<p>In consideration of the payment by the Insured to the Company of an additional premium the Company agrees, notwithstanding what is stated in the printed conditions of this Policy to the contrary, that this insurance covers loss or damage (including loss or damage by fire) to any of the property insured by this Policy occasioned by or through or in consequence of Earthquake.</p><p>PROVIDED always that all the conditions of this Policy shall apply (except in so far as they may be hereby expressly varied) and that any reference therein to loss or damage by fire should be deemed to apply also to loss or &nbsp;damage occasioned by or through or in consequence of Earthquake.</p><p>1. &nbsp;CONSEQUENTIAL LOSS</p><p>No consequential loss or damage of any kind or description nor any loss or damage caused by confiscation or willful destruction by Government or any Municipal or Local Authority is covered.</p><p>2. &nbsp;EXCESS CLAUSE</p><p>It is understood and agreed that the Insured shall bear that portion of the loss or damage caused by Earthquake to each affected item of insured property &nbsp;equivalent to two percent (2%) of its actual cash value at the time of loss, for each claim or series of claims arising out of one occurrence. For the purpose of this clause, the following shall be considered as separate items of insured property, regardless of what is indicated in the policy schedule:</p><p>&nbsp; 1. &nbsp;Each building, including machinery, equipment and fixtures normal to its operation;<br />&nbsp; 2. &nbsp;All machinery and equipment contained in each building;<br />&nbsp; 3. &nbsp;All stocks in trade (raw materials, work-in-process, supplies and finished goods), contained in each building;&nbsp;<br />&nbsp; 4. &nbsp;All other contents contained in each building.</p><p>All losses caused by earthquake or series of earthquakes (whether continuous or sporadic and whether or not due to same seismic conditions) during each period of 48 consecutive hours commencing from the first tremor shall be considered as arising out of one occurrence.</p><p>In case of other insurances on the same item of property, this clause shall apply only once regardless of the number of policies or insurers.</p><p>It is further understood and agreed that in the computation of the claims payable, Condition No. 20 (Average Clause) of this Policy shall apply after the application of the deductible provided herein.</p><p>IT IS FURTHER UNDERSTOOD AND AGREED THAT notwithstanding what is stated in Condition Nos. 11 and 12 of this Policy to the contrary if this policy is issued for a period of less than one year or if this policy is surrendered by the Insured for cancellation, premium shall be charged or retained in accordance with the following scale of percentages of the annual rate:<br />&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;From inception up to 3 months.................. &nbsp; &nbsp;50% &nbsp; &nbsp;<br />&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; In excess of 3 months up to 6 months .......... &nbsp; &nbsp;75%<br />&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; After six [6] months .......................... &nbsp; 100%&nbsp;</p>