CHUBB INSURANCE COMPANY OF EUROPE SE

Transcription

1 CHUBB INSURANCE COMPANY OF EUROPE SE 106 Fenchurch Street, London EC3M 5NB, England Telephone: +44 (0) Facsimile: +44 (0) Website: TELECOMMUNICATIONS PACKAGE INSURANCE POLICY CHUBB INSURANCE COMPANY OF EUROPE SE Registered Office: 106 Fenchurch Street, London, EC3M 5NB, United Kingdom. A European company incorporated in England & Wales registered under company number SE13. Authorised and regulated by the Financial Services Authority.

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3 How to read your Telecommunication Package Your Package is made up of the following covers: Policy Schedule Operative Parts The Policy Schedule provides key details about your policy including: your name; address; period of insurance; premium; parts / sections operative; limits; territorial limits; excess / deductible apportionment (if applicable) specification The various covers in this Package contain descriptions of the insurance cover provided therein. Each contains the grant of cover, together with any extensions, exclusions, conditions or definitions applicable to that cover. The Covers are arranged as follows: Part 1 Property Insurance Part 2 Commercial Liability Insurance Part 3 Professional Indemnity Part 4 Commercial Employee Fidelity Insurance Part 5 Cancellation of Event Insurance Part 6 Marine Insurance CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 1 of 176

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5 Introduction This is a Chubb Telecommunication Package. Please read the entire policy carefully. Insuring Agreement Chubb Insurance Company of Europe SE (the Company ) agrees to provide the covers described in each Part of this insurance policy (the Policy ) subject to the following conditions: the Insured must pay or have paid the premium set out in the Schedule. the information contained in any proposal made by the Insured together with any information supplied to the Company on behalf of the Insured form the basis of and are part of this Policy. Please Note All parts of this Package, including the Schedule and any endorsements, shall be read together and considered as one contract. The operative Sections of this Policy are indicated in the Schedule. Unless a particular Section is identified in the Schedule as operative, it is of no effect and no cover is granted under it. Words that appear in bold print are defined in the Definitions. IN RESPECT OF PART 3 PROFESSIONAL INDEMNITY POLICY, COVER IS PROVIDED ON A CLAIMS MADE AND REPORTED BASIS. SAVE AS OTHERWISE STIPULATED, IT APPLIES ONLY IN RESPECT OF CLAIMS FIRST MADE AGAINST THE INSURED AND REPORTED TO THE COMPANY DURING THE PERIOD OF INSURANCE. PLEASE ENSURE YOU READ AND UNDERSTAND THE CLAIMS CONDITIONS CONTAINED THEREIN. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 3 of 176

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7 PROPERTY INSURANCE Part 1 of this Telecommunication Package is as follows: Section 1 Property Damage Section 2 Business Interruption Section 3 Telecommunication Property Section 4 Research & Development Operations Section 5 Impairment of Computer Services Section 6 Money Section 7 Property in Transit Section 8 Contractors All Risks Section 9 Machinery Breakdown Section 10 Computer Breakdown Section 11 UK Terrorism Exclusions Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 5 of 176

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9 PROPERTY INSURANCE Section 1 PROPERTY DAMAGE The Company will pay for damage occurring during the Period of Insurance to property insured at or within 250 metres of an Insured Location shown in the Schedule caused by or resulting from a cause not otherwise excluded. At the Company s option, the Company shall either: pay the value of the property insured (or any part of it that sustains damage) at the time of the damage having regard to physical deterioration, physical depreciation, obsolescence or depletion; or reinstate or replace the property insured (or any part of it that sustains damage). The most the Company will pay is the applicable Limit of Insurance or aggregate per occurrence limit shown in the Schedule. Section 1 Loss Prevention Expenses European Community & Public Authorities (Including Undamaged Property) EXTENSIONS TO COVER Where shown in the Schedule as operative, the following extensions of cover are provided under Section 1 of this Policy, subject to the applicable Limits of Liability or aggregate per occurrence limit shown in the Schedule. Cover under Section 1 is extended to include: The reasonable and necessary costs incurred by the Insured to protect: Building; or General Contents at the Insured Locations from imminent damage caused by or resulting from a cause not otherwise excluded. To the extent possible, the Insured must notify the Company of their intent to incur such costs before any loss prevention action is taken. In any event, the Insured must notify the Company within 48 hours after having taken any loss prevention action. Such additional costs of reinstatement of property insured that suffers damage as may be incurred solely by reason of the necessity to comply with the requirements of: European Community Legislation; or Building or other Regulations made pursuant to any Act of Parliament or Bye-Laws of any Public Authority; or the Company requiring conformity to the applicable Sprinkler Rules of an automatic sprinkler installation which conformed to the applicable Rules when installed but fail to conform to subsequent amendments to those Rules CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 7 of 176

10 European Community & Public Authorities (Including Undamaged Property) Continued (hereafter referred to as the Requirements ) in respect of damage to property insured; and undamaged portions thereof This extension does not cover: 1. the cost incurred in complying with the Requirements: 1.1 in respect of damage occurring prior to the granting of this extension; 1.2 in respect of damage not insured by this Policy; 1.3 under which notice has been served upon the Insured prior to the happening of the damage; 1.4 for which there is an existing requirement which has to be implemented within a given period; or 1.5 in respect of property entirely undamaged 2. the additional cost that would have been required to make good the property which has sustained damage to a condition equal to its condition when new had the necessity to comply with the Requirements not arisen 3. the amount of any charge or assessment arising out of capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with the Requirements. Undamaged Portions Notwithstanding paragraph 1.5 above, cover under this extension shall include the additional cost of reinstatement as described herein in respect of undamaged portions of the property insured provided that: The Company will not pay for such additional cost in respect of any property insured, which has not sustained damage; the amount recoverable shall not exceed in respect of undamaged portions of property insured (other than foundations), more than 15% of the total amount which the Company would have paid had the property insured been totally lost or destroyed. Special Conditions applicable to this provision The work of reinstatement must be commenced and carried out with reasonable despatch and in any case must be completed within twelve months after the damage or within such further time 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 Requirements necessitate); In no event will the Company pay more than the applicable Sum Insured for such property insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 8 of 176

11 Temporary Removal Property insured (other than stock) whilst temporarily removed from an Insured Location for cleaning renovation, repair or similar purposes, and during inland transit to and from such Insured Location within the Territorial Limits. Temporary Removal of Valuable Papers Valuable papers whilst temporarily removed to a building not occupied by the Insured and during inland transit anywhere within the Territorial Limits. Removal of Debris and Cleaning/Clearance of Drains Costs and expenses (unless separately insured) necessarily incurred by the Insured, with the consent of the Company, in: removing debris, dismantling and/or demolishing, shoring up or propping up of the portion or portions of the property insured which have sustained damage; clearing, cleaning and repairing drains gutters sewers and the like on the Insured s property blocked or damaged as a result of damage by a defined peril. This extension does not cover costs or expenses: incurred in removing debris except from the Insured Location and within 250 metres thereof; arising from pollution or contamination of property not insured by this Policy Capital Additions In so far as the same are not otherwise insured: (a) any newly acquired machinery and plant or newly constructed building; (b) alterations additions and improvements to a building subsequent to a certificate of completion; (c) alterations additions and improvements to personal property; (d) alterations additions and improvements to electronic data processing equipment at the Insured Locations but not in respect of any appreciation in value during the current Period of Insurance, provided that the Insured undertakes to give particulars within 60 days of commencement of the liability of the Company to effect specific insurance and before the expiry of the Period of Insurance and to pay an additional premium on demand. Newly Acquired Property Any newly acquired or constructed property insured at a new location within the Territorial Limits. Such cover shall be effective from the date of acquisition or completion or from the date the Insured first acquires an insurable interest, whichever is the sooner. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 9 of 176

12 Newly Acquired Property Continued The cover will end when the first of the following occurs: the Insured provides full particulars and the Company agrees to add such property to this Policy; 60 days pass from the date of acquisition or completion by the Insured; or this Policy expires, The Company may charge an additional premium from the date of acquisition or completion by the Insured if such premises or property is added to this Policy. This Extension does not apply to damage caused by or resulting from flood. Property insured being moved from vacated premises to new premises is not considered newly acquired property. Contracting Purchaser s Interest Inadvertent Omissions Replacement of Locks Leasehold Premises Extension If at the time of damage the Insured has contracted to sell its interest in a building, and the purchase has not been but shall thereafter be completed, the purchaser, on completion of the purchase (if and so far as the property is not otherwise Insured against such damage by them or on their behalf), shall at the option of the Insured be entitled to benefit under this Policy for such damage without prejudice to the rights and liabilities of the Insured or the Company until completion. The Insured having notified the Company of the Insured s intention to insure all property in which they are interested and it being their belief that all such property is insured, if any such property shall be found to have been inadvertently omitted, the Company will deem it to be insured within the terms of this Policy subject to payment of the premium on all such property as from the inception of this Policy, or from the date of the Insured s interest in such property if it is constructed or purchased after the inception of this Policy provided that as soon as the Insured is aware of such error or omission, it declares full details to the Company. Costs incurred as a result of the necessary replacement or adjustment of locks at an Insured Location following burglary or larceny from such location. Cover under this extension is in addition to the applicable Limit of Insurance. To protect the interest of the Insured as tenant in respect of damage to any building leased or rented by the Insured but only: to the extent that the insurance provided by this Policy is broader in meaning or scope than any other Policy of insurance covering such building arranged by or on behalf of the landlord or lessor (any such Policy being hereafter referred to in this Extension as the Underlying Policy ); In the event of the failure of the landlord or lessor to maintain insurance on such building or the failure of the Underlying Policy to operate due to any act of omission unknown to or beyond the control of the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 10 of 176

13 Leasehold Premises Extension Continued Undamaged Tenants Improvements and Betterments Burglary Damage to Buildings Refilling of Fire Extinguishment Appliances Refrigerated Stock Glass Exhibitions, Fair or Trade Shows This insurance shall not be brought into contribution with any cover granted by the Underlying Policy other than in respect of any excess over and above the sums insured, limits or cover applicable under such Policy. To provide the value of undamaged tenants improvements and betterments when the Insured s lease is cancelled: by the lessor; and by a valid condition of the Insured s lease, in consequence of damage to a building or general contents or tenants improvements and betterments. To cover damage to a building at the Insured Locations occupied by the Insured for the business (which is not otherwise insured) for which the Insured is responsible and which arises during the pursuance of burglary or attempted burglary. If the property insured sustains damage by a cause not otherwise excluded, the Company will pay expenses and charges for which the Insured may become liable to pay to any organisation responsible for preserving public safety in respect of the cost of refilling fire extinguishing appliances. To include damage to refrigerated stock at the Insured Locations as a result of deterioration or putrefaction caused by: a rise in temperature as a result of: (a) breakdown of or damage to the refrigerator; (b) non operation of any thermostatic or automatic controlling devices pertaining to the refrigerator; (c) accidental failure of the public supply of electricity not occasioned by the deliberate act of the supply authority action of refrigerant fumes escaping from the refrigerator This extension does not cover damage caused by any wilful act or wilful neglect by the insured or any director partner or employee of the Insured. The reasonable and necessary costs incurred by the Insured in respect of undamaged parts of the fixed glass in consequence of damage to a building. Stock and general contents whilst at any exhibition, fair or trade show including whilst in direct transit to and from the exhibition, fair or trade show venue. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 11 of 176

14 Exhibitions, Fair or Trade Shows Continued Unspecified Locations Installation Automatic Reinstatement of Loss This extension does not cover: electronic data processing property which is not permanently secured to and fully integrated into an exhibit or exhibition stand; fine art; and damage to property insured whilst in or on an unattended vehicle. Stock and general contents whilst at any locations within the Territorial Limits not shown in the Schedule. This extension does not apply to stock and general contents: at any exhibition, fair or trade show; at any newly acquired premises; whilst in transit; at a job site or temporarily warehoused elsewhere awaiting installation at the job site; temporarily removed from an Insured Location for cleaning, renovation, repair or similar purposes; or which is deeds or documents otherwise insured. No payment will be made for damage caused by or resulting from larceny. Stock and general contents whilst at a job site or temporarily warehoused elsewhere awaiting and during installation, awaiting and during tests or awaiting acceptance by the buyer. No payment will be made for: contractors equipment; or stock or general contents not a part of or destined to become part of the installation Cover ends when the first of the following occurs: the Insured s interest in the stock or general contents ceases; the buyer accepts the stock or general contents; the stock or general contents are put to use for its intended purpose; 30 days pass from the date of completion of the installation; or the Policy is terminated. In the absence of written notice by the Company to the contrary, the insurance by this Section shall not be reduced by the amount of any loss. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 12 of 176

15 SPECIAL PROPERTY BASKET Cover under Section 1 is extended by the Special Property Basket. This is a Special Limit of Insurance that the Insured may elect at its discretion to apportion between the following heads of cover: Fine Art The Company will pay for damage to fine art at an insured location caused by or resulting from a cause not otherwise excluded. Leasehold Interest Processing Water Trees, Shrubs, Plants or Lawns Deferred Payments Pairs and Sets The Company will pay for the bonus payment, prepaid rent, sublease profit, tenants lease interest loss incurred by the Insured directly resulting from the cancellation of the Insured s written lease for an Insured Location shown in the Schedule, provided that the cancellation of the lease is: by the lessor; by a valid condition of the Insured s lease; and due to damage to a building caused by or resulting from a cause not otherwise excluded at an Insured Location. The Company will pay the cost to the Insured to replace water that is used in the insured s processing operations and contained in any: above-ground tank; processing equipment; or any associated above-ground piping when such water has been released or rendered unuseable for its intended purpose as a direct result of damage to such tank, equipment or piping caused by or resulting from a cause not otherwise excluded. The Company will pay for damage to trees, shrubs, plants or lawns at an Insured Location caused by or resulting from fire or explosion. The Company will pay to the Insured the difference between the amount owed to the Insured less the market value of the stock following damage caused by or resulting from a cause not otherwise excluded in respect of stock sold and delivered (or in transit) to a customer of the Insured under a credit agreement or instalment or deferred payment plan where, in consequence of damage to such stock, the customer has refused to make payment. The Company will pay for the reduced value of undamaged stock that is part of the Insured s product or any product in the Insured s care custody or control which has become unmarketable as a complete product because of damage to stock caused by or resulting from a cause not otherwise excluded which is part of the same product. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 13 of 176

16 Trace and Access Arson or Theft Reward The Company will pay the costs incurred with the consent of the Company to detect the point of escape of substances, which have caused or resulted in damage to property insured by a cause not otherwise excluded. The Company will pay a reward for information leading to a conviction in respect of arson, burglary, larceny or vandalism of property insured. Municipal Agency, Fire Brigade and Public Safety Service Charges If the property insured sustains damage caused by or resulting from a cause not otherwise excluded, the Company will pay fire brigade charges and other extinguishing expenses and other charges made by any municipal agency or local authority responsible for preserving public safety for which the Insured may be assessed including replacing sprinkler heads. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 14 of 176

17 SPECIAL CONDITIONS SECTION 1 VALUATION Reinstatement Conditions In the event of damage to the property insured under Section 1 (other than stock and electronic data), the basis upon which the amount payable under this Section is to be calculated shall be the cost of: where property insured is destroyed or lost, the rebuilding of the property if a building or in the case of other property its replacement by similar property in either case in a condition equal to but not better or more extensive then its condition when new; or where property insured sustains damage, 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 than or more extensive than its condition when new. Subject to the following Special Provisions: The work of reinstatement (which may at the Company s option be carried out upon another site and in any manner suitable to the requirements of the Insured, subject to the amount that the Company will pay not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment, beyond the amount which would have been payable under Section 1 if this condition had not been incorporated shall be made. When any property insured is lost or damaged in part only, the amount that the Company will pay shall not exceed the sum representing the cost, which the Company could have been called upon to pay for reinstatement if such property insured had been wholly destroyed. No payment beyond the amount which would have been payable under Section 1 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. 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 Section 1 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage shall be subject to the terms and conditions of the Section as if this condition had not been incorporated. No payment beyond the amount which would have been payable under Section 1 if this condition had not been incorporated shall be made if the property insured at the time of its damage shall be insured by any other insurance effected by or on behalf of the Insured which is not upon the same basis of reinstatement. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 15 of 176

18 Day One Basis (Non Adjustable) Stock Electronic Data Recompilation Costs If the building or general contents items in the Schedule to this Policy show declared value and Sums Insured, then the insurance provided by this Policy on the said building or general contents shall be on a Day One Reinstatement basis. The Limit of Liability of the Company is the declared value plus a percentage increase as agreed between the Insured and the Company. Special Provisions: 1. The Insured having stated in writing the declared value of property insured (other than stock or merchandise motor vehicles personal effects or pedal cycles) the premium has been calculated accordingly. 2. At the inception of each Period of Insurance, the Insured shall notify the Company of the declared value of the property insured. In the absence of such declaration, the last amount declared by the Insured shall be taken as the declared value for the ensuing annual period of insurance. 3. Where by reason of any of Special Provisions 1 & 2 above no payment is to be made beyond the amount which would have been payable under Section 1 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage will be subject to the terms and conditions of the Section as if this memorandum had not been incorporated therein except that the sums insured shall be limited to % of the declared value. In the event of damage to stock the basis upon which the amount payable by the Company is to be calculated shall be: The cost to repair or replace stock at the time of damage with material of like kind and quality less allowance for physical deterioration, physical depreciation, obselence or depletion; or In the event that the stock is unrepairable or totally destroyed or lost, and the Insured elects not to replace the property, the Company will pay: (a) the outstanding capital value of the damaged or lost property as recorded in the Insured s books; or (b) the cost of material of like kind and quality less allowance for physical deterioration, physical depreciation, obselence or depletion of the actual cash value, whichever is less. In the event of damage to electronic data the basis upon which the amount payable by the Company is to be calculated shall be the cost incurred by the Insured of reproducing any electronic data contained on any electronic data processing media. Such costs shall include all reasonable and necessary amounts, but shall not exceed that amount shown in the Schedule in recreating, gathering and assembling such electronic data. However, this Policy does not insure any amount pertaining to the value of such electronic data to the Insured or any other party, even if such electronic data cannot be recreated, gathered or assembled. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 16 of 176

19 General Contents and Stock not Owned by the Insured Computer Betterment Contract Price Brands or Trademarks Professional Fees General contents and stock not owned by the Insured (but which if owned by the Insured would be deemed to be general contents or stock) is valued on the same basis as general contents or stock, subject to all other Policy terms and conditions, but the company will not pay more than the amount for which the Insured is contractually liable. Labour, materials and services furnished or arranged by the insured on general contents or stock not owned by the insured is valued based on the actual cost of the labour, materials and services. In the event that new electronic data processing equipment of like kind and quality is not obtainable, equipment which is as similar as possible to that which has sustained damage and which is capable of performing the same function shall be deemed to be new property of like kind and quality and in no event shall this be considered as betterment to the Insured. In respect only of stock sold but not delivered for which the Insured is responsible subject to a sale contract which following damage is cancelled by reason of its condition wholly or to the extent of the damage, the liability of the Company shall be based on the contract price. In case of damage to stock bearing a brand or trademark or which in any way carries or implies the guarantee of the responsibility of the manufacturer or Insured, the salvage value of such damaged property insured shall be determined after removal at the Company s expense in the customary manner of all such brands or trademarks or other identifying characteristics. It is understood that such salvage if any shall be dealt with in agreement with the Insured. In the event of damage to property insured, the basis upon which the amount payable by the Company is to be calculated shall include the cost of Architects, Consulting Engineers, Legal, and other Professional Fees necessarily incurred by the Insured in the reinstatement of the property insured (other than stock) consequent upon its damage but not for preparing any claim under this Policy provided that the Insured includes these costs in the declared value at inception of the period of insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 17 of 176

20 Section 2 BUSINESS INTERRUPTION COVER The Company will pay the amount of loss resulting from interruption of or interference with the Business carried on by the Insured at the Insured Locations consequent upon damage to property insured at or within 250 metres of the Insured Locations caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, provided that cover under this Section 2 is stated as being operative in the Schedule, and subject to the applicable limits of liability or aggregate per occurrence limit. Loss shall be calculated: in accordance with the Basis of Settlement; subject to the Maximum Indemnity Period; and after application of the appropriate deductible, time franchise or waiting period shown as applicable in the Schedule BASIS OF SETTLEMENT Gross Profit Gross Revenue Loss will be calculated by: applying the rate of gross profit to the difference between turnover during the indemnity period and the standard turnover; subtracting any amount by which the Insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in turnover is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of gross profit as may cease or be reduced in consequence of the damage. If the Insured holds a salvage sale during the indemnity period, the turnover from the salvage sale shall be deducted from any reduction in turnover. Loss will be calculated by: determining the difference between gross revenue during the indemnity period and the standard gross revenue; subtracting any amount by which the insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in gross revenue is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of gross revenue as may cease or be reduced in consequence of the damage. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 18 of 176

21 Rent Receivable Increased Cost of Working Additional Increased Cost of Working Flexible First Loss Limit (Gross Profit) Loss will be calculated by: determining the difference between rent receivable during the indemnity period and the standard rent receivable; subtracting any amount by which the insured has reduced the loss by incurring increased cost of working; adding the increased cost of working, but only to the extent such reduction in rent receivable is reduced; and subtracting any sum saved during the indemnity period in respect of such of the charges and expenses of the Insured s business payable out of rent receivable as may cease or be reduced in consequence of the damage. Loss will be calculated by determining the additional expenditure necessarily and reasonably incurred for the sole purpose of minimising any interruption to or interference with the Insured s business during the Indemnity period but not exceeding the sum produced by applying the rate of gross profit or gross revenue (whichever is applicable) to the amount of the reduction thereby avoided. Such additional expenditure shall include the cost of moving to and from and the additional rent of temporary premises, additional rates and taxes thereon and expenses incurred in equipping the said premises to make them suitable for the Insured s business, additional cost in respect of lighting, heating and water, additional cost in respect of additional staff and overtime. Loss will be calculated by determining the additional increased cost of working in excess of the amount payable under the gross profit or gross revenue basis above (whichever is applicable) necessarily incurred during the indemnity period for the sole purpose of : avoiding or diminishing: (a) a reduction in turnover, if gross profit is the applicable Basis of Settlement; or (b) a reduction in gross revenue, if gross revenue is the applicable Basis of Settlement; or (c) a reduction in rent receivable, if rent receivable is the applicable Basis of Settlement resuming or maintaining normal business operations. Loss will be calculated as any combination of: Gross Profit; and Additional Increased Cost of Working as defined herein. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 19 of 176

22 Flexible First Loss Limit (Gross Revenue) Loss will be calculated as any combination of: Gross Revenue; and Additional Increased Cost of Working as defined herein. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 20 of 176

23 Section 2 EXTENSIONS TO COVER Where shown in the Schedule as operative, cover under Section 2 is extended to include loss resulting from the interruption of or interference with the Insured s business in consequence of damage to property of a type insured by this Policy at the locations described below, caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, subject always to the applicable Limit of Liability or aggregate per occurrence limit shown in the Schedule, as follows: Denial of Access Suppliers and Customers Unspecified Locations Any property within one (1) kilometre of any insured location which shall prevent or hinder the use of the Insured Location or access thereto. This extension shall not apply to property of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider. The premises of any of the Insured s direct customers, suppliers, manufacturers or processors of components, goods or materials excluding the premises of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider For the purposes of this extension, suppliers of Specified Suppliers, manufacturers or processors and customers of Specified Customers of the Insured shall be considered Unspecified Suppliers or Unspecified Customers. This extension does not cover any loss, expense or business interruption resulting or arising from damage to property of a type insured by this Policy at the premises of any supplier or customer of the Insured outside the UK caused by or resulting from flood, earthquake or windstorm. Any location not shown in the Schedule at which the Insured s property is stored. This extension does not: cover any loss, expense or business interruption resulting or arising from damage to property of a type insured by this Policy at unspecified locations outside the UK caused by or resulting from flood, earthquake or windstorm; or apply to locations of the Insured s customers, suppliers, manufacturers or processors of components, goods or materials. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 21 of 176

24 Property in Transit Public Utilities Telecommunication Service Provider Property insured whilst: in transit by road, rail or inland waterway, excluding damage to frozen or refrigerated goods as a result of breakdown or failure of refrigeration equipment unless such breakdown or failure is caused by fire collision or overturning of a road vehicle or railway train; and temporarily housed in the course of transit for the purpose of storage, making up, packing or processing caused by or resulting from a defined peril This extension does not apply: if the Insured is acting as a carrier for hire; or to stock and general contents temporarily warehoused elsewhere awaiting and during installation. Property at any: Generating station or sub-station of any public electricity supply undertaking; Land based premises of any public gas supply undertaking or of any natural gas producer linked directly therewith; or Water works and pumping stations of any public water supply undertaking from which the Insured obtains electricity, gas or water or the underground pipes or underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to: property at the premises of any telecommunication service provider; or overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. Property at the premises of any telecommunication service provider or the underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 22 of 176

25 Where shown in the Schedule as operative, cover under Section 2 is extended to include loss resulting from the interruption of or interference with the Business, subject always to the applicable Limit of Liability, if any, or aggregate per occurrence limit as follows: Restrictions on the Use of the Insured s Premises The intervention of a public body authorised to restrict or deny access to the Insured s locations arising from: notifiable disease attributable to food or drink supplied from the location, or 1.2 the discovery of an organism likely to cause notifiable disease; 2. vermin or pests; 3. an accident causing defects in the drain or other sanitary arrangement; 4. an enforcement action taken in the United Kingdom under the Food Safety Act 1990 against products of the Insured which subsequent analysis establishes are not contaminated and are safe for human consumption; or 5. Murder or suicide other than by the Insured, or any Director or Officer of the Insured leading to restriction or denial of the use of the location on the order or advice of the local health authority or other competent authority. Cover under this Extension does not include the costs incurred in cleaning, repair, replacement, and recall or checking of property. For the purposes of this Extension only, the Indemnity Period shall be 3 months. It is a condition precedent to any claim relating to closure or restrictions on the use of the Insured locations due to Legionnaires Disease that the Insured has carried out tests for Legionnaires Disease at the appropriate intervals with satisfactory results. For the purposes of 4 above, the amount payable under this extension shall be the sale value of all products of the Insured which cannot be produced or sold in consequence of the enforcement action, less: any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action; and any sum payable to the insured as compensation under the terms of the Food Safety Act or otherwise The amount payable will be reduced by any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action and any amount awarded as compensation within the terms of United Kingdom legislation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 23 of 176

26 Accounts Receivable Accountants Fees Contractual Penalties Automatic Reinstatement of Loss Damage to the Insured s books of account or other business books or records resulting in the inability to trace or establish outstanding debit balances in whole or in part. The amount payable under this extension shall be the total of sums due to the Insured from customers, less the amount of any such sum evidenced by records not damaged or otherwise established or collected by the Insured, and an amount to allow for probable bad debts which would normally have been uncollectible by the Insured. On hire purchase and deferred payment accounts receivable, unearned interest and service charges shall be deducted. The Company will pay for the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents The Company will pay for the fines and damages (excluding liquidated damages) that the Insured shall be legally liable to pay for breach of a written contract for non-completion or late completion or orders incurred solely in consequence of the damage. In the absence of written notice by the Company to the contrary, the insurance by this Section shall not be reduced by the amount of any loss. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 24 of 176

27 Section 2 Alternative Trading Renewal Professional Accountants Payments on Account Value Added Tax Accumulated Stocks SPECIAL CONDITIONS If during the indemnity period goods shall be sold or services rendered elsewhere than at the Insured locations for the benefit of the Insured s business either by the Insured or by others on their behalf, the money paid or payable in respect of such sales or services shall be brought into account in arriving at the: turnover, if the applicable Basis of Settlement is gross profit; or gross revenue, if the applicable Basis of Settlement is gross revenue, during the indemnity period. The Insured shall, prior to expiry, provide the Company with the estimated gross profit or estimated gross revenue (whichever is applicable) for the financial year most nearly concurrent with the ensuing year of insurance. 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 the claims conditions 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. In the event of loss the Company may in their discretion and if requested by the Insured, make payments on account during the indemnity period. To the extent that the Insured is accountable to the tax authorities for Value Added Tax the Policy shall be exclusive of such tax. In adjusting any loss, account shall be taken, and an equitable allowance made, if any reduction in turnover due to the damage is postponed by reason of the turnover being temporarily maintained from accumulated stocks of finished goods in warehouses or depots. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 25 of 176

28 Premium Adjustment The first and annual premiums are provisional and are based upon the estimated gross profit or estimated gross revenue (whichever is applicable) Not later than six months after the expiry of each Period of Insurance the Insured shall provide the Company with a declaration, confirmed by the Insured s auditors, of gross profit or gross revenue (whichever is applicable) earned during the financial year most nearly concurrent with such Period of Insurance If any damage has occurred giving rise to a claim for loss of gross profit or gross revenue (whichever is applicable) that is indemnified under this Policy, the above mentioned declaration shall be increased by the Company for the purposes of premium adjustment by the amount by which the gross profit or gross revenue (whichever is applicable) was reduced during the financial year solely in consequence of the damage. If the declaration (adjusted as provided for above, and proportionally increased where the Maximum Indemnity Period exceeds twelve months) is: less than the estimated gross profit or estimated gross revenue (whichever is applicable) for the relative period of insurance the Company will allow a pro rata return premium not exceeding 50% of the premium paid on the estimated gross profit or estimated gross revenue (whichever is applicable); or greater than the estimated gross profit or estimated gross revenue (whichever is applicable) for the relative period of insurance, the Insured shall pay a pro rata addition to the premium paid on the estimated gross profit or estimated gross revenue (whichever is applicable) CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 26 of 176

29 Section 3 TELECOMMUNICATION PROPERTY Subject to an applicable Limit of Insurance being shown in the Schedule the Company will pay for: 3.1 damage to: cell site property; underground communication lines; overhead communication lines; or submarine communication lines which have been declared to the Company and which are: (a) occupied by the Insured; or (b) utilised by the Insured in connection with the business. 3.2 the amount of business interruption loss resulting from interruption or interference with the business carried on by the Insured consequent upon such damage occurring during the period of insurance Loss will be calculated: in respect of item 3.1 in accordance with the Basis of Settlement contained herein; and in respect of item 3.2: in accordance with the coverage afforded by this Policy and the basis of settlement set out in Section 2 in respect of: (a) gross revenue; or (b) flexible first loss limit (gross revenue); or (c) increased cost of working; or (d) additional increased cost of working subject to the appropriate Maximum Indemnity Period; and after application of the appropriate deductible, time franchise or waiting period shown as applicable in the Schedule. The most the Company will pay is the applicable Limit of Insurance or aggregate per occurrence limit shown in the Schedule. Section 3 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes Section of the Policy this Section will not cover loss or damage caused by or resulting from: the weight of snow or ice on overhead communication lines. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 27 of 176

30 Section 3.1 Reinstatement Conditions BASIS OF SETTLEMENT In the event of the destruction or loss of the telecommunications property the basis upon which the amount payable under this Section is to be calculated shall be the cost of: where cell site property is destroyed or lost: (a) the rebuilding of the property if a building or towers or antennae; or (b) in the case of other cell site property its replacement by similar property in either case to a condition equal to but not better or more extensive then its condition when new, or where communication lines sustain damage, 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 than or more extensive than its condition when new. Subject to the following Special Provisions: The work of reinstatement (which may at the Company s option be carried out upon another site and in any manner suitable to the requirements of the Insured, subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment, beyond the amount which would have been payable under Section 3 if this condition had not been incorporated, shall be made. When any telecommunications property is lost or damaged in part only, the amount that the Company will pay shall not exceed the sum representing the cost, which the Company could have been called upon to pay for reinstatement if such telecommunications property had been wholly destroyed. No payment beyond the amount which would have been payable under Section 3 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. 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 Section 3 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage shall be subject to the terms and conditions of the Section as if this condition had not been incorporated. No payment beyond the amount which would have been payable under this section if this condition had not been incorporated shall be made if the telecommunications property at the time of its damage shall be insured by any other insurance effected by or on behalf of the Insured which is not upon the same basis of reinstatement. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 28 of 176

31 Day One Bases (Non Adjustable) General Contents at Cell Site Premises not Owned by the Insured Computer Betterment Professional Fees If the cell site property item in the Schedule to this Policy shows declared value and Sums Insured, then the insurance provided by this Policy on the said cell site property shall be on a Day One Reinstatement basis. Limits of Liability are the declared value plus a percentage increase as agreed between the Insured and the Company. Special Provisions The Insured having stated in writing the declared value of the cell site property the premium has been calculated accordingly. At the inception of each Period of Insurance, the Insured shall notify the Company of the declared value of the cell site property. In the absence of such declaration, the last amount declared by the Insured shall be taken as the declared value for the ensuing annual period of insurance. Where by reason of any of Special Provisions 1 & 2 above no payment is to be made beyond the amount which would have been payable under Section 3 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of the damage will be subject to the terms and conditions of the Section as if this memorandum had not been incorporated therein except that the sums insured shall be limited to % of the declared value. General contents at a cell site premises not owned by the Insured (but which if owned by the Insured would be deemed to be general contents) is valued on the same basis as general contents at a cell site premises, subject to all other Policy terms and conditions, but the company will not pay more than the amount for which the Insured is contractually liable. Labour, materials and services furnished or arranged by the insured on general contents at cell site premises not owned by the insured is valued based on the actual cost of the labour, materials and services. In the event that new electronic data processing equipment at a cell site premises of like kind and quality is not obtainable, equipment which is as similar as possible to that which has sustained damage and which is capable of performing the same function shall be deemed to be new property of like kind and quality and in no event shall this be considered as betterment to the Insured. In the event of damage to telecommunications property, the basis upon which the amount payable by the Company is to be calculated shall include the cost of Architects, Consulting Engineers, Legal, and other Professional Fees necessarily incurred by the Insured in the reinstatement of the telecommunications property consequent upon its damage but not for preparing any claim under this Policy provided that the Insured includes these costs in the declared value at inception of the period of insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 29 of 176

32 Section 3.1 EXTENSIONS TO COVER Where shown in the Schedule as operative, the following extensions of cover are provided under Section 3.1 of this Policy, subject to the applicable Limits of Liability or aggregate per occurrence limit shown in the Schedule. Cover under Section 3.1 is extended to include: Loss Prevention Expenses European Community & Public Authorities (Including Undamaged Property) The reasonable and necessary costs incurred by the Insured to protect cell site property at the Insured Locations from imminent damage caused by the resulting from a cause not otherwise excluded To the extent possible, the Insured must notify the Company of their intent to incur such costs before any loss prevention action is taken. In any event, the Insured must notify the Company within 48 hours after having taken any loss prevention action. Such additional costs of reinstatement of cell site property that suffers damage as may be incurred solely by reason of the necessity to comply with the requirements of: European Community Legislation; or Building or other Regulations made pursuant to any Act of Parliament or Bye-Laws of any Public Authority; or the Company requiring conformity to the applicable Sprinkler Rules of an automatic sprinkler installation which conformed to the applicable Rules when installed but fail to conform to subsequent amendments to those Rules (hereafter referred to as the Requirements ) in respect of damage to cell site property; and undamaged portions thereof This extension does not cover: 1. the cost incurred in complying with the Requirements: 1.1 in respect of damage occurring prior to the granting of this extension; 1.2 in respect of damage not insured by this Policy; 1.3 under which notice has been served upon the Insured prior to the happening of the damage; 1.4 for which there is an existing requirement which has to be implemented within a given period; or 1.5 in respect of property entirely undamaged 2. the additional cost that would have been required to make good the property which has sustained damage to a condition equal to its condition when new had the necessity to comply with the Requirements not arisen 3. the amount of any charge or assessment arising out of capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with the Requirements. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 30 of 176

33 European Community & Public Authorities (Including Undamaged Property) Continued Temporary Removal Undamaged Portions Notwithstanding paragraph 1.5 above, cover under this extension shall include the additional cost of reinstatement as described herein in respect of undamaged portions of the cell site property provided that: The Company will not pay for such additional cost in respect of any cell site property which has not sustained damage; the amount recoverable shall not exceed in respect of undamaged portions of cell site property (other than foundations), the Company will not pay more than 15% of the total amount which the Company would have paid had the cell site property been totally lost or destroyed. Special Conditions applicable to this provision The work of reinstatement must be commenced and carried out with reasonable despatch and in any case must be competed within twelve months after the damage or within such further time 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 Requirements necessitate); In no event will the Company pay more than the applicable Sum Insured for such cell site property. Cell site property whilst temporarily removed from an Insured Location for cleaning renovation, repair or similar purposes, and during inland transit to and from such Insured Location within the Territorial Limits. Removal of Debris and Cleaning/Clearance of Drains Costs and expenses (unless separately insured) necessarily incurred by the Insured, with the consent of the Company, in: removing debris, dismantling and/or demolishing, shoring up or propping up of the portion or portions of the cell site property which have sustained damage; clearing, cleaning and repairing drains gutters sewers and the like on the Insured s property blocked or damaged as a result of damage by a defined peril. This extension does not cover costs or expenses: incurred in removing debris except from the Insured Location and within 250 metres thereof; arising from pollution or contamination of property not insured by this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 31 of 176

34 Capital Additions Newly Acquired Property Replacement of Locks In so far as the same are not otherwise insured: (a) any newly acquired machinery and plant or newly constructed building at a cell site premises; (b) alterations additions and improvements to a building at a cell site premises subsequent to a certificate of completion; (c) alterations additions and improvements to cell site property; and (d) general contents at a cell site premises at the Insured Locations but not in respect of any appreciation in value during the current Period of Insurance, provided that the Insured undertakes to give particulars within 60 days of commencement of the liability of the Company to effect specific insurance and before the expiry of the Period of Insurance and to pay an additional premium on demand. Any newly acquired or constructed cell site property at a new location within the Territorial Limits. Such cover shall be effective from the date of acquisition or completion or from the date the Insured first acquires an insurable interest, whichever is the sooner. The cover will end when the first of the following occurs: the Insured provides full particulars and the Company agrees to add such property to this Policy; 60 days pass from the date of acquisition or completion by the Insured; or this Policy expires, The Company may charge an additional premium from the date of acquisition or completion by the Insured if such premises or property is added to this Policy. This Extension does not apply to damage caused by or resulting from flood. Cell site property being moved from a vacated premises to new premises is not considered newly acquired property. Costs incurred as a result of the necessary replacement or adjustment of locks at an Insured Location following burglary or larceny from such location. Cover under this extension is in addition to the applicable Limit of Insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 32 of 176

35 Leasehold Premises Extension Undamaged Tenants Improvements and Betterments Burglary Damage to Buildings Refilling of Fire Extinguishment Appliances Glass Municipal Agency, Fire Brigade, and Public Safety Service Charges To protect the interest of the Insured as tenant in respect of damage to any building at a cell site premises leased or rented by the Insured but only: to the extent that the insurance provided by this Policy is broader in meaning or scope than any other policy of insurance covering such building arranged by or on behalf of the landlord or lessor (any such Policy being hereafter referred to in this Extension as the Underlying Policy ); In the event of the failure of the landlord or lessor to maintain insurance on such building or the failure of the Underlying Policy to operate due to any act of omission unknown to or beyond the control of the Insured. This insurance shall not be brought into contribution with any cover granted by the Underlying Policy other than in respect of any excess over and above the sums insured, limits or cover applicable under such Policy. To provide the value of undamaged tenants improvements and betterments at a cell site premises when the Insured s lease is cancelled: by the lessor; and by a valid condition of the Insured s lease, in consequence of damage to a building, general contents or tenants improvements and betterments at a cell site property. Damage to a building at a cell site premises occupied by the Insured for the business (which is not otherwise insured) for which the Insured is responsible and which arises during the pursuance of burglary or attempted burglary. If the cell site property sustains damage by a cause not otherwise excluded, the Company will pay expenses and charges for which the Insured may become liable to pay to any organisation responsible for preserving public safety in respect of the cost of refilling fire extinguishing appliances. The reasonable and necessary costs incurred by the Insured in respect of undamaged parts of the fixed glass in consequence of damage to a building at a cell site premises. If the cell site property sustains damage caused by or resulting from a cause not otherwise excluded, the Company will pay fire brigade charges and other extinguishing expenses and other charges made by any municipal agency or local authority responsible for preserving public safety for which the Insured may be assessed including replacing sprinkler heads. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 33 of 176

36 Section 3.2 EXTENSIONS TO COVER Where shown in the Schedule as operative, cover under Section 3.2 is extended to include loss resulting from the interruption of or interference with the Business in consequence of damage to property of a type insured by this Policy at the locations described below, caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, subject always to the applicable Limits of Liability or aggregate per occurrence limit shown in the Schedule: Denial of Access Public Utilities Telecommunication Service Provider Any property within one (1) kilometre of any cell site premises which shall prevent or hinder the use of the Insured Location or access thereto. This extension shall not apply to property of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider. Property at any: Generating station or sub-station of any public electricity supply undertaking; Land based premises of any public gas supply undertaking or of any natural gas producer linked directly therewith; or Water works and pumping stations of any public water supply undertaking from which the Insured obtains electricity, gas or water or the underground pipes or underground cables conveying such services from those undertakings to the Insured s cell site premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to: property at the premises of any telecommunication service provider; or overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s cell site premises. Property at the premises of any telecommunication service provider or the underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 34 of 176

37 Restrictions on the use of the Insured s Cell Site Premises The intervention of a public body authorised to restrict or deny access to the Insured s locations arising from: notifiable disease attributable to food or drink supplied from the location, or 1.2 the discovery of an organism likely to cause notifiable disease; 2. vermin or pests; 3. an accident causing defects in the drain or other sanitary arrangement; 4. an enforcement action taken in the United Kingdom under the Food Safety Act 1990 against products of the Insured which subsequent analysis establishes are not contaminated and are safe for human consumption; or 5. Murder or suicide other than by the Insured, or any Director or Officer of the Insured leading to restriction or denial of the use of the location on the order or advice of the local health authority or other competent authority. Cover under this Extension does not include the costs incurred in cleaning, repair, replacement, and recall or checking of property. For the purposes of this Extension only, the Indemnity Period shall be 3 months. It is a condition precedent to any claim relating to closure or restrictions on the use of the Insured locations due to Legionnaires Disease that the Insured has carried out tests for Legionnaires Disease at the appropriate intervals with satisfactory results. For the purposes of 4 above, the amount payable under this extension shall be the sale value of all products of the Insured which cannot be produced or sold in consequence of the enforcement action, less: any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action; and any sum payable to the insured as compensation under the terms of the Food Safety Act or otherwise. The amount payable will be reduced by any sum saved in respect of such of the charges and expenses of the Insured s business as may cease or be reduced in consequence of the enforcement action and any amount awarded as compensation within the terms of United Kingdom legislation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 35 of 176

38 Accountants Fees Contractual Penalties The Company will pay for the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents. The Company will pay for the fines and damages (excluding liquidated damages) that the Insured shall be legally liable to pay for breach of a written contract for non-completion or late completion or orders incurred solely in consequence of the damage. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 36 of 176

39 Section 4 RESEARCH AND DEVELOPMENT OPERATIONS Subject to an applicable Limit of Insurance being shown in the Schedule the Company will pay for: 4.1 damage to research and development property at an Insured Location shown in the Schedule occupied and utilised by the Insured in connection with the business; and 4.2 the amount of loss resulting from interruption or interference with research and development operations carried on by the Insured at the Insured Locations consequent upon damage to property insured by this Policy at or within 250 metres of the Insured Locations shown in the Schedule occupied and utilised by the Insured in connection with the business, occurring during the Period of Insurance caused by or resulting from a cause not otherwise excluded. The most the Company will pay for any one occurrence is the applicable Limit of Insurance or aggregate per occurrence limit shown in the Schedule. Loss shall be calculated: in accordance with the Basis of Settlement as described within this Section in respect of: 1. research and development property; 2. research and development expenditure; 3. increased cost of working; and 4. additional increased cost of working subject to the Maximum Indemnity Period shown as applicable in the Schedule; based on the sum insured or limit remaining after deduction for any damage occurring during the same period of insurance unless the Company shall have agreed to reinstate the sum insured or limit; and after application of the appropriate deductible, time franchise or waiting period shown in the Schedule. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 37 of 176

40 Section 4.1 EXTENSIONS TO COVER Where shown in the Schedule as operative, the following extensions of cover are provided under Section 4.1 of this Policy, subject to the applicable Limits of Insurance or aggregate per occurrence limit shown in the Schedule. Cover under Section 4.1 is extended to include: Loss Prevention Expenses Temporary Removal of Research and Development Property Newly Aquired Research and Development Property The reasonable and necessary costs incurred by the Insured to protect research and development property at the Insured Locations from imminent damage caused by or resulting from a cause not otherwise excluded. To the extent possible, the Insured must notify the Company of their intent to incur such costs before any loss prevention action is taken. In any event, the Insured must notify the Company within 48 hours after having taken any loss prevention action. Research and development property while being moved to another location or returned from such location to its original location or temporarily stored at another location provided that the Insured must move the research and development property from such location to preserve it from imminent damage. damage to research and development property at newly acquired premises or newly acquired research and development property at existing premises; and interruption or interference with research and development operations and business interruption consequent upon such damage. This extension applies until the first of the following occurs: the Insured reports the value of the research and development property at the newly acquired Premises to the Company and such research and development property is added to this Policy; the Insured reports the value of the newly acquired research and development property at the existing Premises shown in the Schedule, and the Company agrees to add such research and development property to this Policy; 60 days pass from the date the Insured acquire the Premises or research and development property; or this Policy expires The Company will charge an additional premium for the reported values from the date the Premises or research and development property were acquired if such Premises or research and development property are added to this Policy. Research and development property being moved from a vacated Premises to new Premises is not considered newly acquired research and development property. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 38 of 176

41 Exhibitions, Fair or Trade Shows Unspecified Locations Research and development property whilst at any exhibition, fair or trade show including whilst in direct transit to and from the exhibition, fair or trade show venue. This extension does not cover: electronic data processing property which is not permanently secured to and fully integrated into an exhibit or exhibition stand; fine art; damage to research and development property whilst in or on an unattended vehicle; and damage to research and development property while left unattended at the exhibition, fair or trade show venue overnight. Research and development property whilst at any locations within the Territorial Limits not shown in the Schedule. This extension does not apply to research and development property: at any exhibition, fair or trade show; at any newly acquired premises; whilst in transit; temporarily removed from an Insured Location; or which is deeds or documents otherwise insured No payment will be made for damage caused by or resulting from larceny. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 39 of 176

42 Section 4.2 EXTENSIONS TO COVER Where shown in the Schedule as operative, cover under Section 4.2 is extended to include loss resulting from the interruption of or interference with research and development operations in consequence of damage to property of a type insured by this Policy at the locations described below, caused by or resulting from a cause not otherwise excluded that occurs during the Period of Insurance, subject always to the applicable Limit of Liability or aggregate per occurrence limit shown in the Schedule, as follows: Denial of Access Suppliers and Customers Any property within one (1) kilometre of any insured location which shall prevent or hinder the use of the Insured Location or access thereto. This extension shall not apply to property of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider. The premises of any of the Insured s direct customers suppliers, manufacturers or processors of components, goods or materials excluding the premises of any: public supply undertaking from which the Insured obtains gas, water and electricity services; and telecommunication service provider For the purposes of this extension, suppliers of Specified Suppliers, manufacturers or processors and customers of Specified Customers of the Insured shall be considered Unspecified Suppliers or Unspecified Customers. This extension does not cover any loss, expense or interruption or interference with research and development operations resulting or arising from damage to property of a type insured by this Policy at the premises of any supplier or customer of the Insured outside the UK caused by or resulting from flood, earthquake or windstorm. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 40 of 176

43 Unspecified Locations Public Utilities Telecommunication Service Provider Any location not shown in the Schedule but this extension does not apply to research and development property: at any exhibition, fair or trade show; at any newly acquired premises; whilst in transit; temporarily removed from an Insured Location; or which is deeds or documents otherwise insured. This extension does not: cover any loss, expense or interruption or interference with research and development operations resulting or arising from damage to property of a type insured by this Policy at unspecified locations outside the UK caused by or resulting from flood, earthquake or windstorm; or apply to locations of the Insured s customers, suppliers, manufacturers or processors of components, goods or materials. Property at any: Generating station or sub-station of any public electricity supply undertaking; Land based premises of any public gas supply undertaking or of any natural gas producer linked directly therewith; or Water works and pumping stations of any public water supply undertaking from which the Insured obtains electricity, gas or water or the underground pipes or underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to: property at the premises of any telecommunication service provider; or overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. Property at the premises of any telecommunication service provider or the underground cables conveying such services from those undertakings to the Insured s Premises within the Territorial Limits. For the avoidance of doubt this extension does not apply to damage at or to overhead communication, transmission or distribution equipment, including the overhead lines or overhead cables conveying services to the Insured s premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 41 of 176

44 Cost of Reworking Previously Completed Research Contracts or Projects Restrictions on the Use of the Insured s Premises The amount payable shall be such additional costs that the Insured shall necessarily and reasonably incur during the indemnity period to rework and/or reinstate and/or recreate records relating to previously completed contracts or projects for research for the sole purpose of avoiding or diminishing the interruption to research and development operations or to comply with Contractual or Statutory obligations and/or responsibilities in consequence of covered damage to stored archival material being the property of the Insured or for which the Insured is responsible at the premises. The intervention of a public body authorised to restrict or deny access to the Insured s locations arising from: notifiable disease attributable to food or drink supplied from the location, or 1.2 the discovery of an organism likely to cause notifiable disease; 2. vermin or pests; 3. an accident causing defects in the drain or other sanitary arrangement; 4. an enforcement action taken in the United Kingdom under the Food Safety Act 1990 against products of the Insured which subsequent analysis establishes are not contaminated and are safe for human consumption; or 5. Murder or suicide other than by the Insured, or any Director or Officer of the Insured, leading to restriction or denial of the use of the location on the order or advice of the local health authority or other competent authority. Cover under this Extension does not include the costs incurred in cleaning, repair, replacement, and recall or checking of property. For the purposes of this Extension only, the indemnity period shall be 3 months. It is a condition precedent to any claim relating to closure or restrictions on the use of the Insured locations due to Legionnaires Disease that the Insured has carried out tests for Legionnaires Disease at the appropriate intervals with satisfactory results. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 42 of 176

45 Restrictions on the Use of the Insured s Premises Continued Accountants Fees For the purposes of 4 above, the amount payable under this extension shall be the sale value of all products of the Insured which cannot be produced or sold in consequence of the enforcement action, less: any sum saved in respect of such of the charges and expenses of the Business as may cease or be reduced in consequence of the enforcement action; and any sum payable to the insured as compensation under the terms of the Food Safety Act or otherwise The amount payable will be reduced by any sum saved in respect of such of the charges and expenses of the Business as may cease or be reduced in consequence of the enforcement action and any amount awarded as compensation within the terms of United Kingdom legislation. The Company will pay for the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 43 of 176

46 Section 4.1 Research and Development Property BASIS OF SETTLEMENT In the event of damage to research and development property the Company will pay for the reinstatement of the research and development property subject to the following special provisions and subject also to the terms and conditions of the Policy except in so far as the same may be varied hereby: where research and development property is destroyed the full cost of replacement by similar property to a condition equal to but not better or more extensive then its condition prior to its destruction; or where research and development property is destroyed or damaged in part only the full cost of repair and the restoration of the damaged portion of the research and development property to a condition substantially the same as but not better or more extensive than its condition prior to the damage; including the necessary and reasonable additional costs the Insured incurs to repair or replace research and development property. Special Provisions: the additional costs incurred must be in excess of the costs the insured would otherwise incur to repair or replace research and development property that suffers damage in order to meet the last scheduled introduction date or research and development milestone (prior to damage) for any new product or enhancement of an existing product which is based on such research and development property. 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 liability of the Company not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment, beyond the amount which would have been payable under Section 3.1 if this condition had not been incorporated, shall be made. where research and development property is damaged or destroyed in part only the liability of the Company shall not exceed the sum representing the cost which the Company could have been called upon to pay for reinstatement if such research and development property had been wholly destroyed. no payment beyond the amount which would have been payable under Section 4.1 if this condition had not been incorporated therein shall be made until the cost of reinstatement has actually been incurred. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 44 of 176

47 Research and Development Property Continued Professional Fees Research and Development Property not Owned by the Insured 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 Section 3.1 if this condition had not been incorporated therein, the rights and liabilities of the Company and the Insured in respect of damage shall be subject to the terms and conditions of this Section as if this condition had not been incorporated. no payment will be made for research and development property which is not repaired or replaced. If however repair or replacement of lost or damaged research and development property is commenced within 24 months from the date of damage, the Company will pay whichever is the lesser of the: (a) replacement cost at the time of damage; or (b) the actual costs incurred to repair or replace the research and development property no payment beyond the amount which would have been payable under this Section if this condition had not been incorporated shall be made if the research and development property at the time of the damage shall be insured by any other insurance effected by or on behalf of the Insured which is not upon the same basis of reinstatement. the Limit of Liability of the Company shall be 120% of the declared value for research and development property shown in the Schedule provided that the declared value represents a bona fide attempt by the Insured to accurately value research and development property as at the inception date of this Policy. Where no payment is to be made beyond the amount which would have been payable under Section for research and development property if this condition had not been incorporated herein, the rights and liabilities of the Company and the Insured in respect of the damage will be subject to the terms and conditions of this Section as if this memorandum had not been incorporated herein. In the event of research and development property suffering damage, the basis upon which the amount payable by the Company is to be calculated shall include the cost of legal, and other professional fees necessarily incurred by the Insured in the reinstatement of the research and development property consequent upon such damage but not for preparing any claim under this Policy provided that the Insured includes these costs in the declared values at inception of the period of insurance. Research and development property not owned by the Insured is valued on the same basis as research and development property, subject to all other Policy terms and conditions, but the Company will not pay more than the amount for which the Insured is contractually liable. Labour, materials and services furnished or arranged by the Insured on research and development property not owned by the Insured is valued based on the actual cost of the labour, materials and services. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 45 of 176

48 Section 4.2 Research and Development Operations Research and Development Expenditure BASIS OF SETTLEMENT A research and development operations loss begins on the date of damage to property insured by this Policy and ends when the first of the following occurs; research and development operations are restored to the position that would have been achieved if the damage had not occurred; the indemnity period expires; twelve months pass from the date of physical reinstatement of lost or damaged property insured; or twelve months pass from the date that physical reinstatement of lost or damaged property insured would have occurred with reasonable speed; Loss will be calculated in accordance with the following basis of settlement. Loss will be calculated by: determining the continuing operating expenses, including the continuing normal payroll expenses, necessary to conduct research and development operations during the indemnity period with the same level of service that would have been achieved if the damage had not occurred. subtracting any amount by which the Insured has reduced the loss by incurring increased cost of working; adding the increased cost of working but only to the extent such reduction in research and development expenditure is reduced; and subtracting any sums saved during the indemnity period in respect of research and development expenditure as may cease or be reduced in consequence of the damage. Special Provisions: if the sum insured hereby for research and development expenditure is less than the annual research and development expenditure during the indemnity period the amount payable shall be proportionally reduced; if the monthly limit of indemnity is not fully utilised in any 30 day period the unused portion may be applied to any subsequent 30 day period; and The maximum liability of the Company for any 30 day period during which research and development operations are: (a) totally interrupted will be the monthly limit of indemnity; or (b) partially interrupted will be an equitable proportion of the monthly limit of indemnity based upon the time rendered ineffective by reason of the damage. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 46 of 176

49 Increased Cost of Working Additional Increased Cost of Working Loss will be calculated by determining the additional expenditure necessarily and reasonably incurred for the sole purpose of minimising any interruption to or interference with research and development operations during the indemnity period but not exceeding the sum produced by applying the research and development expenditure to the amount of the reduction thereby avoided. Such additional expenditure shall include the cost of moving to and from and the additional rent of temporary premises, additional rates and taxes thereon and expenses incurred in equipping the said premises to make them suitable for the Insured s business, additional cost in respect of lighting, heating and water, additional cost in respect of additional staff and overtime. Loss will be calculated by determining the additional increased cost of working in excess of the amount payable under the research and development expenditure basis above necessarily incurred during the indemnity period for the sole purpose of : avoiding or diminishing interruption or interference with research and development operations; or resuming or maintaining research and development operations during the indemnity period to the level of service that would have been achieved if the damage had not occurred. No payment will be made for additional increased cost of working if research and development operations are not resumed following the damage. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 47 of 176

50 Section 4.2 Renewal Professional Accountants Loss Valuation Payments on Account Value Added Tax Prototypes SPECIAL CONDITIONS The Insured shall, prior to each expiration, provide the Company with the estimated research and development expenditure for the financial year most nearly concurrent with the ensuing year of insurance. 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 the claims conditions 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. In arriving at a basis of valuation for settlement of claims following interruption to research and development operations the Company may at its option utilise relevant sources of information including but not restricted to: financial records and accounting procedures; bills, invoices and other vouchers; status and feasibility reports; budget and marketing records; deeds, liens and contracts; and written agreements evidencing grants, endowments and other financial contributions. In the event of loss the Company may in their discretion and if requested by the Insured, make payments on account during the indemnity period. To the extent that the Insured is accountable to the tax authorities for Value Added Tax the Policy shall be exclusive of such tax. When production of a new product begins, coverage under this Policy ceases for the prototype of that product and the research project directly associated with the new product. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 48 of 176

51 Premium Adjustment The first and annual premiums are provisional and are based upon the estimated research and development expenditure. Not later than six months after the expiry of each Period of Insurance the Insured shall provide the Company with a declaration, confirmed by the Insured s auditors, of actual research and development expenditure during the financial year most nearly concurrent with such Period of Insurance adjusted to reflect the actual research and development expenditure during the expired period of insurance. If the declaration (adjusted as provided for above and proportionately increased where the indemnity period exceeds 12 months) is: less than the estimated research and development expenditure for the relative Period of Insurance the Company will allow a pro-rata return premium not exceeding 50% of the premium paid on the estimated research and development expenditure; or greater than the estimated research and development expenditure for the relative Period of Insurance, the Insured shall pay a pro-rata addition to the premium paid on the estimated research and development expenditure The Insured shall prior to each renewal furnish the Company with the estimated research and development expenditure for the ensuing year of insurance. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 49 of 176

52 Section 5 IMPAIRMENT OF COMPUTER SERVICES Subject to an applicable Limit of Insurance being shown in the Schedule for: 1. Impairment of Computer Service Insider Attack; or 2. Impairment of Computer Services Outsider Attack the Company will pay for: (a) electronic data recovery costs; (b) business interruption; and (c) loss of research and development expenditure resulting from interruption of or interference with research and development operations including any: Increased Cost of Working; and Additional Increased Cost of Working incurred due to the actual impairment of the Insured s business during the period of recovery of computer service caused by or resulting from actual loss to electronic data or a system due to malicious programming by an insider or an outsider, unless an exclusion applies. The most the Company will pay is the applicable Limit of Insurance shown in the Schedule. Section 5 EXCLUSIONS APPLICABLE TO SECTION 5 ONLY In addition to the exclusions contained in the Excluded Causes Section of the Policy this Section will not cover loss or damage caused by or resulting from: 1. fraudulent, dishonest or criminal acts or omissions committed alone or in collusion with others by the Insured or by any employee, partner, director, trustee, member, officer, manager or any other person or persons performing acts coming within the scope of the usual duties of an employee or by anyone authorised to act for the Insured, or anyone to whom the Insured has entrusted covered property for any purpose. This exclusion does not apply to malicious programming by an insider 2. any malicious programming which: is not specifically directed at a system; is designed or intended to affect more than one computer system or network; or actually affects more than one computer system or network. This exclusion does not apply to malicious programming by an outsider 3. extortion or other similar threat. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 50 of 176

53 Section 5 BASIS OF SETTLEMENT The Company will pay to the Insured the amount of loss calculated in accordance with the coverage afforded by this Policy and the basis of settlement set out in: Section 1 in respect of electronic data Section 2 in respect of (a) business interruption; or (b) increased cost of working; or (c) additional increased cost of working Section 4 in respect of: (a) research and development expenditure; or (b) increased cost of working; or (c) additional increased cost of working of this Policy, save that for the purpose of this Section reference to: indemnity period shall be replaced by period of recovery of computer services; damage shall be replaced by malicious programming; and business interruption means loss of gross profit, gross revenue or rent receivable (whichever is applicable) resulting from interruption of or interference with the business carried on by the Insured at the premises. It shall not include within its meaning increased cost of working, additional increased cost of working or research and development operations. In addition loss will be calculated by: subtracting any amount by which the Insured has reduced the loss by resuming or continuing operations, in whole or in part, by using any available electronic data or system, including the electronic data or system impacted by the malicious programming; subtracting any amount relating to turnover that would likely have been earned as a result of an increase in the volume of business due to favourable business conditions caused by the impact of the covered loss on customers or on other businesses; and subtracting any sum saved during the period of recovery of computer services period in respect of such of the charges and expenses of the Business payable out of rent receivable as may cease or be reduced in consequence of the malicious programming. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 51 of 176

54 Section 5 Accountants Fees EXTENSIONS TO COVER The Company will pay for the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents. SPECIAL CONDITIONS (APPLICABLE TO SECTION 5 ONLY) Records All records pertaining to this insurance including but not limited to financial records accounting procedures bills invoices other vouchers deeds liens contracts status and feasibility reports budgeting and marketing records shall be open to inspection by an authorised representative of the Company at any reasonable time. System Security If a system is protected by security software, the Insured is required to maintain and, as necessary, upgrade such software (at their own cost) so that it provides a technologically credible level of security. The Company shall not be liable for any loss or damage caused by malicious programming if, prior to the malicious programming, the Insured: knew of any defect or deficiency in the security software and failed to correct it; failed to maintain the security software in complete working order; or knew of any technologically credible upgrades to the security software that could have prevented the malicious programming, and failed to make them. Resumption or Continuance of Operations If the Insured elects not to resume or continue operations: any loss payment for business interruption will be based on the length of time it would have taken to resume or continue operations with due diligence and dispatch; and the Company will not make any payment for increased cost of working or additional increased cost of working. Professional Accountants 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 the claims conditions 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. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 52 of 176

55 Alternative Trading Salvage If during the period of recovery of computer services goods shall be sold or services rendered elsewhere than at the Insured locations for the benefit of the Business either by the Insured or by others on their behalf, the money paid or payable in respect of such sales or services shall be brought into account in arriving at the: Turnover, if the applicable Basis of Settlement is Gross Profit; Gross revenue, if the applicable Basis of Settlement is Gross Revenue; or Research and development expenditure, if the applicable Basis of Settlement is Research and Development Expenditure, during the period of recovery of computer services. The Company will reduce the amount of any loss for the salvage value that remains of any property bought for temporary use during the period of recovery of computer services, once operations are resumed. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 53 of 176

56 Section 6 MONEY The company will pay for damage occurring during the Period of Insurance to money caused by or resulting from a cause not otherwise excluded. In no event shall the Company s liability exceed in respect of any item insured the Limit of Liability shown in the Schedule. Insured Location in the buildings at the Insured Locations; at any of the Insured's contract sites during business hours; in residences of the Insured's principals, directors and employees; in a bank night safe until removed by a bank official; or in transit in the personal custody of the Insured s principals, directors or employee, or of an approved security organisation. Extensions Personal Accident Assault The Company will pay for damage other than by an excluded cause to: any safe strong room or franking machine the property of the Insured or for which they are responsible; and any container or waistcoat whilst being used for carrying money as a result of theft or attempted theft of money unless such damage is otherwise insured, and clothing and personal effects of any director, partner or employee of the Insured resulting from an assault in an attempt to steal money. all within the Territorial Limits. In addition to the Limits of Liability stated in the Schedule, the Company will pay the relevant sum stated in the Schedule if any director, partner or employee suffers physical injury as described below as a direct result of robbery or attempted robbery in the course of the Insured s Business: 1. physical injury which within 24 months from its occurrence is the sole and direct cause of: loss of one or more limbs by physical separation at or above the wrist or ankle; permanent and total loss of use of one or more limbs by physical separation at or above the wrist or ankle; or total and irrecoverable loss of sight in one or both eyes. 2. physical injury which within 24 months from its occurrence is the sole and direct cause of any director, partner or employee of the Insured being totally disabled and prevented from attending to his occupation. Compensation for the period of such disablement (but not exceeding 104 weeks Limit of Liability) is shown in the Schedule. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 54 of 176

57 Section 6 SPECIAL CONDITIONS 1. It is a condition precedent to any liability of the Company under this Section that out of business hours the keys to all safes and strong rooms in which money is kept shall be removed from the Premises by the Insured or persons authorised by the Insured and retained in their custody. 2. The Insured person shall act upon medical or surgical advice as soon as practicable and submit to medical examination at the Company s expense as often as they require. 3. The Insured shall take all reasonable care for the safety of the money insured and in the selection and supervision of employees 4. It is a condition precedent to liability under this Section that money in transit, other than transit by an accredited security organisation, will be accompanied by two able-bodied employees of the insured for amounts between 2,500 and 10,000. If the applicable Limit of Liability exceeds 10,000 no person or organisation other than an accredited security organisation may carry amounts in excess of 10,000. Section 6 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes and Excluded Property Sections of this Policy, this Section will not cover: 1. loss or shortage due to errors or omissions in receipts or payments, accountancy depreciation, currency fluctuations, or interruption of any kind; 2. any loss resulting directly or indirectly from forgery, fraudulent alteration or substitution, or fraudulent use of a computer or electronic transfer; 3. loss resulting from use of any form of payment which proves to be counterfeit, false, fraudulent, invalid, uncollectible, or irrecoverable for any reason; 4. loss from an unattended vehicle; 5. any loss arising from fraud or dishonesty of any employee of the Insured: unless such loss is discovered within seven working days after occurrence of the fraudulent or dishonest act; or covered by a Policy of fidelity guarantee insurance. Where a Policy of fidelity guarantee has been purchased the Company will not be liable for any such loss under this Policy; 6. extortion, kidnap or ransom; 7. manuscripts, media tapes and other records of money; 8. loss of income, interest or dividends; 9. any unauthorised representation of the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 55 of 176

58 Section 7 PROPERTY IN TRANSIT If shown as operative in the Schedule the Company will pay for damage to the property insured whilst in transit by road rail or inland waterway including loading and unloading and temporary housing in course of transit within the Territorial Limits. The Company will also pay the reasonable cost incurred in the: conveyance of the property insured and its container to another vehicle following the disabling of the original conveying vehicle by its catching fire, collision or overturning including delivery to its original destination or return to its point of despatch; reloading of the property insured and its container in the event of its falling from the conveying vehicle; and clearance of the debris of the property insured and its container following its damage provided that this cost is not recoverable under another Policy or from any other source. Section 7 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes and Excluded Property Section of this Policy, this Section does not cover damage to property insured in transit: by air or sea; resulting from atmospheric or climatic conditions unless reasonable precautions have been taken to protect the property insured against such conditions; arising as a result of packing being inadequate to withstand normal handling during transit or due to insufficient labelling or incorrect addressing; carried by the Insured for hire or reward unless the Insured is contractually responsible for damage occurring to such property insured; by theft or attempted theft from any vehicle whilst the vehicle is unattended by the driver or mate unless all windows, doors and other means of access are fully closed, fastened and, where possible, locked and all keys are removed from the vehicle to a place of safety; resulting from any cause which is otherwise excluded by this Policy; which is contract works property; which is money whilst in transit or property which is insured by, or would but for the existence of this Policy be insured by, any marine policy(ices) The Company will also not be liable for any Business Interruption loss. The liability of the Company under this Section in respect of any one transit shall not exceed the Limit of Liability shown in the Schedule. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 56 of 176

59 Section 7 SPECIAL CONDITIONS It is a condition precedent to any liability of the Company under this Section that: 1. The Insured shall take all reasonable measures to maintain vehicles in a roadworthy condition; and 2. The Insured will notify the carrier of the goods of damage within the time limits stipulated in the Carriage contract. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 57 of 176

60 Section 8 CONTRACTORS ALL RISKS If shown as operative in the Schedule the Company will pay for damage other than by an excluded cause occurring during the period of Insurance to the Contract Works subject to the Limit of Liability shown in the Schedule. Contract Works Cover is in respect of contract works whilst at or within 250 metres of the Contract Site at an Insured location until the issue of a Certificate of Practical Completion or until accepted or taken over by the Insured and for fourteen days thereafter where the Insured is required to insure under the terms of the Contract but in no event will this Section of the Policy provide indemnity outside of the Period of Insurance. Provided that the Insured shall demonstrate that any damage which is first revealed during the period of maintenance or defects liability is the responsibility of the Contractor under the terms of the Contract. Section 8 EXTENSIONS Cover under this Section is extended to include: Indmenity to Insured s Employer / Purchaser / Principal Expediting Costs Escalator Clause The Insured s employer/purchaser/principal solely to the extent required by the conditions of the Contract in force between the Insured and the employer/purchaser/principal where legally permissible provided that such employer/purchaser/principal shall as if he were the Insured fulfil and be subject to the terms and conditions of the Policy. In the event of damage to the property insured or any part thereof the cost of any repair replacement or rectification admitted under this Policy shall include the additional costs of overtime weekend and shift working bonus payments plant hire charges express delivery (including airfreight) and the like necessarily and reasonably incurred in expediting such repair replacement or rectification but excluding any such costs solely to expedite the completion of any construction erection or installation of property insured not lost or damaged. Provided that the Company shall not indemnify the Insured for costs incurred solely to expedite the completion of the Project at a faster rate than would have been attained if no damage had occurred. Provided always that the liability of the Company under this extension shall not exceed twenty five per cent of the claim had such additional costs not been incurred subject to a maximum of 250,000. The amount of indemnity under this Section shall not exceed the Limit of Liability stated in the Schedule which may be increased by an amount not exceeding twenty five percent should the original estimated Contract price of any Contract (including the value of Free issue Materials) increase by such an amount subject to the condition relating to premium adjustment. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 58 of 176

61 Section 8 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes and Excluded Property Sections of this Policy, this Section shall not cover: 1. damage to and the cost necessary to replace repair or rectify: 1.1. property insured which is in a defective condition due to error, omission or deficiency in surveying, planning, zoning, grading, site selection or any defect in design plan specification material and workmanship of such property insured or any part thereof; or 1.2. property insured lost or damaged to enable the replacement repair or rectification of property insured excluded by 1.1 above property insured shall not be regarded as lost or damaged solely by virtue of the existence of any defect in design plan specification materials or workmanship in the property insured or any part thereof. 2. damage to property insured arising from any multiple lifting operation(s); or 3. fines, penalties or liquidated damages in respect of non completion of Contract or non compliance with contract provisions. Section 8 Premium Adjustment Series Loss Cessation of Work GENERAL CONDITIONS The premium having been calculated in part on estimated values, the Insured shall, within one month from the expiry of each Period of Insurance (or in the case of a specific contract, from the expiry of the period of the contract), declare such actual values as the Company may require. The premiums shall be then adjusted by an additional payment by, or refund to, the Insured (as the case may be). If the development or discovery of a defect in any of the property insured indicates or suggests that a similar defect exists in other parts of the property insured, the Insured shall forthwith investigate and, if necessary, rectify the defect in such other parts at his own expense, or alternatively bear all loss arising out of the said defect. In the In the event of stoppage of work by the Insured on any Contract Site from any cause for a period of sixty consecutive days, cover under this Section of the Policy shall be suspended unless its continuance is agreed in writing by the Company. In the event of such total or partial cessation of work the Insured shall use due diligence and do all things reasonably practicable to protect the property insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 59 of 176

62 Joint Code of Practice The Insured undertakes to comply with the Joint Code of Practice on the Protection from Fire of Construction Sites and Buildings Undergoing Renovation dated May 1992 or any subsequent amendment to or revised edition thereof current at inception (or subsequent renewal if applicable) of the Policy hereinafter referred to as The Joint Code. The appointed representative of the Company shall have the right at all reasonable times to enter and inspect the Contract Site for the purpose of checking whether the conditions thereon in all respects comply with The Joint Code. In the event of the Company becoming aware of a breach of The Joint Code the Company may inform the main/management contractor s site management of the nature of the breach specifying the remedial measures required by the Company (the Remedial Measures) and the period within which these must be completed. Where the Company considers such a breach is of sufficient importance the Company may confirm the same by notice in writing (the Notice) to the employer and the main/management contractor and the first named party forming the Insured when this is not the employer or the main/management contractor at their respective addresses nominated by the Insured at the inception of cover or as subsequently amended. Under the terms of this or any subsequent notice the Company may suspend or cancel all cover at the Contract Site concerned from the date named in the Notice not being a date earlier than the date named for completion of the Remedial Measures it being understood that upon suspension such cover shall be reinstated when the Company is satisfied that the Remedial Measures have been completed. Such Notice shall be given a registered post recorded delivery facsimile transmission or by hand. This Additional Clause shall not in itself be considered a condition precedent to liability but its inclusion shall not prejudice waive or remove the rights of the Company under the terms of this Section. In the event of cancellation only the Company agrees to return to the Insured a pro-rata proportion of the relevant part of the premium for this Section of the Policy subject to the minimum retained premium as stated in the Schedule. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 60 of 176

63 Section 9 MACHINERY BREAKDOWN If shown as operative in the Schedule the Company will pay for damage occurring during the Period of Insurance arising from abrupt and accidental breakdown of machinery and plant (excluding electronic data processing equipment) and business interruption and interruption or interference with research and development operations resulting therefrom caused by or resulting from a cause not otherwise excluded and subject to the Limit of Liability shown in Schedule. Section 9 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes and Excluded Property Sections of this Policy, this Section shall not cover: 1. damage caused by faulty, inadequate or defective installation; 2. damage for which a supplier contractor or repairer is responsible either by law or under contract; 3. damage caused by failure of machinery or plant to perform in accordance with plans or specifications; 4. damage caused by freezing caused by or resulting from weather conditions; 5. damage arising out of the wilful act or gross negligence of the Insured or their representatives; 6. the cost of complying with Building Regulations or local authority or statutory requirements; 6.1 relating to undamaged property or undamaged portions of property; or 6.2 under which notice has been served prior to the damage; 7. any rate tax duty development or other charge or assessment arising out of capital appreciation as a result of complying with any of the said regulations or requirements. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 61 of 176

64 Section 10 COMPUTER BREAKDOWN If shown as operative in the Schedule the Company will pay for damage occurring during the Period of Insurance arising from computer breakdown and resulting business interruption and interruption or interference with research and development operations caused by or resulting from a cause not otherwise excluded subject to the Limit of Liability shown in Schedule provided such electronic data processing equipment is the subject of a maintenance rental hire or lease agreement or manufacturers warranty affording on call remedial or corrective maintenance services. Section 10 EXCLUSIONS In addition to the exclusions contained in the Excluded Causes and Excluded Property Sections of this Policy, this Section shall not cover: 1. any loss resulting from computer breakdown arising from erection dismantling or testing of the electronic data processing equipment unless computer breakdown occurs during any process of adjusting cleaning or repairing. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 62 of 176

65 Section 11 UK TERRORISM Notwithstanding anything contained in the Policy to the contrary in consideration of the payment of the Terrorism Premium and its Insurance Premium Tax in respect of the Period of Insurance: Section A In the event that Her Majesty s Government or Her Majesty s Treasury or any other authorised authority issues a certificate certifying an event or occurrence to have been an Act of Terrorism (defined for the purpose of this Certificate below) or in the event that Her Majesty s Government or Her Majesty s Treasury or any other authorised authority refuses to issue a certificate certifying an event or occurrence to have been an Act of Terrorism, and that refusal is reversed by the decision of a validly constituted Tribunal, the Company by this Section of the Policy agree to indemnify the Insured up to the Limits of Liability stated in the Schedule against damage and / or business interruption proximately caused by such Act of Terrorism provided that: 1. such damage and / or business interruption occurs in the Specified Territory; 2. in any action suit or other proceedings where the Company allege that any damage or loss is not covered by this Section the burden of proving that such damage and or business interruption is covered shall fall upon the Insured; 3. The insurance effected by this Section excludes any losses whatsoever: a. occasioned by 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; b. directly or indirectly caused by or contributed to by or arising from or occasioned by or resulting from damage to any computer or other equipment or component or system or item which processes stores transmits retrieves or receives data or any part thereof whether tangible or intangible (including but without limitation any information or programs or software) and whether the property of the Insured or not, where such damage is caused by Virus or Similar Mechanism or Hacking or Denial of Service Attack; including consequential loss directly or indirectly caused by or arising from Virus or Similar Mechanism or Hacking or Denial of Service Attack. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 63 of 176

66 Section A continued Section B 4. The insurance effected by this Section excludes: a. any type of property which has been specifically excluded in the Policy; b. any Nuclear Installation or Nuclear Reactor and all fixtures and fittings situated thereon and attached thereto and all pipes wires cables drains or other conduits or service media of any description which are affixed or connected to or in any way serve such Nuclear Installation or Nuclear Reactor. 5. Save for exclusions (3) and (4) above no other exclusions in the Policy shall apply to the insurance effected by part (A) of this Section. All the other terms, limits, definitions and conditions of the Policy shall apply to the insurance effected by part (A) of this Section except for: a. any commitment regarding the Period of Insurance; b. any terms in the Policy which provide for adjustments of premium based upon declarations on expiry or during the Period of Insurance; or c. any extension of Premises to locations outside the Specified Territory. In the event that Her Majesty s Government or Her Majesty s Treasury or any other authorised authority refuse to issue a certificate certifying an event or occurrence to have been an Act of Terrorism, and such refusal is upheld by the decision of a validly constituted Tribunal, this Section B amends the coverage provided by the Policy as follows: 1. in respect only of damage and / or business interruption occurring in the Specified Territory the exclusion in respect of terrorism in the Policy shall not apply in respect of such event or occurrence, but 2. the Policy will not cover damage and / or business interruption directly or indirectly caused by contributed to by resulting from or arising out of or in connection with biological chemical or nuclear pollution or contamination. Save for (1) and (2) above the terms definitions exclusions provisions and conditions of the Policy shall apply. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 64 of 176

67 Section 11 DEFINITIONS The definitions below apply in respect of this Section only and are in addition to all other definitions contained in the Policy. Where there is a conflict between any definition below and any other definition in the Policy the definition below shall prevail. Act of Terrorism means any act or acts of persons acting on behalf of or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of Her Majesty s government in the United Kingdom or any other government de jure or de facto. Virus or Similar Mechanism means program code, programming instruction or any set of instructions intentionally constructed with the ability to damage, interfere with or otherwise adversely affect computer programs, data files or operations, whether involving self-replication or not. The definition of Virus or Similar Mechanism includes but is not limited to trojan horses, worms and logic bombs. Hacking means unauthorised access to any computer or other equipment or component or system or item which processes stores transmits retrieves or receives data whether the property of the Insured or not. Denial of Service Attack means any actions or instructions constructed or generated with the ability to damage, interfere with or otherwise affect the availability of networks, network services, network connectivity or information systems. Denial of Service Attacks include, but are not limited, to the generation of excess traffic into the network addresses, the exploitation of system or network weaknesses and the generation of excess or non-genuine traffic between and amongst networks. Nuclear Installation means any installation of such class or description as may be prescribed by regulations made by the relevant Secretary of State from time to time by statutory instrument, being an installation designed or adapted for: (a) the production or use of nuclear or atomic energy; (b) the carrying out of any process which is preparatory or ancillary to the production or use of nuclear or atomic energy and which involves or is capable of causing the emission of ionising radiations; or (c) the storage processing or disposal of nuclear fuel or of bulk quantities of other radioactive matter, being matter which has been produced or irradiated in the course of the production or use of nuclear fuel. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 65 of 176

68 Nuclear Reactor means any plant (including any machinery equipment or appliance whether affixed to land or not) designed or adapted for the production of atomic energy by a fission process in which a controlled chain reaction can be maintained without an additional source of neutrons. Specified Territory Terrorism Premium means England, Wales or Scotland but not the territorial seas adjacent thereto as defined by the Territorial Seas Act 1987 and not Northern Ireland, the Channel Islands or the Isle of Man. means any premium paid in respect of this Section of the Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 66 of 176

69 EXCLUSIONS APPLICABLE TO ALL SECTIONS The following exclusions apply to each Section of this Policy except where expressly varied in any Section. Excluded Property This Policy does not cover: 1. water, air, land (including top-soil back-fill drainage or culverts), driveways, pavements, roads, runways, railway lines, dams, dykes, reservoirs, storage lakes, canals, rigs, wells, tunnels, docks, piers, jetties, excavations, wharves, mines, property underground and off-shore property; 2. animals, growing crops; 3. telecommunications property except when and to the extent insured under Section 3; 4. research and development property except when and to the extent insured under Section 4; 5. trees and other vegetation, including lawns and shrubs, except to the extent insured under the Special Property Basket within Section 1; 6. jewellery, precious stones, bullion, furs, fine art, curiosities, relics and rare books, except to the extent insured under the Special Property Basket within Section 1; 7. overhead electrical transmission and distribution lines including transformers or other similar overhead electrical transmission and distribution equipment and their supporting structures other than those within 250 metres of an Insured Location; 8. money, except when and to the extent insured under Section 6; 9. vehicles required to be licensed for road use (including accessories thereon), caravans, trailers, railway locomotives or rolling stock, watercraft, aircraft or spacecraft (including but not limited to satellites); 10. property in transit, except when and to the extent insured under Sections 2 and 7; 11. property or structures in course of demolition, construction or erection and materials, equipment or supplies in connection therewith, except when and to the extent insured under Section 8; 12. moveable property in the open, fences and gates in respect of damage caused by wind, rain, hail, sleet, snow, flood or dust; 13. property that, at the commencement of damage, is insured by or would but for the existence of this Policy be insured by any Marine Policy or policies, including the risks of loading or unloading from any vessel, railway wagon or conveyance; 14. explosives and contraband; 15. Property that is or becomes empty or disused for a continuous period in excess of 60 days unless inspected at least once in every 7 days, unless agreed by the Company; 16. property more specifically insured elsewhere. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 67 of 176

70 Excluded Causes This Policy does not cover damage directly or indirectly caused or occasioned by or arising from: inherent vice, latent defect, gradual deterioration, wear and tear, frost or any other gradually operating causes; 1.2 escape of liquid from processing equipment where such defined escape is due to the use of equipment by the Insured or anybody employed by or acting on behalf of the Insured, except to the extent insured under the Special Property Basket within Section 1; 1.3 corrosion, rust, wet or dry rot, shrinkage, evaporation, loss of weight, dampness, dryness, marring, scratching, vermin or insects; 1.4 change in temperature, except when and to the extent that refrigerated stock is insured under Section 1; 1.5 change in humidity, colour, flavour, texture, smell, scent or finish; 1.6 changes in the water table level; 1.7 theft or attempted theft, unless involving violent and forcible entry into or exit from the buildings (excluding yards gardens and open spaces) at the Insured Locations; 1.8 asbestos material removal or modification, unless the asbestos forms part of property insured and itself suffers damage caused by or resulting from a cause not otherwise excluded; 1.9 settling, cracking, shrinkage, or expansion of pavements, foundations, walls, floors, ceilings, or swimming pools; 1.10 joint leakage, failure of welds, cracking, fracturing, nipple leakage, collapse or overheating of: boilers, economisers, super heaters, pressure vessels, tubes or pipes, or any range of steam and feed piping in connection therewith; 1.11 the explosion or bursting of a boiler, economiser, vessel, machine or apparatus belonging to or under the control of the Insured, other than those; (a) in which internal pressure is due to water or steam; or (b) used for domestic purposes; 1.12 magnetic flux, mechanical or electrical breakdown or derangement of the particular machine, apparatus or equipment or electronic data processing equipment in which such breakdown or derangement originates, but this shall not exclude subsequent damage, business interruption or interruption or interference with research and development operations resulting therefrom due to a cause not otherwise excluded. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 68 of 176

71 Excluded Causes Contined faulty or defective workmanship, design or materials, misapplication of tools, operational error or omission on the part of the Insured or any of their employees; 2.2 the property insured and the contents of any machinery and plant undergoing any process, test or commissioning or being actually worked upon; 2.3 the correction of defects in design or content of any computer records or program and any costs and expense associated therewith; 2.4 the deliberate act of any telecommunication service provider or any other supply undertaking in withholding the supply of water gas electricity fuel or telecommunications services, but this shall not exclude subsequent damage, business interruption or interruption or interference with research and development operations resulting from a defined peril loss of market or delay; 3.2 any wilful act or neglect of the Insured or any Director, Partner or Employee of the Insured that increases any loss insured under this Policy; 3.3 the Insured or any Partner, Director or Employee of the Insured parting with title or possession of any property if induced to do so by any fraudulent scheme, trick or pretence, misrepresentation (whether verbal or not) or concealment; 3.4 acts of fraud or dishonesty by any Director, Partner, Employee, authorised representative or agent of the Insured or any other person to whom the Insured entrusts property insured; 3.5 disappearance, unexplained or inventory shortage, misfiling or misplacing of information; 3.6 a safe or strongroom being opened by the use of a key or combination code through the key or combination having been left on the premises outside business hours; 3.7 war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power, nationalisation, confiscation, requisition, seizure, or destruction by the government or any public authority; 3.8 or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence of loss including any cost or expense of whatsoever nature directly or indirectly incurred by the insured; 3.9 any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism; In respect of Exclusions 3.8 and 3.9, if the Company alleges that by reason of these exclusions any loss, damage, cost or expense is not covered by this insurance, the burden of proving the contrary shall be upon the Insured; CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 69 of 176

72 Excluded Causes Contined 3.10 any act of riot or civil commotion in Northern Ireland, except in respect of damage to any property insured, business interruption or interruption or interference with research and development operations caused by or resulting from a listed peril; 3.11 any act of strikers locked out workers or persons taking part in labour disturbances or malicious persons in Northern Ireland; 3.12 malicious damage or vandalism (except in respect of damage to any property insured, business interruption or interruption or interference with research and development operations caused by or resulting from a listed peril), bursting overflowing freezing discharging or leaking of water tanks apparatus pipes heating cooling or fire protection systems when the Insured Locations are empty or disused for a continuous period of thirty days or more; 3.13 the suspension, lapse or cancellation of any licence; 3.14 ice storm, hail or the weight of snow and / or ice on overhead communication lines; 3.15 failure of satellites or their component parts to function as intended; 3.16 pollution or contamination, except in respect of damage to the property insured caused by or resulting from: pollution or contamination which itself results from a defined peril; a defined peril which itself results from pollution or contamination. Nor does this Policy cover: except when and to the extent insured under Section 5: loss or damage to electronic data caused by or resulting from malicious programming regardless of any other cause or event that directly or indirectly: contributes concurrently to; or contributes in any sequence to, the loss or damage, even if such other cause or event would otherwise be covered (a) business interruption; or (b) loss of research and development expenditure resulting from interruption or interference with research and development operations; CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 70 of 176

73 Excluded Causes Contined including any: increased Cost of Working; or additional Increased Cost of Working caused by or resulting from direct physical: loss of, or destruction of, or damage to electronic data caused by or resulting from malicious programming regardless of any other cause or event that directly or indirectly: contributes concurrently to; or contributes in any sequence to, the loss, destruction or damage, even if such other cause or event would otherwise be covered. but this shall not exclude subsequent damage, business interruption or interruption or interference with research and development operations, when and to the extent insured under this Policy, caused by or resulting from a listed peril; 4.2 damage to property insured or any loss or expense whatsoever resulting or arising therefrom or any business interruption or interruption or interference with research and development operations or any liability whatsoever directly or indirectly caused by or contributed to by or arising from: ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste resulting from the combustion of nuclear fuel; the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof; 4.3 damage to a building or other structure caused by or resulting from its own cracking unless resulting from a defined peril; 4.4 any loss, expense or business interruption resulting or arising from damage to property of a type insured by this Policy at interconnect partner premises caused by or resulting from flood, earthquake, windstorm, ice storm, hail or the weight of snow and / or ice on overhead communication lines. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 71 of 176

74 Excluded Causes Contined 4.5 damage to property insured: caused by fire resulting from its undergoing any heating process or any process involving the application of heat; caused by or resulting from larceny, breakdown or computer breakdown (if covered by this Policy) other than at the insured locations shown in the Schedule, occupied and utilised by the Insured in connection with the business; resulting from its undergoing any process of production, packing, treatment, testing, commissioning, servicing or repair except in respect of damage to any property insured or any business interruption or interruption or interference with research and development operations caused by or resulting from a listed peril; being the solidification of molten material except in respect of damage to any property insured or any business interruption or interruption or interference with research and development operations caused by or resulting from a defined peril; caused by or resulting from breakdown or computer breakdown except when and to the extent insured under: Section 9 in respect of breakdown; and Section 10 in respect of computer breakdown regardless of any other cause or event that directly or indirectly contributes concurrently to, or contributes in any sequence to the damage, even if such other cause or event would otherwise be covered. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 72 of 176

75 CONDITIONS APPLICABLE TO ALL SECTIONS The following conditions apply to each Section of this Policy except where expressly provided to the contrary. Limits of Insurance Application of Deductibles Policy Voidable Fraud In no event shall the Company s liability exceed: the Policy Limit of Liability; in respect of any one location shown in the Schedule the sum insured shown in the Schedule; in respect of any extension of cover the Limit of Liability or aggregate per occurrence limit shown in the Schedule; or the Limit of Liability remaining after deduction for any other claims under this Policy unless the Company have agreed to reinstate such limit whichever is the lesser sum. All extensions of cover are subject to the applicable Limits of Liability and any aggregate per occurrence limit set out in the Schedule. The Company shall not be liable for the first amount as shown in the Schedule, of any claim payable in respect of any occurrence under any one Section. If two or more deductible amounts in this Policy apply to a single occurrence, the total to be deducted shall not exceed the largest deductible. This first amount will form part of the Limit of Liability any one occurrence under any one Section or more than one Section combined of this Policy and the Limit of Liability will be the maximum amount payable under this Policy. All claims arising out of one occurrence shall be adjusted as one claim. Where different to the deductibles shown in Sections 1 to 5 separate deductibles may apply: for either causes of damage; or to certain Insured Locations as identified within the Schedule. Where shown in the Schedule as applicable to Sections 2, 3, 4, 5, 9 and 10 only, for covers identified within the Schedule a time franchise or waiting period may apply. Without prejudice to any of the Company s other rights, this Policy shall be voidable in the event of misrepresentation, misdescription or nondisclosure in any material particular. If a claim is fraudulent in any respect, or if fraudulent means are used by the Insured or by anyone acting on their behalf to obtain any benefit under this Policy, or if damage to the Insured Location or to property insured is caused by the wilful act or with the connivance of the Insured, all cover under this Policy shall be forfeited. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 73 of 176

76 Action by the Insured In the event of damage for which a claim is or may be made under this Policy the Insured shall: 1. notify the Company immediately; 2. notify the Police Authority immediately it becomes evident that any damage has been caused by burglary or larceny or attempted burglary or larceny or by malicious persons; 3. carry out and permit to be taken any action which may reasonably be practicable to prevent minimise or check any further damage or interruption or interference with the Insured s business; 4. deliver to the Company at the Insured's expense: 4.1 full information in writing of circumstances, nature and amount of damage; 4.2 details of any other insurance on any property insured; 4.3 all such proofs and information relating to the claim as may be reasonably required; 4.4 if demanded, a statutory declaration of the truth of the claim and of any matters connected with it; within 30 days after such damage (7 days in the case of damage caused by burglary, larceny, attempted burglary or larceny, theft, riot, civil commotion, strikers, locked-out workers or persons taking part in labour disturbances or malicious persons) or such further time as the Company may allow. if the event is one in consequence of which a claim may be made under Sections 2 to 4 of the Policy, the Insured shall, not less than 30 days after expiry of the indemnity period or within such further time as the Company may allow, deliver to the Company: written particulars of their claim together with details of all other insurances covering property used by the Insured at the Insured Location for the purpose of the Insured s business or any part of it or any resulting business interruption or interruption or interference with research and development operations; such books of account and other business books vouchers invoices balance sheets and other documents proofs information explanation and other evidence as may reasonably be required by the Company for the purpose of investigating or verifying the claim together with if demanded a statutory declaration of the truth of the claim and of any matters connected with it. If the terms of this condition have not been complied with any payment already made on account in respect of the claim already shall be repaid to the Company forthwith and the Company shall have no further obligation to make payment with respect to that claim. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 74 of 176

77 Reinstatement Alteration Inspection Reasonable Precautions Non-Invalidation Fire Protection Devices If any property insured is to be reinstated or replaced by the Company, the Insured shall at their own expense provide all such plans, documents, books and information as may reasonably be required. The Company shall not be bound to reinstate exactly but only as circumstances permit and in a reasonably sufficient manner and shall not in any case be bound to expend in respect of any item insured more than the its Sum Insured or the Limits of Liability (whichever is less). Section 2 and the cover provided for research and development operations within Section 4.2 will be avoided, if after the commencement of this insurance: 1. the Insured s business is wound up or carried on by a liquidator or receiver or permanently discontinued; 2. the interest of the Insured ceases other than by death; or 3. any alteration is made either in the Insured s business or in the Insured location or property therein whereby the risk of damage is increased, unless agreed in advance by the Company in writing. All other Sections of this Policy shall be avoided in respect of any property insured altered after the commencement of this insurance: 1. by removal; 2. whereby the risk of damage is increased; or 3. whereby the interest of the Insured ceases except by will or operation of law, unless agreed in advance by the Company in writing. The Company shall have the right to inspect the property insured at all reasonable times during the Period of Insurance. The Insured agrees to make available the property insured at no expense to the Company to enable the Company to carry out such inspections and report thereon. At all times during the Period of Insurance the Insured shall take all reasonable precautions to prevent damage. This insurance shall not be invalidated by any act or omission or by any alteration whereby the risk of damage is increased, unknown to or beyond the control of the Insured, providing that the Insured immediately they become aware of any such thing, shall give notice to the Company and pay an additional premium if required. In respect of any automatic sprinkler or automatic fire alarm installations or any other fire protection in the Insured Location the Insured shall so far as their responsibility extends take all reasonable steps to: maintain the Installation(s) including the automatic alarm signal in efficient condition; maintain ready access to the water supply control facilities. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 75 of 176

78 Fire Extinguishing Appliance Workmen Statutory Regulations Contribution and Average The Insured shall keep the fire extinguishing appliances in working order during the Period of Insurance of this Policy. Workmen are permitted in or about any of the Insured Locations for the purposes of carrying out minor alterations, repairs, decoration and maintenance without prejudice to this insurance. In respect of any vessel, machinery or apparatus or its contents, belonging to or under the control of the Insured which requires examination to comply with any Statutory Regulations cover against damage caused by an explosion originating therein is subject to the provision that such vessel machinery or apparatus shall be the subject of a policy or other contract providing the required inspection service. If at the time of any damage resulting in a loss insured by this Policy there is any other insurance effected by or on behalf of the Insured covering any of the property lost destroyed or damaged or any loss or any part of it the liability of the Company hereunder shall be limited to is rateable proportion of such damage. If any such other insurance shall be subject to any average (underinsurance) condition this Policy if not already subject to any such condition of average shall be subject to average in like manner. If any such other insurance is subject to any provision whereby it is excluded from ranking concurrently with this Policy either in whole or in part or from contributing rateably the liability of the Company under this Policy shall be limited to that proportion of the damage which the Sum Insured under this Policy bears to the value of the property insured. In respect of items of stock: If at the time of damage the Sum Insured on any item is less than the value of the property covered by such item then the Insured shall be considered as being his own insurer for the difference and shall bear a rateable share of the loss accordingly. The amount payable by the Company in respect of such damage shall be proportionately reduced. In respect of property covered under Section 10 Computer Breakdown: If at the time of any loss insured within the terms of Section 10 Computer Breakdown such insured property is subject to a maintenance agreement and such maintenance agreement reimburses the Insured for any incurred loss this Policy shall provide indemnity within the terms of the Policy only after such maintenance agreement shall have been exhausted. In respect of all other items: If at the time of reinstatement the sum representing 85% of the cost which would have been incurred in reinstating the whole of the property to which any declared value is applicable exceeds such declared value at the commencement of any damage, then the Company s liability shall not exceed that proportion of the amount of the damage which said declared value shall bear to the sum representing the total cost of reinstating the whole of such property at that time. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 76 of 176

79 Company s Rights Following a Claim Salvage On the happening of damage in respect of which a claim is made the Company and any person authorised by the Company may, without thereby incurring any liability or diminishing any of the rights of the Company under this Policy, enter, take or keep possession of the premises where such damage has occurred and take possession of or require to be delivered to the Company any property insured and deal with such property for all reasonable purposes and in any reasonable manner. No claim under this Policy shall be payable unless the terms of this condition have been complied with. No property insured may be abandoned to the Company whether taken possession of by the Company or not. In the event of a claim arising for which the Company shall be liable under this Policy the Company shall be entitled (but not obliged): 1. to undertake in the name of and on behalf of the Insured the absolute conduct and control of any proceedings and settlements of the same; 2. to take proceedings at their own expense and for their own benefit but in the name of the Insured to recover compensation or secure any indemnity from any third party in respect of anything covered by this Policy; and 3. to pay to the Insured in respect of any claim or claims the maximum liability of the Company as stated in the Schedule, or such lesser sum for which the said claim or claims can be settled (subject to deduction in either case of any sum or sums already paid on account of such claim or claims) and thereafter the Company shall be under no further liability in respect of said claim or claims except for payment of costs and expenses incurred prior to the date of such payment and for which the Company may be liable hereunder. If any damaged property insured is recovered by the Insured or the Company, after a loss payment is made, the party making the recovery must give the other parties prompt notice. If any recovered property has a salvage value, the Company shall control the disposition of such salvage. When property insured is recovered the Insured may keep the: recovered property and return the loss payment to the Company; or loss payment and the Company will keep the recovered property. When any recovered property insured which the Insured chooses to keep is in need of repair the Company will pay for the repairs subject to the: applicable Limit of Liability shown in the Schedule; Policy Basis of Settlement Conditions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 77 of 176

80 Salvage continued Subrogation Subrogation Waiver Cancellation of Policy Currency If any recovered property has a salvage value or if there is any money recovered through subrogation such recoveries shall be applied net of the expense of such recovery in the following order: First to the Insured for any uninsured damage from an insufficient Limit of Liability; Second to the Company for any amounts paid in settlement of the Insured s claims; and Third to the Insured for any deductible amount that the Insured paid or penalties the Insured paid as a result of coinsurance. The Company shall determine the amount of damage on the basis that it would have been settled had the amount of the recovery been known at the time the loss originally determined. If there are expenses: in recovering any lost or damaged property insured; or as a result of subrogation, the Company shall share the expense with the Insured and any company which provided excess insurance in proportion to their respective shares. If there is no recovery and proceedings are conducted solely by the Company, the Company shall bear the expenses of the proceedings. The Company shall have rights of subrogation to all the Insured s rights of recovery against any person or organisation before or after any payment under this insurance. The Insured shall execute and deliver such instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. In the event of a claim arising under this Policy, the Company agrees to waive any rights, remedies or relief to which it might become entitled by subrogation against: any company standing in the relation of Parent to Subsidiary (Subsidiary to Parent) to the Insured current at the time of the damage; or any company which is a Subsidiary of a Parent Company of which the Insured are themselves a Subsidiary current at the time of the damage. This Policy may be cancelled by the Company giving to the Insured at least 30 days written notice of cancellation with or without tender of the excess of premium paid above the pro-rata premium for the expired time which excess if not tendered shall be refunded on demand. For cancellation following default in payment of the premium or any agreed instalment, the period of notice may be reduced to 7 days. All premiums and claims payable under this Policy shall be in Sterling save where agreed to the contrary by the Company. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 78 of 176

81 Arbitration Governing Law and Jurisdiction If any difference arises as to the amount to be paid under this Policy (liability being otherwise admitted) such difference shall be referred to an arbitrator to be appointed by the parties in accordance with the Arbitration Act Where any difference is by this condition to be referred to arbitration the making of an award shall be a condition precedent to any right of action against the Company. This Policy shall be governed by English law and the parties submit to the non-exclusive jurisdiction of the English Courts. Any arbitration under the Arbitration Condition shall be held in England and shall be subject to English law. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 79 of 176

82 DEFINITIONS APPLICABLE TO ALL SECTIONS Words with specific meanings are defined here or may be defined in the Section of the Policy where they are used. All other words or expressions bear their plain English meaning. The following Definitions apply throughout this Policy, and appear in bold print. Aggregate Deductible Aggregate Policy Limit Aggregate Per Occurrence Limit Annual Rent Receivable Associated Companies Bonus Payments Breakdown Building means the amount for which the Insured is responsible for each and every occurrence after the application of the terms conditions and provisions of this Policy including any condition of average. If, during the annual period of insurance, the aggregate of the amounts borne by the Insured under the terms of the forgoing exceeds the amount specified in the Schedule under aggregate deductible, such excess shall be payable hereunder by the Company. means the maximum amount payable to the Insured under this Policy after the application of the terms, conditions and provisions of this Policy including any condition of average during the twelve month period shown in the Schedule regardless of the number of occurrences. means the maximum amount payable by the Company under this Policy to which such a limit applies (if any, as set out in the Schedule) for any one occurrence after the application of the terms, conditions and provisions of this Policy. means the amount of rent receivable during the twelve months immediately before the date of the damage allowing for the trend in the business. means those companies of which details have been lodged with the Company. means that portion of any cash bonus paid by the Insured based on the percentage of the Insured s lease remaining at the time of the damage. It shall not include within its meaning rent, securities or cash bonuses refunded to the Insured, even if the Insured prepaid the rent or security. means the actual failure, distortion, breaking or burning out of any part of a machine whilst in use arising from either mechanical or electrical defects in the machinery or failure or fluctuation of the electricity supply causing sudden stoppage of the functions thereof and necessitating repair or replacement before it can resume working. It shall not include within its meaning damage from any extraneous cause. means buildings, including landlords fixtures and fittings, alterations and decorations therein and thereon including fixed glass (including its framework lettering or any intruder alarm foil attached to it), drains, sewers, piping, cabling, wiring and associated control equipment and accessories only to the extent of the Insured s responsibility and ability. It shall not include within its meaning cell site premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 80 of 176

83 Burglary Business Hours Business Interruption Cell Site Premises Cell Site Property Communication Property Communication Lines Computer Breakdown Contract Works Damage means the unlawful taking away of property insured with intent to permanently deprive the rightful owner of the same by a trespasser using forcible and violent entry to or exit from the Insured s premises. means any period during which the Insured s Premises or contract sites are physically occupied by the Insured or an employee entrusted with money for the purposes of the Insured s business. means loss resulting from interruption of or interference with the business carried on by the Insured in consequence of damage. It shall not include within its meaning research and development operations. means premises used exclusively for microwave or other radio transmission. means building, towers or antennae, tenants improvements and betterments or general contents at a cell site premises. means analogue or digital communication equipment or other equipment used to interactively communicate with others through voice, picture, video or writing owned by or in the care custody or control of the Insured. It shall not include within its meaning electronic data processing equipment, electronic data, mobile communication property, personal property, or communication systems for sale or sold. means: overhead communication lines; underground communication lines; and submarine communication lines. means the actual breaking, distortion or electrical burnout of any item of electronic data processing equipment or part thereof whilst in use at the premises, causing stoppage of its normal function and requiring its repair or replacement before normal operating conditions prevail. means the permanent and temporary works executed in performance of the contract works insured and materials for use in connection therewith. means direct physical: loss of, or destruction of, or damage to the property insured from any sudden and accidental cause except as specifically excluded elsewhere in this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 81 of 176

84 Declared Value Defined Peril Electronic Data means the Insured s assessment of the Cost of Reinstatement of the property insured arrived at in accordance with the Reinstatement extension / condition at the level of costs applying at the inception of the annual period of insurance (ignoring inflationary factors which may operate subsequently) together, insofar as the insurance by the item provides due allowance for, with: the additional cost of reinstatement to comply with European and Public Authorities requirements; professional fees; debris removal costs. means: fire; lightning ; explosion; aircraft or other aerial devices or articles dropped there from; riot; civil commotion; strikers; locked-out workers; persons taking part in labour disturbances; malicious persons; burglary or attempted burglary; earthquake; storm; flood; escape of water from any tank apparatus or pipe; impact by any road vehicle or animal. means facts, concepts and information converted to a form useable for communications, interpretation or processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 82 of 176

85 Electronic Data Processing Equiment Electronic Data Processing Media Electronic Data Processing Property means: computers, computer equipment, computer peripherals; climate control, and protection equipment, used solely for data processing operations; separately identifiable and removable component computer devices that are attached to covered property and are designed to control such property, but not the property itself; telecommunications equipment used solely for data processing operations, interconnecting wiring and peripheral equipment used in connection therewith; generating and regulating equipment used solely for data processing operations, detection and protection equipment, interconnecting wiring and pipework, and storage equipment used in connection therewith, owned by, or for which the Insured is legally liable. It shall not include within its meaning: computer, peripherals, equipment or parts held for sale or distribution; computer, peripherals, equipment or parts that have been sold; computer, peripherals, equipment or parts in the course of manufacture; electronic data processing media; electronic data; communication property; mobile communication property; or personal property. means the blank medium upon which electronic data is recorded but not electronic data itself. means: electronic data processing equipment; electronic data processing media; mobile communication property; electronic data; and communication property It shall not include within its meaning personal property. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 83 of 176

86 Electronic Data Recovery Costs Employee Estimated Gross Profit Estimated Gross Revenue Estimated Research and Development Expenditure Fine Art General Contents means the reasonable and necessary costs incurred by the Insured to: copy, re-create, replace or retrieve electronic data owned or used by the Insured, or which resides on a system owned or leased by the Insured restore a system owned or leased by the Insured to the functionality that existed prior to the malicious programming It shall not include within its meaning the cost to repair or replace electronic data processing equipment or communication property which suffers damage. means any person under a contract of service of apprenticeship with the Insured or any person supplied to or hired or borrowed by the Insured while engaged in the course of the Business. means the amount declared by the Insured to the Company as representing not less than the gross profit which it is anticipated will be earned by the Insured s business during the financial year most nearly concurrent with the period of insurance (or a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months). means the amount declared by the Insured to the Company as representing not less than the gross revenue which it is anticipated will be earned by the Insured s business during the financial year most nearly concurrent with the period of insurance (or a proportionately increased multiple thereof where the Maximum Indemnity period exceeds twelve months). means the amount declared by the Insured to the Company as representing not less than the research and development expenditure which it is anticipated will be spent during the accounting period most nearly concurrent with the period of insurance adjusted to reflect the research and development expenditure during the period of insurance (or a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months). means: paintings, rare books, sculptures, manuscripts, pictures, prints, etchings, drawings, tapestries, bronzes, statuary, potteries, porcelains, marbles and other bona fide works of art; or items of rarity or historical value. means: personal property; and electronic data processing property except as specifically excluded elsewhere in this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 84 of 176

87 Gross Profit Gross Revenue Increased Cost of Working Indemnity Period Insider Insured Person means the amount by which: (i) the sum of the amount of the turnover and the amounts 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 working expenses. The amounts of the opening and closing stock and work in progress shall be arrived at in accordance with the Insured's normal accountancy methods due provision being made for depreciation. The words and expressions used in this definition shall have the meaning usually attached to them in the books and account of the Insured. means the money paid or payable to the Insured for services rendered in the course of the Insured s business at the premises, excluding any rent receivable. means the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in: turnover, if gross profit is shown as the Basis of Settlement in the Schedule; or gross revenue, if gross revenue is shown as the Basis of Settlement in the Schedule rent receivable, if rent receivable is the applicable Basis of Settlement research and development operations if cover for research and development operations is shown as operative in the Schedule under Section 3 and which, but for that expenditure, would have taken place during the indemnity period. means the period beginning with the occurrence and ending not later than the Maximum Indemnity Period or that indemnity period more specifically set out in the Schedule thereafter during which the results of the Insured s business and / or research and development operations shall be affected in consequence of the damage. means a person, organisation or computer expressly authorised by the Insured to access a system. means the insured or any director partner or employee of the insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 85 of 176

88 Interconnect Partner Interconnect Partner Premises means a company with whom the Insured has an interconnect agreement evidenced by a written contract for the physical connection of equipment and transmission facilities within, between and among networks, to facilitate the transmission and routing of exchange services and exchange access. It shall not include within its meaning: the public telecommunications undertaking; internet access and service provider; or suppliers and customers of the Insured. means the premises of any interconnect partner connected directly to the premises or telecommunications infrastructure of the Insured but excluding: submarine communication lines; overhead communication lines; towers or antennas; or cell site premises. Inter Group Dependency means any business interruption according to the terms of Section 2 sustained by the Insured at the Insured Locations other than those at which the damage has occurred subject always to the Limits of Liability in the Schedule. Internet Access and Service Provider Larceny Listed Perils means companies through whom the Insured access information made available by third parties or make information available to third parties via computer or other electronic systems. means the unlawful taking away of property insured with intent to deprive the rightful owner of the same not including burglary. means fire and explosion. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 86 of 176

89 Machinery and Plant Malicious Programming means any: boiler, fired pressure vessel, unfired pressure vessel normally subject to vacuum or internal pressure other than weight of its content, refrigerating and air conditioning vessels, including metal piping and its accessory equipment connected thereto; and mechanical or electrical machine apparatus used for the generation, transmission or utilization of mechanical or electrical power. It shall not include within its meaning any: part of a boiler or fired vessel or electric steam generator that does not contain steam or water; insulating or refractory material; non-metallic vessels, equipment, machines and apparatus, including their glass lining and non-metallic parts; glass linings of vessels, equipment, machines and apparatus; catalyst; piping, vessels or electrical cables, not enclosed in conduit, buried directly in the ground; sewer piping; sprinkler system piping or water piping other than: (a) feedwater piping between any steam boiler and its feed pumps or injectors; (b) steam boiler condensate return piping; and (c) metal water piping interconnecting vessels forming part of a refrigerating or air conditioning system used for cooling, humidifying or space heating; part of an unfired pressure vessel that is not under: (a) pressure; or (b) internal vacuum. means an illegal or malicious entry into electronic data or a system which results in functions that: distort, corrupt, manipulate, copy, delete, destroy, or slow down such electronic data or system. It shall not include within its meaning: (a) theft of telephone services; or (b) damage to electronic data or electronic data processing property. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 87 of 176

90 Mobile Communication Property Money Monthly Limit of Indemnity Multiple Lifting Operations Non Ranking Deductible Notifiable Disease means cellular telephone, laptop computers, pagers, personal digital assistants, mobile hand held global positioning systems and other hand held communication devices. It shall not include within its meaning electronic data processing equipment, electronic data, communication property or personal property. means: Negotiable Money: Cash, bank and currency notes, cheques and giro cheques (other than blank or partly completed cheques and giro cheques), travellers cheques, bankers drafts and giro drafts, postal orders, money orders, national savings certificates, and unused current postage stamps, and unexpired units in franking machines, trading stamps, national insurance stamps (whether affixed to cards or otherwise), national savings and holiday with pay stamps, bankers drafts, promissory notes, bonds, securities, bills of exchange, dividend warrants and gift tokens, luncheon vouchers and consumer redemption vouchers all belonging to the Insured or for which they have accepted responsibility; and Non Negotiable Money: Crossed cheques, crossed giro cheques, crossed bankers drafts and crossed giro drafts, crossed postal orders, crossed money orders, premium bonds, unused national insurance stamps, national savings certificates, credit card sales vouchers, debit card sales vouchers, VAT purchase invoices all belonging to the Insured or for which they have accepted responsibility. means the one-twelfth part of the annual research and development expenditure incurred during the financial year immediately before the date of the damage allowing for the trend in the business. means where two or more lifting machines are used for the purpose of lifting or lowering a load. means the amount of damage for which the Insured is responsible for each and every occurrence under any Section of this Policy after the application of the terms, conditions and provisions of this Policy including any condition of average. The non ranking deductible shall not reduce any aggregate deductible. means illness sustained by any person resulting from food or drink poisoning or any human infectious or human contagious disease, an outbreak of which the competent local authority has stipulated must be notified to them, and Legionnaires Disease. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 88 of 176

91 Occurrence Operations Outsider Overhead Communication Lines means: for earthquake, including any resulting tsunami: (a) one earthquake; or (b) a series of earthquake shocks occurring within any period of 168 hours; for volcanic eruption: (a) one volcanic eruption; or (b) a series of volcanic eruptions occurring within any period of 168 hours; for windstorm involving, in whole or in part, any of the perils of weather: (a) one weather event, or (b) a series of related weather events occurring within 72 hours; for all other perils: (a) one event; or (b) a series of casually related events that contribute: concurrently to; or in any sequence to the damage. For the purposes of this definition, any earthquake or volcanic eruption, or series of earthquake shocks or volcanic eruptions will be deemed to occur at the time of the first shock or eruption. means the business activities of the Insured occurring at the premises including the activities of the Insured as a lessor of premises prior to the malicious programming. means a person, organisation or computer not authorised to access a system. means overhead cable, wire or other lines used to transmit signals including overhead transformers, repeaters or other similar overhead communication, transmission or distribution equipment and all their supporting towers or poles. It shall not include within its meaning: underground communication lines: submarine communication lines; cell site property; or electrical transmission and distribution lines including transformers or other similar electrical transmission and distribution equipment and their supporting structures. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 89 of 176

92 Period of Recovery of Computer Services Personal Property Policy Limit Prepaid Rent Project Site means the period of time that: for electronic data recovery costs, increased cost of working and additional increased cost of working, begins immediately after the malicious programming occurs; and for business interruption, rent receivable and research and development expenditure, begins twenty-four (24) normal business hours after the malicious programming occurs. and will continue until the earlier of the following: the date operations are restored, with due diligence and dispatch, to the condition that would have existed had there been no malicious programming; or sixty (60) days after the date the Insured restores, with due diligence and dispatch, a system to the functionality that existed prior to the malicious programming. In determining the condition of operations that would have existed had there been no malicious programming, no consideration will be given to unfavourable market conditions or competitive advantage gained by others as a result of such malicious programming. means all contents of a building (other than stock and research and development property) including: machinery, plant, fixtures and fittings other than landlord s fixtures and fittings, and trade utensils: valuable papers; patterns, models, moulds, plans and designs; so far as they are not otherwise insured, employees directors and visitors personal effects of every description (other than motor vehicles) for an amount not exceeding the amount shown in the schedule It shall not include within its meaning electronic data processing property. means the maximum amount payable by the Company in respect of any one occurrence and may be subject to an aggregate policy limit if shown in the Schedule. means that portion of any prepaid rent paid by the Insured based on the percentage of the Insured s lease remaining at the time of the damage. It shall not include within its meaning the customary rent due at the beginning of any rental period. means any premises to be used by the Insured in connection with their business where at the time of the damage the Insured has taken the decision to enter into a contract for the erection of renovation of extension to refurbishment of equipment/re-equipment of buildings or other physical facilities thereto. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 90 of 176

93 Property Insured Prototypes Rate of Gross Profit Rent Receivable Research and Development Expenditure Research and Development Operations Research and Development Property Residual Deductible Security Software means a building, general contents, stock, telecommunications property and research and development property belonging to the Insured or held by the insured in trust or on commission for which the Insured is responsible for the purposes of the Insured s business except as specifically excluded elsewhere in this Policy. means a first or original model of a new type of design. means the rate of gross profit earned on the turnover during the financial year immediately before the date of the damage allowing for the trend in the business. means the amount of the rent received or receivable from the letting of the Insured s premises. If during the indemnity period the Insured s business shall be conducted elsewhere than at the premises the money paid or payable to the Insured in respect of such other premises shall be brought into account in arriving at the rent receivable during the indemnity period allowing for the trend in the business. means the amount of expenditure on research and development operations by the Insured at the premises excluding the relative cost of raw materials consumed, income derived from research undertaken under contract by the Insured on behalf of customers and financing transactions. means the Insured s business activities at the premises which are directly related to or directly support the development of new products or enhancements of existing products. means electronic data, written, printed or inscribed documents, plans, records or formulas, processes and resulting products, samples or other materials produced by such processes and prototypes, if produced and directly associated with research and development operations. It shall not include within its meaning animals, money, securities, property held for sale or held for delivery after sale, goods that have been manufactured which are in their completed state and ready for sale, mobile communication property, valuable papers or stock. means the amount of damage for which the Insured is responsible for each and every occurrence under any Section of this Policy after the application of the terms, conditions and provisions of this Policy including any condition of average and after the exhaustion of any aggregate deductible. means software or other computer applications or programming principally designed to detect, prevent or mitigate malicious programming. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 91 of 176

94 Standard Gross Revenue Standard Rent Receivable Standard Turnover Stock Sublease Profit Submarine Communication Lines Subsidiary Companies means the gross revenue during that period in the twelve months immediately before the date of the damage which corresponds with the indemnity period to which such adjustments shall be made as may be necessary to provide for the trend in the business and for variations in or other circumstances affecting the Insured s business either before or after the damage, or which would have affected the Insured s business had the damage not occurred so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the damage would have been obtained during the relative period after the damage. means the amount of the rent receivable during the period corresponding with the indemnity period in the twelve months immediately before the date of the damage appropriately adjusted where the Maximum Indemnity Period exceeds twelve months. means the turnover during that period in the twelve months immediately before the date of the damage which corresponds with the indemnity period. means: stock and materials in trade; goods (including customer s goods) in trust or on commission or for which the Insured is otherwise responsible; and supplies used in packing and shipping thereof belonging to the Insured or for which the Insured is responsible. means the net profit earned by the Insured through subleasing the building or portion of the building that the Insured rents for the unexpired term of the cancelled lease or sublease, whichever would expire first. This amount is discounted based on the prime rate of interest at the time of damage for the unexpired term of the cancelled lease or sublease. means cable, wire or other lines below the surface of the sea used to transmit signals including transformers, repeaters or other similar communication, transmission or distribution equipment and all their associated conduits, pipes and supports below the surface of the sea. It shall not include within its meaning: underground communication lines; or electrical transmission and distribution lines including transformers or other similar electrical transmission and distribution equipment and their supporting structures. means any company standing in the relation of subsidiary to parent to the holding company to the Insured (within the meaning of the Companies Act 1985 (as amended) or the Companies (Northern Ireland) Order 1986 or other applicable local legislation). CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 92 of 176

95 System Telecommunications Property Tenants Impreovements and Bettements Telecommunication Service Provider Tenants Lease Interest Terrorism means a computer and all input, output, processing, storage, off-line media library and communication facilities which are connected to such computer, provided such computer and facilities are: owned and operated by the Insured; leased and operated by the Insured; or utilised by the Insured pursuant to a written contract. means: cell site property; and communication lines means fixtures, alterations, installations or additions to a building occupied but not owned by the Insured, made at the expense of the Insured, and which cannot legally be removed. It shall not include within its meaning retaining walls, foundations or supports below the surface of the lowest floor or basement, outdoor trees, shrubs, plants or lawns. means the premises of any: land based public telecommunications undertaking from which the Insured obtains telecommunications services; or internet access and service provider and any interconnect partner premises. means: the difference between the appraised rental value of the leased premises at the time of damage for the unexpired term of the lease and the actual rent due for the same period, discounted by the prime rate of interest at the time of damage, for the unexpired term of the cancelled lease; or the difference between the rent due for the unexpired term of the cancelled lease and the rent due under the new lease for that same time period, not to exceed the difference between the actual rent due for the unexpired term of the cancelled lease and the appraised rental value of the leased premises for that same period. This difference is discounted by the prime rate of interest at the time of damage for the unexpired term of the cancelled lease. 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 organisation(s) or government(s), committed for political, religious, ideological or similar purposes, including the intention to influence or overthrow any government and/or to put the public, or any section of the public, in fear. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 93 of 176

96 Time Franchise Towers or Antennae Trend in the Business Turnover Underground Communication Lines Uninsured Working Expenses means the period of time after damage for which the insured is responsible for each and every occurrence. After such time has expired the indemnity period will commence effective from the time of damage and the Company will be liable only within the terms and conditions of this Policy. means towers, antennae, earth stations or microwave or satellite transmitting and receiving dishes including fencing, lighting, guy wires and transmission and distribution lines, excluding mobile communication equipment or towers and antennas mounted on a vehicle. means adjustments to provide for the trend of the Insured s business and / or research and development operations and variations in other circumstances affecting the business and / or research and development operations either before or after the damage or which would have affected the business and / or research and development operations had the damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the damage would have been obtained during the relative period after the damage. means the money paid or payable to the Insured for goods sold and delivered and for services rendered in course of the Insured s business at the premises. means cable, wire or other lines: below ground level; below the surface of the water in lakes, bays, ponds and rivers; or in conduit on or near the surface of the ground but not overhead, across bridges or through tunnels used to transmit signals including transformers, repeaters or other similar underground communication transmission, transmission or distribution equipment and all their associated conduits, pipes and supports. It shall not include within its meaning: submarine communication lines; overhead communication lines; or electrical transmission and distribution lines including transformers or other similar electrical transmission and distribution equipment and their supporting structures. means: 100% of purchases less discounts received; 100% of discounts allowed; 100% of carriage packing and freight; 100% of bad debts. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 94 of 176

97 Valuable Papers Waiting Period means papers, documents (including stamps thereon), records, negatives, transparencies, manuscripts, and writings of every description, business books and books (written and printed), tapes of all types, original plans, blueprints, specifications or designs but only for the value of the materials as stationery together with the cost of clerical labour expended in writing up such documents, manuscripts and business books, (excluding any expense in connection with the production of information to be recorded therein) and not for the value to the Insured of the information they contain. It shall not include within its meaning electronic data processing media, electronic data, pre-packaged software programmes, research and development property, money or securities. means that part of the indemnity period immediately following damage during which time the Company shall not be liable for any loss sustained by the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 95 of 176

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99 COMMERCIAL LIABILITY INSURANCE Part 2 of this Telecommunication Package is as follows: Section 1 Public Liability Section 2 Products Liability Section 3 Employers Liability Extensions Exclusions Conditions Claims Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 97 of 176

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101 Section 1 PUBLIC LIABILITY Bodily Injury, Property Damage and Nuisance Under this Section, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay in respect of: bodily injury; property damage; or nuisance; caused by an occurrence in connection with the Insured s Business. This Section will apply only if such bodily injury, property damage or nuisance happens: during the Period of Insurance; and within the Territorial Limits. This Section does not apply to any liability arising out of the Insured s product. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 99 of 176

102 Section 2 PRODUCT LIABILITY Bodily Injury and Property Damage Under this Section, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay in respect of: bodily injury; or property damage; caused by an occurrence in connection with the Insured s Business. This Section will apply only if such bodily injury or property damage is caused by the Insured s product and happens: during the Period of Insurance; and within the Territorial Limits. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 100 of 176

103 Section 3 EMPLOYERS LIABILITY Bodily Injury Under this Section, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay in respect of bodily injury sustained by an employee arising out of and in the course of their employment by the Insured and caused by an occurrence in connection with the Insured s Business. This Section will apply only if such occurrence happens: during the Period of Insurance; and within the Territorial Limits. Compulsory Insurance and Rights of Recovery The Company agrees to make payment under this Section in accordance with the provisions of the Employers Liability (Compulsory Insurance) Act 1969 and regulations made under it, or subsequent amendment or re-enactment or similar legislation in Northern Ireland, the Isle of Man or the Channel Islands to the extent required by such legislation. The Insured agrees to reimburse the Company for any payment made by the Company that would not have been made under the terms and conditions of this Policy save for the agreement contained in this provision. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 101 of 176

104 LIMITS OF INDEMNITY Limits of Indemnity If more than one Section of this Policy would otherwise apply to the same occurrence or series of occurrences consequent on or attributable to the same or substantially the same source or original cause, then the aggregate maximum Limit of Indemnity under all Sections shall not exceed the highest applicable Limit of Indemnity under any one Section of the Policy. This provision does not apply to Section 3 (Employers Liability). The Limits of Indemnity apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the Period of Insurance shown in the Schedule, unless the Period of Insurance is extended after issuance for an additional period. In that case, the additional period will be deemed to form part of the last preceding period for purposes of determining the Limits of Indemnity. The Company s obligations end when the applicable Limit of Indemnity has been exhausted. Section 1 (Public Liability) Irrespective of the number of claims, the liability of the Company under Section 1 for damages, claimants costs and payments made under any extension to Section 1 (save for the extension entitled Defence Costs ) arising out of the same occurrence or series of occurrences consequent on or attributable to the same or substantially the same source or original cause shall not exceed the applicable Limit of Indemnity stated in the Schedule. Section 2 (Product Liability) Irrespective of the number of claims or occurrences, the liability of the Company under Section 2 (save for the extension entitled Defence Costs ) for damages, claimants costs and any payments made under any extension to Section 2 shall not exceed the applicable aggregate Limit of Indemnity stated in the Schedule. Any sum the Company pays will reduce the amount of the aggregate Limit of Indemnity available for any other payment. The remaining amount of such aggregate Limit of Indemnity is the most that will be available for any other payment. Section 3 (Employers Liability) Irrespective of the number of claims, the liability of the Company under Section 3 for damages, claimants costs and payments under the extension entitled Defence Costs arising out of the same occurrence or series of occurrences consequent on or attributable to the same or substantially the same source or original cause shall not exceed the applicable Limit of Indemnity stated in the Schedule. Payments made under any other Extension to Section 3 shall erode the Limit of Indemnity to the extent permitted by law. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 102 of 176

105 Section 3 (Employers Liability Terrorism Limit) Irrespective of the number of claims, the liability of the Company for damages, claimants costs and payments under the extension entitled Defence Costs arising out of the same occurrence or series of occurrences consequent on or attributable to terrorism shall not exceed the applicable Limit of Indemnity stated in the Schedule. This limit is part of, and not in addition to the Limit of Indemnity applicable to this Section 3. Defence Costs Under Sections 1 and 2, payments made under the Extension entitled Defence Costs shall be in addition to the Limit of Indemnity stated in the Schedule. Under Section 3, any payment made under the Extension entitled Defence Costs will reduce the amount of the Limit of Indemnity available for any other payment. The remaining amount of such Limit of Indemnity is the most that will be available for any other payment. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 103 of 176

106 EXTENSIONS Extensions are subject to the terms and conditions (including Exclusions and Limits of Indemnity) applicable to the Section(s) under which the Extension is provided. The Company s obligations under any Extension end when the applicable Limit of Indemnity has been exhausted. Compensation for Court Attendance and Staff Disruptance Consumer Protection Act 1987 Food Safety Act 1990 Legal costs Under Sections 1, 2 and 3, the Company shall pay the following sums to the Insured in the event that a partner, director, officer or employee of the Insured, at the request of the Company: attends a court or arbitration hearing as a witness - up to 250 for each day on which that person attends as a witness. is interviewed by the lawyers conducting the defence of a claim for the purpose of composing a witness statement - up to 50 per hour in respect of the time certified by the lawyers as time being interviewed. is reasonably needed to attend a Conference with Counsel (as that expression is used by the Bar of England And Wales) - up to 50 per hour in respect of the time certified by the lawyers conducting the defence against the claim as time spent in such conference. attends a court or arbitration hearing as an observer - up to 50 for each day on which that person attends as an observer, provided that the Company shall only be liable to compensate for the occupation of one observer per day. Under Sections 1 and 2, the Company will indemnify the Insured and, at the request of the Insured, a partner, director, officer or employee of the Insured for necessary and reasonable legal fees and expenses (including prosecution costs awarded) reasonably incurred with the Company s prior written consent, in the defence against a prosecution or an appeal against conviction resulting from an actual or alleged breach of the: Consumer Protection Act 1987 Part II; or Food Safety Act 1990 Part II and Food Hygiene (Amendment) Regulations 1990; or subsequent amendment or re-enactment, or similar legislation in Northern Ireland, the Isle of Man or the Channel Islands, provided the proceedings relate to an occurrence: happening during the Period of Insurance and in connection with the Insured's Business; and which may be the subject of indemnity under this Policy. In the event of any dispute arising concerning whether any prosecution should be defended, or an appeal made, such dispute shall be referred to leading counsel (the identity of whom shall be mutually agreed between the Insured and the Company, or in default of agreement nominated by the President of the Law Society) whose decision shall be final and binding on both parties. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 104 of 176

107 Data Protection Act 1998 Under Section 1, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay resulting from an occurrence during the Period of Insurance under Section 13 of the Data Protection Act 1998 ( the 1998 Act ), provided that: 1. the Insured has made and will maintain all notifications required by the 1998 Act in respect of all types of personal data processed by the Insured, and all purposes for which the Insured processes such data. 2. the Company shall have no liability under this Extension in respect of any: act or omission which the Insured commits knowing it will result in breach of the 1998 Act;or cost of replacing, rectifying, reinstating or erasing any personal data. The liability of the Company in respect of this Extension shall not exceed 1 million in the aggregate. Defective Premises Act 1972 Under Section 1, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay under Section 3 of the Defective Premises Act 1972 or Section 5 of the Defective Premises (Northern Ireland) Order 1975 in respect of property damage happening during the Period of Insurance to premises which have been disposed of by the Insured. This Extension does not apply to any cost of remedying any defect in any such premises. Defence Costs Under Sections 1, 2 and 3, the Company will indemnify the Insured for the following, provided they are incurred with the Company's prior written consent. : legal defence costs; legal fees for representation of the Insured at a coroner's inquest or similar inquiry or court proceedings in connection with an alleged breach of statutory duty resulting from an occurrence which may be the subject of indemnity under this Policy; and legal fees for defence of the Insured against proceedings for manslaughter (including appeal against conviction) resulting from an occurrence which may be the subject of indemnity under this Policy; CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 105 of 176

108 Health and Safety at Work Act 1974 Legal Costs Under Sections 1, 2, and 3, the Company will indemnify the Insured and, at the request of the Insured, partners, directors, officers and employees of the Insured for necessary and reasonable legal fees and expenses (including prosecution costs awarded) reasonably incurred with the Company s prior written consent, in the defence against a prosecution or an appeal against conviction resulting from an actual or alleged breach of the Health and Safety at Work Act 1974 (and regulations made under it) or subsequent amendment or re-enactment, or similar legislation in Northern Ireland, the Isle of Man or the Channel Islands, provided the proceedings relate to an occurrence: happening during the Period of Insurance and in connection with the Insured's Business; and which may be the subject of indemnity under this Policy. In the event of any dispute arising concerning whether any prosecution should be defended, or an appeal made, such dispute shall be referred to leading counsel (the identity of whom shall be mutually agreed between the Insured and the Company, or in default of agreement nominated by the President of the Law Society) whose decision shall be final and binding on both parties. Indemnity to Others Under Sections 1, 2, and 3, at the request of the Insured, the Company will indemnify against liability: the Insured s partners, directors, officers or employees (whilst acting within the scope of their duties as such); officers or members of the Insured's social, canteen, welfare or first aid organisations or fire or ambulance services in their respective capacities as such; employees in respect of private work undertaken by an employee with the prior consent of the Insured; and principals for whom the Insured is or has been carrying out work, in respect of an occurrence for which the Insured is responsible, but only to the extent that the Insured has previously assumed such responsibility in a contract or agreement with such principal; provided that: such person or principal shall observe, fulfil and be subject to the terms and conditions of this Policy; such person or principal is not entitled to indemnity under any other insurance; such person or principal has no conflict of interest with the Insured; and the Company shall be entitled (but not obliged) to take over and conduct the investigation and defence and settlement of any claim at its discretion. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 106 of 176

109 Motor Liability Contingent, Incidental Movement, Loading/Unloading or Tool of Trade Under Section 1, notwithstanding the Vehicles exclusion, the Company will indemnify the Insured for damages and related claimants costs that the Insured becomes legally liable to pay in respect of bodily injury or property damage caused by an occurrence in connection with the Insured s Business and resulting from: 1. the use of a mechanically propelled vehicle not owned or provided by the Insured, unless arising while such vehicle is driven: by the Insured; by a person, with the consent of the Insured, if the Insured knows that such person does not hold a valid license to drive the vehicle; or within the United States of America, its possessions or territories. 2. the incidental movement of a mechanically propelled vehicle by the Insured, because such vehicle interferes with and obstructs the performance of the Insured s Business, provided that such movement is restricted to the minimum required to obtain access to or exit from the Insured s premises. 3. the loading or unloading of a mechanically propelled vehicle or trailer attached thereto. 4. the use of self-propelled mechanical plant whilst lawfully operated as a tool of trade on land. However, this Extension does not apply to any: circumstance in which the Insured is required to maintain compulsory insurance, or to provide equivalent security, to comply with the requirements of any legislation applicable to any vehicle, trailer or plant described above, including any road traffic legislation. loss of or damage to any vehicle, trailer or plant described above, or any contents thereof. aircraft, spacecraft, aerial or aerospatial device, hovercraft or waterborne craft. New Acquisitions Under Sections 1, 2 and 3, at the request of the Insured, the Company will indemnify against liability a subsidiary organisation acquired or formed by the Insured during the Period of Insurance, provided that in respect of any newly acquired or formed organisation: full underwriting information is provided within 30 days of acquisition or formation, or within such other period as may be agreed by the Company; the business of the subsidiary organisation is similar to the Insured s Business; and the Insured accepts any additional terms and conditions determined by the Company and pays any additional premium required. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 107 of 176

110 Personal Overseas Liability Under Section 1, at the request of the Insured, the Company will indemnify the Insured s partners, directors, officers or employees, or members of their families, against liability for damages in respect of bodily injury or property damage incurred in a personal capacity whilst temporarily outside their normal country of residence in connection with the Insured s Business. This Extension does not apply to liability for any damages, loss, cost or expense arising out of any: ownership or occupation of any land or building; or possession, ownership or use of any motor vehicle for which insurance or security is required under the provision of any road traffic legislation. Unsatisfied Court Judgments Under Section 3, if an employee sustains bodily injury: in the course of employment by the Insured; and caused by an occurrence during the Period of Insurance; for which a party other than the Insured is legally liable, and the employee is unable to: 1. enforce a judgment for damages for such injury against such third party, either in part or in whole, within 6 months of the date of the judgment, then the Company will, at the request of the Insured, indemnify the employee up to the amount of the adjudged damages and awarded costs to the extent they remain unsatisfied, provided that: the employee assigns the benefit of any judgment to the Company; and there is no appeal outstanding against such judgment. 2. institute or serve proceedings for damages against such third party within a reasonable period of time or at all, then the Company will, at the request of the Insured, pay to the employee an amount equivalent to the sum which would, in the opinion of leading counsel, reasonably be expected to be recovered in proceedings for damages in a court, provided that the employee: assigns any cause of action to the Company; and provides all reasonable assistance that the Company may require should it become possible to pursue the action. Necessary and reasonable costs incurred by the employee in compliance with these requirements will be reimbursed by the Company. This extension does not apply to any judgments, claims or proceedings (whether or not instituted and served) in the United States of America or its possessions or territories. The liability of the Company in respect of this Extension shall not exceed 1 million in the aggregate. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 108 of 176

111 EXCLUSIONS ALL SECTIONS The following exclusions apply to all Sections of this Policy. This Policy does not apply to any: Contractual Liability damages, loss, cost or expense arising out of any liability or obligation assumed in a contract or agreement. This exclusion does not apply to liability for damages for bodily injury or property damage, to which this Policy applies, that the Insured would have in the absence of such contract or agreement. Deliberate Acts damages, loss, cost or expense arising out of any act or omission that: is intended by the Insured; or would reasonably be expected from the perspective of a person in the circumstances of the Insured; to cause injury or damage, even if the actual injury or damage caused is of a different degree or type than expected or intended. This exclusion does not apply to bodily injury or property damage resulting from the use of reasonable force to protect persons or tangible property. Employment Related Practices damages, loss, cost or expense arising out of any injury or damage sustained by any person, whether or not in the course of employment by the Insured, arising out of any employment-related act, omission, policy, practice or representation, including any: dismissal, discharge or termination of employment; breach of any contract of service or apprenticeship; harassment, whether sexual or otherwise; discrimination; deprivation of career opportunity; negligent evaluation or training; negligent reference; misrepresentation, defamation or disparagement, breach of data protection laws, invasion of privacy, breach of confidentiality, malicious falsehood or false imprisonment; or retaliation on account of whistleblowing or the exercise by any person of their legal rights; or for any award made by an Employment Tribunal (whether or not relating to one of the above actions). This exclusion does not apply to damages for bodily injury under Section 3 (Employers Liability) only. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 109 of 176

112 Fines, Penalties or Restitution liquidated damages or penalties (contractual or otherwise) or any criminal or civil fines. amount that constitutes unjust enrichment, including any restitution or return of any fees or expenses or any consideration owed (whether or not disputed) or paid to the Insured. loss, cost or expense to perform any obligation assumed by or on behalf of the Insured. loss, cost or expense incurred, or agreed to, by or on behalf of the Insured, except in an agreed settlement by the Company. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 110 of 176

113 EXCLUSIONS SECTIONS 1 AND 2 (PUBLIC AND PRODUCT LIABILITY) The following exclusions apply to Sections 1 and 2. The insurance provided by Sections 1 and 2 does not apply to any: Adjustment, Recall, Repair or Replacement Aircraft, Spacecraft, Aerial or Aerospatial Device or Missile Products Asbestos damages, loss, cost or expense arising out of any loss of use of or adjustment, disposal, inspection, recall, removal, repair, replacement or withdrawal of: the Insured s product; any property containing or incorporating the Insured s product; if such product or property is recalled or withdrawn from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy or dangerous condition in it. damages, loss, cost or expense arising out of any aircraft, spacecraft, aerial or aerospatial device or missile, or any related product, including any: article, equipment, material, part or spare part installed or otherwise incorporated in, on or under any aircraft, spacecraft, aerial or aerospatial device or missile, or furnished or used in connection therewith; air or space communication, guidance or navigation system; ground control, handling or support equipment or tools furnished or used in connection therewith; equipment or tools furnished or used in connection with manufacturing, repairing or servicing any of the foregoing; blueprints, designs, drawings, information, instructions, manuals, maps, opinions, reports, representations, software, specifications, surveys, training aids, warnings or warranties or engineering or other data furnished or used in connection with any of the foregoing; or engineering or other advice, instruction, labour or service relating to any of the foregoing. damages, loss, cost or expense arising out of or in any way related to any: actual, alleged or threatened contaminative, pathogenic, toxic or other hazardous properties of asbestos; request, demand, order or regulatory or statutory requirement that the Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of asbestos; or claim or proceedings by or on behalf of a government authority or others for any damages, loss, cost or expense arising out of any testing for, monitoring, cleaning up, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of asbestos. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 111 of 176

114 Breach of Professional Duty damages, loss, cost or expense arising out of any rendering of or failure to render any professional service or advice for a fee, or in circumstances where a fee would normally be charged. Cross Liabilities damages, loss, cost or expense arising out of any injury or damage sustained by: 1. the Insured. 2. any person or organisation that either directly or indirectly controls the Insured through: controlling or holding a majority of its voting rights; or the right to appoint or remove a majority of its board of directors. 3. any subsidiary organisation. 4. any manager, member or partner of any limited liability company, partnership or joint venture in which the Insured has an interest. 5. any partner, director, officer or employee of any person or organisation described above. 6. any agent, heir, representative or successor of any person or organisation described above. Damage to the Insured s Product damages, loss, cost or expense for any property damage to the Insured s product if arising out of it or any part of it. Damage to Property in the Insured s Care, Custody or Control (except leased or rented premises or personal effects) damages, loss, cost or expense arising out of any property damage to: 1. any property owned, held in trust or occupied by, leased or rented to or in the care, custody or control of the Insured. 2. that particular part of any property upon which the Insured or any employee of the Insured is or has been carrying out work, if arising out of such work. Subparagraph 1. of this exclusion does not apply to property damage to: personal property of partners, directors, officers or employees of the Insured or of visitors to the Insured s premises. premises or the fittings or fixtures thereof while leased or rented to the Insured. premises or the fittings or fixtures thereof, not owned by or leased or rented to the Insured, while temporarily occupied by the Insured for the purpose of carrying out work in or on such premises. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 112 of 176

115 Employees damages, loss, cost or expense arising out of any injury or damage sustained by any employee arising out of or in the course of employment by the Insured. Intellectual Property Laws or Rights damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened assertion, infringement or violation by any person or organisation of any intellectual property law or right. Nuclear damages, loss, cost or expense arising out of or in any way related to any: ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; or radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof. Pollution or Contamination damages, loss, cost or expense arising out of or in any way related to any: 1. actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of smoke, vapours, soot, fumes, acids, alkalis, chemicals, waste materials or other solid, liquid, gaseous or thermal irritants, contaminants or pollutants; 2. request, demand, order or regulatory or statutory requirement that the Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of any irritants, contaminants or pollutants; or 3. claim or proceedings by or on behalf of a government authority or others for any damages, loss, cost or expense arising out of any testing for, monitoring, cleaning up, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of any irritants, contaminants or pollutants. Subparagraph 1. of this exclusion does not apply to liability for damages for bodily injury or property damage, to which this Policy applies, caused by a sudden, identifiable, unintended and unexpected event happening anywhere in the world, other than in the United States of America or its possessions or territories. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 113 of 176

116 Successor Liability damages, loss, cost or expense arising out of any: ownership, maintenance or use of any assets acquired by the Insured; or conduct of any person or organisation whose assets, business or organisation the Insured acquires; for any injury or damage happening, in whole or in part, before such acquisition is executed. Vehicles damages, loss, cost or expense arising out of any ownership, maintenance, possession or use by or on behalf of the Insured of any: 1. mechanically propelled vehicle or trailer attached thereto whilst being used in circumstances which require compulsory insurance or equivalent security to comply with the requirements of any legislation applicable to the use of such vehicle, including road traffic legislation. 2. aircraft, spacecraft, aerial or aerospatial device, hovercraft or waterborne craft. Subparagraph 2. of this exclusion does not apply to bodily injury or property damage caused by the use of a waterborne craft that is: a hand or sail propelled craft of less than 15 metres in length: or not owned by the Insured, provided that such craft is rented to the Insured, with a supplied crew, for business entertainment. This Exclusion does not apply to cover provided under the Extension entitled Motor Liability - Contingent, Incidental Movement, Loading/Unloading or Tool of Trade. War damages, loss, cost or expense arising out of war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 114 of 176

117 EXCLUSIONS SECTION 3 (EMPLOYERS LIABILITY) The following exclusions apply to Section 3. The insurance provided by Section 3 does not apply to any: Offshore Activities damages, loss, cost or expense arising out of bodily injury sustained by any employee arising out of or in the course of offshore activities. Road Traffic Legislation damages, loss, cost or expense for which compulsory motor insurance or equivalent security is required under road traffic legislation in force within the Territorial Limits. This exclusion does not apply to cover provided under the Extension entitled Unsatisfied Court Judgments. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 115 of 176

118 GENERAL CONDITIONS The following Conditions apply to all parts of this Policy. Adjustment If any part of the Premium is calculated on estimates, then the Insured shall within one month from the expiry of each Period of Insurance furnish such details as the Company may require, and the Premium for such period shall be adjusted subject to any Minimum Premium. Apportionment of Defence Costs If the Company and others are obliged to make payments in the settlement of a claim that exceed the applicable Limit of Indemnity, then the liability of the Company in respect of related legal defence costs shall be limited to the proportion of such legal defence costs as the proportion of the Company s contribution to the total settlement. Arbitration If any difference arises as to the amount to be paid under this Policy (liability not otherwise being in issue), then such difference shall be referred to an Arbitrator agreed by the parties or, in default of agreement, in accordance with the statutory provisions therefor. Where any difference is by this condition to be referred to arbitration, the making of an award shall be a condition precedent to any right of action against the Company. Assignment Assignment of interest under this Policy shall not bind the Company without its prior consent. Audits and Inspection At any time during the Period of Insurance or thereafter, the Insured shall make available to the Company (and the Company shall have the right to audit, inspect and copy) any books, papers and other records of the Insured (including those of its agents and brokers) in connection with this Policy or the subject matter hereof. Cancellation This Policy or any part of it may be cancelled at any time by the Company by sending 30 days' notice by registered letter to the Insured at the last known address. The Insured shall be entitled to the return of a proportionate part of the premium corresponding to the unexpired Period of Insurance. Changes This Policy may be changed only by a written endorsement issued by a duly authorised representative of the Company. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 116 of 176

119 Choice of Law and Forum Currency First Named Insured Material Change in Risk Other Insurance Reasonable Care Third Party Rights Any dispute concerning the interpretation of the terms, validity and effect of this Policy is understood and agreed by both the Insured and the Company to be governed by English law. Any dispute or difference arising under or in respect of this Policy shall be subject to and determined within the exclusive jurisdiction of the Courts of England and Wales. All sums are in the currency expressed in the Schedule, and all payments will be made in that currency. If any calculation or payment is to be made in any other currency, then the rate of exchange to apply shall be that applicable on the date of settlement as published in the London Financial Times. The person or organisation first named as the Insured in the Schedule is primarily responsible for the payment of all premiums. The first named Insured will act on behalf of all other persons or organisations indemnified under this Policy for the giving and receiving of all notices and the receipt of any return premiums that become payable under this Policy. The Insured shall advise the Company immediately in writing of any material change, of which it is aware or ought reasonably to be aware, in the risk insured under this Policy. If the Insured is (or but for the existence of this Policy would be) entitled to indemnity under any other insurance, then the Company shall be liable only for the amount by which the Company s liabilities under this Policy exceed the Insured s entitlement to indemnity under such other. The Insured is obliged, at its own expense, to take all reasonable precautions to prevent injury, damage or loss which may give rise to liability, to comply with all statutory or other obligations and to take all reasonable steps to: ensure that only competent employees are employed; keep all plant, premises, machinery and ways in good repair; remedy any defect or danger and to take all necessary precautions as soon as possible after discovery; and ensure that its products are free from defect and fit for their intended purpose. A person or organisation who is not party to this Policy has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term or condition of this policy. This condition is without prejudice to rights existing notwithstanding such Act. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 117 of 176

120 CLAIMS CONDITIONS The following Conditions apply to all parts of this Policy. Company s Rights: Investigation, Defence and Settlements The Company is entitled (but not obliged), at its discretion, to: take over and conduct (including in the name of the Insured) the investigation, defence (including appeals) or settlement of any claim; and prosecute for its own benefit any claim for indemnity, damages or otherwise. The Company, at its discretion, may at any time pay: the applicable Limit of Indemnity (after deduction of any sums already paid); or any amount for which any claim can be settled; and may then relinquish any conduct or control of, and shall be under no further liability in respect thereof. Insured s Duties in the Event of a Claim In the event of any circumstances arising that may result in a claim under this Policy, written notice containing: particulars sufficient to identify the Insured; all available information concerning the circumstances, including how, when and where it happened; and all available names and addresses of any party who has suffered injury, loss or damage, and of all available witnesses; shall be given to the Company as soon as practicable after the circumstances becomes known to the Insured. The Insured shall give written notice to the Company of any claim or proceedings as soon as practicable after such claim or proceedings come to the knowledge of the Insured, and shall immediately forward to the Company every pre- action letter, demand, notice, summons, claim form or other process received by the Insured. The Insured shall not admit liability for or negotiate the settlement of any claim without the written consent of the Company. The Insured shall co-operate with and provide all required assistance to the Company and, at the Company s request and in accordance with its instructions, shall: assist in negotiating or concluding settlements; co-operate in the conduct of any proceedings enforcing any right of contribution or indemnity against any person or organisation who may be liable to the Insured because of injury or damage with respect to which insurance is afforded; and attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 118 of 176

121 Subrogation The Company shall be subrogated to all the Insured's rights of recovery against any person or organisation, before or after any payment under this Policy. The Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. For the purposes of this condition, the Insured shall include all persons and organisations indemnified under this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 119 of 176

122 DEFINITIONS Words with specific meanings appear in bold print and are defined here. All other words used in this Policy bear their plain English meaning. The following definitions apply to all parts of this Policy. Asbestos means asbestos in any form, including its presence or use in any alloy, by-product, compound or other material or waste. Waste includes material to be recycled, reconditioned or reclaimed. Bodily injury means physical: injury; illness; or disease; sustained by a person, including resulting death, mental anguish, mental injury or shock at any time. All such resulting loss shall be deemed to happen at the time of the physical injury, illness or disease that caused it. Employee means any person employed under a contract of service or apprenticeship with the Insured, whether such contract is expressed, implied, oral or in writing, including persons: supplied by labour only sub-contractors; providing their services on a labour only basis; engaged in work experience or similar schemes; providing their services on a voluntary basis; or on secondment with the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 120 of 176

123 Intellectual Property Law or Right means any: 1. right to, or law recognising an interest in, any: certification mark; copyright or moral right, database right or mask work or semiconductor topography right; design right; patent; trade dress (including get up); trade mark; trade secret, know-how or confidential information; or other intellectual property; 2. law relating to passing off, piracy, unfair competition or other similar practice; or 3. law or right similar to any of the foregoing, anywhere in the world. Legal Defence Costs means the costs, fees and expenses incurred for the defence of the Insured in the investigation, defence and settlement of that part of a specific claim covered by this Policy. Nuisance means injury (other than bodily injury or property damage) caused by: nuisance; or interference with an easement or right of air, light, water or way; insofar as such nuisance or interference relates to real property (i.e. land). Occurrence means an accidental event, including continuous or repeated exposure to substantially the same general harmful conditions. Offshore Activities means any: embarkation onto a conveyance (until disembarkation from such conveyance onto land) for the purpose of travel to or from; transit between; or activities on or from; any offshore structure, platform, installation, accommodation vessel or associated structure. Product means goods or products sold, supplied, leased or licensed to others, manufactured, repaired, installed, inspected, adjusted, erected, altered, cleaned or treated by or on behalf of the Insured, including related containers, labels, instructions and packaging, after such goods or products have ceased to be in the care, custody and control of the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 121 of 176

124 Property Damage means physical damage to tangible property, including resultant loss of use of such property. Tangible property does not include any software, data or other information in electronic form. All such resultant loss shall be regarded as having happened at the time of the physical damage that caused it. Subsidiary Organisation means an organisation that the Insured either directly or indirectly controls through: holding a majority of the voting rights; the right to appoint or remove a majority of its board of directors; or controlling alone, pursuant to a written agreement with other shareholders, a majority of the voting rights therein. Terrorism means any: act including the use of force or violence or the threat thereof, taken by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government or to put the public, or any section of the public, in fear. act or failure to act in controlling, preventing or suppressing terrorism. War means any: 1. hostile or warlike action in time of peace or war (including any act or failure to act in controlling, preventing or suppressing any actual, impending or expected attack) by any: government authority or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval or air forces; military, naval or air forces; or agent of any government power, authority or force; 2. insurrection, rebellion, revolution, civil war, usurped power or any activity of any organisation the objects of which are or include the overthrowing or influencing of any government or sovereign power (de jure or de facto) by any violent means, or any act or failure to act by government authority or sovereign power (de jure or de facto) in controlling, preventing or suppressing such activity; or 3. weapon of war employing atomic fission, atomic fusion, radioactive force or radioactive material, whether in time of peace or war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 122 of 176

125 PROFESSIONAL INDEMNITY INSURANCE Part 3 of this Telecommunication Package is as follows: Section 1 Products and Services Errors and Omission Indemnity Section 2 Intellectual Property and Privacy Injury Section 3 Reputational Injury Extensions Exclusions Conditions Claims Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 123 of 176

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127 Section 1 Products and Services Errors and Omissions Indemnity PRODUCTS AND SERVICES ERRORS AND OMISSIONS INDEMNITY Under this Section, the Company will indemnify the Insured for loss that the Insured becomes legally liable to pay in respect of business injury caused by an act and resulting from: 1. a defect, deficiency or inadequacy in: the Insured s product; or the Insured s service; or 2. the failure: of the Insured s product to perform; or to perform the Insured s service; in accordance with the terms of a contract or agreement. This Section will only apply if: 1. such act happens after the Retroactive Date shown in the Schedule and before the end of the Period of Insurance; 2. such act happens within the Territorial Limits; 3. a claim by a person or organisation for damages for such business injury is both first made against the Insured and reported to the Company in writing: during the Period of Insurance or within 30 days of its termination; during any Extended Reporting Period provided; or in accordance with the condition entitled Insured s Duty to Report Circumstances ; and 4. such claim is made within the Territorial Limits. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 125 of 176

128 Section 2 INTELLECTUAL PROPERTY AND PRIVACY INJURY Intellectual Property and Privacy Injury Under this Section, the Company will indemnify the Insured for loss that the Insured becomes legally liable to pay in respect of intellectual property and privacy injury caused by an act. This Section will only apply if: 1. such act happens after the Retroactive Date shown in the Schedule and before the end of the Period of Insurance; 2. such act happens within the Territorial Limits; 3. a claim by a person or organisation for damages for such intellectual property and privacy injury is both first made against the Insured and reported to the Company in writing: during the Period of Insurance or within 30 days of its termination; during any Extended Reporting Period provided; or in accordance with the condition entitled Insured s Duty to Report Circumstances ; and 4. such claim is made within the Territorial Limits. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 126 of 176

129 Section 3 REPUTATIONAL INJURY Reputational Injury Under this Section, the Company will indemnify the Insured for loss that the Insured becomes legally liable to pay in respect of reputational injury caused by an act. This Section will only apply if: 1. such act happens after the Retroactive Date shown in the Schedule and before the end of the Period of Insurance; 2. such act happens within the Territorial Limits; 3. a claim by a person or organisation for damages for such reputational injury is both first made against the Insured and reported to the Company in writing: during the Period of Insurance or within 30 days of its termination; during any Extended Reporting Period provided; or In accordance with the condition entitled Insured s Duty to Report Circumstances ; and 4. such claim is made within the Territorial Limits. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 127 of 176

130 LIMITS OF INDEMNITY Limits of Indemnity Irrespective of the number of claims, the liability of the Company under each Section for loss, legal defence costs and payments made under any extension (save where provided to the contrary in any extension) shall not exceed the Limit of Indemnity stated in the Schedule under each of the sections. Any such sum the Company pays will reduce the amount of the Aggregate Limit available for any other payment. The remaining amount of such Aggregate Limit is the most that will be available for any other payment. The Limits of Indemnity apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the Period of Insurance shown in the Schedule, unless the Period of Insurance is extended after issuance for an additional period. In that case, the additional period will be deemed to form part of the last preceding period for purposes of determining the Limits of Indemnity. The Company s obligations end when the applicable Limit of Indemnity has been exhausted. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 128 of 176

131 EXTENSIONS Extensions are subject to the terms and conditions (including Exclusions and, save where provided to the contrary, Limits of Indemnity) applicable to the Section(s) under which the Extension is provided. The Company s obligations under any Extension end when the applicable Limit of Indemnity has been exhausted. Compensation for Court Attendance and Staff Disruption Under Sections 1, 2 and 3, the Company shall pay the following sums to the Insured in the event that a partner, director, officer or employee of the Insured, at the request of the Company: attends a court or arbitration hearing as a witness - up to 250 for each day on which that person attends as a witness. is interviewed by the lawyers conducting the defence of a claim for the purpose of composing a witness statement - up to 50 per hour in respect of the time certified by the lawyers as time being interviewed. is reasonably needed to attend a Conference with Counsel (as that expression is used by the Bar of England And Wales) - up to 50 per hour in respect of the time certified by the lawyers conducting the defence against the claim as time spent in such conference. attends a court or arbitration hearing as an observer - up to 50 for each day on which that person attends as an observer, provided that the Company shall only be liable to compensate for the occupation of one observer per day. The liability of the Company in respect of this Extension shall not exceed 50,000 in the aggregate, and shall not erode the applicable Limit of Indemnity. Defence Costs Under Sections 1, 2 and 3, the Company will indemnify the Insured for legal defence costs incurred with the Company s prior written consent. Please note that payments in respect of legal defence costs are subject to the Limit of Indemnity applicable to each section; please refer to the section entitled Limits of Indemnity. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 129 of 176

132 Extended Reporting Period Under Sections 1, 2 and 3, if for a reason other than for non-payment of premium, the Company cancels or refuses to renew this Policy, then the Insured may: by giving written notice to the Company no later than 10 days after the effective date of cancellation or non-renewal; and upon payment of a non-refundable additional premium paid to the Company within 30 days of the cancellation or non-renewal; secure an Extended Reporting Period of 4 months following the effective date of such cancellation or non-renewal to report claims made against the Insured, notice of which has been received and recorded by the Insured during that period. Provided that the act giving rise to the claim happened prior to the effective date of cancellation or non-renewal, such claims shall be deemed to have been made and reported during the Period of Insurance. An Extended Reporting Period: does not extend the Period of Insurance or change the scope of cover provided. does not reinstate or increase any Limit of Indemnity. may not be cancelled once in effect. Fees and Expenses - Mitigation of Potential Claims Against the Insured Under Section 1, to mitigate potential claims against the Insured by a customer, the Company may at its discretion make payment to the Insured in respect of fees and expenses invoiced to such customer but not collected by the Insured provided that: such fees and expenses are in respect of the Insured s product having been supplied to, or the Insured s service having been rendered to, the customer; during the Period of Insurance, the customer has refused to pay such fees and expenses; and the basis of the customer s refusal to pay is expressed by the customer to be a direct consequence of business injury. This Extension will only apply if: 1. a request for payment under this Extension is first made by the Insured and notified to the Company during the Period of Insurance. 2. the Insured can show to the Company s satisfaction that: it has taken reasonable steps to collect such fees and expenses; taking further steps to collect such fees and expenses would be likely to provoke a claim against the Insured; and the likelihood of a claim being brought is reduced by desisting in efforts to collect such fees and expenses. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 130 of 176

133 Fees and Expenses - Mitigation of Potential Claims Against the Insured continued 3. such claim would be covered under Section 1 of this Policy. 4. the Insured takes all necessary steps to prevent loss and follows all instructions issued by the Company and provides the Company with all relevant documents including contracts, correspondence, records, invoices and any other information. 5. the Insured consents to the interviewing of relevant employees by the Company. Conditions Relating to this Extension 1. If a payment is made by the Company under this Extension and a claim relating to substantially the same supply of the Insured s product or rendering of the Insured s service is subsequently made against the Insured, then any amounts paid under this Extension will be deemed to have been paid on account of such claim. 2. Following any payment by the Company under this Extension, the Insured shall take no further steps to collect any sums in respect of substantially the same supply of the Insured s product or rendering of the Insured s service. If the Insured, in breach of this condition, takes any such further steps and a claim is brought against the Insured, then there shall be no cover under any part of this Policy in respect of any such claim. 3. The Company shall not be liable to make payment in respect of any element of profit included in fees and expenses invoiced or any Value Added Tax. 4. Payment by the Company under this Extension, in itself, does not constitute an admission or assumption of liability or a conclusion that the Insured s product or the Insured s service failed or is defective, deficient or inadequate. Limit and Excess This Extension is subject to the Limit of Indemnity applicable to Section 1. Any sums paid under this Extension will: reduce the amount of that limit available for any other payment; and be deemed to be damages for the purposes of the definitions of loss and excess in this Policy. The amount of the excess shall in no case be less than: the amount of the excess applicable under Section 1 of this Policy; or 10% of the fees and expenses invoiced; whichever is the greater. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 131 of 176

134 Indemnity to Others Under Sections 1, 2 and 3, at the request of the Insured, the Company will indemnify against liability the Insured s partners, directors, officers or employees (whilst acting within the scope of their duties as such) provided that: such persons shall observe, fulfil and be subject to the terms and conditions of this insurance; such persons are not entitled to indemnity under any other insurance; such persons have no conflict of interest with the Insured; and the Company shall be entitled (but not obliged) to take over and conduct the investigation and defence and settlement of any claim at its discretion. Loss of Documents of Others Under Section 1, the Company will indemnify the Insured for costs and expenses the Insured becomes legally liable to pay for loss of or damage to documents owned by others including information stored in electronic form whilst in the custody of the Insured or other persons or organisations to whom the Insured has entrusted such documents. Provided that in connection with this Extension: 1. the Company will not be liable in respect of any: loss or damage to documents happening outside the European Union. claims arising from wear and tear, gradual deterioration, moth or vermin. damages, loss, cost or expense arising out of any dispute as to ownership of or title to documents. 2. the excess stated in the Schedule will not apply; instead the Company shall not be liable for the first 1000 of each and every claim. 3. any claim must be supported by bills and accounts which will be approved by a competent person to be nominated by the Company. 4. documents shall not include currency or negotiable instruments. The liability of the Company in respect of this Extension shall not exceed 50,000 in the aggregate, and shall not erode the applicable Limit of Indemnity. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 132 of 176

135 New Acquisitions Under Sections 1, 2 and 3, at the request of the Insured, the Company will indemnify against liability a subsidiary organisation acquired or formed by the Insured during the Period of Insurance, provided that in respect of any newly acquired or formed organisation: full underwriting information is provided within 30 days of acquisition or formation, or within such other period as may be agreed by the Company; the business of the subsidiary organisation is similar to the Insured s business; and the Insured accepts any additional terms and conditions determined by the Company and pays any additional premium required. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 133 of 176

136 EXCLUSIONS The following exclusions apply to all sections of this Policy. This insurance does not apply to any: Adjustment, Removal, Recall etc. damages, loss, cost or expense arising out of any adjustment, disposal, inspection, recall, removal, repair, replacement or withdrawal of: the Insured s product or the Insured s service; any property containing or incorporating the Insured s product or the Insured s service; any property on which the Insured s service is or was performed; or any content, information or material. Anti-trust or Anti- Competitive Practices Asbestos Continuing Acts Following Non-Renewal or Cancellation damages, loss, cost or expense arising out of any actual or alleged violation of any law designed to prevent any anti-trust or anti-competitive practice, abuse of dominant position, cartel or price-fixing activity or to otherwise protect competition. damages, loss, cost or expense arising out of or in any way related to any: actual, alleged or threatened contaminative, pathogenic, toxic or other hazardous properties of asbestos; request, demand, order or regulatory or statutory requirement that the Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralise, or in any way respond to, or assess the effects of asbestos; or claim or proceedings by or on behalf of a government authority or others for any damages, loss, cost or expense arising out of any testing for, monitoring, cleaning up, containing, treating, detoxifying or neutralising, or in any way responding to, or assessing the effects of asbestos. damages, loss, cost or expense arising out of any continuation or resumption of any act, following non-renewal or cancellation of this Policy or subsequent renewal or replacement of this Policy that is issued by the Company and which would otherwise apply to such act. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 134 of 176

137 Crime, Dishonesty Or Fraud Cross Liabilities damages, loss, cost or expense arising out of any criminal, dishonest, fraudulent or malicious conduct committed by any party with the consent or prior knowledge of any officer, director or partner, or spouse of any officer, director or partner of the Insured. damages, loss, cost or expense arising out of any injury or damage sustained by: 7. the Insured. 8. any person or organisation that either directly or indirectly controls the Insured through: controlling or holding a majority of its voting rights; or the right to appoint or remove a majority of its board of directors. 9. any subsidiary organisation. 10. any manager, member or partner of any limited liability company, partnership or joint venture in which the Insured has an interest. 11. any partner, director, officer or employee of any person or organisation described above. 12. any agent, heir, representative or successor of any person or organisation described above. Deliberate Acts damages, loss, cost or expense arising out of any act that: is intended by the Insured; or would reasonably be expected from the perspective of a person in the circumstances of the Insured; to cause injury or damage, even if the actual injury or damage caused is of a different degree or type than expected or intended. Employee Benefits damages, loss, cost or expense arising out of any actual or alleged breach of any law governing, breach of duty of, or breach of trust by any partner, director, officer or employee of the Insured relating to any superannuation, pension, profit sharing, health and welfare or other benefit scheme, programme, plan or trust established or maintained to provide benefits to any partner, director, officer or employee of the Insured. Employees damages, loss, cost or expense arising out of any injury or damage sustained by any employee arising out of or in the course of employment by the Insured. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 135 of 176

138 Employment Related Practices damages, loss, cost or expense arising out of any injury or damage sustained by any person, whether or not in the course of employment by the Insured, arising out of any employment-related act, policy, practice or representation, including any: dismissal, discharge or termination of employment; breach of any contract of service or apprenticeship; harassment, whether sexual or otherwise; discrimination; deprivation of career opportunity; negligent evaluation or training; negligent reference; misrepresentation, defamation or disparagement, breach of data protection laws, invasion of privacy, breach of confidentiality, malicious falsehood or false imprisonment; or retaliation on account of whistleblowing or the exercise by any person of their legal rights; or for any award made by an Employment Tribunal (whether or not relating to one of the above actions). Information Distribution Laws Nuclear damages, loss, cost or expense arising out of any actual or alleged breach of any regulation, statute or other law relating to any unsolicited communication, distribution, publication, sending or transmitting of content, information or material. damages, loss, cost or expense arising out of any actual, alleged or threatened: ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; or radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 136 of 176

139 Pollution or Contamination Prior Claims or Circumstances Securities Laws damages, loss, cost or expense arising out of or in any way related to any: 1. actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of smoke, vapours, soot, fumes, acids, alkalis, chemicals, waste materials or other solid, liquid, gaseous or thermal irritants, contaminants or pollutants; 2. request, demand, order or regulatory or statutory requirement that the Insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralise, or in any way respond to, or assess the effects of any irritants, contaminants or pollutants; or 3. claim or proceedings by or on behalf of a government authority or others for any damages, loss, cost or expense arising out of any testing for, monitoring, cleaning up, containing, treating, detoxifying or neutralising, or in any way responding to, or assessing the effects of any irritants, contaminants or pollutants. Subparagraph 1. of this exclusion does not apply to liability for damages for business injury, to which this insurance applies, caused by a sudden, identifiable, unintended and unexpected event happening anywhere in the world, other than in the United States of America or its possessions or territories. damages, loss, cost or expense arising out of any: 1. injury, damage, act, claim or other circumstance: reported, in whole or in part at any time, to the Company or any other insurer under any insurance that is prior to this insurance; or known or that should have been known before the beginning of the Period of Insurance, which could reasonably be expected to result in any payment under this insurance; or 2. injury, damage or act known or that should have been known, before the beginning of the Period of Insurance, to have happened or to have begun, including any change, continuation or resumption of any such act at any time. damages, loss, cost or expense arising out of any actual or alleged breach of any securities law. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 137 of 176

140 Successor Liability damages, loss, cost or expense arising out of any: ownership, maintenance or use of any assets acquired by the Insured; or conduct of any person or organisation whose assets, business or organisation the Insured acquires; for any act happening, in whole or in part, before such acquisition is executed. Terrorism or War damages, loss, cost or expense arising out of terrorism or war. Vehicles damages, loss, cost or expense arising out of any ownership, maintenance, possession or use by or on behalf of the Insured of any: mechanically propelled vehicle or trailer attached thereto. aircraft, spacecraft, aerial or aerospatial device, hovercraft or waterborne craft. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 138 of 176

141 SPECIFIC EXCLUSIONS SECTION 1 PRODUCTS AND SERVICES ERRORS AND OMISSIONS INDEMNITY The following exclusions apply to Section 1. The insurance provided by Section 1 does not apply to any: Assumed Liability of Others damages, loss, cost or expense arising out of any assumption of liability of others in a contract or agreement. This exclusion does not apply to liability for damages for business injury, to which this insurance applies, that the Insured would have in the absence of such contract or agreement. Bodily Injury or Property Damage, except Professional Services for a Fee Damage to Property in the Insured s Care, Custody or Control damages, loss, cost or expense for bodily injury or property damage. This exclusion does not apply to loss in respect of bodily injury or property damage caused by an act of the Insured in the course of rendering professional service or advice (including directions, designs, formulae, plans and specifications) for a fee, or in circumstances where a fee would normally be charged. damages, loss, cost or expense arising out of any property damage to any property owned or held in trust by or in the care, control or custody of the Insured. This exclusion does not apply to cover provided under the Extension entitled Loss of Documents of Others. Intellectual Property Laws or Rights or Invasion of Privacy Reputational Injury damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened: assertion, infringement or violation by any person or organisation of any intellectual property law or right; or invasion of privacy. damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened reputational injury by any person or organisation. Unauthorised Access damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened unauthorised access to or use of: the Insured s product or the Insured s service; any property containing or incorporating the Insured s product or the Insured s service; any property on which the Insured s service is or was performed; or any content, information or material; by any person or organisation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 139 of 176

142 SPECIFIC EXCLUSIONS SECTION 2 INTELLECTUAL PROPERTY AND PRIVACY INJURY The following exclusions apply to Section 2. The insurance provided by Section 2 does not apply to any: Bodily Injury or Property Damage Contractual Liability Licensors or Suppliers Patents, Trade Secrets or Confidential Information Reputational Injury damages, loss, cost or expense arising out of any bodily injury or property damage. damages, loss, cost or expense arising out of any liability or obligation assumed in a contract or agreement. This exclusion does not apply to liability for damages for intellectual property and privacy injury, to which this insurance applies, that the Insured would have in the absence of such contract or agreement. damages, loss, cost or expense arising out of any injury or damage sustained by any: 1. person or organisation that licenses, creates, designs, develops or provides any intellectual property, content, information, material, product or service to or for the Insured; or 2. agent, heir, representative or successor of any person or organisation described in subparagraph 1. above; if such injury arises out of or in any way relates to any right of ownership or use of any intellectual property, content, information, material, product or service. This exclusion applies regardless of whether any such intellectual property, content, information, material, product or service was jointly licensed, created, designed, developed or provided by the Insured. damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened assertion, infringement or violation by any person or organisation of any: 1. right to, or law recognising an interest in, any: a) patent; b) trade secret or know how; or c) confidential information. 2. law or right similar to any of the foregoing, anywhere in the world. Subparagraph 1.c) of this exclusion does not apply to loss caused by an act of publication of material that is an invasion of privacy to which this insurance applies. damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened reputational injury by any person or organisation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 140 of 176

143 SPECIFIC EXCLUSIONS SECTION 3 REPUTATIONAL INJURY The following exclusions apply to Section 3. The insurance provided by Section 3 does not apply to any: Bodily Injury or Property Damage Contractual Liability Intellectual Property Laws or Right or Invasion of Privacy Unauthorised Access damages, loss, cost or expense arising out of any bodily injury or property damage. damages, loss, cost or expense arising out of any liability or obligation assumed in a contract or agreement. This exclusion does not apply to liability for damages for reputational injury, to which this insurance applies, that the Insured would have in the absence of such contract or agreement. damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened: assertion, infringement or violation by any person or organisation of any intellectual property law or right; or invasion of privacy. damages, loss, cost or expense arising out of, giving rise to or in any way related to any actual, alleged or threatened unauthorised access to or use of: the Insured s product or the Insured s service; any property containing or incorporating the Insured s product or the Insured s service; any property on which the Insured s service is or was performed; or any content, information or material; by any person or organisation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 141 of 176

144 GENERAL CONDITIONS The following Conditions apply to all parts of this Policy. Adjustment Arbitration Assignment Audits and Inspections If any part of the Premium is calculated on estimates, then the Insured shall within one month from the expiry of each Period of Insurance furnish such details as the Company may require, and the Premium for such period shall be adjusted subject to any Minimum Premium. If any difference arises as to the amount to be paid under this Policy (liability not otherwise being in issue), then such difference shall be referred to an Arbitrator agreed by the parties or, in default of agreement, appointed in accordance with the statutory provisions thereof. Where any difference is by this condition to be referred to arbitration, the making of an award shall be a condition precedent to any right of action against the Company. Assignment of interest under this Policy shall not bind the Company without its prior written consent. At any time during the Period of Insurance or thereafter, the Insured shall make available to the Company (and the Company shall have the right to audit, inspect and copy) any books, papers and other records of the Insured (including those of its agents and brokers) in connection with this Policy or the subject matter hereof. Cancellation Changes Choice of Law and Forum Currency First Named Insured This Policy or any part of it may be cancelled at any time by the Company by sending 30 days notice by registered letter to the Insured at the last known address. The Insured shall be entitled to the return of a proportionate part of the premium corresponding to the unexpired Period of Insurance. This Policy may be changed only by a written endorsement issued a by duly authorised representative of the Company. Any dispute concerning the interpretation of the terms, validity and effect of this Policy is understood and agreed by both the Insured and the Company to be governed by English law. Any dispute or difference arising under or in respect of this Policy shall be subject to and determined within the exclusive jurisdiction of the courts of England and Wales All sums are in the currency expressed in the Schedule, and all payments will be made in that currency. If any calculation or payment is to be made in any other currency, then the rate of exchange to apply shall be that applicable on the date of settlement as published in the London Financial Times. The person or organisation first named as the Insured in the Schedule is primarily responsible for the payment of all premiums. The first named Insured will act on behalf of all other persons or organisations indemnified under this Policy for the giving and receiving of all notices and the receipt of any return premiums that become payable under this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 142 of 176

145 Material Change in Risk Other Insurance The Insured shall advise the Company immediately in writing of any material change, of which it is aware or ought reasonably to be aware, in the risk insured under this Policy. If the Insured is (or would but for the existence of this Policy be) entitled to indemnity under any other insurance, then the Company shall be liable only for the amount by which the Company s liabilities under this Policy exceed the Insured s entitlement to indemnity under such other insurance. Third Party Rights A person or organisation who is not party to this Policy has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term or condition of this Policy. This condition is without prejudice to rights existing notwithstanding such Act. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 143 of 176

146 CLAIMS CONDITIONS The following Conditions apply to all parts of this Policy. Company s Rights: Investigation, Defence and Settlements Insured s Duty to Report Circumstances Insured s Duties in the Event of a Claim The Company is entitled (but not obliged), at its discretion, to: take over and conduct (including in the name of the Insured) the investigation, defence (including appeals) or settlement of any claim; and prosecute for its own benefit any claim for indemnity, damages or otherwise. The Company, at its discretion, may at any time pay: the applicable Limit of Indemnity (after deduction of any sums already paid); or any amount for which any claim can be settled; and may then relinquish any conduct or control of, and shall be under no further liability in respect thereof. If, during the Period of Insurance, the Insured becomes aware of a circumstance which may result in a claim and during the Period of Insurance gives the Company written notice thereof, then subsequent claims notified in accordance with the Insured s Duties in the Event of a Claim will be deemed to be claims made during the Period of Insurance. Written notice of such circumstance shall contain: particulars sufficient to identify the Insured; all available information concerning the circumstances, including how, when and where it happened; and all available names and addresses of any party who has suffered injury, loss or damage, and of all available witnesses. The Insured shall give written notice to the Company of any claim or proceedings as soon as practicable after such claim or proceedings come to the knowledge of the Insured (and in any event not later than the period set out in the applicable Section) and shall, as soon as practicable, forward to the Company every pre-action letter, demand, notice, summons, claim form or other process received by the Insured. The Insured shall not admit liability for or negotiate the settlement of any claim without the written consent of the Company. The Insured shall co-operate with and provide all required assistance to the Company and, at the Company s request and in accordance with its instructions, shall: assist in negotiating or concluding settlements; co-operate in the conduct of any proceedings enforcing any right of contribution or indemnity against any person or organisation who may be liable to the Insured because of injury or damage with respect to which insurance is afforded; and attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 144 of 176

147 Subrogation The Company shall be subrogated to all the Insured s rights of recovery against any person or organisation before or after any payment under this Policy. The Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. For the purposes of this condition, the Insured shall include all persons and organisations indemnified under this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 145 of 176

148 DEFINITIONS Words with specific meanings appear in bold print and are defined here. All other words used in this Policy bear their plain English meaning. The following definitions apply to all parts of this Policy. Acceptance means acceptance of the Insured s product or the Insured s service, or a part or phase thereof, in accordance with the terms set out in the applicable contracts or agreements or by operation of law. Act means an act, error or omission. includes all related acts, errors or omissions and all series of continuous, repeated or related acts, errors or omissions. Asbestos Bodily Injury Business Injury Employee Excess means asbestos in any form, including its presence or use in any alloy, byproduct, compound or other material or waste. Waste includes material to be recycled, reconditioned or reclaimed. means physical: injury; illness; or disease; sustained by a person, including resulting death, mental anguish, mental injury or shock at any time. All such resulting loss shall be deemed to have happened at the time of the physical injury, illness or disease that caused it. means: bodily injury or property damage due to the rendering of or failure to render any professional service or advice (including directions, designs, formulae, plans and specifications) for a fee, or in circumstances where a fee would normally be charged; or economic injury, including that resulting from loss of software, data and other information in electronic form, sustained by a person or organisation in connection with the Insured s product or the Insured s service, or a part or phase thereof, following acceptance. means any person employed under a contract of service or apprenticeship with the Insured, whether such contract is expressed, implied, oral or in writing. means the amount of loss and legal defence costs payable by the Insured in respect of each and every claim before the Company is liable to make any payment under this Policy. The Company may, in its discretion, pay any part or all of the Excess to settle any claim or proceedings, in which case the Insured shall promptly reimburse the Company for any such sum. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 146 of 176

149 Information Communication Technology Product Intellectual Property and Privacy Injury Intellectual Property Law or Right Invasion of Privacy means: 1. communication, computer, electronic, Internet, information, network or website: equipment or parts; or programmes or systems; or 2. software, data or other information that is in electronic form. means injury caused by an act of: 1. infringing upon another s registered or unregistered: copyright (including in computer object and source code) or moral right, database right or mask work or semiconductor topography right; design right in the appearance or other non-functional aspect of their product; trade dress (including get-up); or trade mark (not including certification marks). 2. passing off. 3. electronic, oral, written or other publication of material on the Internet or in other media that is an invasion of privacy (not including placing a person in a false light). means any: 4. right to, or law recognising an interest in, any: certification mark; copyright or moral right, database right or mask work or semiconductor topography right; design right; patent; trade dress (including get up); trade mark; trade secret, know-how or confidential information; or other intellectual property; 5. law relating to passing off, piracy, unfair competition or other similar practice; or 6. law or right similar to any of the foregoing, anywhere in the world. means: interference with a person s private affairs or seclusion; public disclosure of a person s private information; or use of a person s likeness or name. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 147 of 176

150 Legal Defence Costs means: 1. the costs, fees and expenses incurred for the defence of the Insured in the investigation, defence and settlement of that part of a specific claim for loss covered by this Policy. 2. in respect of Sections 2 and 3 only, the costs, fees and expenses incurred for the defence of the Insured in connection with injunctive relief related to that part of a claim described in subparagraph 1. above. Loss In respect of Section 1: 1. means: damages; and related claimants costs. 2. does not include any: a) amount that constitutes unjust enrichment, including any restitution or return of any fees or expenses or any consideration owed (whether or not disputed) or paid to the Insured; b) loss, cost or expense to perform any obligation assumed by or on behalf of the Insured; c) loss, cost or expense incurred, or agreed to, by or on behalf of the Insured, except in an agreed settlement by the Company; d) liquidated damages or penalties (contractual or otherwise) or any criminal or civil fines; or e) cost of compliance with any injunctive relief or other similar remedy. In respect of Sections 2 and 3: 1. means: damages; and related claimants costs. 2. does not include any: a) loss, cost or expense incurred, or agreed to, by or on behalf of the Insured, except in an agreed settlement by the Company; b) liquidated damages or penalties (contractual or otherwise) or any criminal or civil fines; or c) cost of compliance with any injunctive relief or other similar remedy. Product means: 1. goods or products including information communication technology products sold, supplied, leased or licensed to others, manufactured, repaired, installed, inspected, adjusted, erected, altered, cleaned or treated by or on behalf of the Insured; and 2. containers, labels, instructions and packaging relating to: such goods or products; or the Insured s service. including the Insured s service rendered in connection with the Insured s product. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 148 of 176

151 Property Damage means physical damage to tangible property, including resultant loss of use of such property. Tangible property does not include any software, data or other information in electronic form. All such resultant loss of use shall be regarded as having happened at the time of the physical damage that caused it. Reputational Injury Securities Law Service Subsidiary Organisation means injury caused by an act of: 1. false arrest, false detention or other false imprisonment; 2. malicious prosecution; 3. wrongful entry into, wrongful eviction of a person from or other violation of a person's right of private occupancy of a dwelling, premises or room that such person occupies, if committed by or on behalf of its landlord, lessor or owner; 4. electronic, oral, written or other publication of material on the Internet or in other media that: libels or slanders a person or organisation (including placing a person in a false light); or disparages a person s or organisation s products or services; or 5. discrimination, harassment or segregation based on a person s protected human characteristics as established by law. means any law designed to: prevent or prohibit fraudulent, unfair or other similar practices; or require full or periodic disclosure of information; in connection with any: offering; registration; trading; or continued listing or registration; of any instrument or other evidence of creditorship or ownership. means analysis, design, integration, management, maintenance, processing, programming, repair or support of information communication technology products, including services related to consulting, staffing, training and other support services performed by or on behalf of the Insured. means an organisation that the Insured either directly or indirectly controls through: holding a majority of the voting rights; the right to appoint or remove a majority of its board of directors; or controlling alone, pursuant to a written agreement with other shareholders, a majority of the voting rights therein. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 149 of 176

152 Terrorism means any: act including the use of force or violence or the threat thereof, taken by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government or to put the public, or any section of the public, in fear. act or failure to act in controlling, preventing or suppressing terrorism. Trade Mark means a person s or organisation s registered or unregistered trade mark, including: 1. collective marks and service marks; 2. a person s image, likeness or name; and 3. logos, names, slogans, titles or other symbols of their: artistic or literary work; brand, product or service; or organisation. War means any: 1. hostile or warlike action in time of peace or war (including any act or failure to act in controlling, preventing or suppressing any actual, impending or expected attack) by any: government authority or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval or air forces; military, naval or air forces; or agent of any government power, authority or force; 2. insurrection, rebellion, revolution, civil war, usurped power or any activity of any organisation the objects of which are or include the overthrowing or influencing of any government or sovereign power (de jure or de facto) by any violent means, or any act or failure to act by government authority or sovereign power (de jure or de facto) in controlling, preventing or suppressing such activity; or 3. weapon of war employing atomic fission, atomic fusion, radioactive force or radioactive material, whether in time of peace or war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 150 of 176

153 COMMERCIAL EMPLOYEE FIDELITY INSURANCE Part 4 of this Telecommunications Package is as follows: Commercial Employee Fidelity Indemnity Exclusions Conditions Claims Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 151 of 176

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155 COMMERCIAL EMPLOYEE FIDELITY INSURANCE Under this Policy, the Company will indemnify the Insured for direct financial loss sustained and discovered by the Insured during the Period of Insurance, resulting from Crime committed by an employee acting alone or in collusion with others. Limit of Liability Any losses covered under this policy resulting from a single act or any number of acts in which the same employee is concerned or implicated, whether such act or acts occurred before or during the Period of Insurance, are to be treated as a single loss for the purposes of this policy. In the case of a number of acts, loss shall be deemed to have been discovered on the date of the first discovery of any of such acts. In respect of each loss, the liability of the Company to make payments under this policy shall be limited to the Limit of Liability stated in the Schedule. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 153 of 176

156 EXCLUSIONS Cover under this Policy does not apply to: a) loss of trade secrets, confidential processing methods or other confidential information of any kind; b) crime committed by an employee controlling at any time more than 25% of the issued share capital of an Insured; c) loss sustained by one Insured to the advantage of any other Insured; d) interest, gains, profits, or other income on money, securities or property taken; e) indirect or consequential loss of any kind; f) loss caused by an employee, acting alone or in collusion with others, which is sustained after the Insured acquires knowledge of: i) crime, fraud or dishonesty by such employee during the term of employment with an Insured; or ii) fraud or dishonesty involving money, securities or other property valued at 5,000 or more committed by such employee prior to employment with the Insured; except if such knowledge is only acquired by a person who is acting in collusion with such employee; g) loss of or damage to property except as otherwise specifically covered by this Section 3; h) loss arising from extortion; i) loss caused by any broker, factor, commission merchant, consignee, contractor or other agent or representative of the same general character; j) loss resulting directly or indirectly from trading or other dealings in money, securities, or property, provided however this exclusion shall not apply to loss resulting solely and directly from crime by an employee which results in improper personal financial gain for that employee other than salary, commissions, fees, bonuses, promotions, awards, profit sharing, pensions or other employee emoluments; k) loss or that part of any loss the proof of which involves in any manner: (1) a profit and loss computation or comparison or (2) a comparison of inventory records with an actual physical count; provided, however, that where the Insured establishes wholly apart from such comparison that it has sustained a loss covered under this policy, then it may offer its inventory records and actual physical count of inventory in support of the amount of loss claimed; l) loss caused or contributed to by crime or any dishonest act committed by a partner of the Insured, whether acting alone or in collusion with others; CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 154 of 176

157 Exclusions Continued m) any expenses incurred by the Insured in establishing the existence or the amount of any loss covered under this Policy; n) loss sustained by any employee benefit plan o) liability arising out of war p) liability arising out of any: ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combination of nuclear fuel; or radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof. q) liability arising out of terrorism, including any act or failure to act in controlling, preventing or suppressing terrorism Loss: Notice and Proof of Loss. In the event of a loss under this policy, the Insured shall give written notice to the Company after discovery at the earliest practicable moment, and in any event within 90 days. The Insured shall furnish a proof of loss with full particulars to the Company, in accordance with the Claims Conditions. The Insured may offer a comparison between an Insured s inventory records and actual physical count of its inventory to prove the amount of loss, but only where the Insured establishes wholly apart from such comparison that a covered loss has been sustained. Only the Insured can: give notice of loss and furnish proof of loss under this Part; or make a claim for, adjust, receive or enforce payment of any loss. The Company is only responsible for making payment to the Insured for loss under this Policy. If the Company agrees to make payment to any person or organisation other than the Insured, such payment shall be deemed to have been made to the Insured. Non-Accumulation of Liability Regardless of the number of years this Policy remains in effect and the total premium amounts due or paid, the amount the Company shall pay for a loss under this Policy shall not be cumulative from year to year or from Period of Insurance to Period of Insurance. When there is more than one Insured, the aggregate liability of the Company for losses sustained by one or all of them shall not exceed the amount for which the Company would be liable if all losses were sustained by any one of them. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 155 of 176

158 Valuation For the purposes of establishing the amounts payable by the Company under this Policy, the following shall apply for valuation purposes: a) for securities, the least of: i) the closing price of securities on the business day immediately preceding the day on which a loss is discovered; ii) the cost of replacing securities; or iii) the cost to post a Lost Instrument Bond; such cost shall be paid by the Company on behalf of an Insured b) for paper, microfilm, tapes, disks, computers and other material or means for storing information, the cost of such material or means as if blank and not the value of whatever is recorded therein; c) for property, the least of: i) the price paid by an Insured for the property; or ii) the cash value of the property at the time the loss was discovered; d) for foreign currency, the Pound Sterling value of the foreign currency based on the rate of exchange published in The Financial Times on the day loss involving the foreign currency is discovered. Interests The coverage under this Policy is for the benefit only of the Insured named in the Schedule and the Company shall not be liable hereunder for loss sustained by anyone else. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 156 of 176

159 GENERAL CONDITIONS Adjustment If any part of the Premium is calculated on estimates, then the Insured shall within one month from the expiry of each Period of Insurance furnish such details as the Company may require, and the Premium for such period shall be adjusted subject to any Minimum Premium. Arbitration If any difference arises as to the amount to be paid under this Policy (liability not otherwise being in issue), then such difference shall be referred to an Arbitrator agreed by the parties or, in default of agreement, in accordance with the statutory provisions therefor. Where any difference is by this condition to be referred to arbitration, the making of an award shall be a condition precedent to any right of action against the Company. Assignment Assignment of interest under this Policy shall not bind the Company without its prior consent. Audits and Inspection At any time during the Period of Insurance or thereafter, the Insured shall make available to the Company (and the Company shall have the right to audit, inspect and copy) any books, papers and other records of the Insured (including those of its agents and brokers) in connection with this Policy or the subject matter hereof. Cancellation This Policy or any part of it may be cancelled at any time by the Company by sending 30 days' notice by registered letter to the Insured at the last known address. The Insured shall be entitled to the return of a proportionate part of the premium corresponding to the unexpired Period of Insurance. Changes This Policy may be changed only by a written endorsement issued by a duly authorised representative of the Company. Choice of Law and Forum Any dispute concerning the interpretation of the terms, validity and effect of this Policy is understood and agreed by both the Insured and the Company to be governed by English law. Any dispute or difference arising under or in respect of this Policy shall be subject to and determined within the exclusive jurisdiction of the Courts of England and Wales. Currency All sums are in the currency expressed in the Schedule, and all payments will be made in that currency. If any calculation or payment is to be made in any other currency, then the rate of exchange to apply shall be that applicable on the date of settlement as published in the London Financial Times. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 157 of 176

160 Material Change in Risk The Insured shall advise the Company immediately in writing of any material change, of which it is aware or ought reasonably to be aware, in the risk insured under this Policy. Other Insurance If the Insured is (or but for the existence of this Policy would be) entitled to indemnity under any other insurance, then the Company shall be liable only for the amount by which the Company s liabilities under this Policy exceed the Insured s entitlement to indemnity under such other. Prohibition This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit the Company from providing such insurance. Reasonable Care The Insured is obliged, at its own expense, to take all reasonable precautions to prevent injury, damage or loss which may give rise to liability, to comply with all statutory or other obligations and to take all reasonable steps to: ensure that only competent employees are employed; keep all plant, premises, machinery and ways in good repair; remedy any defect or danger and to take all necessary precautions as soon as possible after discovery; and ensure that its products are free from defect and fit for their intended purpose. Third Party Rights A person or organisation who is not party to this Policy has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term or condition of this policy. This condition is without prejudice to rights existing notwithstanding such Act. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 158 of 176

161 CLAIMS CONDITIONS Company s Rights: Investigation, Defence and Settlements The Company is entitled (but not obliged), at its discretion, to: take over and conduct (including in the name of the Insured) the investigation, defence (including appeals) or settlement of any claim; and prosecute for its own benefit any claim for indemnity, damages or otherwise. The Company, at its discretion, may at any time pay: the applicable Limit of Indemnity (after deduction of any sums already paid); or any amount for which any claim can be settled; and may then relinquish any conduct or control of, and shall be under no further liability in respect thereof. Insured s Duties in the Event of a Claim In the event of any circumstances arising that may result in a claim under this Policy, written notice containing: particulars sufficient to identify the Insured; all available information concerning the circumstances, including how, when and where it happened; and all available names and addresses of any party who has suffered injury, loss or damage, and of all available witnesses; shall be given to the Company as soon as practicable after the circumstances becomes known to the Insured. The Insured shall give written notice to the Company of any claim or proceedings as soon as practicable after such claim or proceedings come to the knowledge of the Insured, and shall immediately forward to the Company every pre- action letter, demand, notice, summons, claim form or other process received by the Insured. The Insured shall not admit liability for or negotiate the settlement of any claim without the written consent of the Company. The Insured shall co-operate with and provide all required assistance to the Company and, at the Company s request and in accordance with its instructions, shall: assist in negotiating or concluding settlements; co-operate in the conduct of any proceedings enforcing any right of contribution or indemnity against any person or organisation who may be liable to the Insured because of injury or damage with respect to which insurance is afforded; and attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 159 of 176

162 Subrogation The Company shall be subrogated to all the Insured's rights of recovery against any person or organisation, before or after any payment under this Policy. The Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. For the purposes of this condition, the Insured shall include all persons and organisations indemnified under this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 160 of 176

163 DEFINITIONS Words with specific meanings appear in bold print and are defined here. All other words used in this Policy bear their plain English meaning. The following definitions apply to Parts 2-8 of this Policy. Crime means the criminal taking of Money, Securities or Property to the deprivation of an Insured. Employee means any person employed under a contract of service or apprenticeship with the Insured, whether such contract is expressed, implied, oral or in writing, including persons: supplied by labour only sub-contractors; providing their services on a labour only basis; engaged in work experience or similar schemes; providing their services on a voluntary basis; on secondment with the Insured; or working under a Community Services Order pursuant to the Powers of Criminal Courts (Sentencing) Act 2000 or subsequent amendment or re-enactment or similar legislation. Money means currency, coin, bank notes and bullion. Property means tangible property other than money or Securities. Securities means negotiable and non-negotiable instruments or contracts representing either money or other property and shall include commodities, futures, and options. Terrorism means any: act including the use of force or violence or the threat thereof, taken by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government or to put the public, or any section of the public, in fear. act or failure to act in controlling, preventing or suppressing terrorism. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 161 of 176

164 War means any: 4. hostile or warlike action in time of peace or war (including any act or failure to act in controlling, preventing or suppressing any actual, impending or expected attack) by any: government authority or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval or air forces; military, naval or air forces; or agent of any government power, authority or force; 5. insurrection, rebellion, revolution, civil war, usurped power or any activity of any organisation the objects of which are or include the overthrowing or influencing of any government or sovereign power (de jure or de facto) by any violent means, or any act or failure to act by government authority or sovereign power (de jure or de facto) in controlling, preventing or suppressing such activity; or 6. weapon of war employing atomic fission, atomic fusion, radioactive force or radioactive material, whether in time of peace or war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 162 of 176

165 CANCELLATION OF EVENT INSURANCE Part 5 of this Telecommunications Package is as follows: Cancellation of Event Losses Covered Exclusions Conditions Claims Conditions Definitions CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 163 of 176

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167 CANCELLATION OF EVENT Under this Policy, the Company will indemnify the Insured for direct financial loss (as set out in Losses covered below) resulting from cancellation, interruption or postponement of an event that is the sole and direct consequence of any sudden and accidental event beyond the Insured s control, provided such cancellation, interruption or postponement is made necessary after the effective date of this policy but before the planned conclusion of the event or before expiration date of the Policy, whichever comes first. Losses covered The losses covered by this Policy are: A. ascertained net expenses for which the Insured is liable resulting from cancellation or interruption or; B. additional expenses for which the Insured is liable resulting from postponement; C. additional expenses incurred by the Insured, which serve to reduce any loss the Company, would otherwise pay resulting from cancellation, interruption or postponement. Note: This Policy does not cover bodily injury or property damage Exclusions The Company will not pay under this Policy for cancellation, interruption or postponement which results directly or indirectly from: A. Circumstances which existed prior to the inception of this policy and which threatened to result in a covered loss, if the Insured knew or should have known of such circumstances and failed to make them known to the Company in writing prior to inception; B. Adverse weather conditions in respect of outdoor events and those staged in temporary structures; C. Non-Appearance of any individual scheduled to perform or appear; D. Lack of financial support of any kind; E. Breach of contract of any kind; F. Lack of audience or public support; loss of public image; G. Any dishonest, fraudulent, criminal or malicious act committed by you or by any of your employees, agents or representatives; H. Strike by your employees; I. National Mourning CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 165 of 176

168 Exclusions Continued J. Failure to make all material arrangements for the production of the event or to procure any licence or permit required to hold the event. K. The event being held in violation of any law or statute. L. Any outbreak of foot & mouth disease. M. Severe Acute Respiratory Syndrome (SARS) and its sequelae. N. Avian Influenza and its sequelae. O. Liability arising out of any: ionising radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combination of nuclear fuel; or radioactive, toxic, explosive or other hazardous properties of any nuclear assembly or nuclear component thereof. P. Liability arising out of terrorism, including any act or failure to act in controlling, preventing or suppressing terrorism. Q. Liability arising out of war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 166 of 176

169 GENERAL CONDITIONS Adjustment If any part of the Premium is calculated on estimates, then the Insured shall within one month from the expiry of each Period of Insurance furnish such details as the Company may require, and the Premium for such period shall be adjusted subject to any Minimum Premium. Arbitration If any difference arises as to the amount to be paid under this Policy (liability not otherwise being in issue), then such difference shall be referred to an Arbitrator agreed by the parties or, in default of agreement, in accordance with the statutory provisions therefor. Where any difference is by this condition to be referred to arbitration, the making of an award shall be a condition precedent to any right of action against the Company. Assignment Assignment of interest under this Policy shall not bind the Company without its prior consent. Audits and Inspection At any time during the Period of Insurance or thereafter, the Insured shall make available to the Company (and the Company shall have the right to audit, inspect and copy) any books, papers and other records of the Insured (including those of its agents and brokers) in connection with this Policy or the subject matter hereof. Cancellation This Policy or any part of it may be cancelled at any time by the Company by sending 30 days' notice by registered letter to the Insured at the last known address. The Insured shall be entitled to the return of a proportionate part of the premium corresponding to the unexpired Period of Insurance. Changes This Policy may be changed only by a written endorsement issued by a duly authorised representative of the Company. Choice of Law and Forum Any dispute concerning the interpretation of the terms, validity and effect of this Policy is understood and agreed by both the Insured and the Company to be governed by English law. Any dispute or difference arising under or in respect of this Policy shall be subject to and determined within the exclusive jurisdiction of the Courts of England and Wales. Currency All sums are in the currency expressed in the Schedule, and all payments will be made in that currency. If any calculation or payment is to be made in any other currency, then the rate of exchange to apply shall be that applicable on the date of settlement as published in the London Financial Times. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 167 of 176

170 Limits of Liability The Limits of Liability apply separately to each consecutive annual period and to any remaining period of less than 12 months starting with the beginning of the Period of Insurance shown in the Schedule, unless the Period of Insurance is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed to be part of the last preceding period for the purposes of determining the Limits of Liability. Material Change in Risk The Insured shall advise the Company immediately in writing of any material change, of which it is aware or ought reasonably to be aware, in the risk insured under this Policy. Other Insurance If the Insured is (or but for the existence of this Policy would be) entitled to indemnity under any other insurance, then the Company shall be liable only for the amount by which the Company s liabilities under this Policy exceed the Insured s entitlement to indemnity under such other. Prohibition This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit the Company from providing such insurance. Reasonable Care The Insured is obliged, at its own expense, to take all reasonable precautions to prevent injury, damage or loss which may give rise to liability, to comply with all statutory or other obligations and to take all reasonable steps to: ensure that only competent employees are employed; keep all plant, premises, machinery and ways in good repair; remedy any defect or danger and to take all necessary precautions as soon as possible after discovery; and ensure that its products are free from defect and fit for their intended purpose. Third Party Rights A person or organisation who is not party to this Policy has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term or condition of this policy. This condition is without prejudice to rights existing notwithstanding such Act. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 168 of 176

171 CLAIMS CONDITIONS Company s Rights: Investigation, Defence and Settlements The Company is entitled (but not obliged), at its discretion, to: take over and conduct (including in the name of the Insured) the investigation, defence (including appeals) or settlement of any claim; and prosecute for its own benefit any claim for indemnity, damages or otherwise. The Company, at its discretion, may at any time pay: the applicable Limit of Indemnity (after deduction of any sums already paid); or any amount for which any claim can be settled; and may then relinquish any conduct or control of, and shall be under no further liability in respect thereof. Insured s Duties in the Event of a Claim In the event of any circumstances arising that may result in a claim under this Policy, written notice containing: particulars sufficient to identify the Insured; all available information concerning the circumstances, including how, when and where it happened; and all available names and addresses of any party who has suffered injury, loss or damage, and of all available witnesses; shall be given to the Company as soon as practicable after the circumstances becomes known to the Insured. The Insured shall give written notice to the Company of any claim or proceedings as soon as practicable after such claim or proceedings come to the knowledge of the Insured, and shall immediately forward to the Company every pre- action letter, demand, notice, summons, claim form or other process received by the Insured. The Insured shall not admit liability for or negotiate the settlement of any claim without the written consent of the Company. The Insured shall co-operate with and provide all required assistance to the Company and, at the Company s request and in accordance with its instructions, shall: assist in negotiating or concluding settlements; co-operate in the conduct of any proceedings enforcing any right of contribution or indemnity against any person or organisation who may be liable to the Insured because of injury or damage with respect to which insurance is afforded; and attend hearings and trials and assist in securing and giving evidence and obtaining the attendance of witnesses. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 169 of 176

172 Subrogation The Company shall be subrogated to all the Insured's rights of recovery against any person or organisation, before or after any payment under this Policy. The Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights. For the purposes of this condition, the Insured shall include all persons and organisations indemnified under this Policy. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 170 of 176

173 DEFINITIONS Words with specific meanings appear in bold print and are defined here. All other words used in this Policy bear their plain English meaning. The following definitions apply to Parts 2-8 of this Policy. Ascertained Net Expenses means those actual expenses, costs and/or guarantees or irrevocable monetary commitments including advertising, promotions and exploitation costs (net of salvage or other recoveries, including any portion of revenues that at the time of loss the insured is not obliged to return), which were spent by the Insured prior to the cancellation or interruption of the event. Ascertained net expenses shall not include lost earnings or profit. Additional Expenses means any necessary extra expenses sustained by you following a postponement over and above those expenses that would have been incurred had the event not been postponed, or reasonable additional costs incurred to reduce or prevent a cancellation, interruption or postponement that has occurred or appears likely to occur. Additional Expenses shall not include lost earnings or profit Bodily injury means physical: injury; illness; or disease; sustained by a person, including resulting death, mental anguish, mental injury or shock at any time. All such resulting loss shall be deemed to happen at the time of the physical injury, illness or disease that caused it. Cancellation means the necessary cancellation, withdrawal, curtailment or abandonment of the event. Employee means any person employed under a contract of service or apprenticeship with the Insured, whether such contract is expressed, implied, oral or in writing, including persons: supplied by labour only sub-contractors; providing their services on a labour only basis; engaged in work experience or similar schemes; providing their services on a voluntary basis; on secondment with the Insured; or working under a Community Services Order pursuant to the Powers of Criminal Courts (Sentencing) Act 2000 or subsequent amendment or re-enactment or similar legislation. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 171 of 176

174 Event means any commercial event organised by or on behalf of the Insured in connection with the Insured s business. Interruption means the necessary interruption of an event which is in progress. Postponement means the necessary postponement, delay or suspension of an event for a period of time, not exceeding sixty (60) days from the planned date. Property Damage means physical damage to tangible property, including resultant loss of use of such property. Tangible property does not include any software, data or other information in electronic form. All such resultant loss shall be regarded as having happened at the time of the physical damage that caused it. Terrorism means any: act including the use of force or violence or the threat thereof, taken by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, ideological or similar purposes including the intention to influence any government or to put the public, or any section of the public, in fear. act or failure to act in controlling, preventing or suppressing terrorism. War means any: 7. hostile or warlike action in time of peace or war (including any act or failure to act in controlling, preventing or suppressing any actual, impending or expected attack) by any: government authority or sovereign power (de jure or de facto) or by any authority maintaining or using military, naval or air forces; military, naval or air forces; or agent of any government power, authority or force; 8. insurrection, rebellion, revolution, civil war, usurped power or any activity of any organisation the objects of which are or include the overthrowing or influencing of any government or sovereign power (de jure or de facto) by any violent means, or any act or failure to act by government authority or sovereign power (de jure or de facto) in controlling, preventing or suppressing such activity; or 9. weapon of war employing atomic fission, atomic fusion, radioactive force or radioactive material, whether in time of peace or war. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 172 of 176

175 MARINE INSURANCE Part 6 of this Telecommunications Package is as follows: Marine Cover (summary) CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 173 of 176

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177 MARINE INSURANCE Under this Policy, the Company will indemnify the insured in respect of loss or damage to property specified at Insured Interest (below) occurring during the Period of Insurance during the course of a Voyage (below), unless otherwise excluded. The basis of valuation is set out below. The terms, conditions and exclusions applicable to this Policy are set out in Governing Terms (below) and are incorporated into this policy by reference. Where there is any conflict between the Governing Terms and any other term of this Policy, the Governing Terms shall take precedence. The full contents of the documents included in Governing Terms are not repeated in this document, but copies of the full documents will be provided upon request. The most the Company will pay under this Policy is the applicable Limit of Insurance shown in the Schedule. MARINE COVER (SUMMARY) Governing Terms: Institute Cargo Clauses A Institute War Strikes Riots and Civil Commotion Clauses Institute RACE Clause JC Days Cancellation Clause (48 hours in respect of War). Basis of Valuation: Selling Price Limit: As set out in the Policy Schedule Insured Interest: All new manufactured goods packed in export packing, shipping in full or part container loads and/or appropriate packing. Excluding - Specie, fine art, jewellery watches, mobile phones, computer chips/rams/mother boards and the like. Voyages: UK to and/or from World - excluding Cuba, Cambodia, North Korea, Libya, Iran, Iraq, and all territories embargoed by the United Nations. CCI/TIS/ICT/TELECOMSPKGE/07/2C CCITISICT072C 175 of 176

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