<p>A. &nbsp;EXCEPTED CAUSES</p>

<p>UNLESS OTHERWISE EXPRESSLY AGREED this insurance does not cover any destruction or damage occasioned by or through or in consequence of, directly or indirectly, any of the following:</p>

<p>(i) &nbsp; &nbsp; Pollution, whatever the cause.</p>

<p>(ii) &nbsp; (a) &nbsp;War, invasion, act of foreign enemy, hostilities or warlike Operations<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; (whether war be declared or not), civil war.<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Mutiny, military or popular uprising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes, which determine the proclamation, or maintenance of martial law or state of siege.<br />
&nbsp; &nbsp; &nbsp; &nbsp;(c) &nbsp;Acts of terrorism committed by a person or persons acting on behalf of or in connection with any organization.</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp;For the purpose of this Condition, &quot;terrorism&quot; means the use of violence for political ends and includes any use of violence for the purpose of putting the public or any section of the public in fear.&nbsp;</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp;In any action, suit, or other proceedings where the Insurer alleges that by reason of the provision 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?s.</p>

<p>(iii) &nbsp;Confiscation, requisition, sequestration, nationalization, or similar act.</p>

<p>(iv) &nbsp; Damage directly or indirectly cause by or arising from or in consequence of or contributed to by:</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp;(a) &nbsp;nuclear weapons material<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; ionizing radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. Solely for the purpose of this Exclusion, combustion shall include any self sustaining process of nuclear fission.</p>

<p>(v) &nbsp; &nbsp;The deliberate and sustained operation of the plant machinery, pipeline, or other equipment of the insured in excess of the design specifications on the specific and intentional instructions of the Insured.</p>

<p>(vi) &nbsp; Withdrawal or go-slow of labor or cessation of work.</p>

<p>(vii) &nbsp;Unexplained disappearance, shortages revealed only at any stocktaking or due toclerical or accounting error.</p>

<p>(viii) Any fraudulence scheme, trick, device, or false pretense practiced upon the Insured, or on any person or persons having care of the property at such time.</p>

<p>(ix) &nbsp; Infidelity or dishonesty on the part of the Insured or any of their employees whether acting alone or in collusion with others.</p>

<p>(x) &nbsp; &nbsp;Theft except from a building and then only if there is violent or forcible entry to or exit from such building.</p>

<p>(xi) &nbsp; Exposure to weather conditions, sand, or dust when property is in the open and not contained in fully enclosed building.</p>

<p>(xii) &nbsp;Delay or lose of market or any other consequential or indirect loss or<br />
interruption of business except as provided for in the policy.</p>

<p>(xiii) Interference by employees or others with customary operations, or any<br />
consequential or indirect loss.<br />
(xiv) &nbsp;Physical loss, destruction, or damage directly or indirectly caused by or arising out of:</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp;(a) &nbsp;mechanical, hydraulic, electrical, or electronic breakdown, failure,<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; malfunction or derangement of any machine or electrical and/or&nbsp;<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; electronic device and/or damage to goods maintained in a temperature &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; controlled environment were such loss, destruction, or damage arises &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; directly out of mechanical, hydraulic, electrical, or electronic &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; breakdown to the temperature controlling equipment;</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; data processing or media failure or breakdown or malfunction of the<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; processing system including operator error or omission; Provided that &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;this exclusion (xiv) (a) and &nbsp; shall not apply to loss, destruction, &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; or damage to the machine, device, or processing system immediately &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; affected occasioned by any peril (not otherwise excluded) resulting &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;from such breakdown, failure, malfunction, or derangement nor the &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;subsequent loss, destruction, or damaged caused by any peril (not &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;otherwise excluded) to other property insured by this policy, such &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; property being external to the machine, device, or processing system &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; in which such loss, destruction, or damage occurs.</p>

<p>(xv) &nbsp; Explosion or collapse of any pressure vessel except explosion of the furnace or gas passage or loss or damage to surrounding property as a result of any explosion or collapse.</p>

<p>(xvi) &nbsp;Wear and tear, inherent vice, latent defect, gradual deterioration, rusting, corrosion, metal fatigue, oxidation, auto oxidation, dampness, change in<br />
temperature or humidity, action of air or light or natural heating or drying.</p>

<p>(xvii) Fermentation, evaporation, loss of weight, contaminating or change in quality (except where such is directly caused by an occurrence which is not otherwise excluded).</p>

<p>(xviii)Short-circuiting, self-heating, leakage, or surge of electrical current,<br />
overloading or excessive power from whatever cause, unless fire ensues there&nbsp;<br />
from, and liability shall be limited to actual damage by the ensuing fire.</p>

<p>(xix) &nbsp;The cost of replacing, repairing, or rectifying defective parts, materials,<br />
workmanship, design or defect or omission in design or specification or latent defect.</p>

<p>(xx) &nbsp; Overflowing of the contents of any storage tank, vessel or any other container which is not due to accident or the flaring of the products.</p>

<p>(xxi) &nbsp;Clean up costs other than as provided under the Removal Debris Extension.</p>

<p>(xxii) Erosion, settling, or cracking resulting from earth movements, shrinkage, or expansion of buildings or foundation unless such loss or damage is caused by&nbsp;<br />
fire, lightning, explosion, storm, tempest, flood, rainwater, windstorm, riot&nbsp;<br />
and strike, malicious damage, aircraft, impact by vehicles, vessel, earthquake,<br />
tidal wave, subsidence, bursting of pipes, water tanks, or apparatus.</p>

<p>(xxiii) inherent or later defect, slowly developing deformation or distortion of any building, plant or machinery;</p>

<p>(xxiv) &nbsp;permanent or temporary dispossession of any premises resulting from the<br />
unauthorized possession of such premises by any person;</p>

<p>(xxv) &nbsp; hydraulic tests, experiments or overload or similar tests requiring from the imposition of abnormal conditions;</p>

<p>(xxvi) &nbsp;fault, defect, error or omission in design, plan or specification;</p>

<p>(xxvii) (a) &nbsp;errors in design, poor workmanship or use of faulty materials in the<br />
development, processing or manufacture of the products of the Insured;</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;manufacturing or processing operations which result in damage to stock or materials being processed, manufactured or otherwise being worked upon;<br />
(xxviii)(a) &nbsp;solidification of molten materials;<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;inadvertent escape of molten materials;</p>

<p>(xxix) &nbsp;any legal liability of whatsoever nature other than for property damage as<br />
provided for under the description of Property Insured.</p>

<p>B. &nbsp;EXCLUDED PROPERTY</p>

<p>UNLESS OTHERWISE EXPRESSLY AGREED this insurance does not cover destruction of or damage to any of the following:</p>

<p>(i) &nbsp; cash, money orders, coins, bullion, promissory notes, checks, stamps, precious stones, jewelry, furs, works of art, antiques, securities, obligations or documents of any kind, books of accounts or other business books or records, computer records or data, manuscripts, drawings or designs, patterns or models, moulds.</p>

<p>(ii) &nbsp;property in course of construction or erection or demolition or undergoing testing or commissioning;</p>

<p>(iii) animals, birds, fish or other living creatures;</p>

<p>(iv) &nbsp;standing timber or growing crops;</p>

<p>(v) &nbsp; land (including topsoil, backfill, drainagework, revetment or culverts), roads, pavements, driveways, runways, railway lines, canals, dams, bridges unless<br />
specifically included in the coverage;</p>

<p>(vi) &nbsp;property underground or offshore;</p>

<p>(vii) goods or property in transit (except those within the premises of the Insured;</p>

<p>(viii)catalysts and consumable materials whilst in process, production, or manufacture;</p>

<p>(ix) &nbsp;property which is, or would be but for the existence of this policy, be insured by a more specific policy;</p>

<p>(x) &nbsp; motor and other mechanically or electrically propelled vehicles and accessories (whilst in or on such vehicles) railway locomotives and rolling stock, watercraft or aircraft and or property contained therein, mobile equipment except those in the premises of the Insured.</p>

<p>(xi) &nbsp;any boiler or other apparatus due to its own explosion or collapse as define<br />
hereinafter. EXPLOSION means the sudden and violent rending or tearing apart of&nbsp;<br />
the permanent structure by force of internal steam or fluid pressure causing&nbsp;<br />
bodily displacement of the structure or any part or parts thereof and accompanied<br />
by the forcible ejection of its contents. COLLAPSE means the sudden and dangerous<br />
distortion of any parts of a boiler or other apparatus by bending or crushing &nbsp; &nbsp;caused by steam or fluid pressure whether attended by rupture or not.</p>

<p>GENERAL CONDITIONS</p>

<p>I. &nbsp;If there be any material misdescription of any of the property hereby insured or of the trade, process or manufacture carried out by the Insured or any misrepresentation as to any fact material to be known for estimating the risk or any omission to state such fact, the Insurers shall not be liable under this Policy.</p>

<p>II. If there is any alteration after the commencement of this insurance whereby the risk of destruction or damage is increase the insurance shall cease to attach in respect of such destruction or damage which is directly or indirectly attributable to such increase in risk, unless the Insured, before the occurrence of any destruction or damage obtains the agreement of the Insurers by endorsement upon the Policy.</p>

<p>III.This Policy shall not be cancelled by or on behalf of the Insurers except in<br />
accordance with and the pursuant to the provisions of Sections 64 and 65 of the<br />
Insurance Code. &nbsp;In the event of such cancellation, the Insurers shall refund the<br />
paid premiums less the earned potion thereof to the Insured, likewise, this Policy<br />
may be cancelled on the short rate basis set forth in the short rate cancellation<br />
table at the request of the Insured. &nbsp;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 or percentages of the annual rate:</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;5 days or less - 6% &nbsp; &nbsp; &nbsp; &nbsp;Up to 4 months - 50%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 10 days - 10% &nbsp; &nbsp; &nbsp; &nbsp;Up to 5 months - 60%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 15 days - 13% &nbsp; &nbsp; &nbsp; &nbsp;Up to 6 months - 70%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 20 days - 17% &nbsp; &nbsp; &nbsp; &nbsp;Up to 7 months - 75%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 1 month - 20% &nbsp; &nbsp; &nbsp; &nbsp;Up to 8 months - 80%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 2 months - 30% &nbsp; &nbsp; &nbsp; Up to 9 months - 85%<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;Up to 3 months - 40% &nbsp; &nbsp; &nbsp; Over 9 months - the annual rate</p>

<p>IV. The Insured shall give notice to the Insurers of any insurance or insurances already effected, or which may be subsequently be effected covering any of the property insured, and if at the time of any destruction or damage happening to any property hereby insured, there be any other subsisting insurance or insurance covering the same property, the insurers shall not be liable to pay or contribute more than their ratable proportion of such loss or damage.</p>

<p>V. &nbsp;On the happening of any destruction or damage the Insured shall forthwith give notice thereof to the Insurers and shall within 60 days after the destruction or damage, or such further time as the Insurers may in writing allow in that behalf, deliver to the Insurers</p>

<p>&nbsp; &nbsp; (a) &nbsp;A claim in writing for the destruction or damage containing as particular an account as may be reasonably practicable of all the several articles or items&nbsp;<br />
or property damage or destroyed, and of the amount of the destruction or damage<br />
thereto respectively, having regard to their value at the time of the &nbsp; &nbsp;destruction or damage, not including profit of any kind.</p>

<p>&nbsp; &nbsp; &nbsp; &nbsp;Particulars of all other insurance, if any.&nbsp;</p>

<p>&nbsp; &nbsp; The Insured shall also, at all times at their own expense, produce, and give to the Insurers all such further particulars, plans, specifications, books, vouchers, invoices, duplicates or copies thereof, documents, proofs and information with respect to the claim and the origin, cause and circumstances under which the destruction or damage occurred and any matter touching the liability or the amount of the liability of the Insurers as may be reasonable required by or on behalf of the Insurers together with a declaration on oath or in other legal form of the truth of the claim and of any matters connected therewith. No claim under this Policy shall be payable unless the terms of this condition have been complied with.<br />
&nbsp;<br />
VI. The Insured shall at all times act with due diligence to prevent, or minimize the extent of any destruction of or damage to the property insured.</p>

<p>VII. On the happening of any destruction or damage to any of the property insured by this Policy the Insurers may</p>

<p>&nbsp; &nbsp; (a) &nbsp;Take possession of or require to be delivered to it any property of the Insured on the premises at the time of the destruction or damage.<br />
&nbsp; &nbsp; &nbsp; &nbsp;Keep possession of any such property and examine, sort, arrange, remove, or otherwise deal with the same<br />
&nbsp; &nbsp; (c) &nbsp;Sell any such property or dispose of the same for account of whom it may<br />
concern.</p>

<p>&nbsp; &nbsp; The power conferred by this Condition shall be exercisable by the Insurers at any time until notice in writing is given by the Insured?s that he makes no claim under the Policy, or if any claim is made, until such claim is finally determined or withdrawn, and the Insurers shall not by any act done in the exercise or purported exercise of their power hereunder, incur any liability to the Insured or diminish the Insured&#39;s right to rely upon any of the conditions of this Policy in answer to any claim. &nbsp;If the Insured or any person on their behalf shall not without valid grounds comply with the requirements of the Insurers or shall hinder or obstruct the Insurers in the exercise of their powers hereunder, all benefits under this Policy shall be forfeited.</p>

<p>&nbsp; &nbsp; The Insured shall not in any case be entitled to abandon any property to the Insurers whether taken possession of by the Insured or not.</p>

<p>VIII.If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof, or if any fraudulent means or devices are used by the Insured or any one acting on their behalf to obtain any benefit under this Policy; or, if the destruction or damage be occasioned by the willful act, or with the connivance of the Insured, all benefit under this Policy shall be forfeited.</p>

<p>IX. &nbsp;The Insurers may at their option reinstate or replace the property damaged or<br />
destroyed, or any part thereof, instead of paying the amount of the destruction&nbsp;<br />
or damage, or may join with other Insurers in so doing, but the Insurers shall&nbsp;<br />
not be bound to reinstate exactly or completely, but only as circumstances permit<br />
and in reasonably sufficient manner, and in no case shall the Insurers be bound to<br />
expend more in reinstatement than it would have cost to reinstate such property as<br />
it was at the time of the occurrence of such destruction or damage, nor morethan<br />
the sum insured by the Insurers thereon.</p>

<p>&nbsp; &nbsp; &nbsp;If the Insurers so elect to reinstate or replace any property the Insured shall, at their own expense, furnish the Insurers with such plans, specifications,<br />
measurements, quantities, and such other particulars as the Insurers may require,<br />
and no acts done, or caused to be done by the Insurers with a view to reinstatement or replacement shall be deemed an election by the Insurers to reinstate or replace.<br />
&nbsp; &nbsp; &nbsp;If in any case the Insurers shall be unable to reinstate or repair the property hereby insured because of any municipal of other regulations in force affecting the alignment of streets, or the construction of buildings, or otherwise, the insurers shall, in every such case, only be liable to pay such sum as would be requisite to reinstate or repair such property if the same could lawfully be reinstated to its former condition.</p>

<p>X. &nbsp; The Insured shall, at the expense of the Insurers, do and concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably &nbsp;required by the Insurers for the purpose of enforcing any rights and remedies,&nbsp;<br />
or of obtaining relief or indemnity from other parties to which the Insurers shall<br />
be or would become entitled or subrogated, upon their paying for or making good any destruction or damage under this Policy, whether such acts and thins shall be or become necessary or required before or after their indemnification by the Insurers.</p>

<p>XI. &nbsp;All differences as to the amount of any loss or damage covered by this Policy shall be referred to the decision of an arbitrator to be appointed by the parties in difference or if they cannot agree upon a single arbitrator to the decision of twoarbitrators, one to be appointed in writing by each of the parties within thirty (30) days after having been required in writing to do so by either of the parties or in case of disagreement between the arbitrators to the decision of an umpire to be appointed in writing by the arbitrators before entering on the reference and an award by the arbitrator or arbitrators or umpire shall be a condition precedent to any right of action against the Company, only in cases of differences as to the amount of liability arising out of this Policy.</p>

<p>XII. In no case whatsoever shall the Insurers be liable for any destruction or damage after the expiration of twelve months from the happening of the destruction or damage unless the claim is the subject of pending action or arbitration.</p>

<p>XIII. Renewal Clause - Unless the Company at least forty-five days in advance of the end of the Policy period mails or delivers to the Assured at the address shown in the Policy notice of its intention not to renew the Policy or to condition its renewal upon reduction of limits or elimination of coverage, the Assured shall be entitled to renew the Policy upon payment of the premium due on the effective date of renewal.</p>

<p>XIV. Changes in Policy - None of the provisions, conditions and terms of this Policy shall be waived or altered except by endorsement signed or initialed by an<br />
authorized official of the Company and issued whenever applicable in accordance&nbsp;<br />
with the provisions of Section 50 of the Insurance Code.</p>

<p>XV. &nbsp;Suit Against the Company - If a claim be made and rejected and an action or suit be not commenced either in the Insurance Commission or any court of competent jurisdiction within twelve (12) months from receipt of notice of such rejection,&nbsp;<br />
or in case or arbitration taking place as provided herein, within twelve (12)&nbsp;<br />
months after due notice of the award made by the arbitrator or arbitrators or<br />
umpire, then the claim shall for all purposes be deemed to have been abandoned&nbsp;<br />
and shall not thereafter be recoverable hereunder.</p>

<p>XVI. Receipt of Payment Clause -Except only in those specific cases where corresponding rules and regulations which now are or may hereafter be in force provided for the payment of the stipulated premiums in periodic installments at fixed percentages, it is hereby declared, agreed and warranted that this Policy shall be deemed effective valid and binding upon the Company only when the premiums therefore have actually been paid in full and duly acknowledged in receipt by any authorized official or representative/agent of the Company.</p>
