SECTION 1. Waiver Clause. The parties herein acknowledge that during the negotiation which resulted in the AGREEMENT, each had the unlimited right and opportunity to make demands and proposals with respect to any subject or matter not removed by law from the area of collective bargaining, and that the understanding and agreement arrived at by the parties after the exercise of that right and opportunity are set forth in this AGREEMENT.

SECTION 2. No Strike, No Lock Out Clause. Both parties hereto recognize and adhere to the principle that any dispute between them can be threshed out through the grievance machinery as described above under Article XV, and settled peacefully through friendly negotiation and consultation. In view thereof, the Union agrees that there shall not be any strike and the Management correspondingly agrees that there shall not be any lock out during the effectivity of this AGREEMENT, in relation to the provisions of the Labor Code of the Philippines.