Risk Details: Korean Package Insurance

Type	Section Ⅰ: Property All Risk & Machinery Breakdown Section Ⅱ: Machinery Breakdown Section Ⅲ:Business Interruption & Machinery Loss of Profit
Insured	Section Ⅰ(PAR) and Section Ⅱ(MB) 1. Gyeonggi Green Energy Co., Ltd. as Owner 2. Equity-holders: Korea Hydro and Nuclear Power Corp. / Samchully Co., Ltd. / Posco Energy Co., Ltd. / Other Financial Investors: to be determined. 3. Finance Parties 4. Contractors: Posco Energy Co., Ltd. 5. Any other company, consultants, firm, person or party (including contractors and/or sub/contractors and/or manufacturers and/or suppliers) in connection with the Project. Each for their respective rights and interests Section Ⅲ (BI & MLOP) 1. Gyeonggi Green Energy Co., Ltd. as Owner 2. Equity-holders: Korea Hydro and Nuclear Power Corp. / Samchully Co., Ltd. / Posco Energy Co., Ltd. / Other Financial Investors: to be determined. 3. Finance Parties
Reinsured	To be determined.
Insurance Period	From 00:01 June 28, 2017 to 00:01 June 28, 2018
Situation	Gumuncheon-ri, Hyangnam-eup, Hwaseong-si, Gyeonggi-do, Republic of Korea
Total Sum Insured (100%)	Section Ⅰ(PAR) & Ⅱ(MB) combined KRW295,698,454,874 Building: KRW2,976,798,063 Structure: KRW24,070,703,065 Pipeline: KRW1,117,200,000 Machinery: KRW267,533,753,746 Section Ⅲ (BI & MLOP) KRW22,266,500,000 (Indemnity Period: 6 months each Unit)
Deductible (100%) and Time Excess	Section Ⅰ(PAR) & Ⅱ(MB) KRW300,000,000 any one occurrence in respect of mechanical and electrical breakdown KRW100,000,000 any one occurrence in respect of fire, explosion and Acts of God KRW50,000,000 any one occurrence in respect of all others Section Ⅲ (BI & MLOP) 30 days each and every loss
Terms & Conditions	Applicable to all section Political risks Exclusion Millennium Exclusion Clause IT Clarification Terrorism Exclusion Waiver of Subrogation against insureds Section Ⅰ(PAR) & Ⅱ(MB) Removal of Debris (Sub-limit: 20% of Loss a.o.o., max. KRW10,000,000,000. a.o.o.) Temporary removal Professional Fees (Sub-limit: KRW1,000,000,000 a.o.o.) Strike, Riot and Civil Commotion (Sub-limit: KRW500,000,000 a.o.o.) Authorities Exclusion Temporary Removal: Applied within KRW1,000,000,000.- a.o.o. Minor works Clause: Applied within KRW1,000,000,000.- any one contract Capital Additions: Applied within KRW1,000,000,000.- any one addition Fire Fighting Expenses: Applied within KRW1,000,000,000.- a.o.o. Expediting Expenses: Applied within KRW1,000,000,000.- a.o.o. Sue and Labour Clause: Applied within KRW1,000,000,000.- a.o.o. Public Authorities Clause: Applied within KRW1,000,000,000.- a.o.o. 72 hours clause Cover for subsidence, settlement, landslide, shrinkage or expansion or erosion of soil 80% Co-insurance Clause Automatic Reinstatement of sum insured/limits without additional premium Replacement cost Value and Average Clause Certified Valuation: Not applied Premium Adjustment for inventory/stock: Not applied Limit of Liability: Up to T.S.I. Section Ⅲ (BI & MLOP) Accumulated Stocks: Not Applied Payment on account: Applied Off Premises Power: Applied (Only FLEXA / Limit – KRW3,000,000,000 in excess of 7 days) Off-takers’ Extension (Applicable to linked KEPCO substation only: FLEXA / Limit – KRW3,000,000,000 in excess of 7 days) Fuel Supplier’s Extension: FLEXA / Limit - KRW3,000,000,000 in excess of 7 days) Increased cost of working Lenders’ Clauses including but not limited to the followings (All Sections) LEG Multiple Insureds Clause without Paragraph 7 Primary and Non-contributory by other insurances Waiver of subrogation against named insureds Non-cancellation by Underwriters except 30 days for non-premium payment only Loss Payee Clause
Reinsurance Conditions	Claims Cooperation Clause
Choice of Law & Jurisdiction	This insurance shall be governed by the laws of Republic of Korea and the courts of shall have jurisdiction in any dispute arising hereunder.
Absolute Net Rate
Lead Line

Lenders’ Clause applicable to all sections

Changes Clause

No changes whatsoever (including reductions in limits or coverage or increases in Deductibles, Exclusions or exceptions) shall be made under the Policy without the prior consent of the security agent but such consent shall not be unreasonably withheld.

It is further agreed that notwithstanding anything contained herein, the inclusion of this Clause shall not affect any existing provisions of this policy permitting the underwriters to review or change the terms and conditions of this policy.

Cancellation, Reduction, Coverage, etc.

The Insurer shall advise the security agent:

Except for non-payment of premium the Insurer shall give

at least 30 days before (i) any cancellation is to take effect if any Insurer cancels or gives notice of such cancellation of all or any cover under the Policy for any reasons (ii) any alteration to, reduction in limits or coverage, any increase in Deductibles, Exclusions or exceptions, termination prior to the expiry date stated in the schedule,

Promptly of any default in the payment of any premium for any insurance;

Of any act omission or of any event which the Insurer has knowledge and which might invalidate or render unenforceable in whole or in part any of the Policy.

LEG Multiple Insureds Clause without paragraph 7

It is noted and agreed that if the Insured described in the schedule comprises more than one insured party each operating as a separate and distinct entity then (save as described in this Multiple Insureds Clause) cover hereunder shall apply in the same manner and to the same extent as if individual policies had been issued to each such insured party provided that the total liability of the Insurers to all of the insured parties collectively shall not exceed the sums insured and limits of	indemnity including any inner limits set by memorandum or endorsement stated in the policy.

It is understood and agreed that any payment or payments by Insurers to any one or more such insured parties shall reduce to the extent of that payment Insurers’ liability to all such parties arising from any one event giving rise to a claim under this policy and (if applicable) in the aggregate.

It is further understood that the Insured parties will at all times preserve the various contractual rights and agreements entered into by the insured parties and the contractual remedies of such parties in the event of loss or damage.

It is further understood and agreed that Insurers shall be entitled to avoid liability to or (as may be appropriate) claim damages from any of the Insured parties in circumstances of fraud, material misrepresentation, material non-disclosure or breach of any warranty or condition of this policy each referred to in this clause as a Vitiating Act.

It is however agreed that (save as described in this Multiple Insureds Clause) a Vitiating Act committed by one insured party shall not prejudice the right to indemnity of any other insured party who has an insurable interest and who has not committed a Vitiating Act.

Insurers hereby agree to waive all rights of subrogation which they may have or acquire against any insured party except where the rights of subrogation or recourse are required in consequence of or otherwise following a Vitiating Act in which circumstances Insurers may enforce such rights notwithstanding the continuing or former status of the vitiating party as an insured.

Notices and Communication Clause

All notices or other communications under or in connection with the Policy will be by fax or otherwise in writing. Any such notice will be deemed to be given as follows:

if in writing, when delivered,

if by fax, when transmitted but only if, immediately after the transmission, the sender’s  fax machine records the correct answerback.

or

If by emails, when transmitted without delivery failure.

The address and fax number of the Collateral Agent for all notices under or in connection with the Policy are those notified from time to time by the Collateral Agent for this purpose. The initial address and fax of the Collateral Agent is as follows:

The Security:

Address:

Telephone Number:

Fax Number:

Email Address:

Attention:

Primary & Non-contribution

This insurance shall be primary without right of contribution from other insurance other than 50/50 or equivalent clause application that may be carried by the Insured.

Loss Payee Clause

By an assignment entitled “Insurance Assignment Agreement” dated [	] entered into between [	] (the “Borrower”) and the financial institutions named therein as secured parties (the “Assignees”), and [                              ] as Security Agent (as the same may be amended, assigned, novated, restated or supplemented), the Borrower has assigned to the Assignees all of its rights, benefits, interests and claims under and in respect of this insurance and its proceeds (including but not limited to all claims relating to it, returns of premiums in respect of it, and any other monies payable).

A (After a Default): If the Security Agent has notified the insurers that a Default has occurred, all claims and recoveries hereunder shall be paid directly to such bank account as designated by the Security Agent in such notice.

B (Amounts less than or equal to KRW 5 billion (KRW5,000,000,000): Unless the Security Agent has notified the insurer that a Default has occurred, then where the total sum recoverable in respect of any one occurrence is less than or equal to or is expected to be less than or equal to Five Billion KRW (KRW5,000,000,000) (or its equivalent in other currencies), that any claim or recovery shall be paid directly to the following account of the Borrower:

Account Number:

Account Bank:

[except and provided that the Security Agent has not notified the insurer that a Default has occurred, where the insurers intend to make payment direct to the third parties in respect of whom the relevant claim was made, when such payment will be so made: To be used only for insurances in respect of third party liabilities. ]

C (Amounts of more than KRW Five Billion (KRW5,000,000,000): Where the total sum recoverable in respect of any one occurrence exceeds or is expected to exceed Five Billion KRW (KRW5,000,000,000) (or its equivalent in other currencies) that claim and recovery shall be paid directly to the relevant bank account referred to in B. above.

[except, and provided that the Security Agent has not notified insurer that a Default has occurred, where the insurers intend to make payment direct to the third parties in respect of whom the relevant claim was made, when such payment will be so made: To be used only for insurances in respect of third party liabilities.].]

In this clause:

“Default” refers to any Event of Default or Potential Event of Default;

“Event of Default” refers to any event set out in [	] of the [	] dated on [	] or about the date of the Insurance Assignment Agreement entered into between the Borrower, the Security Agent and the financial institutions named therein; and

“Potential Event of Default” means any event or circumstance which, with the giving of notice, the making of any determination by the Majority Lenders (where the factual circumstances permit the making of such determination) or the expiry of any grace period (or any combination of the above), and on the basis that it is still continuing, would become an Event of Default.

Others to be requested