MACHINERY BREAKDOWN INSURANCE

The Schedule
Policy No. AM0020/03DC08F0
INSURED

Caravelle Hotel and/or The Chains Caravelle Hotel Joint Venture

Company Limited and/or Glynhill Investments (Vietnam) Pte. Ltd.
and Saigon Tourists as Owners, and/or Furama Hotels and Resorts
International Limited as the hotel management company and/or
Subsidiary Companies and/or Porchester Assets Limited as the
Lender and/or any parties having an interest in the Hotel or the
property by virtue of and in accordance with the terms of
mortgage, leasing, hiring, economic co-operation, or renting
agreements, for their respective rights and interests.

ADDRESS &
RISK LOCATION

19-23 Cong Truong Lam Son, District 1, Ho Chi Minh City, Vietnam

BUSINESS

Hotel owners and managers, property owners and developer,

health clubs, restaurants, food and catering services, shops,
laundry operations, provision of first aid and medical services in
the normal course of their business and all associated, ancillary
and other activities undertaken by the Insured

PERIOD

12 months, from 1st August 2003 at 00:00 to 31 st July 2004 at

24:00 local Vietnam time.

COVERAGE

All risks of physical loss of or damage to property insured caused

by any event not excluded by the policy wording including but not
limited to
1. Electrical or mechanical breakdown including blackout /
brownout of any item insured whilst :(a) working or at rest
(b) being dismantled, moved or re-erected for the purpose of
cleaning, inspection, repair or installation in another
position
2. Damage to property belonging to the Insured or for which they
are responsible, caused by flying fragments of any item
insured resulting from the electrical or mechanical breakdown
thereof.
3. Damage, other than by fire, to any item insured or to other
property belonging to the Insured or for which they are
responsible, directly consequent upon explosion or collapse of
the insured item.
On all machinery, plant and equipment of every description, being
the property of or hired to or leased to or loaned to the Insured or
for which the Insured is responsible or may acquire an insurable
interest during the period of insurance

INTEREST
INSURED

SUM INSURED

US$6,000,000

TERMS AND
CONDITION

As per Munich Res Machinery Breakdown policy wording.

EXTENSIONS

1.
2.
3.

Caravelle _2003_1

60 Days Notice of Cancellation

Architects & Surveyors Fees (10% of Sum Insured)
Automatic Cover including New Location

4.
5.
6.

EXCESS

Automatic Extension for 30 Days

Breach of Conditions an/or Warranties
Capital Additions Clause (10% of sum insured and quarterly
declaration)
7.
Clarification Agreement
8.
Co-Insurance 80%
9.
Cost of Recompiling Records and Claims Preparation (Limit
US$50,000)
10.
Currency Clause
11.
Expediting Expensed including Airfreights (limit 20% of
repair cost)
12.
Memorandum I
13.
Payment on Account
14.
Reinstatement of Sum Insured
15.
Removal of Debris (10% Of Total Sum Insured)
16.
Replacement Value (7 Years)
17.
Strike, Riot and Civil Commotion
18.
Sue and Labour
19.
Temporary Removal (10% of the Sum Insured)
20.
Terrorism Exclusion
21.
Undamaged Foundation
All other terms, limits and conditions as per Munich Re policy
wordings
US$1,000 any one occurrence

ANNUAL RATE

0.095%

PREMIUM

US$ 5,700.00 + 10% VAT = US$ 6,270.00

CHOICE OF
LAW &
JURISDICTION

In the event of any dispute over interpretation of this Policy:

Law : Vietnam
Jurisdiction : Courts of Vietnam

PAYMENT
TERMS

Premiums will be paid in two instalments due and payable to Bao

Minh in August 2003 and February 2004

DATE
: 24th July 2003
FOR AND ON BEHALF OF
HOCHIMINH CITY INSURANCE COMPANY - BMSG

Important Notice - DISCLOSURE

It is understood that you have provided complete and accurate information to Bao Minh and that you have
complied with your legal duty to disclose, before the inception of the insurance contract, all material matters
relating to the risk (i.e. all information which would influence the judgment of a prudent Bao Minh in determining
whether to underwrite the risk and if so, upon what terms and at what premium). If all such information has not
been disclosed, Bao Minh have the right to avoid the contract from its commencement, which may lead to claims
not being met. If you believe that you may not have complied with this duty, you should contact us immediately.

Caravelle _2003_2

BUSINESS INTERRUPTION FOLLOWING MACHINERY

BREAKDOWN INSURANCE
The Schedule
Policy No. AM0041/03KB08F0
INSURED

Caravelle Hotel and/or The Chains Caravelle Hotel Joint Venture

Company Limited and/or Furama Hotels and Resorts International
Ltd. as the hotel management company for their respective rights
and interests.

ADDRESS &
RISK LOCATION

THE CARAVELLE HOTEL

19-23 Cong Truong Lam Son, District 1, Ho Chi Minh City, Vietnam

BUSINESS

Hotel owners and managers, property owners and developer,

health clubs, restaurants, food and catering services, shops,
laundry operations, provision of first aid and medical services in
the normal course of their business and all associated, ancillary
and other activities undertaken by the Insured

PERIOD

12 months, from 1st August 2003 at 00:00 to 31 st July 2004 at

24:00 local Vietnam time.

COVERAGE

Loss of Gross Profit resulting from an interruption causing:a) a reduction in turnover

b) increase in costs of working
by any contingency insured and which is indemnifiable under the
corresponding Insureds Material Damage Insurance and/or special
extensions listed hereunder.

INTEREST &
SUM INSURED

Gross Profit including standing charges

INDEMNITY
PERIOD

5 months

TERMS AND
CONDITION

As per Munich Res Business Interruption following Machinery

Breakdown policy wording.

EXTENSIONS

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.

Caravelle _2003_3

US$2,000,0
00

60 Days Notice of Cancellation

Auditors Professional Accountants Fees and
Preparation Costs (US$100,000)
Automatic Extension for 30 Days
Automatic Increase / Upward Adjustment (25%)
Automatic Reinstatement of Sum Insured
Breach of Conditions / Warranties
Clarification Agreement
Coinsurance 80%
Currency Clause
Delay in Repair
Departmental
Extra Additional Cost of Working
Failure of Public Power, Water, Gas or Steam Supply
Interdependency
Machinery Breakdown During the Guarantee Period
Memorandum I
Payment on Account
Suppliers Extension
War & Terrorism Exclusion
Turnover / Output Option

Claims

21. Waiver of Material Damage Excess

All other terms, limits and conditions as per Munich Re policy
wordings
EXCESS

48 hours

ANNUAL RATE

0.095%

PREMIUM

US$ 1,900.00 + 10% VAT = US$ 2,090.00

CHOICE OF
LAW &
JURISDICTION

In the event of any dispute over interpretation of this Policy:

Law : Vietnam
Jurisdiction : Courts of Vietnam

PAYMENT
TERMS

Premiums will be paid in two instalments due and payable to Bao

Minh in August 2003 and February 2004

DATE
: 24th July 2003
FOR AND ON BEHALF OF
HOCHIMINH CITY INSURANCE COMPANY - BMSG

Important Notice - DISCLOSURE

It is understood that you have provided complete and accurate information to Bao Minh and that you have
complied with your legal duty to disclose, before the inception of the insurance contract, all material matters
relating to the risk (i.e. all information which would influence the judgment of a prudent Bao Minh in determining
whether to underwrite the risk and if so, upon what terms and at what premium). If all such information has not
been disclosed, Bao Minh have the right to avoid the contract from its commencement, which may lead to claims
not being met. If you believe that you may not have complied with this duty, you should contact us immediately.

Caravelle _2003_4