January 26, 2015

ENGR. HENRY SAN PEDRO

PROJECT ENGINEER

SUBJECT : COST BUDGETARY PROPOSAL

PROJECT : AVP CATERING SERVICES AND FUNCTION HALL

LEGAZPI CITY, BICOL

Dear Mr. San Pedro,

We are pleased to submit our proposal for the supply and installation of OTIS equipment
in accordance with our standard TERMS AND CONDITIONS.

We trust our submission would meet your requirements and should you require
clarification, please do not hesitate to contact us.

Very truly yours,

CONCEPCION OTIS PHILIPPINES, INC.

MANCLE ANGELO N. PADILLA (Manz)

N.E. Sales Engineer

JAMES MANGAHAS
NE Sales Assistant Manager

Encl. Cost Budgetary Proposal

Terms and Conditions of Sale
Technical Specifications
Works by Others
General Terms and Conditions
UTC Code of Ethics

CONCEPCION-OTIS PHILIPPINES INC

14F Petron Mega Plaza, 358 Sen. Gil Puyat Avenue, Makati City, Philippines 1255
Telephone: +63 2 888 6847 Fax: +63 2 886 3529
Concepcion Otis Philippines, Inc.
14th Floor, Petron MegaPlaza
358 Sen. Gil Puyat Ave., Makati City
P.O. Box 1564 MCPO 1255 Philippines

AVP CATERING SERVICES AND

Project :
FUNCTION HALL
Location : LEGAZPI CITY, BICOL Date : 26 Jan 2015

ITEM
DESCRIPTION QTY. UNIT PRICE TOTAL PRICE
NO.
PASSENGER ELEVATOR
Gen2 REGEN (MACHINE ROOMLESS)
(400 kg./5 person/ 3 stops/ 1mps)
1 Imported Equipment, CIF Manila (US$)
PE1 1 25,000.00 25,000.00

2 Importation (import duty, brokerage,

port releasing and delivery to site),
12% VAT inclusive (PHP)
PE1 1 350,000.00 350,000.00
3 Installation and Locally Supplied
Materials, 12% VAT inclusive (PHP)
PE1 1 700,000.00 700,000.00

Conditions of Pricing:
1) The above prices are valid for 30 days only. Should this proposal not be accepted
within 30 days, prices will be subject to re-estimate.
2) The above prices are conditional upon equipment being delivered to the site on or
before JUNE 2015. Should the delivery of the equipment be delayed beyond
this time, the prices quoted above will be null and void and revised prices will be
submitted for review and approval, regardless of order and/or DP/LC being received.

THIS PROPOSAL IS SUBJECT TO TERMS

AND CONDITIONS PER ATTACHED SHEETS

CONFORME AND ACCEPTED: Concepcion Otis Phils., Inc.

JAMES MANGAHAS
Signature over Printed Name NE Sales Assistant Manager

page 2/11
Date
 TERMS AND CONDITIONS OF SALE

IMPORTED EQUIPMENT

MANUFACTURING, Within four (4) months from date of approval of

SHIPMENT, PORT drawings, schedule, specifications and finishes by the
RELEASING & buyer or his authorized representative, payment of
DELIVERY TO SITE local down payment and receipt of the Letter of Credit.
The unit will not be ordered until all of the foregoing
conditions have been met.

PAYMENT:

- (Imported Equipment) By means of a confirmed, irrevocable and without

recourse DOMESTIC LETTER OF CREDIT in favour
of OTIS E&M COMPANY PHILS., INC. to be opened
within one (1) month from date of acceptance of
proposal. The LC validity is five (5) months.

- (Importation) Importation cost shall be due immediately upon

presentation of shipping documents. Should there be a
delay in the receipt of importation costs, Otis will be
granted automatic extension, without penalty, on the
completion date of the project. This extension will be,
at a minimum, equal in duration to the delay in receipt
of payment.

GUARANTEE The equipment covered by this proposal is guaranteed

to be free from material defects or faulty workmanship
under normal use and operation for a period of one (1)
year from the completion of installation or eighteen (18)
months from the date of shipment, whichever comes
first. Parts found to be defective, due to normal wear
and tear, during the warranty period shall be repaired
or replaced free of charge. Parts found to be defective
as a result of misuse, abuse, abnormal use or adverse
operating conditions shall not be covered by warranty.

INSTALLATION AND LOCALLY SUPPLIED MATERIALS

COMPLETION Within three (3) months from date of arrival of imported

equipment on site and completion of all necessary
preparatory works by others, as determined by an OTIS
pre-start inspection. To ensure the quality of the finished
product, OTIS cannot mobilize to commence installation
until all preparatory works by others have been
completed. Should there be a delay in completion of
these preparatory works, Otis will be granted automatic
extension, without penalty, on the completion date of the
project. This extension will be, at a minimum, equal in
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 duration to the delay in completion of all preparatory
works. For multiple unit projects, the installation time
stated assumes installation and commissioning works
can be carried out on all units simultaneously.

PAYMENT 30% - Down payment, upon acceptance of

proposal. Payment must be received prior to
ordering of equipment.

40% - Upon arrival of imported equipment on site.

Payment must be received prior to mobilization.

20% - Pro-rata, as the installation progresses.

10% - Retention, payable upon acceptance

Should payments not be received on time as stated

above, Otis will be granted automatic extension, without
penalty, on the completion date of the project. This
extension will be, at a minimum, equal in duration to the
delay in receipt of payment.

NEW INSTALLATION Twelve (12) months from date of hand over.

SERVICE
Maintenance contract proposal will be prepared and
submitted after completion of installation for buyer’s
review and approval.

USER MANUALS One (1) standard OTIS User Manuals will be provided as
part of this contract. Any additional copies required will
be provided at an additional charge.

The standard OTIS User Manual contains the following

items:

- Equipment User Manual

- Wiring Diagram
- As Built Plans
- Permit to Operate
- Warranty Certificate

There will be an additional charge for any supplementary

information required. It will be at the discretion of OTIS if
requests for information outside that listed above will be
accommodated, as items requested may be protected by
copyright, intellectual property or trade secret legislation.

VALIDITY OF PROPOSAL Thirty (30) calendar days from proposal date and subject
to confirmation in writing thereafter.

page 4/11
 TECHNICAL SPECIFICATIONS
General Model : Gen2 REGEN
Type : Passenger
No. of Units : 1
Capacity : 400 kg/5 persons
Speed : 1.0 mps (60 mpm)
No. of Stops : 3
No. of Entrances : Front : 3 Rear : 0
Rise : 9000 mm
Machine : Permanent Magnet (PM) gearless machine
Drive : Regenerative drive
Controller : Otis Regen controller
Control System : Simplex
Door Type : 2-Panel center opening
Door Width : 800 mm
Door Height : 2000 mm

Elevator Car Size : 950 mm (W) x 1150 mm (D) x 2395 mm (H)

Finished Ceiling Height : 2242 mm
Main COP Location : Right side center
Auxiliary COP : Without Location : Not applicable
Handicap COP : Without Location : Not applicable
CPI (main COP only) : 7" TFT-LCD
COP Buttons : BR27B (K) Finish : Hairline stainless steel
COP Finish : Hairline stainless steel
Door Protection Device : Light screen

Car Finishes Ceiling Design : 4081L Frame : Hairline stainless steel Color : Not applicable
Front Return Panel : Hairline stainless steel Color : Not applicable
Side Panels : Hairline stainless steel Color : Not applicable
Rear Panel : Hairline stainless steel Color : Not applicable
Door : Hairline stainless steel Color : Not applicable
Floor Covering : 4901 (MA-0201) PVC
Recess : 3 mm Extra Weight : 0 kg
Handrail : 4900F Location : 1-Side (rear)

Entrance Door & Jamb : Main Floor : Hairline stainless steel Color : Not applicable
Finishes : Other Floors : Hairline stainless steel Color : Not applicable
Jamb Type : Main Floor : Narrow
: Other Floors : Narrow
HPI/HB : 4.3" TFT-LCD (all floors)
Hall Buttons : BR27B Finish : Hairline stainless steel
HPI/HB Finish : Hairline stainless steel
Sill : Extruded aluminum

Hoistway Size : 1600 mm (W) x 1600 mm (D)

Pit Depth : 1350 mm
Overhead Clearance : 3800 mm
Machine Location : Inside hoistway @ last landing
Machine Room Height N/A
Counterweight Location : RIGHT SIDE

Electrical Building Power Supply : 220V, 3-Phase, 60 Hertz

Building Lighting Supply : 220V, 1-Phase, 60 Hertz

Features Attendant service operation : With

Automatic rescue device : With
Door hold button : With
Fire emergency operation : With
Fireman’s service : With
Independent service operation : With

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 WORKS BY OTHERS

These works are in connection with the elevator and/or escalator installation. The requirements
below shall be provided completely free of charge to OTIS by the client or their contractor in
accordance with the layout drawings and specifications and in accordance with all relevant local
ordinances and regulations:

1. TO PROVIDE:

1.1. A properly framed and enclosed hoistway (vertical plumbness = +/- 25 mm for rise below
50 meters and +/- 50 mm for rise above or equal to 50 meters) including venting, as per
the approved project drawings. Shaft and machine room should be constructed of a solid
fire proof material which prohibits the generation of dust.

1.2. A watertight shaft fully enclosed from external weather conditions, prior to OTIS
mobilization.

1.3. A waterproofed pit with proper drains or sump pit, if needed.

1.4. The necessary hoisting beam or hooks, steel plates, or other reinforcement in the hoistway
which may be needed to move the equipment in place, as per the approved project
drawings. All hoisting points must be certified to the specified load. This certification is the
responsibility of the client.

1.5. All fixings, supports, hoistway separator beams (where necessary), reinforced concrete
slabs, inserts, etc. necessary for the installation of the equipment, guide rails, doors,
buffers, etc, as per the approved project drawings. All fixing points must be capable of
supporting the reaction loads stated in the drawings.

1.6. Safe access to our working areas; which include storage area, hoist way, machine room,
site entrance and all adjoining areas. These areas must be free of hazards, which could
potentially cause injury to OTIS employees and subcontractors.

1.7. A well ventilated/air-conditioned machine room, where the ambient air temperature is
maintained within the acceptable range (30°C maximum) for the equipment to be installed.
If the ambient temperature within the machine room is not kept within the acceptable range
this will be considered an adverse operating environment, and therefore warranty will be
void.

1.8. Use of a tower crane, or any other lifting machinery available on site, for the purposes of
moving elevator equipment, as required during the elevator installation.

1.9. A secured warehouse (area is at least 20 sq. meters) and an open storage space (area is
at least 20 sq. meters per elevator) at the jobsite for the equipment and tools. Warehouse
and open storage space should be located inside the building at the ground level within
ten (10) meters of the hoistway and should have ample access for the movement of
materials to the hoistway. There must be clear safe access for a forklift to transport
material from the unloading area to the warehouse. The storage area must be designated
for use exclusively by Otis, until all equipment has been installed within the shaft and
machine room. Should transferring of equipment to alternate storage area be required by
the client or a 3rd party during the installation process, this will be considered work outside
the scope of the contract to install the elevator. Therefore Otis will submit a quotation for
approval prior to transferring of the equipment. As resources will be temporarily
reassigned during the moving of the equipment, OTIS will be granted, without penalties,
an extension in the project completion date. This extension will be, at a minimum, equal
in duration to the time required to transfer the equipment to the newly designated storage
area. Should equipment be moved by any party other than Otis, Otis will not be held liable
for damaged or missing parts. Should parts be found to be damaged or missing, the cost
of replacing these parts will born by the client. Otis will not be held liable for weathering,
page 6/11
 vandalism, theft or damage to the equipment once delivered to the designated storage
area.
2. TO DESIGN AND INSTALL:

2.1. The hoistway structure required to withstand the forces and loads resulting from use of
equipment, as per the approved project drawings.

2.2. A raised working platform, allowing safe access to the machine during maintenance. The
design of this raised platform is subject to approval by OTIS and must conform to DOLE
safety standards.

3. TO PERFORM all civil works, including but not limited to cutting of walls, floors, or partitions
together with any repairs made necessary thereby and make good after installation of
equipment.

4. TO PROVIDE AND INSTALL power, signal, and light connections as follows:

4.1. Provide all wiring necessary to bring the permanent/temporary single phase and three
phase power to the control panel.

4.2. Provide interphone system, supervisory panel (if required) and all wiring and piping from
control panel to designated Com Room.

4.3. Provide electric power required for all tooling and adequate lighting of the work place,
storage, and mess area.

4.4. Provide the permanent power supply. This should be in place prior to mobilization. Failure
to provide permanent power supply will increase the amount of time required to complete
the installation.

4.5. Provide suitable space for transformer within six (6) meters from the hoistway at the
landing designated by OTIS. If the transformer is to be located beyond the required
distance, the client must provide all wiring and piping necessary to bring the supply to the
location designated by OTIS.

4.6. Should it be required that OTIS utilize temporary power during the installation, any cabling
or connection required to bring temporary power to the location designated by OTIS shall
be provided by others.

4.7. Provide lighting in the machine room measuring 110Lux, prior to the elevator being put
into service.

4.8. Provide lighting within the shaft measuring 200Lux, prior to the elevator being put into
service.

5. TO COMPLETE:

5.1. All works in such time as not to delay the installation and commissioning times indicated
in this proposal. Installation and commissioning time indicated shall be continuous and
uninterrupted.

5.2. All grouting and concreting works required to seal the elevator shaft prior to testing and
commissioning. Including, but not limited to, grouting between the frames and masonry
opening, grouting between the hall fixture boxes and masonry opening, grouting between
the control cabinet and masonry opening and concreting of cut outs in the machine room
slab.

page 7/11
 GENERAL TERMS AND CONDITIONS

A. Any alterations to the approved specifications approved layout or approved cabin finishes
will be subjected to price adjustment. Any alterations in the above will affect the
manufacturing time of the equipment and therefore any prior agreements made on delivery
or completion of the project will be null in void.

B. The order is not considered accepted until both down payment on local and imported
equipment have been received / down payment on local has been received and LC
opened.

C. Site must be ready for installation upon arrival of the equipment. Should the site not being
ready upon equipment arrival results in a delay of greater than 2 months in
commencement of the installation, Otis reserves the right to submit a variation order due
to any increase in costs caused by this delay.

D. Permanent power should be available for testing and commissioning upon completion of
the mechanical installation. Should the power not be available 2 months after completion
of the mechanical installation, Otis reserves the right to submit a variation order due to
any increase in costs caused by this delay.

E. OTIS employees and subcontractors shall be given a safe place in which to work. OTIS
reserves the right to discontinue work at any time, whenever in our opinion, this provision
is being violated. Should a work stoppage on the grounds of an unacceptable hazard
existing in the work environment be deemed necessary, OTIS will immediately inform the
client of the remedial action required to remove the hazard. OTIS must be notified in writing
once the necessary remedial action has been completed. A Safety Assessment will then
be carried out by OTIS to determine if the hazard has been removed. Only when the safety
inspection determines that the hazard no longer exists will OTIS re-mobilize to continue
execution of the contracted works. Provision of a safe work environment is a legal
requirement, as per DOLE Labour Code DO13 & DO18-02. Therefore, Otis will be granted
an automatic extension, without penalty, on the target completion date of the project
should a work stoppage on the grounds of safety be deemed necessary. This extension
will be, at a minimum, equal in duration to the work stoppage.

F. All installation time stated assume continuous work. Should a work stoppage be required
for reasons outside the control of OTIS, a re-mobilization fee of PHP 10,000.00 per unit
must be paid prior to re-mobilization. Work stoppages requiring remobilization include but
are not limited to; delay in completion of civil works required during the installation,
unavailability of power, non payment of invoices as outlined in the Terms and Conditions
of Sale, site closure, request for temporary stoppage of installation by the client,
unavailability of materials to be supplied by the client/client’s subcontractor or work
stoppage required due to safety concerns not being addressed by site management.

G. Installation should commence immediately upon arrival of equipment. Should there be an

excessive delay in the commencement of the installation for reasons outside the control
of OTIS, OTIS will not be held liable for any material found to be missing or damaged once
the installation commences. As per the Terms and Conditions of Sale, warranty will expire
eighteen (18) months from the date of shipment of the equipment, whether the equipment
has been installed or not. Should it be found, when installation commences, that the
equipment has been compromised due to poor storage conditions, the warranty will be
null in void.
page 8/11
H. Should the contracted works not be fully executed within 12 months from date of signing
of this proposal, OTIS will submit a variation order based on the inflated costs due to the
delay in completion of the contract. The variation order must be paid in full prior to
handover.

I. We shall not be liable for any loss, damage, or delay due to any cause beyond our
reasonable control including, but not limited to, transportation embargoes, acts of
government, strikes, lockouts, fire, explosions, theft, floods, riots, civil commotion, war,
malicious mischief, or acts of God. Should damage occur to the equipment or tools on the
project premises from any such cause, the buyer shall compensate OTIS E&M
COMPANY PHILIPPINES, INC. (OTIS). Therefore in no event, OTIS shall be liable to the
buyer for any such and consequential damages whatsoever.

J. OTIS shall not be held responsible, solely or in part, for any costs incurred by the client,
general contractor or any other party relating to housekeeping, refuse collection or security
on the construction site.

K. OTIS shall not be bound to agree to any request for delay in shipment, installation, and/or
payment once the project schedule has been approved. If shipment or installation of
equipment is delayed at the request of the buyer, the buyer shall pay all additional costs
and price increases incurred by OTIS. These charges must be paid in full prior to
commencement of the contracted works.

L. Should the client wish to cancel the contract, the client shall pay OTIS a cancellation fee
in the sum of 10% of the total contract price in addition to such other remedies as OTIS
may be entitled in law and equity. In addition to the 10% cancellation fee, the client shall
also be liable for any costs incurred by OTIS due to partial execution of the contract, which
may have occurred prior to notification of cancellation being received. Should the
cancellation be due to default by the buyer in the compliance with any of the terms hereof,
the buyer shall be liable to OTIS for any and all damages. Notice of cancellation must be
made in writing and will take effect from the date of receipt by the Construction Manager.

M. Any unpaid instalment shall bear interest at the rate of 30% per annum from the date when
such instalment was due.

N. OTIS will pay the mechanical permit fee for the installation of equipment and the
operational permit fee for the first year. As per the Philippines Building Regulations, the
installation of an elevator/escalator cannot commence until such time as the Permit To
Install has been secured. The client must provide all necessary documents, required for
the processing of permits, to OTIS upon demand. Should a delay in receipt of documents
from the client result in a delay in issuance of the Permit To Install, the start date of the
installation must be postponed until such time as the Permit To Install has been secured.
In such cases, Otis will be granted automatic extension, without penalty, on the target
completion date of the project. This extension will be, at a minimum, equal in duration to
the delay incurred in the start date of the installation. As per the Philippines Building
Regulations, an elevator cannot be put into operation until such time as the Permit To
Operate has been secured. Should a delay in receipt of documents from the client result
in a delay in securing of the Permit To Operate, OTIS will not put the unit into operation
until such time as the Permit To Operate has been secured. In such cases, Otis will be
granted an automatic extension, without penalty, on the target completion date of the
project. This extension will continue until the Permit To Operate has been secured.

page 9/11
O. OTIS shall not be responsible for the premium of any bond and/or any form of general
contractor’s or owners insurance.

P. Unless otherwise stated, OTIS shall work only during the regular hours of regular working
days. OTIS shall not be bound to any request to work overtime. Overtime work, at OTIS
consent, shall carry an additional charge at OTIS usual rates to be added to the contract
price. Additional charge levied for the overtime must be paid in advance of the overtime
being rendered.

Q. Equipment furnished and installation performed shall be deemed accepted if any of the
following conditions exist:

i. Turn over to and accepted by buyer.

ii. Thirty (30) calendar days after OTIS notifies buyer that
equipment and installation are ready for inspection and
acceptance and the buyer has not inspected.

iii. If for any cause not attributed to OTIS, commissioning of

equipment is delayed beyond thirty (30) days, final payment
shall then become due and payable.

R. Should OTIS tools and equipment, including the elevator, be required to be used by other
trades to carry out work, an appropriate rental fee will be charged to the relevant
contractor. The rental fee must be paid in full prior to works commencing. OTIS reserves
the right to deny use of our tools and equipment, including the elevator, to other trades.
Should the tools, equipment or elevator be damaged during the work being carried out,
this damage must be made good by others to the satisfaction of OTIS. Alternatively at the
request of the client OTIS will submit a quotation for making good said damage.

S. OTIS will not grant use of the equipment unless all of the following conditions have been
met; Testing and commissioning has been completed, the lift has been fully accepted by
the client, all variation orders agreed during the project have been paid in full and 90%
payment has been received on the original contract. The one exception to this will be if a
temporary usage agreement has been entered into by the client.

T. Retention of 10% shall be payable in full upon closure of punch list. Should there be an
excessive delay in the payment of retention, OTIS reserves the right to withhold NIS and
warranty on the project. Should NIS be withheld, service visits will not be carried out and
parts warranty will be withdrawn. NIS and warranty will only be reinstated once payment
in full has been received. Any free service visits not performed during the withdrawal of
NIS will be forfeit.

U. OTIS reserves the right to discontinue work at any time should the client fail to carry out
any of the foregoing. Buyer shall indemnify and save OTIS harmless against all liabilities
growing out of same.

page 10/11
 UTC CODE OF ETHICS
The UTC Code of Ethics applies to UTC and its controlled entities worldwide including OTIS E&M Company Philippines,
Inc. In addition to stating rules that govern our actions, the Code is an expression of fundamental values and represents
a framework for decision-making. The Code is further explained and implemented by Code Supplements and by policies
contained either in the Corporate Policy Manual or the Financial Manual.

The underpinnings of ethical business practices at UTC are the following:

● We Will Obey the Law.

● We Will Act in Good Faith

● We Will Consider the Impact of our Decisions.

● We Will Communicate Openly and Effectively.

● We Will Seek Always to Build Trust, Show Respect, and Perform with Integrity.

The integrity, reputation and profitability of UTC ultimately depend upon the individual actions of our directors, officers,
employees and representatives all over the world. Each is personally responsible and accountable for compliance with
this Code.

The 23 Standards of Conduct are:

 Protecting Information Belonging to Others ● Antitrust Laws
 Protecting Company Assets ● Local Laws & Customs
 Accuracy of Records ● Quality & Safety
 Government Procurement ● Marketing & Selling
 Equal Employment Opportunity ● Partners & Suppliers
 Workplace Environment ● Shareowner Communications
 Employee Development ● Protecting the Environment
 Compensation & Benefits ● Community Support
 Conflict of Interest ● Involvement in the Political Process
 Securities Trading & Release of Materials, ● International Trade
Non-public Information
 Representatives ● Employee Privacy
 Employee Communications

As part of these standards, we seek only clients, vendors, suppliers and

partners who share the same principles. If at any point our clients / customers
/ suppliers feel there is any variation to these core principles, I ask that you
please contact me directly at +632-888-OTIS (6847) so that I may personally
investigate. Your continued support is greatly appreciated.

Sean Losty
General Manager
OTIS E&M Company Philippines, Inc.

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