In re Forum Pacific, Inc.

August 11, 2008 SEC-CFD ORDER NO. 094-08 IN THE MATTER OF FORUM PACIFIC, INC. VIOLATION OF SRC RULES 17.1 (1) (A) (i) AND 17.1 (1) (A) (ii) ORDER OF REVOCATION The records on file with this Commission show that: 1. In its Order dated May 7, 2007, the Commission suspended the registration of securities of Forum Pacific, Inc. for a period of sixty (60) days upon receipt thereof or upon payment of the assessed monetary penalty, whichever comes first for the company's failure to timely file its 2005 Annual Report (SEC Form 17-A) in violation of SRC Rules 17.1 (1) (A) (i), its 1st and 2nd Quarterly Reports for 2006 in violation of SRC Rule 17.1 (1)(A)(ii) as well as for failing to comply with the Order of the Commission dated May 17, 2006. 2. The company received said Suspension Order on May 9, 2007, hence, it had until July 9, 2007 within which to comply therewith. Despite the hearing for revocation on September 11, 2007, where the company was duly represented, the company failed to comply with said Suspension Order when it paid the monetary penalty assessed against it for said violations only on October 18, 2007. TSacID 3. Furthermore, while the company was still suspended it committed subsequent violations when it failed to timely file its 2006 Annual Report (SEC Form 17-A) and its 1st Quarter Report for 2007, in violation of SRC Rules 17.1 (1) (A) (i) and (ii), respectively. 4. On October 19 and November 6, 2007 FORUM PACIFIC, INC. requested the Commission that it be allowed to pay a monetary fine in lieu of revocation of the registration of its securities for the commission of the following subsequent violations: VIOLATION RULES VIOLATED PENALTY COMMITTED Late Filing of 2006 Annual SRC Rule 17.1 (1) (A) (i) Suspension Report (SEC Form 17-A) - 4th Offense Late Filing of 2007 1st Qtr. SRC Rule 17.1 (1) (A) (ii) Suspension Report (SEC Form 17-Q) - 6th Offense In addition, the company further requested that the assessed monetary penalty be reduced in view of its continued financial losses. 5. In its meeting on January 24, 2008, the Commission En Banc resolved as follows: "SEC RES. NO. 30, s. of 2008 RESOLVED, To DENY the REQUEST for RECONSIDERATION of FORUM PACIFIC, INC. to be allowed to pay a monetary fine in lieu of the revocation of the registration of securities. RESOLVED FURTHER, to COLLECT penalties due from the company and proceed with the revocation of the registration of its securities." 6. In compliance with the Commission En Banc's first directive, the company paid the penalty of One Million Two Hundred Thirty Four Thousand Pesos (P1,234,000.00) on March 14, 2008 under Official Receipt No. 5493582. IcTaAH 7. On March 27, 2008, the Commission En Banc REVOKED the company's registration of securities/permit to sell securities. 8. On May 5, 2008, the company filed a Petition to Lift the Commission's Order of Revocation of the registration of its securities and Permit to Sell Securities citing its compliance with the Commission's directives to pay the assessed penalties in addition to said revocation and the fact that it has no pending case for violation of the provisions of the Securities Regulation Code and its Implementing Rules and Regulations. 9. On July 31, 2008, the Commission En Banc resolved to Lift and Set Aside SEC-CFD Order No. 034, Series of 2008 revoking the registration of securities of Forum Pacific, Inc. In view thereof, the revocation of the company's registration of securities and Permit to Sell Securities is hereby LIFTED. By this Order, the company is warned that, henceforth it shall endeavor to take such measures as will ensure faithful compliance with the requirements of the said Rule. Let a copy of this Order be transmitted to the Philippine Stock Exchange and posted in the Commission's official website for the information and guidance of the public. SO ORDERED. EDSA, Mandaluyong, August 11, 2008. CaHAcT (SGD.) JUSTINA F. CALLANGAN Director