SCHEDULE26 REQUIRED INSURANCE

Transcription

1 85 SCHEDULE26 REQUIRED INSURANCE Part 1: -Operational Insurance Programme Part 2: -Construction Insurance Programme Part 3: - Broker's Letter of Undertaking Part 4: - Endorsements Part 5: - Not used Part 6 - Definitions

2 86 PART 1 -OPERATIONAL INSURANCE PROGRAMME 1. Property Damage Insurance Insured Parties a) The Authority; b) The Contractor; c) The Finance Parties; d) The Subcontractors. as eo-insured and each for their respective rights and interests in the Project. Insured Property Any real and personal property of whatsoever nature or description which is the subject matter of the Project and which is the property of the Insured Parties or for which the Insured Parties may be responsible, unless more specifically insured under the Contractors' All Risks Insurance. Coverage "All Risks" of physical loss, destruction or damage to the Insured Property from any cause not excluded including Machinery Breakdown in respect of the RWTP. Sum Insured An amount not less than the full reinstatement or replacement value of the Insured Property plus an amount sufficient to cater for the requirements of the principal extensions. Territorial Limits Anywhere in the United Kingdom Period of Insurance From the Service Commencement Date, or in the case of the Works from the date when the interest insured transfers from the Construction Insurance Programme, until the earlier of the Contract Expiry Date and the Termination Date. Cover Features & Extensions a) Terrorism cover. b) Automatic reinstatement of sum insured. LIB01/F6,1DWU

3 87 c) Capital additions clause. d) Debris removal clause. e) 72 hour clause (earthquake and weather). f) Professional fees. g) European authority clause. h) Repair/reinstatement basis of claims settlement with cash option for nonreinstatement. i) Expediting Expenses j) Temporary offsite storage k) Strikes, riot and civil commotion I) Plans and documents m) Professional Fees n) Payments on account o) Computer data reinstatement p) Engineering breakdown q) Temporary Repairs Principal Exclusions a) War and related perils (UK market agreed wording). b) Nuclear/radioactive risks (UK market agreed wording). c) Pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds. d) Wear, tear and gradual deterioration, latent defect, defective design, materials or workmanship, however not excluding consequential damage. e) Unexplained shortages. f) Pollution and contamination to the insured property unless arising from an event which itself is not otherwise excluded Ll 801 /F6J DWU

4 88 g) Waste fuel quality clause h) Re'fractory linings clause i) Consequential financial losses. j) Cyber risks. k) Latent defects, but not consequential damage which is otherwise insured. Maximum Deductible Not to exceed a) 50,000 each loss in respect of non-rwtp facilities b) 250,000 each loss in respect of the RWTP for fire and explosion only, 50,000 all other perils

5 89 2. Business Interruption Insurance 2.1 Insured Parties a) The Contractor; b) The Finance Parties c) The Operating Subcontractor as eo-insured and each for their respective rights and interests in the Project. 2.2 Indemnity In respect of: 1. loss of anticipated Revenue during at least the Minimum Indemnity Period arising from an interruption or interference in the operation of the Project as a result of loss or damage covered under Property Damage Insurance effected in accordance with Item 1 of Part 1 of this Schedule including physical loss or damage which would be indemnifiable but for the application of any deductible; 2. the economic additional expenditure/increased cost of working necessarily and reasonably incurred for the purpose of avoiding or reducing the loss of Revenue of the Contractor which without such expenditure would have taken place, during the Minimum Indemnity Period. 2.3 Sum Insured An amount sufficient to cover the sums the subject of the Indemnity, for the Minimum Indemnity Period, including in respect of additional increased cost of working. 2.4 Maximum Deductible a) 50,000 each loss in respect of non-rwtp facilities b) 60 days in respect of the RWTP 2.5 Minimum Indemnity Period 12 months for non-rwtp facilities

6 90 42 months for the RWTP 18 months in respect of machinery breakdown (RWrP only) 2.6 Period of Insurance From the Service Commencement Date, or in the case of the Works from the date when the interest insured transfers from the Construction Insurance Programme, until the earlier of the Contract Expiry Date and the Termination Date. 2.7 Cover Features & Extensions a) Denial of access. b) Terrorism cover. c) Engineering breakdown d) Utilities. e) Accountants clause. f) Automatic re instatement of the sum insured subject to the payment of any additional premium requirement g) Payments on account h) Suppliers extension. i) Additional Increased Cost of Working. 2.8 Principal Exclusions a) Exclusions under the Property Damage Insurance, other than for consequential financial losses as insured hereunder. b) Delayed response by a public body or state authority. 3. Third Party Public and Products Liability Insurance Insured Parties a) The Authority; b) The Contractor; LIB01/F6.1DWU

7 91 c) The Finance Parties; d) The Subcontractors (i.e. the Contractor's counterparties to the project documents) as eo-insured and each for their respective rights and interests in the Project. Interest Legal liability of the Insured Parties to pay damages (including claimants' costs and expenses) in respect of or consequent upon accidental: a) death or bodily injury to or sickness, loss of sight, anguish or shock whether mental or otherwise, or illness or disease contracted by any person; b) loss or damage to property; c) interference to property or any easement, right or air, light, water or way of the enjoyment or use thereof by obstruction, trespass, loss of amenities, nuisance or any like cause happening during the Period of Insurance and arising out of or in connection with the Project. Limit of Indemnity Not less than 25,000,000 in respect of any one occurrence, the number of occurrences being unlimited, but 25,000,000 in the aggregate in respect of products liability and pollution liability. With effect from the RWTP Operational Commencement Date the limit shall be not less than 50,000,000 in respect of any one occurrence, the number of occurrences being unlimited, but 50,000,000 in the aggregate in respect of products liability and pollution liability. Territorial Limits Worldwide excluding USA/Canada other than non-manual visits. Jurisdiction Worldwide (excluding USA and Canada). Period of Insurance From the Service Commencement Date, or in the case of the Works from the date when the interest insured transfers from the Construction Insurance Programme, until the earlier of the Expiry Date and the Termination Date. Cover Features & Extensions

8 92 a) Contractualliability. b) Health & Safety at Work Act(s) clause. c) Defective Premises Act clause. d) Data Protection Act clause. e) Cross liability clause. f) Motor contingent liability. g) Costs in addition to the limit (other than USA/Canada). h) Contingent liability of the Insured Parties for the acts of their sub-contractors. i) Insured to include directors, officers, and employees of the insured parties. j) Consumer Protection Act k) Libel and slander. I) Social functions and activities. m) Infringement of privacy and wrongful arrest. Principle Exclusions a) Liability for death, illness, disease or bodily injury sustained by employees of the insured during the course of their employment i.e. Employers' Liability. b) Liability arising out of the use of mechanically propelled vehicles whilst required to be compulsorily insured by legislation in respect of such vehicles. c) Liability in respect of predetermined penalties or liquidated damages imposed under any contract entered into by the Insured Parties. d) Liability in respect of loss or damage to property in the care, custody and control of the Insured Parties but this exclusion is not to apply to all property belonging to the Authority. e) Liability arising out of technical or professional advice other than in respect of death or bodily injury to persons or damage to third party property. f) Liability arising from the ownership, possession or use of any aircraft or marine vessel.

9 93 g) Liability arising from seepage and pollution unless caused by a sudden, unintended and unexpected occurrence. h) War and related perils (UK market agreed wording). i) Nuclear/radioactive risks (UK market agreed wording). j) Liability arising from toxic mould. k) Liability arising from asbestos. I) Cyber risks. 4. Maximum Deductible Not to exceed 50,000 each occurrence in respect of loss or damage to third party property. (escalated periodically as appropriate) Environmental Impairment Liability Insured Parties a) The Authority; b) The Contractor; c) The Finance Parties; d) The Subcontractors (i.e. the Contractor's counterparties to the project documents) as eo-insured and each for their respective rights and interests in the Project. Interest To indemnify the Insured Parties in respect of all sums that they may become legally liable to pay consequent to a pollution incident and/or action by a relevant authority (e.g. Local Authority or Environment Agency or a judicial authority) or a third party and resulting in a claim or claims first made against the Insured Parties and reported to the Insurer during the policy period. A pollution incident relates to either pre-existing pollution or pollution subsequently caused by the Contractor in connection with the Project and the provision of the Services. Limit of Indemnity Not less than 5,000,000 in respect of any one pollution incident loss, the number of pollution incident losses being unlimited and not less than 15,000,000 in the aggregate for the Existing Landfills and not less than 10,000,000 in the aggregate for non-landfill sites, in respect of seepage, pollution and liability for a maximum period of 5 years. Ll B01/F6J DWU

10 94 Territorial Limits United Kingdom. Period of Insurance From the Service Commencement Date until the earlier of the Expiry Date and the Termination Date. Cover Features & Extensions a) Regulatory or third party claims for on site clean-up of pre-existing and new conditions where otherwise not excluded. b) Regulatory or third party claims for off-site clean-up of pre-existing and new conditions where otherwise not excluded. c) Third party claims for on-site and off-site property damage from pre-existing and new conditions. d) Third party claims for on-site and off-site bodily injury from pre-existing and new conditions. e) Legal costs. f) No retroactive date. g) Emergency costs to prevent a claim. h) The Integrated Waste Management PFI Contract to be an insured contract. Principle Exclusions a) War and related perils (UK market agreed wording). b) Terrorism. c) Nuclear/radioactive risks (UK market agreed wording). d) Asbestos and lead (this exclusion shall not extend to remediation costs with respect to soil and groundwater). e) Intentional, wilful or deliberate non-compliance with any EU, Authority decision or any UK or EU regulation.

11 95 f) Pre-existing conditions related to an old landfill (closed landfill site). This exclusion shall not apply to the Old Connon Bridge Landfill Site in relation to which the Contractor shall seek as wide additional cover as possible from the insurer which insures the first Environmental Impairment Liability policy with effect from16 October The extent of such additional insurance cover is to be agreed between the Contractor and the Authority before the date 3 months following 16 October 2006, and the additional premium relating thereto shall be reimbursed to the Contractor in accordance with the terms of Schedule 35. g) Criminal fines and penalties. h) On-site remediation costs on landfill sites. i) Capital improvements. j) Voluntary site investigation k) Change in use/site development (other than changes in use/development to another waste facility/refurbishment or landfill cell construction). I) Contractual liability save where liability would arise in the absence of such a contract. This exclusion shall not apply if such a contract is scheduled as an insured contract under the policy. m) Damage to property owned, leased, rented, licensed, occupied or loaned to an insured. n) Employers' liability of the Contractor. o) Arising from a claim by an insured against any other person or entity who is also an insured under this insurance save where the claim is made either (a) in relation to an insured contract or (b) by the Authority. p) Costs, charges, or expenses for goods or services of an insured or its parent, subsidiary or affiliate, unless such costs, charges or expenses are emergency expense or are incurred with prior written consent of insurers. q) Known incidents prior to the policy inception date beyond those disclosed to the insurer in the application for the policy arising from a pollution incident. r) Underground storage tanks. s) Liability based upon or arising out of any mildew, mould or other fungi, or their mycotoxins, spores or other byproducts.

12 96 t) Liability arising from naturally occurring substances unless such substances are detected in levels or concentrations in excess of those naturally present at an insured site. u) Known Conditions as follows: a. Landfill gas migration from the eastern boundary of the United Mines landfill site b. The disposal of the Torrey Canyon waste deposited in the abandoned mine shaft at the United Mines site c. List I substances in the groundwater at the United Mines site until such time as the source of the groundwater contamination has been proven not to be the United Mines landfill d. Past and future odour complaints at the Cannon Bridge landfill, subject to receipt and satisfactory review of information pertaining to the cause of the odour releases has been identified and a suitable remediation plan implemented, completed and accepted by the Environment Agency and us, this restriction will be removed for any new pollution incidents. This will include any odours produced during the efforts to reduce the leachate head in phases 1, 2 and 3 along with cell 3c. e. Mecoprop at or emanating from Cannon Bridge Landfill or from the United Mines Landfill until such time as the source has been identified and appropriate action taken. f. Any liability associated with the former landfill operations undertaken on the Wheal Prosper HWRC site, Bodmin and associated refuse transfer station and MRF plant; Tiscott Wood HWRC site, Bude; and Bangers Quarry HWRC site, Launceston except in so far as any loss arises directly from the actions taken by or on behalf of the Contractor. g. Any liability associated with the closed (former dilute and disperse area as shown on the attached plan and referenced as Plan 1) landfill located at the Con non Bridge site (except insofar as any loss arises from the operation of the leachate treatment plant and associated management processes used to treat leachate from this closed landfill) except in so far as any loss arises directly from the actions taken by or on behalf of the Contractor. h. discharge dispersal seepage migration release or escape of any gases arising from former or active mine workings and coal seams Maximum Deductible Not to exceed 1 00,000 each and every loss and 1,000,000 in the aggregate with a maintenance retention not to exceed 20,000 each and every loss thereafter. (escalated periodically as appropriate) LIB01/F6.1DWU

13 97 PART 2- CONSTRUCTION INSURANCE PROGRAMME 1. Contractors' All Risks Insurance Insured Parties a) The Authority; b) The Contractor; c) The Finance Parties; d) The Construction Subcontractors and all other contractors and/or sub-contractors and/or installing suppliers of any tier; e) The Operating Subcontractor where phased handover or commissioning and testing is likely to occur; f) Professional consultants acting for any of the above for their site activities only, as eo-insured and each for their respective rights and interests in the Project. Insured Property All building works, temporary works, materials and all other property of whatsoever nature or description (but excluding construction plant and equipment) for use in connection with or for incorporation therein, and all facilities relating to the service, design, supply, erection, installation, testing, setting to work and commissioning of the Works, the property of Insured Parties or for which they may be responsible. Coverage "All Risks" of physical loss, destruction or damage to the Insured Property from any cause not excluded. Sum Insured At all times an amount not less than the full reinstatement or replacement value of the Insured Property plus an amount sufficient to cater for the requirements of the principal extensions. Territorial Limits United Kingdom including offsite storage and whilst in transit (other than by sea and air) including loading and unloading incidental thereto. Period of Insurance Hogan Lovalls

14 98 From the start of any Works until the date when the interest insured transfers to the Operational Insurance Programme, and in addition the defects liability period specified in the Construction Subcontract. Cover Features & Extensions a) Terrorism cover. b) Professional fees. c) Debris removal and demolition clause, d) 72 hour clause (earthquake and weather). e) Automatic increase clause. f) Additional costs of completion clause,. g) European authorities clause. h) Automatic reinstatement of sum insured clause. i) Munitions of war clause. j) Expediting expenses. k) Preventive measures clause. I) Extended maintenance during the defects liability period for the RWTP, Guaranteed maintenance otherwise. m) Plans and documents. n) Free issue materials, included with sum insured. o) Marine 50/50. p) Strikes, riot and civil commotion. q) Inland transit. r) Payments on account. s) Computer data reinstatement. t) Testing and Commissioning.

15 99 u) Fire Joint Code of Practice. v) Temporary Repairs. w) Unbuilt Portion/inflation on incomplete works. x) Offsite storage and repair. Principal Exclusions a) War and related perils (UK market agreed wording). b) Nuclear/radioactive risks (UK market agreed wording). c) Pressure waves caused by aircraft and other aerial devices travelling at sonic or supersonic speeds. d) Wear, tear and gradual deterioration. e) Unexplained shortages. f) Consequential financial losses. g) Design exclusion LEG03/06. h) Waste fuel quality clause. i) Refractory linings clause. j) Cyber risks. Maximum Deductible Not exceeding a) 350,000 each and every loss arising out of LEG 03/06 and during testing and commissioning or during the extended maintenance period b) 100,000 in respect of losses arising out of fire, lightning, storm, flood, tempest, water subsidence, and/or collapse c) 25,000 all other 2. Delay in Start Up Insurance Ll B01/F6JDWU

16 100 Insured Parties The Contractor; 1) The Finance Parties 2) The Operating Subcontractor where phased handover or commissioning and testing is likely to occur as eo-insured and each for their respective rights and interests in the Project. Indemnity!n respect of: 1. loss of anticipated Revenue during the Minimum Indemnity Period, arising from a delay in completion of the RWTP works only as a result of loss or damage covered under the Contractors' All Risks Insurance effected in accordance with Item 1 of Part 2 of this Schedule, including loss which would be indemnifiable but for the application of any deductible; 2. the economic additional expenditure/increased cost of working necessarily and reasonably incurred for the purpose of avoiding or reducing the loss of Revenue of the Contractor from the delay in completion of the RWTP which without such expenditure would have taken place, during the Minimum Indemnity Period. Sum Insured An amount sufficient to cover the sums the subject of the Indemnity for the Minimum Indemnity Period, including additional increased cost of working. Maximum Deductible 60days Minimum Indemnity Period 42 months for the RWTP. Period of Insurance As per the Contractors' All Risks Insurance for the RWTP works period, excluding the defects liability period.

17 101 Cover Features & Extensions a) Denial of access. b) Utilities,. c) Terrorism cover. d) Automatic Reinstatement of sum insured, subject to the payment of any additional premium requirement. e) Professional fees. f) Payments on account. g) Suppliers extension. h) Additional Increased Cost of Working. 2.8 Principal Exclusions a) The exclusions under the Contractors' All Risks Insurance, other than for consequential financial losses. b) Delayed response by a public body or state authority. 3. Marine Cargo Insurance Insured a) The Authority; b) The Contractor; c) The Finance Parties d) The Construction Subcontractors and all other contractors and/or sub-contractors and/or installing suppliers of any tier; e) Professional consultants acting for any of the above for their site activities only; as eo-insured and each for their respective rights and interests in the Project. Insured Property a) All Property and interest of every description of a critical nature for all transits by sea or air of all goods intended for the RWTP where such items are not otherwise covered by the Contractors All Risk Insurance and are carried for the account and interest of the Insured from risk attachment at factory premises to Site, including offsite storage. Ll B01/F6J DWU

18 102 b) Open cover to accept all sendings despatched during the currency of the policy and to accept all interests at lnsureds' risk in connection with the RWTP. Coverage a) All risks of loss destruction or damage to the Insured Property from any cause not excluded. b) Terrorism cover. Limit of Indemnity For any one sending/any one voyage not less than the full replacement value plus 10% Territorial Limits Europe Jurisdiction Worldwide (excluding USA/Canada). Period of Insurance From the commencement of appropriate transits until the delivery to the Site plus deferred unpacking period. Cover Features & Extensions a) Institute Cargo Clauses (A) b) Institute War Clauses (Cargo) c) Institute Strikes Clauses (Cargo) d) Institute Classification Clauses e) Institute War Cancellation Clauses (Cargo) f) Overland transit cover but only if not covered under Construction "All Risks" Insurance Concealed Damage Clause g) Notice of Cancellation: seven (7) days for war, strikes, riots, and civil commotion, except forty-eight (48) hours for sending to and from the United States of America. Otherwise, non-cancellable. h) Accumulation clause (200%) Principle Exclusions LIB01/F6..1DWU

19 103 a) Ordinary leakage ordinary loss in weight or volume or ordinary wear and tear of the subject matter insured; b) Inherent vice or nature of the subject matter insured; c) Insolvency or financial default of the owners managers charterer's or operators of the vessel or aircraft, unless not material to the claim; d) Un-seaworthiness of the vessel or craft, etc but only where the Insured is aware of the un-seaworthiness; e) Insufficiency or unsuitability of packing f) Delay; g) Vessel not ISM Code certified/solas Convention; h) War and Radioactivity on Land 4. Deductible Not to exceed 100,000 each occurrence. Marine Cargo Delay in Start Up Insured Parties a) The Contractor b) The Finance Parties as eo-insured and each for their respective rights and interest in the Project. Indemnity i) Loss of anticipated revenue of the Contractor anticipated during the Indemnity Period arising from a delay in completion as a result of physical loss or damage covered under Marine Cargo Insurance effected in accordance with paragraph 3 of Part 2 of this Schedule including physical loss or damage which would be indemnifiable but for the application of any deductible. ii) The additional expenditure necessarily and reasonably incurred for the purpose of avoiding or reducing the loss of fixed costs and debt service costs of the Contractor Sum Insured An amount sufficient to cover the sums the subject of the Indemnity for the Maximum Indemnity Period, including in respect of additional increased costs of working. Maximum Indemnity Period 24 months Period of Insurance From the commencement of appropriate transits until the delivery to the Site plus deferred unpacking period. LIB01/F6.1DWU

20 104 Cover Features & Extensions a) As per Marine Cargo policy plus; b) Additional increased costs of working; and; c) Payments on account. Deductible Not to exceed 30 days each occurrence.

21 Third Party Public Liability Insurance Insured a) The Authority; b) The Contractor; c) The Finance Parties; d) The Construction Subcontractors and all other contractors and/or sub-contractors and/or installing suppliers of any tier; e) The Operating Subcontractor where phased handover or commissioning and testing is likely to occur; f) Professional consultants acting for any of the above for their manual site activities only; as eo-insured and each for their respective rights and interests in the Project. Interest Legal liability of the Insured Parties to pay damages (including claimants' costs and expenses) in respect of or consequent upon accidental: a) death or bodily injury to or sickness, loss of sight, anguish or shock whether mental or otherwise, or illness or disease contracted by any person; b) loss or damage to property; c) interference to property or any easement, right of air, light, water or way of the enjoyment or use thereof by obstruction, trespass, loss of amenities, nuisance or any like cause; happening during the Period of Insurance and arising out of or in connection with the Works and the Project. Limit of Indemnity Not less than 25,000,000 in respect of any one occurrence, the number of occurrences being unlimited, but 25,000,000 in the aggregate in respect of pollution and contamination liability.

22 106 With effect from the commencement of Works in relation to the RWTP the limit shall be not less than 50,000,000 in respect of any one occurrence, the number of occurrences being unlimited, but 50,000,000 in the aggregate in respect of pollution and contamination liability. Territorial Limits Worldwide excluding USA/Canada other than non-manual visits. Jurisdiction Worldwide. Period of Insurance From the start of any Works until the date when the interest insured transfers to the Operational Insurance Programme, and in addition the defects liability period specified in the Construction Subcontract. Cover Features & Extensions a) Contractualliability. b) Liability arising out of CDM Regulations. c) Health & Safety at Work Act(s) clause. d) Cross liability clause. e) Motor contingent liability. f) Costs in addition to the limit (other than USA/Canada). g) Munitions of war clause. h) Data Protection Act clause. i) Insured to include directors, officers, and employees of the insured parties j) Consumer Protection Act 1987 k) Libel and slander I) Social functions and activities m) Infringement of privacy and wrongful arrest

23 107 Principle Exclusions a) Liability for death, illness, disease or bodily injury sustained by employees of the insured during the course of their employment i.e. Employers' Liability. b) Liability arising out of the use of mechanically propelled vehicles whilst required to be compulsorily insured by legislation in respect of such vehicles. a) Liability in respect of predetermined penalties or liquidated damages imposed under any contract entered into by the Insured Parties. b) Liability in respect of loss or damage to property in the care, custody and control of the Insured Parties but this exclusion is not to apply to all property belonging to the Authority. c) Liability arising out of technical or professional advice other than in respect of death or bodily injury to persons or damage to third party property. d) Liability arising from the ownership, possession or use of any aircraft or marine vessel. e) Liability arising from seepage and pollution unless caused by a sudden, unintended and unexpected occurrence. f) War and related perils (UK market agreed wording). g) Nuclear/radioactive risks (UK market agreed wording). h) Liability arising from toxic mould. i) Liability arising from asbestos. j) Cyber risks. Deductible Not to exceed 50,000 each occurrence in respect of loss or damage to third party property.

24 108 PART 3- BROKER'S LETTER OF UNDERTAKING {To be typed on Broker's letterhead} Broker's Letter of Undertaking To: The Authority Dear Sirs Agreement dated [ ] entered into between SITA Cornwall Limited (the "Contractor") and Cornwall Council (the "Authority") (the "Agreement") 1. We refer to the Agreement. Unless the context otherwise requires, terms defined in the Agreement shall have the same meaning in this letter. 2. We act as insurance broker to the Contractor in respect of the insurances (which are defined in clause 96 and schedule 26 of the Agreement attached hereto as Appendix A) evidenced by the cover notes attached hereto as Appendix 8 ("Required lnsurances") and in that capacity we confirm that the Required lnsurances: 2.1 where appropriate name you and such other persons as are required to be named pursuant to the Agreement for their respective interests; 2.2 are, to the best of our knowledge and belief (after making all reasonable enquiries), as at today's date, in full force and effect; and that 2.3 all premiums due as at today's date in respect of the Required lnsurances are paid and the Required lnsurances are, to the best of our knowledge and belief, placed with insurers which, as at the time of placement, are reputable and financially sound. We do not, however, make any representations regarding such insurers' current or future solvency or ability to pay claims; and that 2.4 the endorsements set out in Part 4 to Schedule 26 of the Agreement attached hereto as Appendix C are to the best of our knowledge and belief as at today's date in full force and effect. 3. We further confirm that the cover notes attached hereto as Appendix 8 confirm this position. 4. Pursuant to instructions received from the Contractor and in consideration of your approving our appointment or continuing appointment as brokers in connection with the Required lnsurances, we hereby undertake in respect of the interests of the Authority in relation to the Required lnsurances: Ll B01 /F6JDWU

25 Notification Obligations (a) to notify you at least 30 (thirty) days prior to the expiry of any of the Required lnsurances if we have not received instructions from the Contractor to negotiate renewal and in the event of our receiving instructions to renew, to advise you as soon as reasonably practicable, and in any event within 3 working days, of the details thereof; (b) to notify you at least 30 (thirty) days prior to ceasing to act as brokers to the Contractor unless, due to circumstances beyond our control, we are unable to do so in which case we shall notify you as soon as reasonably practicable and in any event within 3 working days; and (c) to pay into the Joint Insurance Account without set off or deduction of any kind or for any reason, all payments in respect of claims received by us from insurers in relation to the Required lnsurances specified in Clause 98 of the Agreement attached hereto as Appendix D. 4.2 Advisory Obligations (a) to notify you as soon as reasonably practicable, and in any event within 3 working days, of any default in the payment of any premium by the Contractor to us tor any of the Required lnsurances; (b) to notify you if any insurer cancels or gives notification of cancellation of any of the Required lnsurances, at least 30 (thirty) days before such cancellation is to take effect or as soon as reasonably practicable in the event that notification of cancellation takes place less than 30 (thirty) days before it is to take effect; (c) to notify you as soon as reasonably practicable of any act or omission, breach or default of the Contractor of which those of our employees directly involved with the placement or administration of the Relevant lnsurances becomes actually aware in their capacity as brokers to the Contractor which acting reasonably they consider may invalidate or render unenforceable in whole or in part any of the Required lnsurances or which may otherwise materially impact on the extent of cover provided under the Required lnsurances; and in accordance with our duty to the Contractor, to advise the Contractor of its duties of disclosure to insurers including: the types of facts, circumstances and beliefs that should generally be disclosed to insurers; and the obligation not to misrepresent any facts, matters or beliefs to insurers.

26 Disclosure Obligations (a) subject to the prior written consent of the Contractor (and we undertake to notify you as soon as reasonably practicable if such consent is withheld} to disclose to insurers all information made available to those of our employees directly involved with the placement of the Relevant lnsurances in their capacity as brokers to the Contractor and any fact, change of circumstances or occurrence made known to such employees which in our reasonable opinion is material to the risks insured against under the Required lnsurances and which properly should be disclosed to insurers (in accordance with the Contractor's duty of disclosure to insurers) as soon as practicable after we are in receipt of such information; and become aware of such information, fact, change of circumstance or occurrence whether prior to inception or renewal or otherwise ; and (b) to treat as confidential all information so marked or otherwise stated to be confidential and supplied to us by or on behalf of the Contractor or the Authority and not to disclose such information, without the prior written consent of the supplier, to any third party other than those persons who, in our reasonable opinion have a need to have access to such information from time to time, and for the purpose of disclosure to the insurers or their agents in respect of the Required lnsurances in discharge of our obligation set out at clause of this letter. Our obligations of confidentiality shall not conflict with our duties owed to the Contractor and shall not apply to disclosure required by an order of a court of competent jurisdiction, or pursuant to any applicable law, governmental or regulatory authority having the force of law or to information which is in the public domain. 4.4 Administrative Obligations (a) to hold copies of all documents relating to or evidencing the Required lnsurances, including but without prejudice to the generality of the foregoing, insurance slips, contracts, policies, endorsements and copies of all documents evidencing renewal of the Required lnsurances, payment of premiums and presentation and receipt of claims; (b) subject to our lien over the Policies for premiums and/or commissions due, to supply to the Authority and/or its insurance advisers (or the Authority's authorised representatives) as soon as reasonably practicable, on written request copies of the documents set out in clause of this letter, and to the extent available, to make available to such persons as soon as reasonably practicable, upon the Authority's request the originals of such documents; (c) to administer the payment of premiums due pursuant to the Required lnsurances such that, in so far as we hold appropriate cleared funds from the Contractor, all such premiums shall be paid to insurers in accordance with the terms of the Required lnsurances;

27 111 (d) to administer the payment of claims from insurers in respect of the lnsurances (the "Insurance Claims") including: (i) negotiating settlement of Insurance Claims presented in respect of the Required lnsurances; (ii) collating and presenting all information required by insurers in relation to Insurance Claims presented in respect of the Required lnsurances, and (iii) insofar as it is relevant and practicable, liaising with and reporting to each Authority throughout the settlement, payment and administration of such Insurance Claims. (e) to advise the Authority as soon as reasonably practicable upon receipt of notice of any material changes from the Contractor which we are instructed to make in the terms of the Required lnsurances and which, if effected, in our reasonable opinion as insurance brokers would result in any material reduction in limits or coverage or in any material increase in deductibles, exclusions or exceptions; and (f) to advise the Authority in advance, to the extent we are actually aware of in advance, of any material change to the terms of, or any lapse, non-renewal and/or cancellation of Required lnsurances. 4.5 Insurance Cost Reporting Procedures (a) to prepare following request, at the expense of the Contractor, a Joint Insurance Cost Report on behalf of both the Contractor and the Authority in accordance with the Insurance Review Procedure as set forth in Schedule 27 of the Agreement attached hereto as Appendix E. We shall ensure that the information in the Joint Insurance Cost Report is fairly represented, based on the information available to us Notification Details Our obligations at clause 4 of this letter to notify or inform you shall be discharged by providing the requisite information in hard copy to: County Solicitor, Cornwall Council, New County Hall, Treyew Road, Truro TR1 3AY, Cornwall

28 112 The undertakings given and obligations set out in this letter are given subject to any liability we may incur to you arising out of or in connection with this letter whether in contract, tort (including but not limited to negligence) or otherwise being limited in aggregate to 5,000,000. All liability we may incur to you, whether in contract, tort (including but not limited to negligence) or otherwise for loss of profit, loss of savings, loss of opportunity or any indirect or consequential loss is hereby expressly excluded. No limit of liability shall apply in the case of death or personal injury caused by our negligence, or in respect of any loss caused by our fraud. The undertakings given and obligations set out in this letter are given subject to insurers right to cancel the Relevant lnsurances, are given solely in our capacity as broker to the Contractor, relate only to the Relevant lnsurances and are subject to our continuing appointment as broker to the Contractor. Following termination of such appointment, we are, for the avoidance of doubt and without prejudice to your accrued rights, released from all our ongoing obligations set out in this letter. You may not rely on any advice which we have given to the Contractor and we do not represent that any of the Relevant lnsurances are suitable or sufficient to meet your needs and you must take steps and advice of your own as you consider necessary in order to protect your own position. In the event that this letter is disclosed to any third party, any and all liability howsoever arising to such third party is hereby expressly excluded to the extent permitted in law. No person, except you, has any rights arising out of this letter under the Contract (Rights of Third Parties) Act This letter shall be governed by and construed in all respects in accordance with the laws of England and Wales. This letter is given by us at the request of the Contractor and with the Contractor's full knowledge and consent as to its terms, who confirms that we are authorised to give and comply with the undertakings and acknowledges that compliance with the undertakings may be in conflict with the interests of the Contractor, as evidenced by the Contractor's signature below. LIB01/F6..1DWU

29 113 Yours faithfully For and on behalf of [Contractor's broker] Accepted for and on behalf of the Contractor LIB01/F6JDWL/

30 114 PART4-ENDORSEMENTS LENDERS' AND AUTHORITY'S ENDORSEMENTS These endorsements are to apply to the Required lnsurances in the Project Agreement and those insurances required by the Common Terms Agreement other than those insurances required by law and Professional Indemnity Insurance. Notwithstanding any other provision of this Policy the following endorsement shall apply: Section 1: Definitions 1. In this endorsement Authority means Cornwall Council Global Agent means Mizuho Corporate Bank, Ltd in its capacity as global agent for the Finance Parties and includes its successors in that capacity Finance Parties for the purposes of this insurance schedule only, has the meaning given to it in the Common Terms Agreement and includes any assignee, transferee, successor or novated replacement or additional creditor of or in relation to any of the foregoing Insured means those parties so described in the Policy Schedule Company means [name of insurance company] Joint Insurance Account means the account held in the joint names of Borrower and the Authority with Mizuho Corporate Bank, Ltd with account number H and sort code Project has the meaning given to it in the Common Terms Agreement Borrower means SIT A Cornwall Limited Borrower Insurance Proceeds Account means the account in the name of the Borrower with Mizuho Corporate Bank, Ltd with account number H and sort code Common Terms Agreement means the common terms agreement dated 16 October 2006 (as amended and restated from time to time) and made between amongst others the Borrower, Hold Co, the Global Agent and the Finance Parties Security Agent means The Law Debenture Trust Corporation p.l.c. LIB01/F6.1DWU

31 115 Section 11: Policy formation I basis 2. Separate Policy 2.1 This Policy shall operate as if there were a separate policy covering each Insured. Accordingly the liability of the Company under this Policy to any one of the Insured shall not be conditional upon the due observance and fulfilment of any other Insured of the terms of this Policy and of any duties imposed upon it relating thereto and shall not be affected by any failure in such observance or fulfilment of any such other Insured 2.2 All the Sums Insured and Limits of Indemnity stated in the Schedule and all limits on the Company's liability stated elsewhere in this Policy shall be the maximum amount payable by Company in the circumstances stated in the Schedule or elsewhere in the Policy irrespective of the number of Persons Entitled to Indemnity under this Policy in respect of any insured Event or during any Period of Insurance 3. Interest of the Finance Parties and the Authority 3.1 The Company acknowledges that the Finance Parties and (in respect of third party liabilities) their respective officers directors and employees are each additional co-insureds under this Policy arising only from the risk which is the subject matter of this insurance and that the premium specified in this Policy provides consideration for their being eo-insured parties 3.2 The Company acknowledges that the Authority and (in respect of third party liabilities) its officers directors and employees are each additional co-insureds under the sections of this Policy relating to material damage risks and third party liability risks arising only from the risk which is the subject matter of this insurance and that the premium specified in this Policy provides consideration for their being eo-insured parties 4. Liability for premium Neither the Global Agent the Finance Parties nor the Authority shall be liable for the payment of any premium under this Policy although they may choose to pay the premium. This shall not relieve Project Co from its obligations to pay any premium under this Policy 5. Disclosure 5.1 The Finance Parties shall have no duty of disclosure to the Company in relation to the Policy. Nevertheless on the written request of the Company the Finance Parties shall provide the Company with access to any relevant due diligence report(s) commissioned by the Finance Parties relating to the Project and the

32 116 Company shall keep such report(s) confidential and shall accept such information without rights of recourse against the party I parties that prepared the said reports 5.2 The Company acknowledge to the Finance Parties alone that (i) they have received adequate information in order to evaluate the risk of insuring Project Co in respect of the risks hereby insured on the assumption that such information is not materially misleading (ii) there is no information which has been relied on or is required by the Company in respect of their decision to eo-insure the Finance Parties or their directors officers employees or agents and (iii) in agreeing to enter into this Policy they have not relied upon or taken into account any information supplied to them by any Finance Party. The acknowledgements provided by the Company in this clause 5.2 shall have no effect on any rights that the Company might have had under or in relation to the Policy against any party (including Project Co) other than the Finance Parties and the Global Agent in the absence of such acknowledgements 5.3 Non-disclosure or misrepresentation by one Insured shall not be attributable to any other Insured who did not actively participate in that non-disclosure or misrepresentation. Without prejudice to the protections afforded to the Insured by this endorsement no one Insured represents or warrants the adequacy or accuracy of any information provided or representation made by or on behalf of any other Insured 5.4 Subject to clause 5.5 hereof, no party other than the Authority has any authority to make any warranty, disclosure or representation in connection with this policy on behalf of the Authority. 5.5 Where any warranty, disclosure or representation is required from the Authority in connection with this policy the Company will contact the Authority in writing (in accordance with clause 15 hereof) and set out expressly the warranty, disclosure and/or representation required within a reasonable period of time from the Authority (regarding itself). Save as set out in such a request from the Company to the Authority, the Authority shall have no duty to disclose any fact or matter to the Company in connection with the policy save to the extent that for the Authority not to disclose a fact or matter would constitute fraudulent misrepresentation and/or fraudulent non-disclosure. Ll B01/F6JDWL/ Hogan Lovel!s

33 117 Section Ill: Rights to avoid I cancel or change Policy terms 6. Non-vitiation 6.1 The Insurers agree that the policy shall not be invalidated as regards the respective rights and interest of each Insured and that the Insurers will not seek directly or indirectly to avoid any liability under this policy because of any act, neglect, error or omission made by any other Insured (whether occurring before or after the inception of the policy), including (without limitation), any failure by any other Insured to disclose any material fact, circumstance or occurrence, any misrepresentation by any other Insured, any breach or non-fulfilment by any other insured whether or not any such act, neglect, error or omission, could, if known at any time, have affected the decision of the Insurers to grant the policy, to agree to any particular term or terms of the policy (including without limitation this provision) and the amount in relation to this policy or to liability which might arise thereunder. 7. Cancellation 7.1 The Company agrees that they shall not seek to cancel or suspend the construction phases of this insurance except for (a) non payment of premium or (b) consistent non compliance by an insured party with insurer's requirements relating to survey or loss control or if (c) there is a breach of the Joint Code of Practice. 7.2 The Company shall promptly notify the Global Agent and the Authority in writing in the event of any suspension cancellation termination or non-renewal of this Policy by the Company or by the Insured. The cover provided by this Policy shall continue in force and unaltered for at least 30 days after written notice of such suspension cancellation termination or non-renewal is given to the Global Agent and the Authority. Nothing in this clause shall give the Company any right to suspend cancel or terminate this Policy which the Company do not otherwise have under this Policy 7.3 The Company shall promptly notify the Global Agent and the Authority in writing of any default in the payment of premium and shall give the Global Agent and the Authority at least 30 days notice in writing before cancelling this Policy for non-payment of premium in order to give an opportunity for that premium to be paid within the notice period. However where no premium has been received cancellation will be effective from the date of first inception of this policy,

34 of any act, omission or event of which the Insurers have actual knowledge (including the non-payment of premium) which might invalidate or render unenforceable in whole or in part the insurance under this policy, as soon as practicable after becoming aware of the same; of any claim under this policy where the claim is in a sum in excess of 50,000 (before deductibles). 8. Changes in cover Prior written consent of the Global Agent and the Authority is required before any reduction in cover or increase in excess or deductible under this Policy takes effect, but this shall not apply to any new risks that are added to the policy. Further, in no event shall the Company give the Global Agent and the Authority less than 30 days prior notice in writing of any proposed reduction in cover or increase in excess or deductible under this Policy. Nothing in this clause shall give the Company any right which they do not otherwise have to reduce cover or increase any Insured's contribution or deductible under this Policy 9. Amendments to Endorsement During the term of this Policy the provisions of this endorsement may only be amended by written agreement between Project Co the Company the Global Agent and the Authority such amendment to be endorsed on the Policy Section IV: Claims 10. Notice of claims 10.1 Notice of claim by the Authority or the Finance Parties or any other party entitled to indemnity under the Policy shall in the absence of manifest error be accepted by Company as a valid notification of claim on behalf of all other lnsureds subject to the full terms of the Policy 11. Claim Payments I Loss Payee Payments made in accordance with this clause 11 shall to the extent of the payment discharge the Company's liability to pay Project Co or any other Insured 11.1 In respect of the insurance under this Policy of material damage risks only All claim payments over 50,000 shall be paid into the Joint Insurance Account. Claims under this or return premium shall be paid into the Joint Insurance Account or to such other account as the Global Agent as loss payee may specify