October 24, 2019

SCHENKER PHILIPPINES, INC.

Sabrina Compound
KM. 19 West Service Road
Sucat, Parañaque City
Philippines, 1700

Attention : MR. MARLOWE B. CARONAN

General Manager

Re : UNSETTLED BILLINGS AND LOST CHASSIS

Dear Mr. Caronan:

This has reference with our email conversation dated October 22, 2019 regarding the unsettled billings and lost
chassis units of Schenker Philippines, Inc. (“DBS”) which was a long overdue and demandable by Delbros
Waterfront Chassis Leasing Co., Inc. (“Delwater”).

At the outset, it is respectfully manifested that this cause of action is anchored on the non receipt and no
payment posted for the billing period imposed against DBS. The stand of DBS that there shall be no reconsideration
because of the purported closed financial books is bereft of merit and a patent nullity in the position of Delwater. It is
not logical to reason out that on account of a closed books, DBS shall no longer make payments for the warranted due
and demandable rights of Delwater. Thus, the liability and legal obligation of DBS still attaches which to date the same
remains unsettled.

Anent question of the indemnity charges, it is imperative to emphasize that the contract between Delwater and
DBS has a clause with governing provision which explicitly pertains to the loss of chassis unit, stated in this wise:

17. LOSS OF LEASED OUT CHASSIS, INDEMNITY. In case of loss or damage of any
chassis unit, during the period of lease by LESSEE, the LESSEE shall indemnify the LESSOR
for such loss based on the net fair market value of said unit.

In view of the above quoted provision, it is clear thereof that DBS has to indemnify Delwater for the lost of four
(4) chassis units, including the undeclared loss of one (1) chassis unit No. 5021. It is granted that the adjudged
monetary equivalent thereto shall be duly assessed and appraised by a third party upon agreement of Delwater and
DBS.

At any rate, it cannot be argued that preventing Delwater from recovering its rightful claims would tantamount
to a violation of the principle of unjust enrichment prohibition as mandated by the law and public policy. Also, be it noted
that the option to declare and consider the unpaid legal obligation as extinguished and terminated solely belongs to the
creditor – Delwater.

However, in order to afford DBS the opportunity to rebut Delwater’s claim, we hereby request to provide us
substantial evidences that would negate and disprove our claims.

Hoping that this letter be given due course to render the issue SETTLED and CLOSED without the need of
resorting to a recognized legal remedy, all in the interest of justice.

Thank you and more power.

Respectfully,

DELBROS WATERFRONT CHASSIS LEASING, INC.

Prepared by: Noted by:

MARIBETH C. ABERGAS CRESENCIA C. MARCELLA

Non Performing Asset – Manager Administrative Manager