Alterations and Repairs Workmen are allowed to work in, on or around the premises for the purposes of completing

repair and/or minor additions and alterations and/or decorations without prejudice to this Insurance. Awnings, Blinds, Signs and Other Outdoor Fixtures Clause Awnings, blinds, signs and other outdoor fixtures or fittings of any description are covered provided that the liability of the Company shall not in the aggregate exceed the limit as stated in the Policy Schedule. Additional Cover Clause If damage to property insured occurs in circumstances giving rise to indemnity, the Insurers will pay the following additional costs where they are necessarily and reasonably incurred in respect of: A. Architects, surveyors, consulting engineers, legal and other fees and clerks of works estimates for salaries, plans, specifications quantities, tenders and supervision necessarily incurred as a direct result of any such damage, but not costs, fees or other expenses for preparing any claim made under this Policy; Any fee, contribution, or other impost payable to other statutory authority necessarily incurred by payment of such fee, contribution, or impost is a the obtaining of consent to repair or replace any this Policy, provided that the Insurers shall not of any fine or penalty imposed by any such authorities; and any government or the Insured because of condition precedent to buildings insured under be liable for payment

B.

C.

Taking inventory (including unpacking, re-packing and re-stocking) to establish the value of damaged property Insured.

The cover afforded by the foregoing provisions does not increase the liability of the Insurers beyond the limit stipulated in the Policy. Acts of Civil or Military Authority Loss or damage to the property insured caused by acts of destruction by order of civil or military authority at the time of and for the purpose of preventing the spread of fire is covered by this Policy provided that such fire originated from one of the perils insured by this Policy. Automatic Cover for New Location Clause IT IS HEREBY DECLARED AND AGREED that any new location is automatically covered for 30 days subject to advice to the Insurer and limited to the amount stated in the Policy Schedule in any one location Adjuster Clause In the event of a claim the Lead Insurer and the Broker are vested with the sole authority to appoint the adjuster accredited to Federal Phoenix Assurance Co., Inc. at the time of loss.

Automatic Extension of Period At the request of the Insured stated in the Policy Schedule Should the Insured request an additional premium calculated during the expiring period of

of Insurance Clause this Policy may be extended for a period as from the expiry date as stated in the Schedule. extension, Insurers will be entitled to an on a pro-rata basis at the rates applying Insurance.

Automatic Fire Alarm Installation Warranty Warranted that during the currency of this Policy, the Automatic fire alarm system as described hereunder, shall be maintained in efficient working order on the premises to which this insurance applies: _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Automatic Increase Clause This Policy extends to cover amounts representing increase in value in excess of the Sum Insured as stated in the Policy Schedule but such increase not to exceed the percentage stated in the Policy over the existing cover limit for each item of stocks only. It being understood that the Insured undertakes to advise the underwriter of such increase within the period stated in the Policy Schedule from the date of the increase and to pay the additional premium required from the date of inception thereof. Any increase which remains undeclared after the period stated in the Policy Schedule shall be excluded from the cover under this clause, following endorsement of any additional amount, the provisions of this clause are fully reinstated. Act of Neglect This Policy shall not be prejudiced by reason of any act of neglect of the owner(s) of the building(s) if the Insured is not the owner thereof, of by any act of neglect of any occupancy of the building(s) (other than the named Insured), when such act of neglect of the owner or occupant is not within the control of the named Insured herein. All Other Contents Clause It is agreed that the term "ALL OTHER CONTENTS" is understood to include: A) B) Money and stamps not otherwise specifically insured for an amount not exceeding the limit as stated in the Policy Schedule. Documents, manuscripts and business books but only for the value of the materials as stationery together with the cost of clerical labor expended in writing up and not for the value to the Insured of the information contained therein, for an amount not exceeding the limit as stated in the Policy Schedule.

C)

Computer system records but only for the value of materials together with the cost of electricity, labor and computer time expended in reproducing such records (excluding any expense in connection with production of information to be recorded therein)

and not for the value to the Insured of the information contained therein, for an amount not exceeding the limit as stated in the Policy Schedule. D) Patterns, models, molds, plans and designs but only for the value of the materials together with the cost of labor expended to reinstate for an amount not exceeding the limit as stated in the Policy Schedule. Employees pedal cycles, tools and other personal effects for an amount not exceeding the amount as stated in the Policy Schedule.

E)

Appraisement Clause (Fire) If the aggregate claim for any one loss does not exceed the percentage amount stated in the Policy Schedule of the sum insured, no special inventory or appraisement of the undamaged property shall be required. If two or more buildings be included in a single item, this provision shall apply to the range of buildings and/or contents by the item or items affected. Automatic Reinstatement of Sum Insured Clause Notwithstanding the occurrence of a loss, it is understood that the Policy limit will be maintained at all times during the currency of this Policy, and the Insured therefore undertakes to pay extra premium on the amount of any loss pro-rata from the date of such loss to the expiry of the period of Insurance, the premium being calculated at the rate applicable to the properties destroyed, and such extra premium shall not be taken into the account in and shall be distinct from the final adjustment of premium. Total Asbestos Exclusion Clause This Policy excluded all claims and losses based upon, arising out of, directly or indirectly resulting from or in consequence of, or any way involving: - Asbestos, or - Any actual or alleged Asbestos related injury or damage involving the use, presence, existence, detection, removal, elimination or avoidance of Asbestos or exposure or potential exposure to Asbestos. Attestation Clause IT IS HEREBY UNDERSTOOD AND AGREED that the word "COMPANY", "INSURER", and "INSURERS", as used in the Policy, shall be deemed to mean the Insurers named below or Insurers added by a memorandum signed by or on behalf of all Insurers concerned. The liability of these Insurers shall in no case exceed, in respect of each item, the total sum insured thereby, or such other sum or sums as may be substituted therefore by memorandum hereon or attached hereto signed by or on behalf of the Insurers; and that the liability of each of the Insurers individually in respect of loss or damage shall be limited to the proportion stated against their name or such proportion as may be substituted therefor by a memorandum hereon or attached hereto and signed by or on behalf of the Insurers. INSURERS SHARE TOTAL SUM INSURED AUTHORIZED SIGNATORY -

TOTAL

100%

PHP

Average Clause If the property hereby insured shall at the breaking out of any fire or occurrence of any other insured peril be collectively of greater value than the sum insured thereon, then the Insured shall be considered as being his own insurer for the difference and shall bear a ratable proportion of the loss accordingly. Every item, if more than one of the Schedule shall be separately subject to this condition. Bagasse Clause Warranted that the bagasse pile is stored at a distance of feet from the mill building. not less than 30

Breach of Conditions Clause The conditions and warranties of this Policy shall apply individually to each of the risks Insured and not collectively to them. Thus a breach of any condition or warranty shall void the Policy only in respect of all risks to which that breach applied and does not affect the Policy in respect to the other risks. Burglary Endorsement IT IS HEREBY DECLARED AND AGREED that the Insurance under this Policy extends to cover loss or damage as the result of theft following upon violent and forcible entry or followed by violent and forcible exit from the premises or any attempt there at subject to the following conditions: 1. All sums which may from time to time be paid as or by way of compensation for loss or damage under this Endorsement in any one year of Insurance for or in respect of each or any one description of property or any one specially described and valued article lost or damaged shall unless reinstated by endorsement with the consent of the Company and additional premium paid be accounted in diminution of the Sum Insured thereon, so that in case of subsequent loss or damage during the same year of Insurance the amount payable by the Company shall not in any event exceed the sum insured in respect thereof nor altogether the total sum insured by this endorsement. 2. This Endorsement shall not exceed to nor cover: A. Loss or damage due to any robbery or theft or to any attempt thereat by or in collusion with any of the Insured's family business staff or domestic servants or any person lawfully on the premises. B. Loss or damage by any person, due to theft not following upon violent and forcible entry not followed by violent and forcible exit from the premises occupied by the Insured defined above. C. Loss or damage arising from any consequence of flood, typhoon, hurricane, windstorm, volcanic eruption, subterranean fire, earthquake or other convulsion of nature, war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, mutiny, revolution, insurrection or military or usurped power, riots or strikes, military or popular rising, or loot, sack or pillage in connection therewith.

D. Loss or damage upon the occasion of or consequent upon fire or explosion or loss or damage which can be insured against by a Fire or Plate Glass Insurance Policy. E. Loss or damage to deeds, bonds, bills of exchange, promissory notes, money or securities for money, stamps or coin collections, plans, patterns, models, moulds, designs, documents of title to property, contracts or other documents or business books or manuscripts unless the same be specifically insured hereunder. 3. This endorsement shall cease to be in force if the premises referred to in the Schedule of this Policy be left uninhabited by days and nights or for a period or periods exceeding in the whole ten days or nights in any period of insurance. 4. Upon the happening of any event giving rise or likely to give rise to a claim under this Endorsement. A. The Insured shall so soon as is practicable give notice thereof in writing to the Company stating the circumstances of the case and shall with in fourteen days after any loss or damage shall have come to his knowledge or within such further time as the Company may allow in that behalf deliver to the Company a claim in writing with an estimate of the intrinsic value of each article lost and the amount of damage sustained. B. The Insured shall furnish to the Company all such particulars and evidence documentary or otherwise and execute and do all such acts and things as the Company may reasonably require to substantiate the claim to discover and punish the guilty person to trace and recover the property lost and to recoup to the Company so far as May be possible in respect of any amount the Policy shall pay under this Endorsement. The Company shall bear the expense of all such particular evidence, acts and things as they may require with the above objects or any of them other than those required to substantiate the claim. 5. The Company may reinstate, repair or replace the property or premises lost or damaged as the case maybe instead of paying the amount of the loss or damage and/or join with any other Insurers in so doing in cases where the property is also insured elsewhere. Any lost property paid for under this Endorsement shall belong to the Company. 6. If at the time of the happening of any loss or damage covered under this Endorsement there shall be subsisting any other Insurance of any nature whatsoever covering the same whether effected by the Insured or not, then the Company shall not be liable to pay or contribute more than its ratable proportion of such loss or damage.

7. Nothing contained herein shall give any right against the Company to any persons other than the Insured his executors or administrators and the Company will not be bound by any passing of the interest of the Insured otherwise than by death unless and until the Company shall endorse hereon declare the Insurance to be continued.

8. The Company shall at any time by giving notice in writing to the Insured by registered letter at his address as last known to the Company be at liberty to determine and cancel this endorsement from the date of such notice and the Company shall in that event return to the Insured a proportionate part of the Premium corresponding to the unexpired term of Policy by like notice to the Company. The Insured may at any time similarly determine and cancel this endorsement in which case the Company will retain the customary short period rate or the time this Endorsement has been in force. 9. If at the time of the happening of any loss or damage the total value of the property insured under this Endorsement or by each item thereof if more than one does not exceed the sum insured thereon this Insurance shall be declared free of average; but if the amount insured be less than such total value the Insured shall be considered as being his own Insurer for the difference between the sum insured and the total value of the property insured under the Endorsement or by each item thereof as the case may be and shall bear a ratable share of the loss accordingly. 10. If any claim be made by or on behalf of the Insured shall be in any respect unfounded or fraudulent or intentionally exaggerated of if any false declaration or statement shall be made in support of any claim, the Company shall not be liable to make any payment whatsoever under this Endorsement. 11.The Insured shall take all due precautions for the safety of the property Insured as regard selection and supervision of employees securing with all existing protective devices all doors and windows and other means of entrance and otherwise and shall not do suffer or permit anything whereby the risk of the Company shall be increased and this Endorsement shall cease to be in force so far as regard any of the property or articles thereby insured if the Insured shall make any change or alteration in the premises on the particulars and information set forth in the proposal to insure are no longer correct statements of the facts. Business Interruption (Loss of Profit) Endorsement The Insurance under this Section is limited to Loss of Gross Profit due to (a) REDUCTION IN TURNOVER and (b) INCREASE IN COST OF WORKING and the amount payable as indemnity thereunder shall be: -

(a) in respect of REDUCTION IN TURNOVER: the sum produced by applying the Rate of Gross Profit to the amount by which the turnover during the indemnity Period shall fall short of the Standard Turnover in consequence of the incident (b) in respect of Increase in Cost of Working: the additional expenditure (subject to the provisions of the Uninsured Standing Charges Clause) necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in Turnover which but for that expenditure would have taken place during the Indemnity Period in consequence of the Incident, but not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction thereby avoided less any sum saved during the Indemnity Period in respect of such of the charges and expenses of the Business payable out of Gross Profit as may cease or be reduced in consequence of the Incident provided that if the sum insured by this item be less than the sum produced by applying the Rate of Gross Profit to the Annual Turnover (or to a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) the amount payable shall be proportionately reduced. DEFINITIONS ----------INCIDENT: Loss or destruction of or damage to property used by the Insured at the Premises for the purpose of the Business. INDEMNITY PERIOD: The period beginning with the occurrence of the Incident and ending not later than Maximum Indemnity Period thereafter during which the results of the Business shall be affected in consequence thereof. MAXIMUM INDEMNITY PERIOD: as stated in the Policy Schedule TURNOVER: The money paid or payable to the Insured for goods and delivered and for services rendered in course of the Business at the Premises. GROSS PROFIT: The amount by which (i) the sum of the amount of the turnover and the amount of the closing stock and work in progress shall exceed (ii) the sum of the amounts of the opening stock and work in progress and the amount of the Uninsured Worked Expenses. Note : The amounts of the opening and closing stocks and work in progress shall be arrived at in accordance with the Insured's normal accountancy methods, due provision being made for depreciation. SPECIFIED WORKING EXPENSES: Appropriate list to be inserted in the Policy Schedule.

Note : The words and expressions used in this definition (other than

wages) shall have the meaning usually attached to them in the books and accounts of the Insured. RATE OF GROSS PROFIT: The Rate of Gross Profit earned on the Turnover during the Financial year immediately before the Date of the Incident } } } } } ANNUAL TURNOVER : The Turnover during the} twelve (12) months immediately before the} date of the Incident } } STANDARD TURNOVER : The Turnover during } that period in the twelve (12) months } immediately before the date of the } Incident which corresponds with the } Indemnity Period } to which such adjustments shall be made for the trend of the Business either before or after the Incident which would have affected the Business had the Incident not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the Incident would have been obtained during the relative period after the Incident.

ALTERNATIVE TRADING CLAUSE: If during the Indemnity Period goods shall be sold or service shall be rendered elsewhere than at the Premises for the benefit of the Business either by the Insured or by others on his behalf the money paid or payable in respect of such sales or services shall be brought into account in arriving at the Turnover during the Indemnity Period. UNINSURED STANDING CHARGES CLAUSE: If any standing charges of the Business be not insured by this policy (having been deducted in arriving at the Gross Profit as defined herein) then in computing the amount recoverable hereunder as Increase in Cost of Working, that proportion only of any additional expenditure shall be brought into account which the Gross Profit bears to the sum of the Gross Profit and the uninsured standing charges. PREMIUM ADJUSTMENT CLAUSE: The premium paid hereon may be adjusted on receipt by the Company of a declaration of Gross Profit earned during the financial year most nearly concurrent with the period of insurance, as reported by the Insured's Auditors. If any Incident shall have occurred giving rise to a claim for loss of Gross Profit the above mentioned declaration shall be increased by the Company for the purpose of premium adjustment by the amount by which the Gross Profit was reduced during the financial year solely in consequence of the Incident. If either declaration (adjusted as provided for above and proportionately increased where the Maximum Indemnity Period exceeds 12 months) is less than the sum insured on Gross Profit for the relative period of insurance the Company will allow a pro rata return of premium not exceeding 50 per cent. of the premium paid. PROFESSIONAL ACCOUNTANT'S CLAUSE: Any particulars or details contained in the insured's books of account or other business books or documents which may be required by the Company under Special Condition (1) of this policy for the purpose of investigating or verifying any claim hereunder may be produced by professional accountants if at the time they are regularly acting as such for the Insured and their report shall be prima

facie evidence of the particulars and details to which such report relates.

The Company will pay to the Insured the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proffs, information or evidence as may be required by the Company under the terms of Claims Condition 1 of this policy and reporting that such particulars or details are in accordance with the Insured's books of accounts or other business books or documents Provided that the sum of the amount payable under this clause and the amount otherwise payable under the policy shall in no case exceed the liability of the Company as stated. Note : Where the Uninsured Working Expenses are recognized variable charges, the Uninsured Standing Charges Clause and the reference hereto under paragraph (b) of Item No. 1 should be deleted. SPECIAL CONDITIONS -----------------(1) The insurance by this Section shall cease if (a) the business be wound up or carried on by a Liquidator or receiver or permanently discontinued, or (b) the Insured's interest cease otherwise than by death, or (b) any alteration be made either in the business or in the premises or property therein whereby the risk of Incident is increase at any time after the commencement of this Insurance, unless its continuance be admitted by memorandum signed by or on behalf of the Company. (2) On the happening of any Incident in consequence of which a claim is or may be made under this Section, the Insured shall forthwith give notice thereof to the Company and shall with due diligence do and concur in doing and permit to be done all things which may be reasonably practicable to minimize or check any interruption of or interference with the business or to avoid or diminish the loss, and in the event of a claim being made under this Section shall, not later than thirty (30) days after the expiry of the Indemnity Period or within such further time as the Company may in writing allow, at his own expense deliver to the Company in writing a statement setting forth particulars of his claim, together with details of all other insurances (if any) covering the Incident or any part of it or consequential loss of any kind resulting therefrom. The Insured shall at his own expense produce/procure and give to the Company such books of account and other business books, vouchers, invoices, balance sheets and other documents, proofs, information, explanation and other evidence as may be reasonably required by or on behalf of the Company for the purpose of investigating or verifying the claim 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 Section shall be payable unless the terms of this condition have been complied with and in the event of non-compliance therewith in any respect, any payment on account of the claim already made shall be repaid to the Company forthwith. (3) The Company shall not be liable for any loss due to fines and damages for breach of contract for late or non-completion of orders, or for any penalties of whatever nature. (4) In no case whatsoever shall the Company be liable in respect of any claim under this Section after the expiration of

(a) one year from the end of the Indemnity Period or, if later; (b) three months from the date on which payment shall have been or liability admitted by the Insurer covering the damage giving rise to the said claim unless the claim is the subject of pending action or arbitration.

Bursting or Overflowing of Water Tanks, Apparatus or Pipes The Insurance under this Policy is extended to include loss of or damage to the property insured directly caused by Bursting or overflowing of water tanks, apparatus or pipes from within the building insured or containing the property insured but excluding: A) Damage thereto B) Loss or damage whilst the building is untenanted C) Loss or damage by water discharged or leaking from any automatic sprinkler installation within the described buildings, D) The amount of the burst pipes deductible stated in the schedule, for each and every loss, provided that all the conditions of the Policy shall apply as if they had been incorporated herein and for the purposes hereof any loss damage as aforesaid shall be deemed to be loss or damage by fire. Brands and Labels Clause In case of damage to insured property bearing a label associating the property with the Insured, their customers or suppliers, or the sale of which in any way carries a guarantee of the Insured, a) The salvage value of such damage property shall be determined after the removal of all brands and trade marks which might be taken to indicate the standards of quality or guarantee of the manufacturer or of the Insured attached to the said property; The Insured may at their own expense, stamp "salvage" on the merchandise or its containers, or may remove or obliterate the brands or labels, if such stamp, removal or obliteration will not physically damage the merchandise, provided any such merchandise or containers are relabeled in compliance with the requirement of law. Such damaged property shall not be disposed of by sale without the consent of the Insured.

b)

c)

Billiard Table Clause It is understood and agreed that this Company shall not be held liable for damage to the Billiard tables arising from sparks from tobacco, pipes, cigars or other lighted material or damage from the ignition of reflectors, which may be placed over the said tables, or for the destruction of said reflectors.

Broad Water Damage Endorsement IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, the Insurance under this Policy is extended to include loss or damage caused by:

1.

Accidental discharge, leakage or overflow of water/steam from plumbing, septic tanks, heating systems, elevated and/or underground tanks and cylinders, standpipes for fire hose, industrial and domestic appliances, refrigerating system, air-conditioning system and rain admitted through defective roofs or by open or defective windows, show windows, picture windows, doors, transoms, ventilators or skylights; Breakage of or leakage from street water supply mains or fire hydrants; and Accidental discharge or leakage of refrigerants from air-conditioning or refrigeration systems; Provided that: 1. 2. The Insured undertakes to exercise all ordinary and reasonable precautions for the maintenance and safety of the property; The Insured shall bear the deductible as stated in the Schedule, for each and every claim under this Endorsement in addition to any other deductible that may be applicable under the Policy. In case ambiguity between the above deductible and those deductibles for typhoon and flood shall exist, the highest deductible from among these perils shall be deemed the deductible for this Endorsement; All conditions of this Policy shall apply(except in so far as they may be hereby expressly varied and that reference to loss or damage by fire shall be deemed to apply also to loss or damage as aforementioned; and The liability of the Company under this endorsement shall in no case exceed the sum insured by each item of the Policy.

2. 3.

3.

4.

5.

Capital Additions Clause IT IS HEREBY DECLARED AND AGREED that Insurers will hold covered any conditions(excluding inflation)to buildings, furniture, fixtures, fittings, plant and machinery up to a limit stated in the Policy Schedule subject to advice being given by the Insured to Insurers within the period stated in Policy Schedule of the additions and/or alterations. An Additional premium will be charged accordingly.

Copra Cake and Copra Meal Storage Warranty (Applicable to 6.1.7 and 6.2.7 only)

Warranted that no more than 6 days production of copra cake and/or copra meal of the mill to which this Insurance applies will be stored in the building to which this Policy applies or in any building communicating therewith. Customer's Goods Clause IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, this Policy indemnifies the Insured against his legal liability for destruction of or damage to customer's goods held within the Insured's custody and control by fire or any other peril hereby Insured against. Comprehensive General Liability Endorsement The Company will subject to the terms exceptions and conditions contained herein and endorsed hereon indemnify the Insured against sums for which the Insured shall in the course of business become legally liable to pay as compensation for: 1) Accidental Death of or Injury to any person 2) Accidental Damage to Property Happening during the period of indemnity within the situation of risk described in the Schedule provided that the liability of the Company shall not exceed: A) For all compensation payable in respect or of arising out of one occurrence or all occurrences of series consequent on or attributable to one source or original cause the amounts specified in the said Schedule as the limit of indemnity for any one accident. B) For all compensation payable during any one period of indemnity the amount specified in the said Schedule as the limit of indemnity for any one period of indemnity. The Company will, in addition, where any claim is contested by or within the written consent of the Company, pay all costs recovered by any claims against the Insured. The Company will further pay the costs incurred with its written consent in connection with the defense of such claim. In the event of the death of the Insured, the Company will in respect of the liability incurred by the Insured, indemnify the Insured's personal representatives in the terms of and subject to the limitations of this Policy provided that such personal representatives shall as though they were the insured observe fulfill and be subject to the terms, exceptions & conditions of the Policy in so far as they can apply.

Exceptions ---------The Company shall not be liable for :

1) Death or bodily injury or damage to property caused directly by any subcontractor of the Insured or by any employee of such sub-contractor 2) Death or bodily injury or damage to property caused directly or indirectly by : a) Fire or explosion b) Typhoon, flood, hurricane, volcanic eruption, earthquake, subterranean fire, or other convulsion of nature. 3) Death or bodily injury or damage to property caused directly or indirectly by or in connection with: a) Elevators, escalators, cranes, or power driven hoisting machines, aircrafts, vessels or crafts or foul berthing or the ownership possession or use by or on behalf of the Insured of vehicle (other than hand-propelled vehicles) motorcycle, animal, locomotive or railway rolling stock unless specifically mentioned in the Schedule hereto or by Endorsement hereto. b) Goods sold or any article renovated or repaired or any form or advice or remedial or other treatment given or administered by the Insured or any servant or agent of the Insured. 4) Damage to any land property or building caused by the removal or weakening of support to such land property or building or by vibration or liability arising in consequence of such damage. 5) Any consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not) civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, riot, strike, lockout, military or popular uprising, martial law or loot, sack or pillage on connection therewith, confiscation or destruction by any government or public authority. 6) a) Death or Bodily Injury to any person under a contract of service or apprenticeship with the Insured arising out of and in the course of such service or apprenticeship or to a member of Insured's family or household. b) Compensation under any workmen's compensation or employer's liability law. 8) a) Damage to property belonging to or under the charge or control of the Insured or person in the service of Insured or a number of the Insured's family or household. b) Damage to that part of any property on which the Insured or persons in the service of the Insured or agents of the Insured are or have been operating. c) Damage to any vehicle or property or accessory in or on such vehicle within, entering or leaving any garage or enclosed or unenclosed parking place. 9) Liability assumed by the Insured by agreement unless such liability would have attached to the Insured notwithstanding such agreement.

10) Death or Bodily Injury or damage to property arising outside the geographical area. 11) a) Any liability of whatsoever nature directly or indirectly caused

by or contributed to by or arising from ionizing radiations 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 selfsustaining process of nuclear fission. b) Any liability directly or indirectly caused by to contributed to by or arising from nuclear weapons material. 12) Death or Bodily Injury or damage to property directly or indirectly arising out of the discharge dispersal release or escape of pollutants. For the purposes of this Exception, "POLLUTANTS" means any solid Liquid gaseous or thermal irritant or contaminant including but not limited to smoke, vapour, soot, fumes, acid, alkalis, chemicals and waste. Waste includes material be recycled, reconditioned or reclaimed. CONDITIONS: ----------1) The Insured shall give immediate notice to the Company of any accident or notification of claim and shall within seven days or such further time as the Company may allow furnish to the Company such other participants and information as the Company may require and shall notify or forward to the Company immediately or receipt every letter, writ, summons and process and shall immediately notify the Company in writing of any impending prosecution, inquest or fatal injury in connection with any accident for which there may be liability under this Policy. 2) No admission offer promise payment or indemnity shall be made or given by or on behalf of the Insured without the written consent of the Company which shall be entitled if it so desired to take over the conduct in the name of the Insured for its own benefit any claim to indemnity or damages or otherwise and any compensation so recovered shall belong to the Company and any indemnity so secured shall insured to the benefits of the Insured who shall give all such information and assistance as the Company may require. The Company may prior to or the course of such proceedings or settlement in connection with any claim or series of claim pay to the Insured the appropriate limit or limits of indemnity (after deducting therefrom any sum or sums already paid as compensation) or any loss amount for which such claim or claims may be settled and thereupon the Company shall relinquish the conduct and control of and shall be under no further liability in connection with such claim or claims except for costs and expenses of litigation incurred prior to the date of such payment. 3) The Insured shall take all reasonable care to prevent accidents, maintain his premises plant and everything used in the business in proper repair and employ only competent employees, and shall comply with all statutory obligations and regulations imposed by any authority, the Insured shall forthwith make good or remedy any defect or danger which

becomes apparent or take such additional precautions as the circumstances may require. 4) If, at the time any claim is made under this Policy there is any other existing Insurance effected by or on behalf of the Insured covering the same

risk the Company shall not be liable to contribute more than its ratable proportion of any payment in respect of such claim. Consequential Loss Extension It is agreed and understood that the coverage under Section II (excluding the existing completed principal's property) of this Policy is extended to include consequential loss due to physical damage directly caused by the performance of the contract Insured by this Policy. Provided that the liability of the Insurers shall not exceed the limit of indemnity as stated in the Schedule under Section II "Third Party Liability". Confectionery Makers or Candy Factory Warranty Warranted that no open flame of any kind is used in the main trade process and no manual trade process is carried out in the building to which this Insurance applies nor in any building communicating therewith. Breach of this warranty shall render this Policy null and void and the Company shall no longer be liable for any loss which may occur. Construction Warranty Warranted that notice shall be given to the company when the building(s) under construction is occupied and that the Insured shall pay a suitable premium if required. Breach of this condition shall render this Policy null and void. Contract Sales Clause IT IS HEREBY DECLARED AND AGREED that in respect only of goods sold but not delivered for which the Insured is responsible and with regard to which under the condition of sale. Contract is by reason of the fire, or any peril hereby insured against, cancelled wholly or to the extent of the loss or damage. The liability of the Insurers shall be based on the contract price and for the purpose of average the value of all goods to which this clause would in the event of loss or damage be applicable shall be ascertained on the same basis. Condominium Property Unit Owner's Insurance Form no. 1 Coverages Sum Insured --------------------Item 1 - Contents Item 2 - Building Additions and Alterations Item 3 - Loss of Rents Item 4 - Special Assessments In consideration of the premium for this coverage, and subject to the provisions herein and in the Policy to which this endorsement is attached, this Policy covers the Insured's interest in: Item 1 - Contents: -------When the insurance under this Policy covers contents such insurance shall apply to personalproperty of any kind or description owned by the Insured, or for which he is Deductible ----------

responsible, While contained within that portion of the building described herein, which is reserved for the Insured's exclusive use or occupancy. Item 2 - Building Additions and Alterations ---------------------------------When the insurance under this Policy covers building additions and alterations, such insurance shall apply to fixtures, alterations, installations or additions comprising a part of the described building within the unfinished interior surfaces of the perimeter walls, floors and ceilings of that portion of the premises which is reserved for the Insured's exclusive use or occupancy, initially installed or replacements thereof, in accordance with the original condominium plans and specifications, or installed by or at the expense of the Insured, including but not limited to such items as, paint or other wall or ceiling coverings, carpets and other floor coverings, carpets, partition walls, doors, plumbing, electrical and other service fixtures and outlets, for the purpose of this item, the following are not considered as building additions and alterations: Bearing walls, columns, floors, roofs, foundations and other common structural elements of the building,lobbies, stairways, hallways and other areas of common use, elevator equipment and shafts, central heating, central reprigeration and central air-conditioning equipment, reservoirs, tanks, pumps and other central services and facilities, pipes, ducts, flues, chutes, conduits, wires and other utility installations, wherever located, except the outlets thereof when located within the unit. In the event such building additions and alterations are damaged or destroyed during the terms of this Policy by the peril(s) Insured against, the liability of the company shall be the actual cash value of the damaged or destroyed building additions and alterations, less any recovery for the benefit of the Insured for loss or damage to such building additions and alterations from any insurance covering the interests of the unit owners collectively of the condominium. Item 3 - Loss of Rent: -------------When the insurance under this Policy covers loss of rent, then this Policy is extended to cover loss of rent as herein after defined caused by perils Insured against damaging or destroying during the Policy period, real or personal property (except finished stock) at the premises described in this endorsement subject to the limit of liability specified hereunder for the premises at which the damage or destruction occurs. Loss of rent is defined as: (A) The actual loss sustained by the Insured resulting directly from necessary untenantability, but not exceeding the reduction in rent, loss charges and expenses which do not necessarily continue during the period of untenantability for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair

or replace such part of the property herein described as has been damaged or destroyed commencing from the date of such damage or destruction and not limited by the date of expiration of this Policy. (B) The actual loss sustained by the Insured, resulting directly from an interruption of business as covered hereunder, during the length of time, when, as a direct result of damage to or destruction of property adjacent to the premises herein described by the peril(s) Insured against, access to such described premises is specifically prohibited by order of civil authority, and (C) Such expenses as are necessarily incurred for the purpose of reducing loss under this endorsement, (except expense incurred to extinguish a fire), but in no event shall the aggregate of such expenses exceed the amount by which the loss otherwise payable under this endorsement is thereby reduced. Such expenses shall not be subject to the application of the contribution clause. 3.1 Contribution Clause: ------------------The company shall not be liable for a greater proportion of any loss than the limit of liability specified herein bears to the amount produced by multiplying the contribution clause percentage specified hereunder by the rent of the Insured locations that would have been earned by the Insured (had no loss occurred) during the twelve (12) months immediately following the date of damage or destruction of the described property. 3.2 Definitions: ----------(A) For the purpose of this insurance, "rent" include rental value and is defined as the sum of: (1) The total anticipated gross rental income from tenant occupancy of the described property as furnished and equipped by the Insured, and (2) The amount of all charges which are the legal obligation of the tenants and which would otherwise be obligations of the Insured, and (3) The fair rental value of any portion of said property which is occupied by the Insured.

In determining rent, due consideration shall be given to the rental experience before the date of destruction and the probable experience thereafter had no loss occurred. (B) The term "directly", as applied to loss under this endorsement means a loss, as limited and conditioned in this Policy, resulting from direct loss to described property from the perils Insured against. 3.3 Additional Exclusions and Limitations: -------------------------------------

(A) The company shall not be liable for any increase of loss which may be occasioned by: (1) Any local or state ordinance or law regulating construction, repair or demolition of buildings or structures. (2) Interference at the described premises by strikers or other persons with rebuilding, repairing or replacing the property or with the reoccupancy of the premises. (3) The suspension, lapse or cancellation of any lease, contract or order unless such suspension, lapse or cancellation results directly from the untenantability of the premises, and then the company shall be liable for only such loss as affects the rent of the premises, during and limited to, the period of indemnity under this Policy. (B) The company shall not be liable for: (1) More than the amount set forth in the limits of liability above for each premises. (2) Any other consequential or remote loss. 3.4 Requirements in case loss occurs: -------------------------------The Insured shall give immediate written notice to the Company of any loss or rent or rental value as covered by this Policy and protect the property from further damage that might result in extension of the period of interruption; and within sixty (60) days following the date of damage to or destruction of the real or personal property described unless such time is extended in writing by the Company, the Insured shall render to the company a proof of loss, signed and sworn to by the Insured, stating the knowledge and belief of the Insured as to the following: (A) The time and origin of the property damage or destruction causing the loss of rent or rental value; (B) All other contracts or insurance, whether valid or not, covering in any manner the loss Insured against by this Policy; (C) The interest of the Insured and of all others in the business; a (D) Any changes in the title, nature, location, encumbrance or possessions of said business since the issuing of this Policy; and (E) By whom and for what purpose any building herein described and the several parts thereof were occupied at the time of damage or destruction, and shall furnish a copy of all the descriptions and schedules in all Policies, and the actual amount of rent or rental value and loss claimed, accompanied by detailed exhibits of all values, costs and estimates upon which such amounts are based. The Insured, as often as may be reasonably required shall exhibit to any person designated by the company all that remains of any property herein described, and submit to examination under oath by any person named by the company, and subscribe the same; and, as often as may be reasonably required, shall produce for examination all books of account, bills, invoices and other vouchers, or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the company or its representative and shall permit extracts and copies thereof to be made.

ITEM 4 - Loss Assessment: ---------------When the Insurance under this Policy covers loss assessment, then this Company shall indemnify the Insured subject to the limit of liability and deductible made part of this coverage, for payment of his share of special assessments, based on the ownership of such premises levied against the Insured as a condominium owner by the association of all unit owners in accordance with the governing rules of the condominium, when such assessment is made necessary by a direct loss to the condominium building collectively owned by the unit owners caused by perils for which the Insured's building additions and alterations are Insured against under item 1 of this endorsement. 4.1 Deductible ---------This coverage applies only when the Insured/s share of the special assessment for such loss or damage exceeds the amount stated in the Policy schedule, and then only for the amount of such excess. any other Policy deductible does not apply to this coverage. Perils Insured against ---------------------This insurance shall cover against the perils of fire or lightning and/or such other perils as may be provided in the Policy or in endorsements attached thereto. Cost of Re-writing Records Clause This Policy extends to cover costs and expenses necessarily and reasonably incurred by the Insured following loss to the property Insured: A) B) To reconstruct and recompile records (not for the value to the Insured of the information contained therein). To extract and compile information required by the Company from the Insured's own records for the purpose of preparing a claim under the Policy but excluding legal, investigation and research fees/expenses insured for the purpose of contesting any issue over the Company's Liability under the Policy.

Provided always that no amount shall be recoverable under this clause if subsequent to the incurring of any expenses, the Company shall deny liability for any claim in respect of which the expenses have been incurred (with or without the consent of the company). Contract Sales IT IS HEREBY DECLARED AND AGREED that in respect only of goods sold but not delivered for which the Insured is responsible and with regard to which this clause would in the event of loss or damage be applicable shall be ascertained on the same basis. Deductible Clause In consideration of a premium discount for which this Policy is written, it is hereby declared and agreed that the Company shall not be liable for loss or damage under this Policy and/or other Policies covering the same property by fire and lightning unless such loss or damage any one occurrence exceeds the deductible amount stated in the Policy Schedule.

Designation Clause For the purpose of determining where the necessary definition of any property insured hereby, the Company agrees to accept the designation under which such property has been entered in the Insured's books. Deletion of Uniform Policy Clause Condition no. 1 of the printer conditions of this Policy is hereby deleted and declared cancelled and shall be deemed of no force and effect. Description A complete description of all the Insured's location as of inception of this cover is on file with the Insurance Company. Debris Removal Clause IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, this Policy is extended to Insure also cost of removal of debris of any property of Insured following damage or destruction by fire or any other peril hereby Insured against including legal liability for the cost of removal of debris from adjoining premises, roadways and waterways, subject to a limit stated in the Policy Schedule. The indemnity afforded by this Policy shall not apply to or include liability assumed by the Insured from an agreement entered into after the commencing date of Insurance by this Policy unless such liability would have attached to the Insured in the absence of such agreement. Depreciation of Undamaged Stock The Policy extends to include loss sustained by the Insured as a result of depreciation of undamaged stock which cannot be processed promptly due to interruption of or interference with the business of the Insured in consequence of damage to property insured caused by the perils insured against. Extended Coverage Endorsement (to include the perils of Explosion, Aircraft, Vehicle and Smoke) 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 extend to include loss or damage directly caused by explosion, aircraft, vehicle and smoke.

PROVISION APPLICABLE TO EXPLOSION Loss of or damage to the property Insured directly caused by explosion, but excluding loss of or damage to boilers, economizers, pipes, turbines, engines 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. The following are not explosions within the intent or meaning of this endorsement; A) Concussion unless caused by explosion,

B) C) D)

Electrical arcing; Water hammer; Rupture or bursting of water pipes. conditions of the Policy (except in so far as expressly varied) shall apply as if they had for the purpose hereof any loss or damage by be deemed to be loss or damage within the

Provided always that all the condition no. 8(H) is hereby been incorporated herein and explosion as aforesaid shall meaning of this Policy. SPECIAL CONDITIONS

1. 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 IN BEHALF OF, OR IN CONNECTION WITH, ANY organization with activities directed towards the overthrow by force of the government "de jure" or "de facto", or to the influencing of it by terrorism or violence. 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. 2. 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. 3. 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. PROVISIONS APPLICABLE TO AIRCRAFT & VEHICLE The term vehicle as used herein means vehicles running on land or tracks but not aircraft. Loss by aircraft or by 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 falling therefrom. The Company shall not be liable, however, for loss: A) B) C) By any vehicle owned or operated by the Insured or by any tenant of the described premises; By any vehicle to fences, driveways, walks or lawns; To any aircraft or vehicle including contents thereof other than stocks or aircraft or vehicles in process of manufacture or for sale. PROVISION APPLICABLE TO SMOKE

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. DEDUCTIBLE APPLICABLE TO EXPLOSION, AIRCRAFT, VEHICLE AND SMOKE IT IS UNDERSTOOD AND AGREED that the Insured shall bear the first 1% of the Sum Insured on the affected item/s under this endorsement but not less than Php1,000.00 nor more than Php500,000.00 on any material damage loss from any of the above mentioned perils. GENERAL CONDITIONS APPLICABLE TO EXPLOSION, AIRCRAFT, VEHICLE AND SMOKE 1. 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. 2. 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. 3. 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: For 1 month For 2 months For 3 months For 4 months For 5 months For 6 months For 7 months For 8 months In excess of ----------------------- 20% ----------------------- 30% ----------------------- 40% ----------------------- 50% ----------------------- 60% ----------------------- 70% ----------------------- 80% ----------------------- 90% 8 months --------------100% of of of of of of of of of the the the the the the the the the annual annual annual annual annual annual annual annual annual premium premium premium premium premium premium premium premium premium

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. Electronic Data Recognition Exclusion Clause Notwithstanding any provision to the contrary in the Policy or any Endorsement thereto, it is understood and agreed as follows: (A) This Policy does not insure: (i) Total or partial destruction, distortion, erasure, alteration, misinterpretation or misappropriation of Electronic Data, (ii) Error in creating, amending, entering, deleting using Electronic Data, or (iii) Total or partial inability or failure to receive, send, access or use electronic data for any time or at all From any cause whatsoever, regardless of any other contributing

cause or event whenever it may occur. Electronic Data means facts, concepts and information converted to a form useable for communications, display, distribution, interpretation or processing by Electronic and Electromechanical Data Processing or Electronically controlled Equipment and includes programmes software and other coded instructions for such equipment (B) However, in the event that a peril listed below (being a peril insured by this Policy but for this exclusion) is caused by any matters described in Paragraph (A) above, this Policy, subject to all its provisions, will insure: (i) Physical loss or damage or destruction to property Insured d directly caused by such listed peril and/or (ii) Consequential loss insured by this Policy Further this Exclusion does not apply in the event that a peril listed below (being a peril insured by this Policy but for this Exclusion) caused any of the matters described in Paragraph (A) above Fire Explosion, Lightning, Windstorm, Hail, Tornado, Cyclone, Hurricane, Earthquake, Volcano, Tsunami, Flood, Freezing, Weight of Snow, Impact by Aircraft or other Aerial objects dropped therefrom, Impact from road vehicle or animal, bursting, Overflowing, Discharging or Leaking of Water Tanks Apparatus or Pipes, or Theft of Electronic Data solely where such theft is accompanied by theft of the computer hardware, firmware, medium, microchip, integrated circuit or similar device containing such Electronic Data. (C) For the purposes of the basis of settlement provision in this Policy, computer systems records included Electronic Data as defined in Paragraph (A) above. Any terrorism exclusion in this Policy or any endorsement thereto prevails over this Endorsement. Electrical Clause Loss or damage by fire to the property insured arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity, including all loss or damage by lightning, is covered subject to the terms and conditions of this Policy, but it is expressly understood that no liability exists under this Policy for loss or damage to any electrical machine, apparatus or any portion of the electrical installation unless caused by fire of lightning. Earthquake Fire and Shock Endorsement 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. 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 damage occasioned by or through in consequence of earthquake. Consequential loss 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.

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 equivalent to 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 on insured property, regardless of what is indicated in the Policy Schedule:

1. Each building, including machinery, equipment and fixtures normal to its operation; 2. All machinery and equipment contained in each building; 2. All stocks in trade (raw materials, work-in-process, supplies and finished goods), contained in each building; and 4. All other contents contained in each building. All losses caused by Earthquake or series of Earthquakes (whether continuous or sporadic and whether or not due to the same seismic conditions) during each period of 48 consecutive hours commencing from the first tremor shall be considered as arising out of one occurrence. In case of other Insurances on the same item or property, this clause shall apply only once regardless of the number of policies or Insurers. 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. It is further understood and agreed that notwithstanding what is stated in Condition nos. 11 and 12 of this Policy to the contrary id 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: From inception up to 3 months ................. 50% In excess of 3 months up to 6 months .......... 75% After six (6) months .......................... 100% Errors and Omission Clause The Insured shall not be prejudiced by an unintentional and/or inadvertent omission error or incorrect description of the interest risk or property provided notice is given to the Company as soon as practicable upon discovery of such error or omission. Escalation Clause If the contract value is increased during the period of Insurance, the sum insured in the Schedule shall be deemed automatically increased provided that the increase shall not be more than the amount stated in the Schedule. Subject otherwise to the terms, exceptions, conditions and limitations of the Policy. Expediting Expenses Clause EXPRESS FREIGHT COSTS ---------------------

The indemnity provided by this Policy in respect of freight costs necessarily and reasonably insured is hereby extended to include express freight costs including special delivery costs not exceeding the amount stated in the Schedule. Subject otherwise to the terms, exceptions, condition and limitations of the Policy.

The additional premium for this extension has been included in the provisional premium shown in the Schedule. LABOUR OVERTIME COSTS --------------------The indemnity provided by this Policy in respect of labour costs necessarily and reasonably incurred is hereby extended to include overtime (including weekend/holiday work) rates insured not exceeding the amount stated on the Schedule. Subject otherwise to the terms, exception, conditions, and limitations of the Policy. The additional premium for this extension has been included in the provisional premium shown in Schedule. AIRFREIGHT COSTS ---------------The indemnity provided by this Policy in respect of freight costs necessarily and reasonably incurred is hereby extended to include air freight costs not exceeding the amount stated in the Schedule. Subject otherwise to the terms, exceptions, conditions and limitations of the Policy. The additional premium for this extension has been included in the Provisional premium shown in the Schedule. Exposure Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, the building to which this Insurance applies is free of brush or cogon or other fire hazardous matter within a clear distance of not less than 30 meters and is free of exposure to buildings with exterior walls constructed wholly or partially timber and/or timber and/or light material or to an open storage within a clear distance within a clear distance of not less than 15 meters. Breach of this warranty shall render this Policy null and void. Fire Brigade Charges Clause The sum insured under this Policy extend to include additional charges raised by any local authority for the provision of fire fighting appliances for the purpose of protecting the premises. Fire Extinguishing Appliances Warranty

Warranted that during the currency of this Policy, fire extinguishing appliances, as listed hereunder, shall be maintained in efficient working order on the premises to which this Insurance applies. The undernoted appliances for the extinction of fire being kept on the premises insured hereby, and it being declared and understood that there is an ample and constant water supply with sufficient pressure available at all seasons for the same. It is hereby warranted that the said appliances shall be maintained in efficient working order during the currency of this Policy and that there shall be trained private fire brigade on duty during the hours

that any work, trade or process is carried out within the premises; during other hours at least the same number of security guards on duty must be capable of operating the available fire fighting facilities, by reason whereof, a discount of ______% is allowed on the premium chargeable under this Policy. LIST OF FIRE EXTINGUISHING APPLIANCES _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________________________ Fire Extinguishing and Mitigation Cost Clause (Fire Fighting Expense Clause) IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary this Policy extends to include: A) B) Wages of the Insured's employees other than full time members of a works fire brigade. The cost of replenishment of fire fighting appliances and destruction of or damage to materials (including employees clothing and personal effects) during process of fire fighting unless otherwise specifically insured.

Provided always that the liability of the Company in respect of such wages and costs shall be limited to those necessarily and reasonably incurred in extinguishing fires at or adjoining the situation of the property insured by this Policy or immediately threatening to involve such property. The limit of the Company's liability under this clause shall not exceed the amount stated in the Policy Schedule. Flood Endorsement 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 extend to include loss or damage directly caused by flood. DEFINITION: The term "Flood" is defined as the entry of water into the premises insured, from without, due to the inundation of land not usually covered by water, (A) by reason of an extra ordinary high tide or(B) Following typhoon, cyclone

and/or windstorm or (C) due to the bursting or overflowing of rivers, reservoirs, canals and the like. SPECIAL CONDITIONS: 1. It is a condition of this insurance that the Insured undertakes to exercise all ordinary and reasonable precautions for the maintenance and safety of the property.

2. Unless liability is specifically assumed by amendment to this endorsement, the company shall not be liable for loss or damage to the following property: (A) goods in the open, or (B) drains, water courses, boundary walls, garden walls, retaining walls, gates, posts, fences, driveway roads, walks of bulkheads. 3. (A) The Company shall not be liable for: Loss or damage caused directly or indirectly by landslide, subsidence, cloudburst or explosion, whether incidental to flood or not nor by theft whether occurring during or after a flood, nor by the neglect of the Insured to use all reasonable means to save and preserve the property during and after a flood. Loss or damage caused by overflowing, bursting or leakage of water tanks, pipes and other water apparatus; loss or damage caused by overflowing of gutters and downpipes or bursting or overflowing of municipal or other public water supply mains; loss or damage due to seepage, leakage or influx of water from basement walls, including doors, windows and other openings therein, foundations, basement floors and sidewalks or water, which backs up through sewers by flood as defined herein. Loss or damage occasioned by or through or in consequence of the action or order of any government or public authority. Loss or damage to property which at the time of the happening of such loss or damage, is Insured by or would, but for the existence of this Policy, be insured by Marine or Plate Glass Policy or Policies. Consequential loss or damage of any kind or description whatsoever. 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. It is understood and agreed that the Insured shall bear that portion of the loss or damage caused by flood 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 flood occurrence the duration and extent of which shall be limited to 168 consecutive hours. For the purpose of this clause, the following shall be

(B)

(C) a (D)

(E) 4.

5.

considered as separate items of insured property, regardless of what is indicated in the Policy Schedule: 1) Each building, including machinery, equipment and fixtures normal to its operation; 2) All machinery and equipment contained in each building; 3) All stocks in trade (raw materials, work-in-process, supplies and finished goods), contained in each building. 4) All other contents contained in each building.

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. 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. 6. Provided always that all the conditions of the Policy shall apply, except as they may be hereby expressly varied.

Flour Mill Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy All electrical equipment and lighting expenses throughout the mill are properly installed and approved by the municipal or city authority: ... That all electric lamps near wheat-receiving band conveyors be equipped with explosion proof electric lamps or battery (dry cells) operated lamps be used by watchmen and men engaged in examining or oiling the machinery or in temporarily making repairs; ... That magnetic separators be installed before the feed spouts of all scourers, brushes desintegrators and all grinders and prior to the grinding rolls to keep foreign materials from entering; ... That an adequate blower and dust exhaust system be installed to remove dust from within the mill; ... That journal alarm be installed to signal the presence of overheated bearings (which are not of the sealed self-lubricating type); ... That proper grounding methods be employed to prevent the accumulation of static electricity on machines and belts; ... That battery (dry cells) operated lamps or weighted tape or measured rope be used to determine the quantity of stocks or materials in mill bins and silos; ... That no smoking be allowed and no open flame, lantern or torch be used in or near the mill or elevator; and

... That all the safety devices mentioned above shall be kept in proper working order at all times. Breach of any of these conditions shall render this Policy null and void and the Company shall no longer be liable for any loss which may occur. Garage Warranty Warranted that all spare supply of gasoline be kept in a separate enclosed compartment of fire-resisting material, that no cleaning of automobiles or automobile part by means of gasoline spray be carried on.

Breach of these conditions will render this Policy null and void. Insured's Interest on Property Covered IT IS HEREBY DECLARED AND AGREED that the sum insured under this Policy includes properties of the Insured and/or for which they are responsible on case of loss or damage during the currency of this Policy. Other Interests Clause It is agreed that the Policy insured the interest of any party which has a right in law due to the terms of any act, by-law agreement, legal document or instrument whereby that party has a financial or other interest on any property Insured hereby. Provided that: A) The interest of such other party are not more specifically Insured. B) Any act or neglect of the Insured will not prejudice the rights of such other interested party provided that they shall upon becoming aware of any act or neglect whereby risk of loss, destruction or damage has increased, give notice in writing to Insurers and pay any additional premium that Insurers may require. Internal Removal Clause IT IS HEREBY DECLARED AND AGREED that in the event of removal of property from one building to another at any of the aforementioned situations being inadvertently not advised to the Company, the Insurance on such property being made as from the date of removal as soon as the oversight is discovered provided such advice is made within 60 days of the actual removal. Other Insurance Clause It is understood that except as may be stated on the face of this Policy, there is no other Insurance on the property hereby covered and no other Insurance is allowed except by the consent of the Company endorsed hereon Any false declaration or breach of this condition will render this Policy null and void. Other Interest Clause It is agreed that the Policy insures the interest of any party which has a right in law due to the terms of any act, by-law, agreement, legal document or instrument whereby that party has a financial or other interest in any property insured hereby. Provided that:

A) The interest of such other party are not more specifically insured. B) Any act or neglect of the Insured will not prejudice the rights of such other interest party provided that they shall upon becoming aware of any act or neglect whereby risk of loss, destruction or damage has increased, gice notice in writing to Insurers and pay any additional premium that Insurers may require.

Industrial Warranty I IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, none of the following trades and/or industries or manufacture of the products listed shall be engaged in or carried on in the building to which this Insurance applies nor in any building communicating therewith. Breach of this condition will render this Policy null and void. Abaca decorticating, Abrasive paper, Acetylene, Acids, Adhesives, Agricultural equipment, Aircraft hangars & maintenance shops, Alcohol dealers and rectifiers, Ammonia, Artificial flowers, Asbestos goods, Asphalt, Asphalt (impregnated) paper, Baking powder, Bamboo products, Basket weavers, Battery Assembly, Bed sheets and pillow cases, Bicycle manufacture and repair, Blacksmiths, Bleaching textile), Blind(non-plastic), Bone meal, Bookbinders, Boot makers or repairers, Bottle tops, Bottles, Brushes (non-plastic), Buttons (non-plastic), Cable(coated), Cable (non-coated), Calcium carbide, Candle makers, Carbon black, Cardboard, Carpet weaving (no warranty), Carpet weaving (warranted no plastic or foam backing), Cassava, Cathode Ray tube, Cattle feed, Caustic soda, Celluloid manufacturing, Celluloid processing, Ceramics, Charcoal works, Chemical dye works using flammable or explosive materials or substances, Chemical works using explosive materials or substances Chemical works using flammable materials or substances, Chemists (mixing and blending) subject to non-hazardous chemists and druggists warranty, Chewing gum, Cloth cleaners-no flammable solvents, Clothiers, Coconut matting, Coconut oil, Cold Storages using other than freon refrigerant-subject to refrigerating rooms & cold stores warranty, Confectioners (no warranty), Cork manufacturing or processing, Corn meals (no oil extraction), Cosmetics, Creosoting, Cushions, Dessicated coconut-without Dessicated Coconut Warranty, Distilleries, Druggists (mixing, blending or packaging) subject to non-hazardous Chemists & Druggists Warranty, Dry Cleaners-no flammable solvents, Dry cleaning-without warranty, Dyeing and Printing(textile), Electric motors & generators, Electrical goods & appliances, Electrical lamp & bulb, electroplating, Embroidery, Enamelware, Engineering works, Explosives, Fat rendering works, Feather cleaning, Fertilizer Plants other than those listed under "Industrial Warranty II and III", Fertilizer plants using ammonium nitrate, Ammonium Sulphate, Sodium Nitrate, Calcium-Sodium Nitrate and similar compound fertilizers, Fertilizers (grinding, mixing or packaging of phosphates and/or potach only), Fiber spinning of plant fibers, Fiber weaving and finishing (abaca, coco-coir, sisal, ramie, maguey, jute, jusi & cotton and synthetics), Fiberglassreinforced plastics, Fiberglass (without plastics), Film manufacturing, Film Studios, Fireworks, Fish Meals, Flour Mills not subject to Flour Mills not

subject to Flour Mill Warranty, Foam rubber, Food essences, Food Flavoring, Forges, Foundries, Furnaces, Garments, Glass works, Glue, Gramophone record cutting, Handbags, Hardboards, Hats, Heavy machinery, Hemp braiders-modern, Hydrogen plants, Ice using other than freon refrigerant-subject to Refrigerating Rooms and Cold Stores Warranty, Japanners, Jewelry, Kapok mills, Knitting-no warranty, Knitting-subject to Shirt & Knitting Factory Warranty, Lace, Lampshade, Laundries-no flammable solvents, Linoleum, Lithographers, Machine Shops, Matches, Mattresses, Meat and fish products with smoke house, Metal works, Mirrors, Motor car repair shops-not subject to Garage Warranty, Motor car repair shops-subject to Garage Warranty, Musical instruments, Oil Cloth, Oil (mineral distillation and/or processing),

oilworks & canneries (other than mineral oil), Oxygen Plants, Paint (oil based), Paint (rubber based) Lacquer, Paper Products, Paper & Pulp Mills, Paraffin processing into petrochemical raw materials as ethylene, propylene and acetylene, Pencils, Perfumery, Peroxide, Petroleum Distillation and/or Isomerization and/or cracking and/or polymerization, Pharmaceutical producers (mixing, blending and/or packaging)-subject to Non-Hazardous Chemists and Druggists Warranty, Photoengravers, Pillows, Plastic works of all kinds, Polish, Potteries, Printers, Printing ink, Quilt beds, Rag grinding and/or processing, Rattan works, Resin Distillation and/or grinding and/or melting, Rice mills, Rope manufacturing for both artificial and natural fibers, Rubber factories producing crude and/or raw rubber (excluding rubber smoke houses and/or tire recapping, Rubber foam, Rubber goods using carbon disulfide and other than steam heat, Rubber and rubber goods, Rubber smoke houses, Sail makers, Sauce, Sawmills (ordinary), Scrap paper sorting and pressing, Seaweeds, Shipyards, Shirts-subject to Shirt and Knitting Factory Warranties, Shoe and other leatherwear makers or repairers, Slaughter houses without grease extraction or fat rendering, Spinning or artificial fibers, Starch, Steel Fabricating works, Sulphur Refineries, Sulphuric Acid, Tanneries-subject to Tannery Warranty, Tanneries-without warranty, Tar refinery and/or distillery, Tarpaulins, Television studios with live shows admitting the public, Textile weaving and finishing mills, Tiles (baked), Tire recapping, Tobacco curing or recycling plant, Toy manufacturing (excluding metal toys), Typewriter manufacturing, Repairing and servicing, Umbrellas, Upholstery, Varnish, Vinegar works, Vulcanizing, Wood preserving, Woodworkers using hand power or power generated outside the building, Woodworkers using power generated within the building, Yeast. Industrial Warranty II IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, none of the following trades and/or industries or manufacture of the products listed shall be engaged in or carried on in the building to which this Insurance applies nor in any building communicating therewith. Breach of this condition will render this Policy null and void. Abrasive paper, Acetylene, Acids, Adhesives, Aircraft hangars & maintenance shops, Alcohol Dealers & rectifiers, Ammonia, Artificial flowers, Asphalt, Asphalt (impregnated) paper, Baking powder, Bamboo products, Basket Weavers, Bicycle manufacture & repair, Bleaching (textile), Blind-non plastic, Bone meal, Bookbinders, Boot Makers or repairers, Bottle tops, Brushes (nonplastic), Cable (coated), Calcium carbide, Candle makers, Carbon black, Cardboard, Carpet weaving (no warranty), Carpet weaving (warranted no plastic or foam backing), Cathode ray tube, Cattle feed, Celluloid manufacturing,

Celluloid processing, Ceramics, Charcoal works, Chemical dye works using flammable or explosive materials or substances, Chemical works using explosive materials or substances, Chemical works using flammable materials or substances, Chewing gum, cloth cleaners-no flammable solvents, Coconut matting, Cold stores using other than freon refrigerant subject to Refrigerating Rooms and Cold Stores Warranty, Confectioners (no warranty), Cork manufacturing or processing, Cosmetics, Creosoting, Cushions, Desiccated coconut-without Dessicated Coconut Factory Warranty, Dry cleaners-no flammable solvents, Dry cleaning-without warranty, Dyeing and printing (textile), Electrical goods and appliances, Electrical lamp and bulb, Electroplating, Enamelware, Explosives, Fat rendering works, Feather cleaning, Fertilizer plants other than those listed under "Industrial

Occupancy II and III", Fertilizer plants using Ammonium Nitrate, Ammonium sulphate, Sodium nitrate, Calcium-sodium nitrate and similar compound fertilizers, Fiber spinning of plant fibers, Fiber weaving and finishing (abaca, coco-coir, sisal, ramie, maguey, jute, jusi & cotton and synthetics), Fiberglass-reinforced plastics, Fiberglass-(without plastics), Film Manufacturing, Film studios, Fireworks, Flour mills not subject to Flour Mill Warranty, Foam rubber, Food essences, Food flavoring, Glue, Handbags, Hardboards, Hats, Hydrogen plants, Ice using other than freon refrigerant, subject to Refrigerating Rooms & Cold Stores Warranty, Japanners, Jewelry, Kapok mills, Knitting-no warranty, Lampshade, Laundries-no flammable solvents, Linoleum, Lithographers, Matches, Mattresses, Mirrors, Motor car repair shop-not subject to Garage Warranty, Motor car repair shop-subject to Garage Warranty, Musical instruments, Oil cloth, Oil (mineral Distillation and/or processing), Oil works and canneries (other than mineral oil), Oxygen plants, Paint(oil based), Paint (rubber based), Lacquer, Paper Products, Paper & pulp mills, Paraffin processing into petrochemical raw materials as ethylene, propylene and acetylene, Pencils, Perfumery, Peroxide, Petroleum distillation and/or isomerization and/or cracking and/or polymerization, Photoengravers, Pillows, Plastic works of all kinds other than cutting and shaping only, Polish, Potteries, Printers, Printing ink, Quilt beds, Rag grinding and/or processing, Rattan works, Resin Distillation &/OR grinding &/or melting, Rice mills, Rope manufacturing for both natural & artificial fiber, Rubber foam, Rubber goods using carbon disulfide and other than steam heat, Rubber and rubber goods, Rubber smoke houses, Sail makers, Sauce, Sawmills (ordinary), Scrap paper sorting and pressing, shipyards, Shoe and other leather makers or repairers, Spinning of artificial fibers, Starch, Sulphur refineries, Sulphuric Acid, Tanneries-subject to Tannery Warranty, Tanneries-without warranty, Tar refinery and/or distillery, Tarpaulins, Television studios with live shows admitting the public, Textile weaving & finishing mills, Tile (baked), Tire recapping, Toy Manufacturing (excluding metal toys), Typewriter manufacturing, Repairing and servicing, Umbrellas, Upholstery, Varnish, Vinegar works, Vulcanizing, Wood preserving, Woodworkers using hand power or power generated outside the building, Woodworkers using power generated within the building. Industrial Warranty III IT IS HEREBY DECLARED AND AGREED that the currency of this Policy, none of the following trades and/or industries or manufacturing of the products listed shall be engaged in or carried on in the building to which this Insurance applies nor in any building communicating therewith. Breach of this condition will render this Policy null and void.

Acetylene, Adhesives, Ammonia, Asphalt, Asphalt(impregnated) paper, Bone meal, Calcium carbide, Candle makers, Carbon black, Carpet weaving-no warranty, Cattle feed, Celluloid manufacturing, Celluloid processing, Charcoal works, Chemical dye works using flammable or explosive materials or substances, Chemical works using explosive materials or substances, Chemical works using flammable materials or substances, Coconut matting, Creosoting, Cushions, Dry cleaning-without warranty, Explosives, Feather cleaning, Fertilizer plants other than those listed under "Industrial Occupancy II and III", Fiber spinning of plant fibers, Fiberglass-reinforced plastics, Film Manufacturing, Fireworks, Fish meals, Foam plastics of all kinds and

other plastic goods except those using nylon, Phenol formaldehyde, Cresol Formaldehyde, Melanine formaldehyde, Polyvinyl chloride and/or penol, Furfural polystyrene, Polythene, Methyl methracrylate, Cellulose acetate butyrate, Polyvinyl butyrate, Ethyl cellulose &/or cellulose propionate (subject to Plastics Goods Factories Warranty), Foam rubber, Glue, Hydrogen plants, Kapok mills, Linoleum, Mattresses, Motor car repair shops-(not subject to Garage Warranty), Oil cloth, Oil (mineral) distillation and/or processing, Oxygen plants, Paint (rubber based) lacquer, Paraffin processing into petrochemical raw materials as ethylene, Propylene and acetylene, Peroxide, Petroleum distillation and/or isomerization and/or cracking and/ or polymerization, Pillows, Polish, Printing ink, Quilt beds, Rag grinding &/or processing, Resin distillation &/or grinding &/or melting, Rubber foam, Rubber goods using carbon disulfide and other than steam heat, Rubber smoke houses, Sawmills (ordinary), Scrap paper sorting and pressing, Tannerieswithout warranty, Tar refinery and distillery, Tarpaulins, upholstery, Varnish, Wood preserving, Woodworkers using power generated within the building. Industrial Warranty IV IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, none of the following trades and/or industries or manufacture of the products listed shall be engaged in or carried on in the building to which this Insurance applies nor in any building communicating therewith. Breach of this condition will render this Policy null and void. Bone meal, Celluloid processing, Chemical works using explosive materials or substances, Cushions, Explosives, Fiber spinning of plant fibers, Fiberglassreinforced plastics, Fireworks, Fish meal, Foam plastics from polystyrol and/or polyurethane, Foam rubber, Kapok mills, Mattresses, Pillows, Quilt beds, Rag grinding and/or processing, Rubber foam, Sawmills(ordinary), Scrap paper sorting and upholstery. Knitting Factory Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, no power, other than hand power, or electric power generated at least seven meters from the building to which this insurance applies, will be used, and that no hazardous goods or solvents will be kept in the premises. Breach of this condition will render this Policy null and void. Labels Clause

In case of loss or damage from perils insured against affecting only labels, capsules or wrappers, the loss shall be limited to an amount sufficient to apply new labels, capsules and wrappers and the cost of reconditioning the merchandise and/or goods, provided same amounts to a claim under the terms of the Insurance but in no case shall the Company be liable for more than the Insured value of the damaged merchandise. Liberalization Clause If during the period that insurance is in force under this Policy, or within forty-five (45) days prior to the inception date thereof, on behalf of the Company there be adapted, or filed with and approved by the insurance commission, all in conformity with law, any change in the form attached to

this Policy by which this form of insurance should be extended or broadened, insurance shall insure to the benefit of the Insured thereunder as though such endorsement of substitution of form has been made. Lessees' Clause IT IS HEREBY DECLARED AND AGREED that anything done by the lessee, mortgagor, or the occupier of any building hereby insured whereby the risk of the loss or damage is increased without the authority of knowledge of the freeholder, mortgagee or lessor shall not prejudice the position of the Insured provided that immediately on his becoming aware thereof the Insured shall give notice in writing to the Insurers and on demand pay such reasonable additional premium as the Insurers may require. Library Clause In the event of loss no one volume is to be deemed of greater value than the amount stated in the Policy Schedule unless specifically declared. Lead Insurer Clause The Insured hereby acknowledge that the Insurer named first in the attestation clause of the Policy is the representative of the other Insurers for all purposes connected with this Policy including claims; which appointment shall not be revoked during the currency of the Policy. Any notice given to or received by the first named Insurer shall be deemed to have been given to and received by all of the other Insurers, subject to notification to all other Insurers as soon as practicable thereafter. Loss Clause Notwithstanding the occurrence of a loss, it is understood that the limit will be maintained at all times during the currency of the Policy, and the Insured therefore undertakes to pay extra premium of any loss pro-rata from the date of such loss to the expiry of the period of insurance, the premium being calculated at the rate applicable to the properties destroyed, and such extra premium shall not be taken into account in, and shall be distinct from the final adjustment of premium. Landslide and/or Subsidence and/or Collapse Clause Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that this insurance shall extend to cover direct loss or damage caused by landslide, subsidence and/or collapse. For the purpose of this endorsement, "landslide" shall mean the sliding down of a mass of rocks, earth or artificial fill on a mountain or cliff side,

"subsidence" shall mean the gradual lowering or settling down of a portion of the land due to dynamic causes, mining operations or the like; and "collapse" shall mean the action of falling together, as the sides of a body of land or the body itself by external pressure or withdrawal of the contents, breaking down or falling in. IT IS UNDERSTOOD AND AGREED that the Insured shall bear any loss or damage caused by landslide, subsidence and/or collapse equivalent at least 1% of the actual value of the property at the time of loss, provided, that such loss to be borne by the Insured shall in no case be less than (as stated in the Policy Schedule) nor more than (as stated in the Policy Schedule) for claims arising out of one occurrence.

Long Term Endorsement The Insured under this Policy having established aggregate Sums Insured in excess of Five Million Pesos, is entitled to a discount of (5% OR 7 1/2%)percent, of the net premium for this Policy, during a period of (3 OR 5) years from___________ to________ and to pay the premium(s) annually in advance, it being understood that during the currency of this agreement the Sum(s) Insured may be proportionately* reduced to correspond with any reduction in value (provided aggregate Sums Insured remain above Five Million Pesos, and that the premium(s) may be revised following advice of any alteration in physical hazard). This agreement shall be held to apply to any Policy issued covered by the agreement in substitution for this Policy. within the period

Malicious Damage IT IS HEREBY DECLARED AND AGREED that the insurance under the said riot and strike endorsement shall extend to include malicious damage which for the purpose of this extension shall mean: Loss or damage to the property Insured directly caused by malicious act of any person (whether or not such act is committed in the course of a disturbance of the public peace) not being an act amounting to or committed in connection with an occurrence mentioned in special Condition no. 6 of the said riot and strike endorsement but the Company shall not be liable under this extension for any loss or damage by fire or explosion nor for any loss or damage arising out of or in the course of burglary, housebreaking, theft or larceny or any attempt threat or caused by any person taking part therein. Provided always that all the conditions and provisions of the said riot and strike endorsement shall apply to this extension as if they had been incorporated herein. Misdescription This Insurance shall occupancy. Notice to becomes aware of the from the date of the not be prejudiced by any alteration or misdescription of be given to Insurers immediately after the Insured same and, if required, an additional premium to be paid inception of the increased fire hazard.

Mortgagee Clause IT IS HEREBY DECLARED AND AGREED that loss or damage, if any, under this Policy shall be payable to the mortgagee, as specified in the Policy

Schedule, as their interest may appear subject to terms and conditions, warranties and clauses of this Policy. It is expressly understood that this Policy or any renewal thereof shall not be cancelled without prior written notification to and conformity by the said mortgagee/s. No Control Clause This Policy shall not be affected by failure of the Insured to comply with any of the warranties or conditions of this Policy in any portion of the premises over which the Insured has no control.

Non-Hazardous Chemists and Druggists Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, no acids or liquids which are inflammable, or which form explosive mixtures with air, or which have a flush point or below 300F, or which produce explosive cases, combustible materials, or high heat when in contact with common metals shall be permitted in the building to which this Insurance applies and/or any building communicating therewith, that no power, other than hand power, or electric power generated at least seven meters from the building to which this Insurance applies, nor fire &/or gas &/or oil heat for trade purposes shall be used at anytime in any building to which this Insurance applies, or any building communicating therewith, unless notice be first given to the Company and suitable extra premium paid if required. Provided, however, that a small quantity of the above mentioned goods, not exceeding 1% of the total value of the ingredients used in the process shall be permitted. Breach of this conditions shall render this Policy null and void, and the Company shall no longer be liable for any loss that may occur. Non-Cancellation Clause IT IS HEREBY DECLARED AND AGREED that this Policy or any renewal thereof shall not be cancelled without prior written notification to and conformity by the mortgagee/s specified in the Schedule. Outbuilding Clause The Insurance by each item under buildings is understood to include walls, gates and fences, small outside buildings, extensions, annexes, exterior staircase, fuel installations, steel or iron frame-work and tanks in the said premises and the Insurance by each under contents extends to include the contents of such outbuildings. Other Insurance Clause It is understood that except as may be stated on the face of this Policy, there is no other Insurance on the property hereby covered and no other Insurance allowed except by the consent of the Company endorsed hereon. Any false declaration or breach of this condition will render this Policy null and void. Off the Road Mobile Equipment This Insurance is hereby extended to cover MOBILE OR AUTOMOTIVE EQUIPMENT subject to a limit of Php2,000,000.00 except any automobile equipment and trailer or semi-trailer used in connection therewith and designed and licensed for use in public road and highways and insured under valid and

collectible Motor Vehicle Insurance whether powered or not including but not limited to loaders, cranes, bulldozers, tractors and trailers while inside buildings or while on ways, street, pathways, yards and open spaces within any of the Insured's premises. Overground Tank Warranty (for Overground Tanks only) Warranted that the storage tank installation or installations are of steel with all roof openings made gastight and with adequate vents.

Pawnbrokers Clause IT IS HEREBY UNDERSTOOD AND AGREED that in case of loss or damage, the value of the pawned goods shall be taken as the amount actually advanced upon them, with interest to the date of loss at the current legal rate. Pre-Existing Conditions Endorsement (1) Notwithstanding anything to the contrary contained in this Policy, it is hereby stipulated and agreed that medical conditions existing prior to the commencement date of this Policy are covered subject to the limit of benefits stipulated in the Policy Schedule. The Company, however, is not liable for medical expenses incurred as a result of confinement due to congenital conditions. Professional Fees The Insurance by this Policy relating to buildings and machinery extends to include architects, surveyors, legal and consulting engineers fees unless separately insured hereby. Any professional fee applies only to those necessarily incurred in the reinstatement of the property insured consequent upon its destruction or damage but not for preparing any claim, it being understood that the amount payable for such fees shall not exceed those authorized under the scales of the various institutions and/or bodies regulating such charges and that the liability for such destruction or damage and fees shall not exceed in the aggregate sum insured by each item. Further limited to the amount stated in the Policy Schedule. Plastic Goods Factories Warranty Warranted that during the currency of this Policy, no plastic materials having a nitro-cellulose base, or solvents and/or accelerators having a flush point below 150F be used or stored on the premises to which this Insurance applies. (The presence of solvent liquids having a flash point below 150F not exceeding 18 liters is allowed). Warranted further than an efficient dust extraction plant be used. Breach of this warranty shall render this Policy null and void. Power and/or Heat Source Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, no power other than hand power or electric power generated at least three meters from the building to which this Insurance applies, nor fire and/or gas and/or oil heat for trade purposes shall be used at any time in the building to which this Insurance applies and/or in any building communicating therewith.

Breach of this condition shall render this Policy null and void and the Company shall no longer be liable for any loss which may occur. Privilege Clause Privilege is granted to make additions, alterations and repairs without limit of time, this insurance to cover therein, to work at all hours, to cease operations and/or to remain vacant or unoccupied without limit of time; to do such work and to keep on hand and use such articles, materials, supplies and apparatus as are usual to the business of the Insured. Any change in the use or occupancy of the property insured or containing the property insured shall not prejudice this Insurance.

Privileges Clause The following privileges are granted by the Company to the Insured: A) For such use of the premises as is usual and incidental to the Insured's operation and to keep and use all materials in such quantities as are usual and incidental to such operation, however this clause shall not override the provisions of the Hazardous Goods Warranty should such attach to this Policy. B) To construct and to make alterations and repairs to the buildings and machinery extended to include telephone, gas, water and electrical instruments, meters, piping, cabling and the like and the accessories thereof, including similar property in adjoining yards or roadways or underground (and pertaining to the building or contents insured by the respective items of this specification) all the property of the Insured or of suppliers or others, for which the Insured is responsible. Public Authorities Clause The Insurance by this Policy relating to buildings and machinery extends to include such additional cost of reinstatement of the destroyed or damaged property thereby Insured as may be incurred solely by reason of the necessity to comply with building or other regulations under or framed in pursuance of any ordinance or with by-laws of any municipal or local authority provided that: 1) The amount recoverable under this extension shall not include: A) The cost in complying with any of the aforesaid regulations or bylaws. I) In respect of destruction occurring prior to the granting of this extension. II) In respect of destruction or damage not insured by the Policy. III) Under which notice has been served upon the Insured prior to the happening of the destruction or damage. IV) In respect of a property or undamaged portions of property. B) The additional cost that would have been required to make good the property destroyed to condition equal to its condition when new had the necessity to comply with any of the aforesaid regulations or bylaws not arisen. The amount of any rate, tax, duty, development or other charge

C)

assessment arising out of capital appreciation which may be payable in respect of the property by the owner thereof by reason of compliance with any aforesaid regulations or by-laws. 2) The work of reinstatement must be commenced and carried out with reasonable dispatch and in any case must be completed within twelve months after the destruction or damage or within such further times as the Company may (during the said twelve months) in writing allow and may be carried out wholly or partially upon another site (if the aforesaid regulations or by-laws so necessitate) subject to the liability of Insurers under this extension not being thereby increased.

3)

If the liability of the Company under (any item of) the Policy apart from this extension shall be reduced by the application of any of the terms and conditions of the Policy then the liability of the Company under this extension (in respect of any such item) shall be reduced in like proportion. The total amount recoverable under any item of the Policy shall not exceed the sum insured thereby. All the conditions of the Policy except in so far as they may be hereby expressly varied shall apply as if it has been incorporated therein.

4) 5)

Property Under Care, Custody or Control (Fire) This Insurance is extended to cover the property as described in the Schedule belonging to or being in the care, custody or control of the Insured for which the Insured is legally liable. Removal of Debris (Stock Debris included) The indemnity provided by this Policy is hereby extended to include the cost of removing debris due to a peril covered by this Policy. Subject otherwise to the terms, exceptions, conditions and limitations of the Policy. The additional premium for this extension has been included in the provisional premium shown in the Schedule. Reinstatement Value Endorsement IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, in the event of the property insured, which shall be kept in a state of thorough repair, under this Policy, being destroyed or damaged the basis upon which the amount payable under (each of the said item of) the Policy is to be calculated shall be reinstatement of the property destroyed or damaged, subject to the following special provisions and subject also to the terms and conditions of the Policy except in so far as the same way be varied hereby. For the purposes of the Insurance under this Memorandum "REINSTATEMENT" shall mean: The carrying out of the after mentioned work, namely:

A. Where the property is destroyed, the rebuilding of the property, if a building, or in the case of other property, its replacement by similar property, in either case on condition equal to but not better or more extensive than its condition when new, provided the Company shall not be liable for any loss occasioned by the enforcement of ant state, municipal or city ordinance regulating the construction or repair of buildings. B. Where the property is damaged, the repair of the damage and the restoration of the damaged portion of the property to a condition substantially the same as but not better or more extensive than its condition when new.

SPECIAL PROVISIONS 1. The work of reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the Insured subject to the liabilities of the Company not being thereby increased) must be commenced and carried out with reasonable dispatch and in any case must be completed within 6 months after the destruction or damage or within such further time as the Company may (during the said 6 months) in writing allow, otherwise, no payment shall be made as if this memorandum has not been incorporated therein. 2. When any property insured under this memorandum is damaged in part only the liability of the Company shall not exceed the sum representing the cost which the Company would have been called upon to pay for reinstatement if such property had been wholly destroyed. 3. No payment beyond the amount which would have been payable under this Policy if this Memorandum had not been incorporated therein shall be made until the cost of reinstatement shall have been actually incurred. 4. Each item under this Memorandum is declared to be separately subject to the following condition of average, namely: If at the time of reinstatement the sum representing the cost which would have been incurred in reinstatement if the whole of the property covered by such item had been destroyed, exceeds the sum insured thereon at the breaking out of any fire or at the commencement of any destruction of or damage to the property by any other peril thereby insured against, then the Insured shall be considered as being his own Insurer for the excess and shall bear a ratable proportion of the loss accordingly. 5. The Company shall not be liable for the cost of removing the debris of the damaged or destroyed property to be reinstated or replaced. 6. No payment beyond the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein shall be made if at the time of any destruction or damage to any property Insured hereunder such property shall be covered by any other Insurance effected by or on behalf of the Insured which is not upon the identical basis of reinstatement set forth herein.

7. When the Insured is unable or unwilling to replace or reinstate the property destroyed or damaged on the same or another site or where by reason of any of the above special provisions no payment is to be made beyond the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein the rights and liabilities of the Company and the Insured in respect of the destruction or damage shall be subject to the terms and conditions of the Policy, including any condition of average therein, as if this Memorandum had not been incorporated therein.

Residential Gasoline Warranty Warranted that no gasoline (except that in car reservoir) be kept in the premises to which this Insurance applies and that no filling or emptying of car reservoir shall be done within said premises. Breach of this warranty shall render this Policy null and void. Residential Occupancy Warranty Warranted that the premises to which this Insurance applies shall be occupied solely as dwelling and that no manufacturing, storage, or trading of goods for commercial purposes shall be carried out within said premises. Breach of this condition renders this Policy null and void. Refrigerating Rooms and Cold Stores Warranty This Policy does not cover loss or damage to the property insured which may be caused by change of temperature resulting from the total or partial destruction on or disablement by fire of the refrigerated plant. Restoration of Records Expenses This Policy extends to cover expenses for the restoration of records subject to the limit stated in the Policy Schedule per occurrence. Rental Subsidy Endorsement IT IS HEREBY DECLARED AND AGREED that this Policy is extended to cover monthly "RENTAL EXPENSE" up to maximum of six (6) months, (as indicated in the Policy Schedule), necessary and being incurred by the Assured as a result of physical loss or damage to the Insured's property due to fire and lightning only. Liability of the Insurance Company under this extension of cover is only applied when the Insured's dwelling house becomes uninhabitable and requires the Insured to move to a temporary residence. Riot and Strike Endorsement IN CONSIDERATION OF THE PAYMENT OF THE AFOREMENTIONED PREMIUM, IT IS HEREBY AGREED AND DECLARED THAT NOTWITHSTANDING ANYTHING IN THE WITHIN WRITTEN POLICY CONTAINED TO THE CONTRARY, THE INSURANCE UNDER THIS POLICY SHALL EXTEND TO COVER RIOT AND STRIKE DAMAGE WHICH FOR THE PURPOSE OF THIS ENDORSEMENT SHALL MEAN (SUBJECT ALWAYS TO THE SPECIAL CONDITIONS HEREINAFTER CONTAINED).

LOSS OF OR DAMAGE TO THE PROPERTY INSURED DIRECTLY CAUSED BY: 1. THE ACT OF ANY PERSON TAKING PART TOGETHER WITH OTHERS IN ANY DISTURBANCE OF THE PUBLIC PEACE (WHETHER IN CONNECTION WITH A STRIKE OR LOCK OUT OR NOT) NOT BEING AN OCCURRENCE MENTIONED IN CONDITION NO. 6 OF THE SPECIAL CONDITIONS HEREOF. 2. THE ACTION OF ANY LAWFULLY CONSTITUTED AUTHORITY IN SUPPRESSING OR ATTEMPTING TO SUPPRESS ANY SUCH DISTURBANCE OR IN MINIMIZING THE CONSEQUENCE OF ANY SUCH DISTURBANCE. 3. THE WILLFUL ACT OF ANY STRIKER OR LOCKED-OUT WORKER DONE IN THE FURTHERANCE OF A STRIKE OR IN RESISTANCE TO A LOCK-OUT.

4. THE ACTION OF ANY LAWFULLY CONSTITUTED AUTHORITY IN PREVENTING OR ATTEMPTING TO PREVENT ANY SUCH ACT OR IN MINIMIZING THE CONSEQUENCES OF ANY SUCH ACT. NOTE: IF CERTAIN ITEMS ONLY OF THE POLICY ARE TO BE INSURED AGAINST RIOT INSERT THE WORDS "ITEMS ... OF" AND "UNDER THE ITEMS HEREIN BEFORE REFERRED TO BUT NONE OTHER" AT AND RESPECTIVELY. SPECIAL CONDITIONS: FOR THE PURPOSES OF THIS ENDORSEMENT BUT NOT OTHERWISE THERE SHALL BE SUBSTITUTED FOR THE RESPECTIVELY NUMBERED CONDITIONS OF THE POLICY THE FOLLOWING: CONDITION 5 THIS INSURANCE DOES NOT COVER: A. LOSS OF EARNINGS, LOSS BY DELAY, LOSS OF MARKET, OR OTHER CONSEQUENTIAL OR INDIRECT LOSS OR DAMAGE OF ANY KIND OR DESCRIPTION WHATSOEVER. B. LOSS OR DAMAGE RESULTING FROM TOTAL OR PARTIAL CESSATION OF WORK OR THE RETARDING OR INTERRUPTION OR CESSATION OF ANY PROCESS OR OPERATION. C. LOSS OR DAMAGE OCCASSIONED BY PERMANENT OR TEMPORARY DISPOSSESSION RESULTING FROM CONFISCATION, COMMANDEERING OR REQUISITION BY ANY LAWFULLY CONSTITUTED AUTHORITY. D. LOSS OR DAMAGE OCCASSIONED BY PERMANENT OR TEMPORARY DISPOSSESSION OF ANY BUILDING RESULTING FROM THE UNLAWFUL OCCUPATION BY ANY PERSON OF SUCH BUILDING. E. LOSS OR DAMAGE DIRECTLY OR INDIRECTLY CAUSED BY OR ARISING FROM OR IN CONSEQUENCE OF OR CONTRIBUTED TO BY NUCLEAR WEAPONS MATERIAL. PROVIDED NEVERTHELESS THAT THE COMPANY IS NOT RELIEVED UNDER (C) OR (D) ABOVE OF ANY LIABILITY TO THE INSURED IN RESPECT OF PHYSICAL DAMAGE TO THE PROPERTY INSURED OCCURRING BEFORE DISPOSSESION OR DURING TEMPORARY DISPOSSESION. (ii) THIS INSURANCE DOES NOT COVER LOSS OR DAMAGE DIRECTLY OR INDIRECTLY CAUSED BY OR ARISING FROM OR IN CONSEQUENCE OF OR CONTRIBUTED TO BY IONISING RADIATIONS OR CONTAMINATION BY RADIOACTIVITY FROM ANY NUCLEAR FUEL OR FROM ANY NUCLEAR WASTE FROM THE COMBUSTION OF NUCLEAR FUEL. FOR THE PURPOSES OF THIS CONDITION 5 (ii) ONLY COMBUSTION SHALL INCLUDE ANY SELF-SUSTAINING PROCESS OF NUCLEAR FISSION. CONDITION NO. 6

THIS INSURANCE DOES NOT COVER ANY LOSS OR DAMAGE OCCASSIONED BY OR THROUGH OR IN CONSEQUENCE, DIRECTLY OR INDIRECTLY, OF ANY OF THE FOLLOWING OCCURRENCES, NAMELY: A. B. C. WAR, INVASION, ACT OF FOREIGN ENEMY, HOSTILITIES OR WARLIKE OPERATION (WHETHER WAR BE DECLARED OR NOT), CIVIL WAR. MUTINY, CIVIL COMMOTION ASSUMING THE PROPORTIONS OF OR AMOUNTING TO A POPULAR RISING, MILITARY RISING, INSURRECTION, REBELLION, REVOLUTION,MILITARY OR USURPED POWER. ACTS OF TERRORISM COMMITTED BY A PERSON OR PERSONS ACTING ON BEHALF OF OR IN CONNECTION WITH ANY ORGANIZATION.

FOR THE PURPOSE OF THIS ENDORSEMENT AN ACT OF TERRORISM MEANS AN ACT, INCLUDING BUT NOT LIMITED TO THE USE OF FORCE OR VIOLENCE AND/OR THE THREAT THEREOF, OF ANY PERSON OR GROUP(S) OF PERSONS, WHETHER ACTING ALONE OR ON BEHALF OF OR IN CONNECTION WITH ANY ORGANIZATION(S) OR GOVERNMENT(S), COMMITTED FOR POLITICAL, RELIGOUS, IDEOLOGICAL OR SIMILAR PURPOSES INCLUDING THE INTENTION TO INFLUENCE ANY GOVERNMENT AND/OR TO PUT THE PUBLIC, OR ANY SECTION OF THE PUBLIC IN FEAR. THIS ENDORSEMENT ALSO EXCLUDES LOSS, DAMAGE, COST OR EXPENSE OF WHATSOEVER NATURE DIRECTLY OR INDIRECTLY CAUSED BY, RESULTING FROM OR IN CONNECTION WITH ANY ACTION TAKEN IN CONTROLLING, PREVENTING, SUPPRESSING OR IN ANY WAY RELATING TO ANY ACT OF TERRORISM. IN ANY ACTION, SUIT OR OTHER PROCEEDING, WHERE THE COMPANY 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. CONDITION NO. 8 UNLESS OTHERWISE EXPRESSLY STATED IN THE POLICY THIS INSURANCE DOES NOT COVER: (a) (b) (c) (d) (e) (f) GOODS HELD IN TRUST OR ON COMMISSION BULLION OR UNSET PRECIOUS STONE ANY CURIOSITY OR WORK OF ART FOR AN AMOUNT EXCEEDING PS200.00 MANUSCRIPTS, PLANS, DRAWINGS OR DESIGNS, PATTERN, MODEL OR MOULDS SECURITIES, OBLIGATIONS, OR DOCUMENTS OF ANY KIND, STAMPS, COINED OR PAPER MONEY, CHEQUES, BOOKS OF ACCOUNT OR OTHER BUSINESS BOOKS EXPLOSIVES

CONDITION NO. 10 THIS INSURANCE MAY AT ANY TIME BE TERMINATED BY THE COMPANY ON NOTICE TO THAT EFFECT BEING GIVEN TO THE INSURED, IN WHICH CASE THE COMPANY SHALL BE LIABLE TO REPAY A RATABLE PROPORTION OF THE PREMIUM FOR THE UNEXPIRED TERM FROM THE DATE OF CANCELMENT. IF THE INSURANCE BE TERMINATED AT THE REQUEST OF THE INSURED THE COMPANY SHALL NOT BE LIABLE TO REPAY THE PREMIUM OR ANY PART OF IT EXCEPT IN SO FAR AS THE INSURANCE APPLIES TO STOCKS IN RESPECT OF WHICH THE COMPANY SHALL RETAIN A PREMIUM CALCULATED ACCORDING TO ITS CUSTOMARY SHORT PERIOD SCALE FOR THE TIME THE SAID INSURANCE HAS BEEN IN FORCE.

CONDITION NO. 20 (WHERE THE FIRE POLICY IS SUBJECT TO AVERAGE) IF THE PROPERTY HEREBY INSURED SHALL AT THE BREAKING OUT OF ANY FIRE OR AT THE COMMENCEMENT OF ANY DESTRUCTION OF OR DAMAGE TO SUCH PROPERTY BY ANY OTHER PERIL INSURED AGAINST BY THIS ENDORSEMENT BE COLLECTIVELY OF GREATER VALUE THAN THE SUM INSURED THEREON, THE INSURED SHALL BE CONSIDERED AS BEING HIS OWN INSURER FOR THE DIFFERENCE AND SHALL BEAR A RATABLE SHARE OF THE AMOUNT OF THE LOSS ACCORDINGLY. EVERY ITEM, IF MORE THAN ONE, OF THE POLICY SHALL BE SEPARATELY SUBJECT TO THIS CONDITION.

CONDITION NO. 20 (WHERE THE FIRE POLICY IS NOT SUBJECT TO AVERAGE) IN ALL CASES WHERE ANY OTHER SUBSISTING INSURANCES, EFFECTED BY THE INSURED OR BY ANY OTHER PERSON OR PERSONS COVERING ANY OF THE PROPERTY HEREBY INSURED, EITHER EXCLUSIVELY OR TOGETHER WITH ANY OTHER PROPERTY IN AND SUBJECT TO THE SAME RISK ONLY, SHALL BE SUBJECT TO AVERAGE, THE INSURANCE ON SUCH PROPERTY UNDER THIS ENDORSEMENT SHALL BE SUBJECT TO AVERAGE IN LIKE MANNER, BUT IN ANY EVENT THE COMPANY SHALL NOT BE LIABLE TO PAY OR CONTRIBUTE IN RESPECT OF ANY LOSS OR DAMAGE BEYOND THE PROPORTION WHICH THE SUM INSURED BY THIS ENDORSEMENT SHALL BEAR TO THE TOTAL INSURANCE, WHETHER EFFECTED BY THE INSURED OR NOT, ON THE SAME PROPERTY AGAINST ORDINARY FIRE LOSS. PROVIDED THAT IT IS HEREBY FURTHER EXPRESSLY AGREED AND DECLARED THAT: (1) ALL THE CONDITIONS OF THIS POLICY SHALL APPLY IN ALL RESPECTS TO THE INSURANCE GRANTED BY THIS EXTENSION SAVE IN SO FAR AS THE SAME ARE EXPRESSLY VARIED BY THE ABOVE SPECIAL CONDITIONS AND ANY REFERENCE TO FIRE IN THE CONDITIONS OF THE POLICY SHALL BE DEEMED TO INCLUDE THE PERILS HEREBY INSURED AGAINST. (2) THE SPECIAL CONDITIONS HEREIN SHALL APPLY ONLY TO THE INSURANCE GRANTED BY THIS EXTENSION AND THE CONDITIONS OF THE POLICY SHALL APPLY IN ALL RESPECTS TO THE INSURANCE GRANTED BY THE POLICY AS IF THIS ENDORSEMENT HAD NOT BEEN MADE THEREON. Riot, Strike and Malicious Damage Endorsement In consideration of the payment of the after mentioned premium, it is hereby agreed and declared that notwithstanding anything in the within written Policy contained to the Company, the Insurance under this Policy shall extend to cover riot and strike damage which for the purpose of this endorsement shall mean (subject to the special conditions hereinafter contained). Loss of or damage to property Insured directly caused by: 1. The act of any person taking part together with others in any disturbance of the public peach (whether in connection with a strike or lock out or not) not being an occurrence mentioned in condition no.6 of the special conditions hereof. 2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in minimizing the consequence of any such disturbance. 3. The willful act of any striker of locked-out worker done in the furtherance of a strike or in resistance to a lock-out.

4. The action of any lawfully constituted authority in preventing or attempting to prevent any such act of in minimizing the consequences of any such act. Note: If certain items only of the Policy are to be Insured against riot fire damage insert the words "items...of" and "under the items herein before referred to but non other" at and respectively. SPECIAL CONDITIONS: For the purposes of this endorsement but not otherwise there shall be substitute for the Respectively numbered conditions of the Policy the following:

CONDITION NO. 5 This Insurance does not cover: A. Loss of earnings, loss by delay, loss of market, or other consequential or indirect loss or damage of any of description whatsoever. B. Loss or damage resulting from total or partial cessation of work or the retarding or interruption cessation of any process of or operation. C. Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority. D. Loss or damage occasioned by permanent or temporary dispossession of any building resulting from the unlawful occupation by any person of such building E. Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material. Provided nevertheless that the Company is not relieved under (C) or (D) above of any liability to the Insured in respect of physical damage to the property insured occurring before dispossession or during temporary dispossession. (ii) This Insurance does not cover loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by ionizing radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purposes of this Condition 5 (ii) only combustion shall include any self-sustaining process of nuclear fission. CONDITION NO. 6 This Insurance does not cover any loss or damage occasioned by or through or in consequence, directly or indirectly, of any of the following occurrences, namely: A. War, invasion, act of foreign enemy, hostilities or warlike operation (whether war be declared or not), civil war. B. Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power C. Acts of terrorism committed by a person or persons acting on behalf of or in connection with any organization.

For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public in fear. This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism.

In any action, suit or other proceeding, where the Company 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. CONDITION NO. 8 Unless otherwise expressly stated in the Policy this Insurance does not cover: 1. 2. 3. 4. 5. 6. Goods held in trust or on commission Bullion or unset precious stone Any curiosity or work of art for an amount exceeding Php200.00 Manuscripts, plans, drawings, pattern, model or moulds Securities, obligations, or documents of any kind, stamps, coined or paper money, cheques, books of account or other business books Explosives

CONDITION NO. 10 This Insurance may at any time be terminated by the Company on notice to that effect being given to the Insured, in which case the Company shall be liable to repay a ratable proportion of the premium for the unexpired term from the date of cancelment. If the Insurance be terminated at the request of the Insured the Company shall not be liable to repay the premium or any part of it except in so far as the Insurance applies to stocks in respect of which the Company shall retain a premium calculated according to its customary short period scale for the time the said Insurance has been in force. CONDITION NO. 20 (where the Fire Policy is subject to average) If the property hereby Insured shall at the breaking out of any fire or at the commencement of any destruction of or damage to such property by any other peril Insured against by this endorsement be collectively of greater value than the Sum Insured thereon, the Insured shall be considered as being his own Insurer for the difference and shall bear a ratable share of the amount of the loss accordingly. Every item if more than one, of the Policy shall be separately subject to this condition. CONDITION NO. 20 (Where the Fire Policy is not subject to average)

In all cases where any other subsisting Insurances, effected by any other person or persons covering any of the property hereby Insured, either exclusively or together with any other property in and subject to the same risk only, shall be subject to average, the insurance on such property under this endorsement shall be subject to average in like manner, but in any event the Company shall not be liable to pay or contribute in respect of any loss or damage beyond the proportion which the Sum Insured by this endorsement shall bear to the total insurance, whether effected be the Insured or not, on the same property against ordinary fire loss.

SPECIAL CONDITIONS Provided that it is hereby further expressly agreed and declared that: 1. All the conditions of this Policy shall apply in all respect to the insurance granted by this extension save in so far as the same are expressly varied by the above special conditions and any reference to fire in the conditions of the Policy shall be deemed to include the perils hereby Insured against. 2. The special conditions herein shall apply only to the insurance granted by this extension and the conditions of the Policy shall apply in all respects to the insurance granted by the Policy as if this endorsement had not been made thereon. IT IS HEREBY DECLARED AND AGREED that the insurance under the said riot and strike endorsement shall extend to include malicious damage which for the purpose of this extension shall mean: Loss or damage to the property Insured directly caused by malicious act of any person (whether or not such act is committed in the course of a disturbance of the public peace) not being an act amounting to or committed in connection with an occurrence mentioned in special Condition no.6 of the said riot and strike endorsement but the Company shall not be liable under this extension for any loss or damage by fire or explosion nor for any loss or damage arising out of or in the course of burglary, housebreaking, theft or larceny or any attempt threat or caused by any person taking part therein. Provided always that all the conditions and provisions of the said riot and strike endorsement shall apply to this extension as if they had been incorporated herein. Scaffolds and Ladders IT IS AGREED AND UNDERSTOOD that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall not indemnify the Insured in respect of any cost of scaffolding and ladders required in connection with the repair and/or replacement of any of the insured items.

Spray Booths Warranty Warranted that, during the currency of this Policy, the application of paints, varnishes, lacquers, enamels and other flammable finishes by spray process shall be done only within a spray booth conforming to the following standards: 1. Spray booths shall be of metal or other non-combustible material for its wall and ceiling so installed that all portions are readily accessible for cleaning and that it should be separated from other operations by not less than 3 feet or by a greater distance and where said clear space shall be kept free from storage or combustible construction.

2. Exhaust fans shall be provided and arranged in such manner that it can easily collect spray dust and exhaust it outside the booth and the building housing it through exhaust ducts. Exhaust fans shall be on non-sparking type or the housing for them of the same material, with electric motors of the exhaust fan located outside of the duct, with fans being driven by a shaft, enclosed belt or chain extending through the wall of the duct. Spray booth shall have "WATER SPRAY" at the intake of the exhaust duct to minimize overspray deposits in the exhaust ducts; 3. No electric lighting fixture or other electrical equipment should be located in the booth or close to the face of the booth where overspray deposits may collect; Lighting may be through wired glass or safety glass panels in the sides or top of the booth. 4. Open flames, application of blow torch and welding or other electrical equipment which may produce sparks in the normal course of operation should not be located within 20 feet of the open face of the spray booth; 5. Spray booths, rooms or other enclosures used for spraying operations shall not be used alternatively for the purpose of drying by any arrangement which will cause a material increase in the surface temperature of the spray booth, room or enclosure. Breach of this condition will render this Policy null and void. Special Conditions for Declaration Policies In consideration of premium by this Policy being provisional in that it is calculated on 75% of the sum insured hereby and is subject to adjustment on expiry of each period of Insurance, the Insured agrees to declare to the Company in writing the value of the insured's stock less any amount insured by policies other than declaration policies on the following basis namely the average of the values at risk on each day of the month and to make such declaration to be signed by the Insured or by a responsible person authorized to sign on the Insured's behalf. If other Policies on a declaration basis cover the stocks hereby Insured, the declaration shall be made so as to apportion to each Policy a share of the

value of the stocks insured under such declaration policies, pro-rata to the respective amounts named in the policies. In the event of a declaration not being made within 90 days of the end of each month then the Insured shall be deemed to have declared the sum insured hereby as the value at risk. On the expiry of each period of insurance the premium shall be calculated at the appropriate rate on the average sum insured, namely the total value declared or deemed to have been declared divided by the number of declarations due to have been made, if the resultant premium be greater than the provisional premium the Insured shall pay the difference; the 75% provisional premium is also the minimum annual premium payable.

If after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is less than the amount that ought to have been declared, then the amount which would have been recoverable by the Insured shall be reduced in such proportion as the amount of the said last declaration bears to the amount that ought to have been declared. Notwithstanding the occurrence of a loss it is understood that the sum insured will be maintained at all times during the currency of the Policy and the Insured therefore undertakes to pay extra premium on the amount of loss pro-rata from the date of such loss to the expiry of the period of Insurance, the premium being calculated at the rate applicable to the stocks destroyed and such extra premium shall not be taken into account in and shall be distinct from the final adjustment of premium. In the event of this Policy being cancelled by the Insured during its currency (whether stocks exist or not) the premium to be retained by the Company shall be the appropriate short period premium calculated on the average amount insured up to the date of the cancellation, but if the Policy is cancelled by the Insured after a loss has occurred the premium to be retained by the Company shall be the pro-rata proportion of the premium calculated on the average amount insured up to the date of cancellation plus the pro-rata proportion of the premium from the date of loss to the expiry of the period of insurance on the amount of the loss paid or the provisional premium whichever is the greater. The maximum liability of the Company shall not exceed the sum insured hereby and premium shall not be receivable on values in excess thereof. The sum insured may, however, be increased by prior agreement with the Company, in which event the new sum insured the date from which it is effective will be recorded on the Policy by endorsement. It is warranted that every Policy covering the Insured's stocks on a declaration basis shall be identical in wording. This Insurance is subject in all respects to the printed conditions of the Policy except in so far as they may be varied to these special conditions. Services Clause (Fire)

The Insurance of this Policy relating to buildings and machinery extends to include telephone, gas, water and electrical instruments, meters, piping, cabling and the accessories thereof, including similar property on adjoining yards or roadways or underground (and pertaining to the building or contents insured by the perspective items of this specification) all the property of the Insured or of suppliers or others, for which the Insured are responsible. Shirt Factory Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy-no power, other than hand power, or electric power generated at least 7 meters from the building to which this Insurance applies, will be used; that no manufacturing processed other than cutting and sewing will be carried on; that no hazardous goods or solvents will be kept in the premises. Breach of this condition will render this Policy null and void.

Subrogation Waiver Clause In the event of a claim arising under this Policy, Insurers agree to waive any right, remedies, or relief to which they may become entitled by subrogation against: A) Any Company standing in the relation of parent to subsidiary or subsidiary to parent to the Insured. B) Any Company which is a subsidiary of a parent Company of which the Insured are themselves a subsidiary. In each case as defined in the relevant section of the Companies acts as applicable in Philippines. Sue and Labor Clause The sum insured extends to include reasonable expenses incurred by the Insured in their efforts to recover, safeguard or preserve the property Insured, to minimize any loss insured thereunder or to prosecute in its own name any claim for indemnity or damages or otherwise in respect of such loss provided the Company has consented to such action. Substitution of Terms In the application of the provisions of this Policy to the perils insured against, wherever the word "FIRE" appears in the printed form of the Policy, there shall be substituted therefor the peril involved or the loss caused thereby as the case requires. Single Occupancy Warranty IT IS HEREBY DECLARED AND AGREED THAT during the currency of this Policy not more than one tenant shall occupy the building to which this Insurance applies or any building communicating therewith, and that no living quarters shall be maintained therein, except by a caretaker employed as such. Breach of this warranty shall render this Policy null and void, and the Company shall no longer be liable for any loss which may occur. Sprinkler Warranty No. 1 The Insured hereby warrants that there is in the aforesaid _____________________ an approved automatic sprinkler installation together

with the under mentioned appliances for the extinction of and that during the currency of this Policy such installation and appliances shall be kept in proper working order with a sufficient supply of water. No liability shall attach to the company under this Policy unless the terms of this warranty are complied with. The following is a list of the appliances above referred to: _____________________________________________________________________________ _____________________________________________________________________________

_____________________________________________________________________________ _____________________________________________________________________________ In consideration of the above warranty and subject to quarterly reports as to the efficiency of the installation and other appliances being supplied for approval by the Company an allowance on the premium of ________________ percent is made to the Insured. Sprinkler Warranty no. 2 The Insured hereby warrants that there is in the aforesaid _____________________________ an approved automatic sprinkler installation for the extinction of fires and that during the currency of this Policy such installation under his/their control shall be kept in proper working order with a sufficient supply of water. No liability shall attach to the Company under this Policy unless the terms of this warranty are complied with. In consideration of the above warranty and subject to annual inspection as to the efficiency of the installation, an allowance on the premium of ___________________ percent is made to the Insured. Spontaneous Combustion Clause IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, this Insurance covers fire loss or damage occasioned by or through Spontaneous Combustion and/or self-heating. It is further declared and agreed that this clause shall not extend to include self-heating unless actual combustion occurs, and it shall be the Insured's responsibility to prove by independent scientific analysis that actual combustion has occurred. In such case, the Insurer's liability shall be limited only to those stocks directly damaged by actual combustion. Sprinkler Leakage IT IS HEREBY DECLARED AND AGREED that the Policy extends to cover damage caused by sprinkler leakage. Loss by sprinkler leakage means direct loss resulting from leakage, discharge of water and other substances from within any part of the sprinkler system, provided that, such discharge or leakage of water shall be accidental and shall not be occasioned by, or happen through: A) B) C) D) Repairs or alteration to the building or premises; The sprinkler installation being either repaired, removed or extended; The order of the government or any municipal, local or other competent authority; Subterranean fire and other convulsion of nature, riot, civil commotion, war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil, war, rebellion, revolution, insurrection or military or usurped power.

The sprinkler system shall be held to mean sprinkler heads, pipes, valves, fittings, tanks (including component parts and support thereof), pumps and private fire protection main, all connected therewith and constituting part thereof.

Seaquake and Tidal Wave Clause IT IS HEREBY DECLARED AND AGREED that notwithstanding anything contained herein to the contrary, 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 on consequence of seaquake and tidal wave. 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 shall be deemed to apply also to loss or damage occasioned by or through or in consequence of seaquake and tidal wave. The Company shall only be liable under this Policy for loss or damage caused by seaquake and tidal wave if the ascertained loss or damage sustained by the Insured in respect of property hereby Insured exceeds either: A) B) 2% of the actual value of such affected property at the time of loss, or The deductible stipulated in the Policy.

whichever is higher. Silent Risk Warranty IT IS HEREBY DECLARED AND AGREED that no fabricating and/or processing and/or manufacturing activity whatsoever shall be carried on within the building to which this Insurances applies or to any building communicating therewith. Breach of this condition shall render this Policy null and void. Subrogation Waiver Clause In the event of a claim arising under this Policy, the Company agrees to waive any right, remedies or relief to which they become entitled by subrogation against: A) Any Company standing in the relation of parent or subsidiary to the parent to the Insured. B) Any Company which is subsidiary to the parent company of which the Insured are themselves a subsidiary. Tannery Warranty IT IS HEREBY DECLARED AND AGREED that during the currency of this Policy, no trade, process or manufacture, as specified hereunder, shall be permitted in the building to which this Insurance applies and/or in any building communicating therewith, unless notice be first given to the Company and a suitable extra premium be paid of required. Trades, processes and manufactures not permitted under this Policy: 1. Melting or dubbing or wax or making thereof. 2. Use of Naphtha, benzene, gasoline or other spirit or bisulphate or carbon or collodion or celluloid preparation. 3. Enamelling, lacquer finishing or patent leather finishing. 4. Grinding or crushing of bark. myrobalans or other tanning materials. 5. Use of stills or filters for recovery of gasoline, naphtha or similar solvents from degressing process.

Breach of this condition shall render this policy null and void, and the Company shall no longer be liable for any loss which may occur. Terrorism & Sabotage Exclusion Clause Notwithstanding any provision to the contrary within this Insurance or any Endorsement thereto it is agreed that this Insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss. For the purpose of this Endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), which from its nature or context is done for or in connection with political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear. This Endorsement also excluded loss, damage, cost or expense of whatsoever nature directly or indirectly cause by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism. If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this Insurance the burden of proving the contrary shall be upon the Assured. In the event any portion of this Endorsement is found to be invalid or unenforceable the remainder shall remain in full force and effect. Temporary Removal Clause IT IS HEREBY DECLARED AND AGREED that the properties insured hereunder are covered whilst temporarily removed for the purpose of cleaning, renovating or repair to any other premises (excluding whilst in the course of transport) in the Philippines. The amount recoverable under this extension shall not exceed the amount stated in the Policy Schedule nor the amount which would have been recoverable had the loss occurred in the premises from which property is temporarily removed. This extension does not apply to: A. Motor vehicles and chassis B. Property so far as it is otherwise Insured Tank Exposure Warranty It is warranted that no mineral oil, mineral spirits or liquid fuel or liquid products or mixture thereof (vegetable or mineral and by whatever name known) giving off inflammable vapour below 150C or 300F shall during the currency of this Policy be stored or deposited in the tank or tanks insured hereby and that such tank or tanks are not exposed to any higher rated risk within a distance of as stated in the Policy Schedule.

Tenant's Improvement Clause The Insurance by this Policy extends to include tenants' improvements and alterations to landlord's property in so far as the Insured is responsible therefore. Transfer Location Clause IT IS UNDERSTOOD AND AGREED that coverage with respect to any location(s) scheduled herein or endorsed hereto remains in force in the event of the transfer of the location(s) subject to the notification of the transfer being made to the Insurance Company within sixty (60) days of the transfer, and further subject to appropriate adjustment of the premium for the subject location from the date of transfer. Limited to the amount stated in the Policy Schedule. TEMPORARY REMOVAL CLAUSE (TEMPORARY REMOVAL INCLUDING STOCKS) SUBJECT TO THE FOLLOWING PROVISIONS, THE PROPERTY INSURED BY THIS POLICY (INCLUDING STOCKS IN TRADE OR MERCHANDISE IF INSURED HEREBY) IS COVERED WHILST TEMPORARILY REMOVED FOR CLEANING, RENOVATION, REPAIR OR OTHER SIMILAR PURPOSES, ELSEWHERE ON THE SAME PREMISES OR TO ANY OTHER PREMISES AND IN TRANSIT THERETO AND THEREFROM BY ROAD, RAIL OR INLAND WATERWAY IN THE PHILIPPINES. THE AMOUNT RECOVERABLE UNDER THIS EXTENSION IN RESPECT OF EACH ITEM OF THE POLICY SHALL NOT EXCEED THE AMOUNT WHICH WOULD HAVE BEEN RECOVERABLE HAD THE LOSS OCCURRED IN THAT PART OF THE PREMISES FROM WHICH THE PROPERTY IS TEMPORARILY REMOVED, NOR, IN RESPECT OF ANY LOSS OCCURRING ELSEWHERE THAN AT THE SAID PREMISES, 10 PER CENT OF THE SUM INSURED BY THE ITEM AFTER DEDUCTING THEREFROM THE VALUE OF ANY BUILDING (EXCLUSIVE OF FIXTURES AND FITTINGS) STOCK IN TRADE OR MERCHANDISE INSURED THEREBY. THIS EXTENSION DOES NOT APPLY TO PROPERTY WHICH ARE INSURED BY A SEPARATE INSURANCE OTHER THAN THIS POLICY NOR, AS REGARDS TO LOSSES OCCURRING ELSEWHERE THAN AT THE PREMISES FROM WHICH THE PROPERTY IS TEMPORARILY REMOVED, TO (A) (B) MOTOR VEHICLES AND MOTOR CHASSIS LICENSED FOR NORMAL ROAD USE. PROPERTY HELD BY THE INSURED IN TRUST, OTHER THAN MACHINERY AND PLANT.

IT IS FURTHER AGREED THAT THIS POLICY IS EXTENDED TO COVER DIRECT LOSS BY REMOVAL FROM THE DESCRIBED PREMISES ENDANGERED BY THE PERILS INSURED AGAINST, ON PRO RATA FOR FIVE DAYS AT EACH PROPER PLACE TO WHICH THE PROPERTY COVERED SHALL NECESSARILY BE REMOVED FOR PRESERVATION FROM THE PERILS INSURED AGAINST. Take-over Endorsement (1) IT IS HEREBY DECLARED AND AGREED that the Federal Phoenix Assurance Company, Inc. Medical Insurance Policy no. ____________________ issued in favor of ____________________________________ referred to as the "INSURED", is a take over Policy from __________________________ Accident & Health Insurance Policy no. ___________ which expires on _________________.

Transfer of Location IT IS UNDERSTOOD AND AGREED that coverage with respect to any location(s) Scheduled herein or endorsed hereto remains in force in the event of the transfer of locations(s), subject to the notification of the transfer being made to the Insurance Company within not more than sixty(60) days of the transfer, and further subject to appropriate adjustment of the premium for the subject location from the date of transfer. Typhoon Endorsement 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 Typhoon. Definition: The term "TYPHOON" as used in this Endorsement shall be understood to mean a typhoon or storm as recorded by the weather bureau. Special Conditions: 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. 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 completely enclosed and roofed. 3. The Company shall not be liable for: (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 be liable for loss and/or damage caused directly or indirectly by backing up of sewers, drains, canals, creeks, rivers and/or storm drainage system. (B) Loss or damage caused by directly or subsidence, cloudburst or explosion, by theft whether occurring during or of the Insured to use all reasonable property during and after a typhoon. indirectly by landslide, whether incidental to typhoon or after a typhoon or by the neglect means to save and preserve the

(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.

(D) Water damage as a result of doors, windows, transoms or roof lights being left open, notwithstanding the existence or presence of typhoon (E) Loss or damage to any building, to the contents thereof, if on the happening of such loss or damage the building was already in a damages, defective, fallen or displaced condition as regards foundations, walls, ceiling, roofs, roof gutters and flushing, roof lights, air vents, doors, windows and transoms.

(F) Loss or damage occasioned by or through or in consequence of the action or order of any government or public authority. 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. 5. It is understood and agreed that the Insured shall bear that portion of the loss or damage 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 indicated in the Policy Schedule. 1. Each building, including machinery, equipment and fixtures normal to its operation; 2. All machinery and equipment contained in each building; 3. All stocks in trade (raw materials, work-in-process, supplies and finished goods), contained in each building; 4. All other contents contained in each building. In case of other insurances on the same item of property, this clause shall apply only one regardless of the number of Policies or Insurers. 6. Provided always that all the conditions of this Policy shall apply, except as they may be hereby expressly varied. Upholstery Warranty Warranted that during the currency of this Policy, no upholstery work shall be done within the premises to which this Insurance applies except within an area permanently designated, clearly delineated and marked as upholstery area. Warranted further that no welding, soldering or any work involving open flame is allowed within 3 meters from the perimeter of the area designated as upholstery area. Breach of this condition shall render the Policy null and void. Underground Tank Warranty (for Underground Tanks only) Warranted that during the currency of this Policy, the storage tank installation or installations comply with the following:

A. Tanks must be of steel and placed at least 2 feet below the surface of the ground, and must be filled only from the open through oil tight pipes fitter with screwed caps or valve; B. Motor vehicles must stand in the open when their tanks are being filled; C. No artificial light other than electric light may be used near tanks or pumps. Volcanic Eruption Endorsement 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 to any of the property insured occasioned by or through or in consequence of volcanic eruption. The Company shall only be liable under this Policy for loss or damage sustained by the Insured in respect of the property hereby insured directly caused by volcanic eruption duly recorded as such by the Philippine Institute of Volcanology and Seismology. It is understood and agreed that the Insured shall bear any loss or damage caused by volcanic eruption equivalent to at least two percent (2%) of the actual value of the property at the time of loss for each claim or series of claims arising out of one occurrence. All losses caused by volcanic eruption (whether continuous or sporadic) during each period of 48 consecutive hours commencing from the first eruption shall be considered as arising out of the same occurrence. This clause shall apply separately to each numbered item insured under this Policy provided that said minimum and maximum deductible shall apply to each Insured building including its contents and rent, if Insured, and provided further that the aggregate deductible shall not exceed 2% of the actual value of each Insured building including its contents and rent, if insured. However, in case of other Insurance on the same item of property or on different interest of one insured involving only one building as provided above, this clause shall apply only once or on the basis of each insured building regardless of the number of policies or Insurers. It is further understood and agreed that in the computation of loss or damage, Condition no. 20 (Average Clause) of this Policy shall apply after the application of the deductible as provided herein. Vehicle Load Clause In the event of the Insured's property being left loaded in vehicles or freight containers overnight while in, or on the premises hereby insured the Company will indemnify the Insured for the loss or damage to such property caused by fire or other peril insured hereby, provided always that the Company's liability shall not exceed the sum insured of such property under this Policy. Vandalism and Malicious Mischief Loss of vandalism and malicious mischief shall mean only willful and malicious destruction of the property but excluding any loss:

-to glass (other than glass building blocks) constituting a part of the building; - to outdoor signs; - by pilferage, theft, burglary and larceny; and - while the building is vacant beyond a period of thirty building under construction shall not be deemed vacant.

days, but a

Waiver of Appraisal Clause If the aggregate claim for any loss does not exceed the amount stated in the Policy Schedule or 5% of the Sum Insured of the item or items affected whichever is the less amount, no special inventory or appraisal of the undamaged property shall be required. Warranty for Embroidery Factories Maintaining a Laundry on Premises Embroidery factories to be subject to "Single occupancy Warranty" or "Industrial Warranty II" as the case may be with the following clause added : Notwithstanding anything herein or hereon contained to the contrary, the Insured's are hereby allowed to maintain on the premises covered by this Policy a laundry, for use exclusively in connection with their own manufacturers and/or property, and to keep a small supply of chemicals for use in the said laundry. Insured's Declaration of Warehouse Occupancy "I" I/We HEREBY DECLARED AND AGREED that only goods or merchandise as specified hereunder shall be stored or kept for sale in the warehouse located as above, or in the open within 9.15 M (30 feet) thereof or in any building communicating therewith. The specified goods permitted for storage are: Asbestos and/or asbestos cement products Bricks Cables or wires in rolls (not insulated) Cement and/or products thereof Galvanized iron sheets Machinery (uncrated) and heavy equipment Metal ingots, billets, bars, tubes, pipes, beams ans sheets Non-flammable gasses such as Carbon dioxide and nitrogen Pig iron and/or cast iron Tiles (ceramic) Insured's Declaration of Warehouse Occupancy "II" I/WE HEREBY DECLARE AND AGREE that no goods or merchandise as specified hereunder shall be stored or kept for sale in the warehouse located as above, or in the open within 9.15 M (30 feet) thereof, or on any building communicating therewith to an extent exceeding in aggregate five percent (5%) of the total value goods or merchandise contained in the said warehouse:

The specified goods or merchandise prohibited for storage: Abaca Acetone Acetylene Acid (concentrated) Alcohol Ammonia, aqueous solutions or spirits of ammonia exceeding 30% concentration Ammunition Antifouling Composition Asphalt Bagasse Bisulphide of Carbon Bone meal Brimstone Buri Calcium Carbide Camphine Camphor Candles Caps for Toy Pistols Carbonic Acid Gas Cartridges Celluliod Collodoin Charcoal, Carbon and/or Lampblack Chlorate of Potash Chlorate of Soda Coal Coconut Fiber (Coir) Cod Liver Oil Codilla Copra and hydraulic presses copra products only Copra products not hydraulic pressed Cotton (raw) Enamels Explosives of all kinds including percussion caps Fibers (natural or synthetic) Fireworks and firecrackers Fish meal Flammable gas in metal cylinders such as cooking gas Flammable gas in metal cylinders such as but not limited to butane, hydrogen, methane, oxygen and acetylene Flammable liquids and/or solutions not listed elsewhere in this tariff with a flash point not below 150C (300F) Flammable liquids, solutions or paste, and/or oils (animal and/or vegetable and/or minerals), with flash points below 150C (300F) such as but not limited to enamels, printing ink, lacquers, paints, paint removers, solvents, thinners, varnish and varnish removers Fodder Fulminating powder Grasses Grease Gum Copal Gum Elemi Gunny bags other than in fully pressed bales

Gunpowder Hay Jute Jute and plastic bags Kapok (loose) Kapok in fully pressed bales only Lacquer paint Lampblack Maguey Matches Mungo Naphthalene Nitroglycerine Oils, animals, fish and vegetables (except medicinal, edible and essential oils) not packed in bottles or tins Oils with flash point below 150C (300F) Paint removers Pharmaceutical chemicals and drugs Phosphorus Pitch Potash Printing Ink Quick Lime (unslaked lime) Rags Resins (natural or synthetic) having a flash point above 150C (300F) Resins (natural or synthetic) having a flash point below 150C (300F) Rockets Rubber and rubber goods (natural or synthetic) Saltpeter Shoddy Sisal Solvents Spirits of all kinds other than in sealed bottles Stearine Straw Sulphur Sulphur dyes or colors Tallow Tar Tarpaulins Thinners Turpentine Varnish in tins only Varnish and/or varnish remover Waste of all kinds Waterproofing compounds (film-forming) with flash point below 150C (300F) Wax Insured's Declaration of Warehouse Occupancy "III" I/WE HEREBY DECLARE AND AGREE that no goods or merchandise as specified hereunder shall be stored or kept for sale in the warehouse located as above, or in the open within 9.15 M (30 feet) thereof or in any building communicating therewith to an extent exceeding in aggregate five percent (5%) of the total value of goods or merchandise contained in the said warehouse.

The specified goods or merchandise prohibited for storage: Acetone Acetylene Acids (concentrated) Alcohol Ammunition Bisulphide of Carbon Bone meal Calcium carbide Camphine Caps for toy pistols Carbonic acid gas Cartridges Celluloid Collodion Copra products not hydraulic pressed Enamels Explosives of all kinds including percussion caps Fireworks and firecrackers Fish meal Flammable gas in metal cylinders such as but not limited to butane, hydrogen, methane, oxygen and acetylene Flammable liquids, Solutions or paste and/or oils (animals &/or vegetable &/or mineral), With flash points below 150C (300F) such as but not limited to enamels, printing ink, lacquer paints, paint removers, solvent thinners, varnish and varnish removers Fulminating powder Gunpowder Kapok (loose) Lacquers Lacquer paint Naphthalene Nitroglycerine Oils with flash point below 150C (300F) Paint removers Phosphorus Printing ink Resins (natural or synthetic) having a flash point below 150C (300F) Rockets Solvents Thinners Varnish and/or varnish removers Waterproofing compounds (film-forming) with flash point below 150C (300F) Workmen Clause Workmen are allowed in and about any of the aforementioned premises for the purpose of carrying out minor alterations, decorations, repairs and general maintenance and the like, without prejudice to the terms of this Insurance.