out of acts increasing the hazard insured against;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->discovery of fraud or material misrepresentation;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->discovery of wilful or reckless acts or omissions increasing the hazard insured against;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->physical changes in the property insured which result in the property becoming uninsurable; or</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->a determination by the Commissioner that the continuation of the policy would violate or would place the Insurer in violation of this Code.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">All notices of cancellation shall be in writing, mailed or delivered to the named Insured at the address shown in the policy, and shall state (a) which of the grounds set forth above is relied upon and (b) that, upon written request of the named Insured, the Insurer&nbsp; will furnish the facts on which the cancellation is based.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">Unless the Insurer at least forty-five days in advance of the end of the policy period mails or delivers to the named Insured 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 named Insured shall be entitled to renew the</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">policy upon payment of the premium due or the effective date of the renewal.&nbsp; Any policy written for a term of less than one year shall be considered as if&nbsp; written for a term of one year.&nbsp; Any policy for a term longer than one year or any policy with no fixed expiration date shall considered as if written for successive policy periods or&nbsp; terms of one year.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;&nbsp;&nbsp; 11. Under an insurance for a third party&rsquo;s account the Beneficiary shall be entitled to exercise, in his own name, the rights of the Insured. Without obtaining the Insured&rsquo;s approval, the Beneficiary shall further have the right to receive any indemnity paid under this Policy and to transfer the Insured&rsquo;s rights even if the Beneficiary is not in possession of this Policy.&nbsp; Upon payment of an indemnity the Insurers may require evidence of the Beneficiary having given his consent to the insurance and of the Insured having&nbsp;&nbsp; given his consent to the receipt of an indemnity by the Beneficiary.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">12. The indemnity shall be payable one month after determination by the Insurers of the full amount due.&nbsp; Notwithstanding the above the Insured may, one month after the Insurers have been duly notified of the loss and have acknowledged their liability, claim as an installment the minimum amount payable under the prevailing circumstances. The running of the periods shall be suspended for the time during which the indemnity is unascertainable or not payable due to reasons within the Insured&rsquo;s control.</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">The Insurers shall be entitled to withhold indemnification.</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->If&nbsp; there are doubts regarding the Insured&rsquo;s right to receive the indemnity, pending receipt by the Insurers of the necessary proof;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->If in connection with the claim an examination by the police or an inquiry under criminal law has been instituted against the Insured, pending completion of such examination or inquiry.</p>

<h1>&nbsp;</h1>

<h1>&nbsp;</h1>

<h1>N O T I C E</h1>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify">The Insurance Commission, with offices in Manila, Cebu and Davao, is the government agency in charge of the faithful execution and enforcement of all laws relating to insurance and has supervision over insurance companies.&nbsp; That office is ready at all times to render assistance in settling any controversy between an Insurance Company and a Policyholder relating to insurance matters.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">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, please return it immediately for correction.</p>

<p style="text-align:justify">&nbsp;</p>

<h1>CIVIL CODE ARTICLE 1250 WAIVER CLAUSE</h1>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">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:</p>

<p style="text-align:justify">&nbsp;</p>

<p>&ldquo;In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishments of the obligation shall be the basis of payment,&rdquo;&hellip;. shall not apply in determining the extent of liability under the provisions of this Policy.</p>

<p>&nbsp;</p>

<h1><u>SHORT PERIOD RATE SCALE</u></h1>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:36.0pt; text-align:justify">IT IS HEREBY AGREED that, in the event of this Policy being surrendered by the Insured for cancellation, the Company shall retain a premium in accordance with the following scale for the time the Policy has been in force:</p>

<p style="margin-left:72.0pt; text-align:justify">&nbsp;</p>

<p style="text-align:justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 months or less 20% of the Annual Rate&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7&nbsp; months&nbsp;&nbsp; 75%&nbsp; of&nbsp; the&nbsp; Annual&nbsp;&nbsp; Rate</p>

<p style="text-align:justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2 months&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 30%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8&nbsp; months&nbsp;&nbsp; 80%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span></p>

<p style="text-align:justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 months&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9&nbsp; months&nbsp;&nbsp; 85%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;<span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p style="text-align:justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4 months&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10 months&nbsp;&nbsp; 90%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span></p>

<p style="text-align:justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5 months&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 70%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 months&nbsp;&nbsp;&nbsp; 95%&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span style="font-family:symbol">&sup2;</span></p>

<p style="text-align:justify">&nbsp;</p>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>&nbsp;</h2>

<h2>CHANGES IN POLICY CLAUSE</h2>

<p>&nbsp;</p>

<p>None of the provisions and terms of the Policy shall be waived or altered except by endorsement signed by an authorized official of the Insurers and issued in accordance with the provisions of Section 50 of the Insurance Code, as amended.</p>

<p>&nbsp;</p>

<p style="text-align:justify">All applicable provisions of Presidential Decree No. 1460, otherwise known as the Insurance Code of 1978,&nbsp; as amended, as of the date of effectivity,&nbsp; latest renewal or latest reinstatement of this policy/ certificate/contract of insurance, as the case may be, and all existing laws obligatory upon insurance companies as may be pertinent are deemed incorporated in the policy/certificate /contract of insurance and will supersede any agreement/contract inconsistent therewith.</p>

<p><span style="font-family:arial,sans-serif">&nbsp;</span></p>

<p style="text-align:center"><strong>Section I &ndash; Material Damage</strong></p>

<p style="text-align:center"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>Scope of Cover</strong></p>

<p style="text-align:justify">The Insurers hereby agree with the Insured that if at any time during the period of insurance stated in the Schedule or during any subsequent period for which the Insured pays the premium for the renewal of this Policy, the items or any part thereof entered in the Schedule shall suffer any unforeseen and sudden physical loss or damage from any cause, other than those specifically excluded, in a manner necessitating repair or replacement, the Insurers will indemnify the Insured in respect of such loss or damage as hereinafter provided by payment in cash, replacement, on repair (at their own option) up to an amount not exceeding in any one year of insurance in respect of each of the items specified in the Schedule the sum set opposite thereto and not exceeding in all the total sum expressed in the Schedule as insured hereby.</p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>Special Exclusions to Section 1</strong></p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">The Insurers shall not, however, be liable for</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->the deductible stated in the Schedule to be borne by the Insured in any one occurrence; if more than one item is lost or damaged in one occurrence, the Insured shall not, however, be called upon to bear more than the highest single deductible applicable to such items;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage directly or indirectly caused by or arising out earthquake, volcanic eruption, tsunami, storm, typhoon, cyclone or hurricane;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage directly or indirectly caused by theft;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage caused by any faults or defects existing at the time of commencement of the present insurance within the knowledge of the Insured, or his representative, whether such faults or defects were known to the Insurers or not;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage directly or indirectly caused by the failure or interruption of any gas, water or electricity service or supply;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage as a direct consequence of the continual influence of operation (e.g. wear and tear, cavitation, erosion, corrosion, incrustation) or of gradual deterioration due to atmospheric conditions;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->any costs incurred in connection with the elimination of functional failures unless such failures were caused by an indemnifiable loss of or damage to the insured items;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->any costs incurred in connection with the maintenance of the insured items, such exclusion also applying to part exchanged in the course of such maintenance operations;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p>&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage for which the manufacturer or supplier of&nbsp; the insured items is responsible either by law or under contract;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss or damage to rented or hired equipment for which the owner is responsible either by law or under a lease and/or maintenance agreement;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->consequential loss or liability of any kind or description;</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->loss of or damage to bulbs, valves, tubes, ribbons, fuses, seals, belts, wires, chains, rubbers tire, exchangeable tools, engraved cylinders, objects made of glass, porcelain or ceramics, sieves or fabrics, or any operating media (e.g. lubricating oil, fuel, chemicals);</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:18.0pt; text-align:justify"><!--[if !supportLists]-->m)&nbsp;&nbsp;&nbsp;&nbsp; <!--[endif]-->aesthetic defects such as scratches on painted, polished or enameled surfaces.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">In respect of the parts mentioned under 1) and m) above the Insurers shall be liable to provide compensations in the event that such parts are affected by an indemnifiable loss of or damage to the insured items.</p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>Provisions Applying to Section 1</strong></p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>Memo 1 &ndash; Sum Insured</strong></p>

<p style="text-align:justify">&nbsp;</p>

<p style="text-align:justify">It is a requirement of this insurance that the sum insured shall be equal to the cost of replacement of the insured items by new items of the same kind and same capacity which shall mean their replacement costs including e.g. freight, customs duties and dues, if any, and erection costs. If the sum insured is less than the amount&nbsp; required to be insured, the Insurers will pay only in such proportion as the sum insured bears to the amount required to be insured.&nbsp; Every item if more than one shall be subject to this condition separately.</p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>&nbsp;</strong></p>

<p style="text-align:justify"><strong>Memo 2 &ndash;Basis of Indemnity</strong></p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">a)&nbsp; In cases where damage to an insured item can be repaired, the Insurers will pay expenses necessarily incurred to restore the damaged item to its former state of serviceability plus the cost of dismantling and re-erection incurred for the purpose of effecting the repairs as well as ordinary freight to and from a repairshop, customs duties and dues, if any, to the extent such expenses have been included in the sum insured.&nbsp; If the repairs are executed at a workshop owned by the Insured, the Insurers will pay the cost of materials and wages incurred for the purpose of the repairs plus a reasonable percentage to cover overhead charges.&nbsp; No deduction shall be made for depreciation in respect of parts replaced, but the value of any salvage will be taken into account.</p>

<p style="text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">If the costs of repairs as detailed hereinabove equal or exceed the actual value of&nbsp; the insured items immediately before the occurrence of the damage, the settlement shall be made on the basis provided for in b) below.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">b)&nbsp; In cases where an insured item is destroyed, the Insurers will pay the actual value of the item immediately before the occurrence of the loss, including costs for ordinary freight, erection, customs duties and dues, if any, to the</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">extent such expenses have been included in the sum insured, such actual value to be calculated by deducting proper depreciation from the replacement value of the item. The Insurers will also pay any normal charges for the dismantling of the item destroyed, but the value of any salvage will be taken into account.&nbsp; The destroyed item shall no longer be covered under this Policy, and all necessary data on the relevant substitute item shall be indicated for its inclusion in the Schedule.&nbsp; (The Insurers may agree - by application of the relevant endorsement-to extend this insurance to cover reimbursement of the full replacement value.)</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">As from the date of an indemnifiable occurrence the sum insured shall be reduced for the remaining of insurance by the amount of indemnity paid, unless the sum insured is reinstated.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">Any extra charges incurred for overtime, night-work, work on public holidays, or express freight, are covered by this insurance only if especially agreed in writing.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">The cost of any alterations, additions, improvements or overhauls shall not be recoverable under this Policy.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">The costs of any provisional repairs will be borne by the Insurers if such repairs constitute part of the final&nbsp;&nbsp; repairs and do not increase the total repair expenses.</p>

<p style="margin-left:13.5pt; text-align:justify">&nbsp;</p>

<p style="margin-left:13.5pt; text-align:justify">The Insurers will make payments only after being satisfied by production of the necessary bills and documents that the repairs have been effected or replacement has taken place, as the case may be.</p>
