<p>IT &nbsp;IS &nbsp;HEREBY &nbsp;UNDERSTOOD AND AGREED THAT in consideration of the payment by the insured to the Company of an additional premium, it is hereby agreed that the Insurance, as herein defiled subject to the special conditions hereinafter contained extend to include loss or damage caused by explosion, aircraft, vehicle and smoke.</p>

<p>PROVISION APPLICABLE TO EXPLOSION</p>

<p>Loss of or damage to the property insured directly caused by explosion, but excluding loss of or damage to boilers, economizers, pipes, turbines, engine or other vessels, machinery, or apparatus in which pressure is used or their contents, resulting from their explosion, and rotating parts of machinery, including the machinery itself, caused by centrifugal force.</p>

<p>The following are not explosions within the intent or meaning of this endorsement:</p>

<p>a) &nbsp; Concussion unless caused by explosion,<br />
b) &nbsp; Electrical arching<br />
c) &nbsp; Water hammer,<br />
d) &nbsp; Rupture or bursting of water pipes</p>

<p>Provided always that all conditions of the Policy (except insofar as Condition No. 8(h) is hereby expressly varied) shall apply as if they had been incorporated herein and for the purpose hereof any loss or damage by explosion as aforesaid shall be deemed to be loss or damage within the meaning of this Policy.</p>

<p>SPECIAL CONDITIONS</p>

<p>1. &nbsp; The Company shall not be liable for loss or damage occasioned by or through or in consequence directly or indirectly, of any act of any person acting on behalf of, or in connection with any organization with activities directed towards the overthrow by force of the Government &quot;de Jure&quot; or &quot;de facto&quot; or to the influencing of it by terrorism or violence.</p>

<p>In any action, suit or other proceeding, where the Company alleges that by reason of the provisions of this Condition any loss or damage is not covered by this insurance, the burden of proving that such loss or damage is covered shall be upon the Insured.</p>

<p>2. &nbsp; If there shall be any other insurance on the property insured under this Policy, the Company shall be liable only pro-rata for any loss or damage with such other insurance extended to cover loss or damage by explosion.</p>

<p>3. &nbsp; The Company shall not be liable for loss or damage which at the time of the happening of such loss or damage is insured by or would, but for the existence of this insurance, be insured by any other existing policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this insurance not been effected.</p>

<p>PROVISIONS APPLICABLE TO AIRCRAFT &amp; VEHICLE</p>

<p>The term vehicle as used herein means vehicles running on land or tracks but not aircraft. Loss by aircraft or by &nbsp;vehicles shall include only direct loss resulting from actual physical contact of an aircraft or a vehicle with the property covered hereunder or with the building containing the property covered hereunder, except that loss by aircraft include direct loss by objects failing therefrom. &nbsp;The Company shall not be liable, however, for loss:</p>

<p>a) &nbsp; By any vehicle owned or operated by the insured or by any tenant of the described premises;</p>

<p>b) &nbsp; By any vehicle to fences, driveways, walks or lawns;</p>

<p>c) &nbsp; To any aircraft or vehicle including contents thereof other than stocks of aircraft or vehicles in process of manufacture or for sale.</p>

<p>PROVISION APPLICABLE TO SMOKE</p>

<p>The term Smoke as used in this endorsement means only smoke due to a sudden, unusual and faulty operation of any heating or cooking unit, only when such unit is connected to a chimney by a smoke pipe or by a vent, and while in or on the premises described in this policy, excluding however, smoke from fire places or industrial apparatus.</p>

<p>DEDUCTIBLE APPLICABLE TO EXPLOSION, AIRCRAFT, VEHICLE AND SMOKE</p>

<p>It is understood and agreed that the insured shall bear the first 1% of the sum insured on the affected items/s under this endorsement but not less than P1,000.00 nor more than P500,000.00 on any material damage loss from any of the above mentioned perils.</p>

<p>GENERAL CONDITIONS APPLICABLE TO EXPLOSION, AIRCRAFT, VEHICLE AND SMOKE</p>

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

<p>2. &nbsp; The Company shall not be liable for loss or damage occasioned by or through or in consequence of the action or order of any government or public authority.</p>

<p>3. &nbsp; In the event of this endorsement being surrendered by the Insured for cancellation, the Company shall retain a premium in accordance with the following scale for the time this endorsement has been in force:</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 1 month ................. &nbsp; 20% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 2 month ................. &nbsp; 30% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 3 month ................. &nbsp; 40% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 4 month ................. &nbsp; 50% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 5 month ................. &nbsp; 60% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 6 month ................. &nbsp; 70% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 7 month ................. &nbsp; 80% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;For 8 month ................. &nbsp; 90% of the annual premium<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;In excess of 8 months ... &nbsp;100% of the annual premium</p>

<p>4. Provided always that all the conditions on the policy to which this endorsement is attached shall apply, except as they may be hereby expressly varied, and that any reference therein to loss or damage by Fire shall be deemed to apply also to loss or damage directly caused by the above named perils.</p>
