<p><br />
IT IS HEREBY UNDERSTOOD AND AGREED THAT in consideration of the payment by the Insured to the Company of an additional premium, it is hereby agreed that this Insurance as herein defined subject to the Special Conditions hereinafter contained extends to include loss or damage directly caused by storm.</p>

<p>DEFINITION:<br />
===========</p>

<p>The term Typhoon/Storm as used in this endorsement shall be understood to mean a Typhoon or Storm as recorded by the Weather Bureau.</p>

<p>SPECIAL CONDITIONS:<br />
===================</p>

<p>1. It is a condition of this insurance that the Insured undertakes to exercise all ordinary and reasonable precautions for the safety of the property.</p>

<p>2. Unless liability is specifically assumed by amendment to this endorsement, the Company shall not be liable for loss or damage to buildings in the course of construction or reconstruction (or their contents) unless entirely enclosed and under roof with all outside doors and windows permanently in place, or property contained in any portion of any building described in this policy not &nbsp; &nbsp; &nbsp; completely enclosed and roofed.</p>

<p>3. The Company shall not be liable for:</p>

<p>&nbsp; &nbsp;A. Loss or damage caused directly or indirectly by flood, tidal wave, high water or overflow whether driven by wind or not. The Company shall not beliable for loss and/or damage caused directly or indirectly by backing up orsewers, drains, canals, creeks, rivers and/or storm drainage system.</p>

<p>&nbsp; &nbsp;B. Loss or damage caused directly or indirectly by landslide, subsidence, cloudburst or explosion, whether incidental to Typhoon or by theft whether occurring during or after a Typhoon or by the neglect of the Insured to use all reasonable means to save and preserve the property during and after a &nbsp; &nbsp; &nbsp; Typhoon.</p>

<p>&nbsp; &nbsp;C. Loss or damage caused by rain whether driven by wind or not, unless the building insured or containing the property insured shall first sustain an actual damage to roof or walls by the direct force of a Typhoon and shall then be liable for such loss or damage to the building or insured property therein as may be caused by rain entering the building through openings in the roof or walls made by direct action of such Typhoon.</p>

<p>&nbsp; &nbsp;D. Water damage as a result of doors, windows, transoms or roof lights being left open, notwithstanding the existence or presence &nbsp;of Typhoon.<br />
&nbsp;<br />
&nbsp; &nbsp;E. Loss or damage to any building, or the contents thereof, if on the happening of such loss or damage the building was already in a damaged, defective, fallen or displaced condition as regards foundations, walls, ceiling, roofs, roof gutters and flushing, roof lights, air vents, doors, windows and transoms.&nbsp;</p>

<p>&nbsp; &nbsp;F. Loss or damage occasioned by or through or in consequence of the Action or order of any government or public authority.</p>

<p>4. In the event of this Policy being surrendered by the Insured for cancellation, the Company shall retain 100% of the premium notwithstanding what is stated in Condition Nos. 11 and 12 of this Policy to the contrary.</p>

<p>5. IT IS UNDERSTOOD AND AGREED THAT the Insured shall bear that portion of the loss or damaged caused by typhoon to each affected item of insured property equivalent to 2% of its actual cash value at the time of loss, for each claim or series of claims arising out of any one typhoon occurrence the duration and extent of which shall be limited to 168 consecutive hours. For the purpose of this clause, the following shall be considered as separate items of insured property, regardless of what is indicate in the policy schedule:<br />
&nbsp;<br />
&nbsp; &nbsp;a. Each building, including machinery, equipment and fixtures normal to its operation;<br />
&nbsp; &nbsp;b. All machinery and equipment contained in each building;<br />
&nbsp; &nbsp;c. All stocks in trade (raw materials, work-in-process, supplies and finished goods), contained in each building;<br />
&nbsp; &nbsp;d. All other contents contained in each building.</p>

<p>&nbsp; &nbsp;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>&nbsp; &nbsp;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>6. Provided always that all the conditions of the policy shall apply except as they may be hereby expressly varied.</p>

<p>EXCEPT AS VARIED BY THIS ENDORSEMENT, all other terms and conditions remain the same.&nbsp;</p>
