(e) CONDITIONS PRECEDENT Efforts were taken by the Plaintiffs to settle the dispute out of court which include:

1. The Plaintiffs sent a demand letter last July 11, 2002 directly to Mr. Ice King, the president and general manager of Culligan Water, Inc., claiming for damages specifically, to demand P100,000 for general damages for breach of contract, P200,000 for moral damages, P200,000 for exemplary damages and 300,000 in damages for loss of business, as shown in Exhibit ____. There was no response from the Culligan Water, Inc. from the said demand letter. 2. Plaintiffs then, resorted to seek assistance with the legal aid unit of the University of San Carlos School of Law & Governance for a possible peaceful settlement through negotiation between them and Culligan Water, Inc. That on August 22, 2002, both parties , the plaintiffs Mr. & Mrs. Mustapha and the defendant as represented by Mr. Ice King, met at the office of the Legal Aid Unit of the University of San Carlos. Plaintiffs presented their claims regarding the injuries and damages they suffered but the defendant denied its claim for lack of proof and refused to pay the damages. Thus, there was no settlement happened on that day. 3. After several requests for negotiation, both parties agreed to meet again for arbitration with the authorized arbiter Atty. Baka Sakali. That on October 8, 2002, in the office of Atty. Sakali, the plaintiffs again presented their side, now, with proof of their hospital end check-up expenses for their alleged physical and psychological injuries and with its

financial and bank statements showing a gradual decrease in their income and savings, respectively. The defendant, as represented again by Mr. Ice King, proposed to settle their claims at P400,000, payable in 4 months at P100,000 per month. The plaintiffs agreed with the defendants proposal and both parties signed their agreement. But, after two months, there was no payment made by Culligan Water, Inc. saying that the said claim was not yet approved by their Board of Directors.

(f) ADMISSIONS Pursuant to the provisions of the Civil Code ______, it is hereby requested and demanded by The Plaintiffs, Mr. & Mrs. Mustapha, that Defendant, Culligan Water, Inc., to respond separately and under oath the following request for admissions contained herein within 30 days of service: REQUESTS FOR ADMISSION TRUTH OF FACTS Admit that the following facts are true: 1. Admit that you are the supplier of potable water for the plaintiffs salon and another in their family home since ____. 2. Admit that the plaintiffs being regular customers had a running account with you. Moreover, your delivery personnel would regularly deliver 2 jugs of water to their home and would pick up the empty jugs.

3. Admit that the dead fly that was seen by the plaintiffs inside the bottle was caused by your negligence in failing to check whether there are contaminants in the processing of water. 4. Admit that you owed the plaintiff a duty of care as it had been long established that the manufacturer of a consumable good owes a duty of care to the ultimate consumer of that good. 5. Admit that you are responsible for the damages suffered by the Plaintiffs for failure to comply with the standard of care required upon you particularly in the screening and supervision of your employees.

6. Admit that you failed to cooperate with the Plaintiffs for a possible negotiation before this action in court as evidenced by the demand letter sent by the plaintiffs and several documents proving negotiation with the Legal Aid Unit of the University of San Carlos and the arbitration before Atty. Baka Sakali.

Dated this ___ of ____ ATTY. FIEL SHOOK BAKSH