1. Digital Fault Recorders CORP 3386 By Dhevlen Bisetty 16 February 2016

2. Eskom`s Principle Controlled Insurance Program indemnifies / insures both Eskom, its Contractors and Sub-Contractors for work performed on an Eskom site and for all declared projects. In terms of the Supply Contract, provided that the contract includes both Supply and Installation, the Eskom PCI policy known as the Contractor`s All Risk Insurance Policy will be applicable. The indemnity limit – R 500 000 000.00 (Five Hundred Million Rand) Deductible – R 500 000.00 (Five Hundred Thousand Rand NO Installation = Contractor / Supplier carries the Risk 09 July 20162

3. Delivery at Site causing Damage to Eskom Property Generation : R 25 Million Transmission : R 7.5 Million Distribution : R 2 Million All Other Eskom Sites : R 2 Million 09 July 20163

4. Marine / Transit Insurance Equipment transported from the Contractor / Supplier`s OVERSEAS Factory directly to the final Eskom destination, will be covered by the Eskom Marine Insurance Policy. Deductible payable by Supplier in the event of a loss = R 100 000.00 If equipment is transported from overseas to Supplier`s local premises for further manufacturing and or fabrication – insurance will be then taken out by the Supplier. 4

5. Design / Workmanship Defective Design (the professional team to secure Professional Indemnity Insurance) – refer paper for details Defective workmanship and materials related to off-site manufacture (the supplier’s/contractor’s to secure Product’s Liability Insurance) 5

6. No Cover: Defective Design Plan and Specification No Cover: Defective/Faulty Workmanship No Cover: Defective/Faulty Materials 6

7. Thank you 7