Case Summary of Events

1. During the 5th annual general assembly meeting of Coesco on march 17, 2008, the
report of the External Auditor, Mr. Joel Rabang duly confirmed and approved by the
General Assembly indicated the schedule of long tem liability of COHESCO to Dr. Sema
L. Libarious and that Resolution #7 Series of 1998, reflected the schedule of payments
to Dr. Libarious in the ammout of P 5, 000 a month until the amount of P 700, 000.00 is
fully paid and that the remaining balance be scheduled when COHESCO has the
capability to pay.

Resolution # 31 Series of 1999 increased the payments payable to Dr. Libarious

from to P 10, 000 to P 25, 000

2. In the year 2004, newly elected chairman of the board, Sidney Sevilla issued on March
30, 2004 Memorandum Order No. 03-30-04-001 dated March 30, 2004 ordering the
Sec/Treasurer, Mrs. Anita Damaso to suspend all transactions between COHESCO and
Dr. Sema Libarios