<p>In consideration of the payment of an additional premium (amounting to 50%) of the premium produced by applying the percentage(s) specified to the annual premium on the other noted items) the sum insured by each of the said items all during each period of insurance, be increased by that proportion of the specific percentage which the number of months since the commencement of such period shall bear to the whole of such period.</p>

<p style="text-align:center">ITEM NO. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; PERCENTAGE</p>

<p style="text-align:center">_________________________________ &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;_________________________________</p>

<p style="text-align:center">_________________________________ &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;_________________________________</p>

<p style="text-align:center">_________________________________ &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;_________________________________</p>

<p>Unless specifically agreed to the contrary the provisions of this memorandum shall only apply to the sums insured in force at the commencement of the period of insurance.</p>

<ul>
	<li>At each renewal date, the Insured shall notify the Insurer:
	<ol start="1" style="list-style-type: lower-alpha;">
		<li>The sums to be insured at the commencement of the forthcoming period of&nbsp;insurance.</li>
		<li>The percentage increase required for the forthcoming period of insurance. And in default thereof the provisions of this memorandum shall cease to apply.</li>
	</ol>
	</li>
</ul>

<p>It is understood that in the event of a total loss or damage occurring within the first six (6) months of the policy becomes in force the company shall retain a portion of the additional premium in accordance with the following scale:</p>

<ul style="list-style-type: circle;">
	<li>Not exceeding
	<ul style="list-style-type: square;">
		<li>1 month - 25.0% of the additional premium</li>
		<li>2 months - 37.5% of the additional premium</li>
		<li>3 months - 50.0% of the additional premium</li>
		<li>4 months - 62.5% of the additional premium</li>
		<li>6 months - 75.0% of the additional premium</li>
	</ul>
	</li>
	<li>Exceeding
	<ul style="list-style-type: square;">
		<li>6 months - annual additional premium</li>
	</ul>
	</li>
</ul>

<p>It is further understood, that in the application of the Escalation Clause, the provisions of Section 50, 215 and 226 of the Insurance Code must in all cases be observed.</p>

<p>All the conditions of the policy except insofar as they may be hereby expressly varied shall apply as if they had been incorporated herein.</p>
