Syndicate 2623/623 One Aldgate Tel: +44 (0)20 7667 0623

at Lloyd’s London Fax:+44 (0)20 7667 0624

EC3N 1AA www.beazley.com

BEAZLEY
SCHEDULE 1 – POLICY NO {Missing}

1. NAMED INSURED:

{Missing}

MAILING ADDRESS:

{Missing}

2. INSURED’S PRINCIPAL PLACE OF BUSINESS (if different from above):

{Missing}

3. POLICY PERIOD:

FROM: {Missing}

TO: {Missing}

BOTH DATES INCLUSIVE, LOCAL STANDARD TIME AT THE

LOCATION OF THE PROPERTY INSURED (BUILDINGS AND
CONTENTS)

4. COVERED CAUSES OF LOSS (not covered unless specified here):

INSURED PERIL COVER PURCHASED BY INSURED

(1) Act of Terrorism Yes/No
(2) Sabotage Yes/No
(3) Riots, Strikes and/or Civil Yes/No
Commotion
(4) Malicious Damage Yes/No
(5) Insurrection, Revolution or Rebellion Yes/No
(6) Mutiny and/or Coup d’Etat Yes/No
(7) War and/or Civil War Yes/No

5. POLICY LIMIT (please state whether combined Limit with Business Interruption):

{Missing}

623AFB00154 – Political Violence - Property Damage Wording 1

6. POLICY SUB-LIMIT (Net Loss Clause 3):

{Missing}

7. DEDUCTIBLE:

{Missing}

8. PREMIUM:

{Missing}

9. ADDRESS FOR NOTICE TO UNDERWRITERS OF LOSS OR DAMAGE:

{Missing}

10. PROPOSAL FORM DATED:

{Missing}

11. BUSINESS INTERRUPTION (not covered if not specified here):

{Missing}

12. BUSINESS INTERRUPTION POLICY LIMIT (if applicable):

{Missing}

13. BUSINESS INTERRUPTION DEDUCTIBLE (if applicable):

{Missing}

623AFB00154 – Political Violence - Property Damage Wording 2

 SCHEDULE 2 – POLICY NO{Missing}

Insured Address No of Buildings Occupier Description of Declared

Location and Building Buildings and Value per
Uses Contents Location

TOTAL DECLARED VALUE OF BUILDINGS AND CONTENTS:

{Missing}

Dated in London: {Missing}

623AFB00154 – Political Violence - Property Damage Wording 3

Syndicate 2623/623 One Aldgate Tel: +44 (0)20 7667 0623
at Lloyd’s London Fax:+44 (0)20 7667 0624
EC3N 1AA www.beazley.com

BEAZLEY
POLITICAL VIOLENCE INSURANCE

PROPERTY DAMAGE WORDING

1. BASIS OF INSURANCE

All information provided to Underwriters by the Insured and/or its agent(s) in connection
with this insurance, including but not limited to the Proposal Form specified in item 10 of
Schedule 1, forms the basis of and is incorporated into this insurance.

2. INSURING CLAUSE

In consideration of the premium paid and subject to the exclusions, limits and conditions
contained herein, this Policy indemnifies the Insured for its ascertained Net Loss for any
one Occurrence up to but not exceeding the Policy Limit against:

2.1 Physical loss or physical damage to the Buildings and Contents which belong to
the Insured or for which the Insured is legally responsible, directly caused by one or
more of the following perils occurring during the Policy Period and in respect of
which the Insured has purchased cover as specified in item 4 of Schedule 1:

1. Act of Terrorism;

2. Sabotage;

3. Riots, Strikes and/or Civil Commotion;

4. Malicious Damage;

5. Insurrection, Revolution or Rebellion;

6. Mutiny and/or Coup d'Etat;

7. War and/or Civil War.

Such perils as are specified in item 4 of Schedule 1 and in respect of which cover
has been purchased by the Insured shall be the "Covered Causes of Loss".

2.2 Expenses incurred by the Insured in the removal of debris directly caused by any
one or more of the Covered Causes of Loss. The cost of removal of such debris
shall not be considered in determination of the valuation of the property insured.

2.3 The Underwriters hereon shall not be liable for more than the Policy Limit stated in
item 5 of Schedule 1 in respect of any one Occurrence and in the aggregate. For
the avoidance of doubt, the limit of indemnity under Clauses 2.1 and 2.2 shall be in
the aggregate and shall not exceed the Policy Limit.

623AFB00154 – Political Violence - Property Damage Wording 1

3. DEFINITIONS

"Act of Terrorism" shall mean an unlawful act, including the use of force or violence, of
any person or group(s) of persons, whether acting alone or on behalf of or in connection
with any organisation(s), committed for political, religious or ideological purposes including
the intention to influence any government and/or to put the public in fear for such
purposes.

"Actual Cash Value" means the cost to repair or replace the Buildings or Contents with a
proper deduction for obsolescence, wear and tear.

"Buildings" shall mean any roofed and walled structure, machinery and equipment, signs,
glass, lifts, fixed fuel tanks, driveways, footpaths, walls, gates, satellite dishes and their
fittings and masts, provided always that the Insured owns or is legally responsible for such
Buildings and provided that the Buildings are situated at an Insured Location. Where
specifically requested by the Insured and agreed to by Underwriters and declared to
Underwriters in Schedule 2 to the Policy, "Buildings" shall also include underground mines,
tunnels, wells, caverns, dams, water shafts, power tunnels, dikes, levees, gates, flumes
and any property contained therein.

"Civil Commotion" shall mean the same as Riots as defined in this Policy.

"Civil War" shall mean an internecine war, or a war carried on between or among
opposing citizens of the same country or nation.

"Contents" shall mean fixtures and fittings, interior decorations, office furniture and stock
(including finished goods manufactured by the Insured or held for sale), provided always
that the Insured owns or is legally responsible for such Contents and provided that such
Contents are situated at an Insured Location.

"Coup d'Etat" shall mean the sudden, violent and illegal overthrow of a sovereign
government or any attempt at such overthrow.

"Declared Values" shall mean the amounts stated in Schedule 2 to the Policy.

"Deductible" shall mean the deductible(s) stated in item 7 of Schedule 1 in respect of any
one Occurrence. Each Occurrence shall be adjusted separately and from the amount of
each adjusted loss, the Deductible shall be deducted.

"Electronic Data" shall mean facts, concepts and information converted to a form useable
for communication, interpretation or processing by electronic and electromechanical data
processing or electronically controlled equipment and includes programs, software and
other coded instructions for the processing and manipulation of data or the direction and
manipulation of such equipment.

"Insured" shall mean the entity or entities stated in item 1 of Schedule 1.

"Insured Country" shall mean the country in which the Insured's principal place of
business is situated as described in Schedule 2 to the Policy.

"Insured Location" shall mean the locations as described in Schedule 2 to the Policy.

623AFB00154 – Political Violence - Property Damage Wording 2

 "Insurrection, Revolution and Rebellion" shall mean a deliberate, organised and open
resistance, by force and arms, to the laws or operations of a sovereign government,
committed by its citizens or subjects and/or a rising against a sovereign government or
other authority.

"Malicious Damage" shall mean all physical loss or physical damage resulting directly
from a malicious act by anyone during a disturbance of the public peace where such
malicious act is perpetrated for political reasons by known or unknown person(s).

“Mutiny” shall mean a wilful resistance by members of legally armed or peace-keeping

forces to a superior officer.

"Net Loss" shall, in respect of Buildings, mean the reasonable cost of repairing, replacing
or reinstating (whichever is the least) on the same site, or nearest available site (whichever
incurs the least cost) to a condition substantially the same as but not better than the
condition of the Buildings immediately prior to the loss, subject to the repairing, replacing
or reinstating being carried out and subject to the following provisions:

1. The repairs, replacement or reinstatement (all hereinafter referred to as "replacement")

must be executed with due diligence and dispatch;

2. If the Buildings are not repaired, replaced or reinstated within a reasonable period of
time the Underwriters shall only pay the Actual Cash Value;

3. If replacement with material of like kind and quality is restricted or prohibited by any by-
laws, ordinance or law, Underwriters' total liability for any increased cost of
replacement due thereto shall be limited to the Policy Sub-Limit stated in item 6 of
Schedule 1 for any one Occurrence which liability shall, for the avoidance of doubt,
form part of and shall not be in addition to the Policy Limit.

4. In respect of Contents, "Net Loss" shall mean:

(i) on finished goods sold and awaiting collection, the regular selling price, less all
discounts and charges to which such goods would have been subject to had no
loss occurred;

(ii) on all other stock, the value of raw materials and labour expended;

(iii) for property of others, the amount for which the Insured is legally liable but in no
event to exceed the Actual Cash Value;

(iv) for film, tape, disc, drum, cell and other magnetic recording or storage media for
electronic data processing, an amount not exceeding the cost of such media in
an unexposed or blank form plus the costs of copying electronic data from back
up or from originals of a previous generation. These costs will not include
research and engineering nor any costs of recreating, gathering or assembling
such electronic data. If the media is not repaired or replaced the basis of
valuation shall be the cost of the blank media. This insurance does not insure
any amount pertaining to the value of such electronic data to the insured or any
other party.

(v) on documents other than (iv) above an amount not exceeding the cost of blank
material plus the cost of labour incurred by the insured for transcribing or

623AFB00154 – Political Violence - Property Damage Wording 3

 copying such records. This insurance does not insure any amount pertaining to
the value of such documents to the Insured or any other party.

(vi) on all other property, the Actual Cash Value.

5. In respect of the removal of debris pursuant to Clause 2.2 above, "Net Loss" shall
mean the necessary and reasonable expenses incurred by the Insured with
Underwriters' prior written consent in the removal of said debris.

All amounts shall be calculated at the date of loss and in no event shall Underwriters be
liable for more than the Policy Limit.

"Occurrence” shall mean any one loss and/or series of losses arising out of and directly
occasioned by one act or series of acts for the same purpose or cause. The duration and
extent of any one Occurrence shall be limited to all losses sustained by the Insured in
respect of Buildings and Contents insured herein during any period of 72 consecutive
hours arising out of the same purpose or cause. However no such period of 72
consecutive hours may extend beyond the expiration of this Policy unless the Insured shall
first sustain direct physical damage prior to expiration and within said period of 72
consecutive hours nor shall any period of 72 consecutive hours commence prior to the
attachment of this Policy.

"Operations" shall mean the Insured's business operations at one or more of the Insured
Locations.

"Policy Period" shall mean the period stated in item 3 of Schedule 1.

"Policy Limit" shall mean the limit stated in item 5 of Schedule 1 in respect of any one
Occurrence and in the aggregate for all loss and damage insured hereunder, including for
the avoidance of doubt, any amount(s) paid in respect of the Policy Sub-Limit.

"Policy Sub-Limit" shall mean the Net Loss Clause 3 Policy sub-limit stated in item 6 of
Schedule 1 for any one Occurrence and in the aggregate for all loss and damage under
Clause 3 of the definition of "Net Loss", which sub-limit shall, for the avoidance of doubt,
form part of and shall not be in addition to the Policy Limit.

"Riots" shall mean any act committed in the course of a disturbance of the public peace
(where such disturbance is motivated by political reasons) by any person taking part
together with others in such disturbance or any act of any lawfully constituted authority for
the purpose of suppressing or minimising the consequence of such act.

"Strikes" shall mean any wilful act of any striker or locked-out worker in the furtherance of
a strike or in resistance to a lock-out or any act of any lawfully constituted authority for the
purpose of suppressing or minimising the consequence of such act.

"Sabotage" shall mean wilful physical damage or destruction perpetrated for political
reasons by known or unknown person(s).

"War" shall mean a contest by force between two or more sovereign nations, carried on
for any purpose, armed conflict of sovereign powers and/or declared or undeclared and
open hostilities between sovereign nations.

"Underwriters" shall mean the underwriters and insurers subscribing to this Policy.

623AFB00154 – Political Violence - Property Damage Wording 4

4. EXCLUSIONS

This Policy DOES NOT INDEMNIFY AGAINST:

1. Loss or damage arising directly or indirectly from nuclear detonation, nuclear reaction,
nuclear radiation or radioactive contamination, however such nuclear detonation,
nuclear reaction, nuclear radiation or nuclear contamination may have been caused
nor from any loss or damage directly or indirectly caused by or contributed to from any
nuclear waste or the radioactive, toxic, explosive or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof.

2. Loss or damage directly or indirectly caused by seizure, confiscation, nationalisation,

requisition, expropriation, detention, legal or illegal occupation of any property insured
hereunder, embargo, condemnation, nor loss or damage to the Buildings and/or
Contents by law, order, decree or regulation of any governing authority, nor for loss or
damage arising from acts of contraband or illegal transportation or illegal trade.

3. Any loss arising from War (whether before or after the outbreak of hostilities) between
any two or more of the following: China, France, the Russian Federation, the United
Kingdom and the United States of America.

4. Delay, loss of market, loss of income, loss of use, denial of access, cancellation of
business, depreciation, reduction in functionality, increased cost of working (except as
may be insured specifically under any Business Interruption Extension to this Policy);

5. Consequential loss or damage howsoever arising (except as may be insured

specifically under any Business Interruption Extension to this Policy);

6. Third party liability howsoever arising;

7. Loss or damage directly or indirectly arising from or in consequence of the discharge of

pollutants or contaminants, which pollutants or contaminants shall include but not be
limited to any solid, liquid, gaseous or thermal irritant, contaminant of toxic or
hazardous substance or any substance the presence, existence or release or of which
endangers or threatens to endanger the health, safety or welfare of persons or the
environment.

8. Loss or damage directly or indirectly caused by chemical or biological release or

exposure of any kind, nor any loss or damage directly or indirectly caused by any
chemical, biological, bio-chemical or electromagnetic weapon.

9. Loss or damage directly or indirectly caused by electronic means including computer

hacking or the introduction of any form of computer virus (save where a mobile phone
is used as a remote trigger device in order to cause physical loss or physical damage
insured hereunder).

10. Loss, damage, destruction, distortion, erasure, corruption or alteration of Electronic

Data.

11. Loss or damage or increased cost directly or indirectly occasioned by any public or civil
authority's enforcement of any ordinance, law, order decree or regulation concerning
the reconstruction, repair or demolition of any property insured hereunder except as
may be insured specifically by this Policy in accordance with the provisions of Clause 3
of the definition of "Net Loss".

623AFB00154 – Political Violence - Property Damage Wording 5

 12. Loss or damage directly or indirectly caused by cessation, fluctuation, variation in, or
insufficiency of, water, gas or electricity supplies and/or telecommunications or any
other type of service or utilities.

13. Loss or damage or increased cost directly or indirectly the result of threat or hoax.

14. Loss or damage directly or indirectly caused by burglary, house-breaking, theft or

larceny, looting, pillaging, mysterious or unexplained disappearance of property
insured hereunder or directly or indirectly caused by any person taking part in any such
activity.

15. Loss or damage directly or indirectly caused by the suspension, lapse or cancellation
of any lease, licence, contract or order (including non-completion of any order) .

16. Any infidelity, fraudulent, dishonest or criminal act by any director, officer or trustee of
the Insured whether acting alone or in collusion with others.

17. Any loss due to fines or damages for breach of contract or penalties of whatever
nature.

18. Loss or damage caused by, connected to, relating to or howsoever arising from
exposure to or the existence of asbestos or asbestos containing materials or products
(including for the avoidance of doubt the cost of removal of asbestos or materials or
products containing asbestos).

19. Loss or damage caused by insects or vermin.

20. Any debt, insolvency or commercial failure, whether to provide bond or security or
otherwise, or any other financial cause of any party or person whatsoever.

5. PROPERTY EXCLUDED

This Policy DOES NOT PROVIDE INDEMNITY IN RELATION TO:

1. Land or land values.

2. Transmission, feeder lines or distribution lines and their supporting structures unless
located on premises owned by the Insured and on which the Buildings and/or Contents
are located.

3. Any Buildings or Contents contained therein while such Buildings are vacant or
unoccupied or inoperative for thirty (30) days or more.

4. Aircraft or other aerial devices.

5. Watercraft.

6. Any land conveyance, including vehicles, locomotives or rolling stock, unless such land
conveyance is expressly declared to and agreed by Underwriters hereunder.

7. Animals, plants and living things of all types including loss as a result of physical,
mental or bodily injury to any person.

8. Property in transit (except as may be insured specifically under any Property in transit
Endorsement to this Policy).

623AFB00154 – Political Violence - Property Damage Wording 6

 9. Accounts, bills, currency, money, deeds, notes, securities, evidences of debt or title,
letters of credit, stamps, tickets, bullion, gold, silver and other precious metals,
diamonds, precious and semi-precious stones, jewellery or furs.

10. Offshore property.

11. Underground mines, tunnels, wells or caverns and any property contained therein save
as may be insured specifically hereunder and declared to Underwriters in Schedule 2
to the Policy.

12. Dams, water shafts, power tunnels, dikes, levees, gates and flumes save as may be
insured specifically hereunder and declared to Underwriters in Schedule 2 to the
Policy.

6. CONDITIONS

6.1 Other Insurance

This Policy does not indemnify any loss or damage which at the time of the
occurrence of such loss is insured or would, but for the existence of this Policy be
insured by any other policy or policies of insurance except in respect of any excess
beyond the amount which would have been payable under such other policy or
policies had this Policy not been effected.

6.2 Territorial Limits

This Policy insures Buildings and Contents owned by the Insured or for which the
Insured is legally responsible and situated at the Insured Locations specified in
Schedule 2 to the Policy.

6.3 Due Diligence

It is a condition precedent to Underwriters' liability that the Insured shall at all times
and at its own expense use due diligence, and do and concur in doing and permit
to be done, all things reasonably practicable (including but not limited to
precautions to protect or remove the Buildings and Contents insured herein) to
avoid or diminish any loss or damage under this Policy and including action against
other parties to enforce any rights and remedies or to obtain relief or indemnity. It
is also a condition precedent to Underwriters' liability that the Insured shall do all
things necessary to ensure and require that its agents, sub and co-contractors do
all things reasonably practicable to avoid or diminish any loss or damage under this
Policy.

6.4 Protections Maintenance

The Insured shall ensure that effective protections exist for the safety of the
Buildings and Contents and that such protections shall be maintained in good order
throughout the currency of this Policy and shall be in use at all appropriate times.
Such protection shall not be withdrawn or varied without Underwriters' prior written
consent.

6.5 Declared Values Penalty

If at the time that any Buildings or Contents are lost or damaged, the total value of
all such insured property at the Insured Location at which said loss or damage

623AFB00154 – Political Violence - Property Damage Wording 7

 occurred is greater than the Declared Value for that Insured Location by more than
10%, then the Insured shall be entitled to recover no more hereunder than such
proportion of the loss or damage as the Declared Value bears to the total value of
all insured property at that Insured Location. For the avoidance of doubt,
Underwriters' maximum liability in respect of any one Insured Location shall not
exceed the Declared Value for such Insured Location.

6.6 Notification of Loss or Damage

It is a condition precedent to Underwriters' liability that in the event of loss or

damage or circumstances arising that may give rise to a claim under this insurance
notice is to be given to Underwriters as soon as reasonably possible but no later
than 14 days after the occurrence of said loss or damage.

6.7 Co-operation

It is a condition precedent to Underwriter's liability that the Insured must provide

Underwriters with such relevant information and evidence as Underwriters may
reasonably require and co-operate fully in the investigation and/or adjustment of
any claim. If required by Underwriters, the Insured agrees to submit to examination
under oath by any person designated by Underwriters.

6.8 Proof of Loss

The Insured shall render a signed and sworn proof of loss within 60 days after the
occurrence of such loss (unless such period shall be extended with the written
agreement of Underwriters) stating the time, place and cause of loss, the interest of
the Insured and all others in the Buildings and Contents, the Declared Values and
the amount of loss or damage thereto. If Underwriters have not received such
proof of loss within 1 year of the expiry of this Policy, they shall be discharged from
all liability in relation to such loss.

7. MULTIPLE INSUREDS

7.1 Each of the Insureds individually warrants that the information which has been
provided to Underwriters in relation to placement, renewal, amendment of or
extension to this Policy by or on behalf of itself or any of the other Insureds, is
materially accurate and complete so far as it concerns the risks in which that
Insured (by itself or with others) has an interest that is insured hereunder.

7.2 Breach of any warranty hereunder by any one of the Insureds shall be deemed to
be in breach of warranty by all of the Insureds as if the same had been committed
by each and every one of the said Insureds, subject only to Underwriters' express
written waiver of the same.

7.3 The total liability of the Underwriters in the aggregate for any loss or losses
sustained by any or all of the Insureds, or at any or all of the Insured Locations,
shall not exceed the amount for which Underwriters would be liable had such loss
or losses been sustained by any one Insured, or at any one Insured Location,
alone. For the avoidance of doubt, the Policy Limit applies to the aggregate of all
claims by all Insureds and in respect of all Insured Locations hereunder, and
Underwriters shall have no liability in excess of the Policy Limit whether insured
losses are sustained by all of the Insureds or any one or more of them or whether
insured losses are sustained at any one or more of the Insured Locations.

623AFB00154 – Political Violence - Property Damage Wording 8

 7.4 The application of any Exclusion against any Insured shall be deemed to exclude
loss for all Insureds hereunder, subject only to Underwriters' express written waiver
of the same.

8. SUBROGATION

If Underwriters become liable for any payment under this Policy in respect of loss or
damage, they shall become subrogated, to the extent of such payment, to all the rights and
remedies of the Insured against any party in respect of such loss or damage and shall be
entitled at their own expense to sue in the name of the Insured to recover for Underwriters'
benefit the amount of any payment made under this insurance, in addition to Underwriters'
own costs and expenses. The Insured shall give to Underwriters all such assistance in its
power as Underwriters may require to secure said rights and remedies (including attending
hearings and trials, securing and giving evidence, obtaining the attendance of witnesses,
assisting in effecting settlements and in conducting litigation, arbitration or other
proceedings) and, at Underwriters' request, shall enter into such agreements and execute
or sign such documents as may be necessary to enable Underwriters to bring suit in the
name of the Insured.

9. RECOVERIES

All salvage, recoveries and payments recovered or received by the Insured from any
source subsequent to a loss settlement under this Policy, after reimbursement of
Underwriters' expenses of recovery if any, shall inure to the benefit of Underwriters until
they shall have been reimbursed to the extent of any loss settlement. Any further salvage,
recoveries and payments shall accrue to the benefit of the Insured.

10. ABANDONMENT

Unless Underwriters elect to take the Buildings and Contents as salvage, said property will
at all times remain the property of the Insured who may not abandon it to Underwriters.

11. FALSE OR FRAUDULENT CLAIMS

If the Insured shall make any claim knowing the same to be false or fraudulent, as regards
amount or otherwise, this Policy shall become void and all claims hereunder shall be
forfeited.

12. INSPECTION AND AUDIT

12.1 Underwriters shall be permitted but not obligated to inspect the Buildings and
Contents at any time. Neither Underwriters' right to make inspections nor the
making thereof nor any report thereon shall constitute an undertaking, on behalf of
or for the benefit of the Insured or others, to determine or warrant that such
property is safe. No other party shall be entitled to rely on Underwriters' inspection
without their prior written consent.

12.2 Underwriters shall be entitled to examine and audit the Insured's books and records
at any time during the Policy period and any extensions thereof and within 2 years
after the final termination of this Policy, as far as they relate to the subject matter of
this insurance.

623AFB00154 – Political Violence - Property Damage Wording 9

13. ASSIGNMENT

No assignment or change of interest in this insurance or any amount payable under it shall
be binding on or recognised by Underwriters, except with their prior written consent.

14. RIGHTS OF THIRD PARTIES

This Policy is effected solely between the Insured and Underwriters. This Policy shall not
and is not intended to confer any benefits on any third parties, including but not limited to
shareholders, and no third party may enforce any term of this Policy. The Contract (Rights
of Third Parties) Act 1999 is excluded expressly from this insurance.

15. PREMIUM PAYMENT

The Insured undertakes that the premium shall be paid in full to Underwriters by the
Insured within 45 days of the date of inception of this Policy (or, in respect of instalments,
when due). If the premium due under this Policy has not been paid to Underwriters by
4.00 pm Greenwich meantime on the 45th day after the date of inception of this Policy (and,
in respect of instalments, by the date they are due), Underwriters shall have the right to
cancel the Policy by notifying the Insured at the address shown in item 1 of Schedule 1. In
such circumstances, cancellation shall be effective at 4.00 pm Greenwich meantime on the
15th day after the date of notice of cancellation by Underwriters and the Policy shall be
terminated automatically without further reference or confirmation to the Insured. In the
event of cancellation, premium is due to Underwriters on a pro rata basis for the period
that Underwriters are on risk but the full Policy premium shall be payable to Underwriters in
the event of loss, damage, circumstance or occurrence likely to give rise to claim under
this Policy. If the premium due is paid to Underwriters before the notice period expires,
such cancellation shall be automatically revoked.

16. CANCELLATION

16.1 This Policy may be cancelled by the Insured by written notice to Underwriters
stating when, not less than 30 days thereafter, the cancellation shall be effective.

16.2 Save where Clause 15 above applies, this Policy may be cancelled by Underwriters
by written notice to the Insured at the address shown in item 1 of Schedule 1
stating when, not less than thirty (30) days thereafter such cancellation shall be
effective.

16.3 The mailing of notice shall be sufficient proof of notice. The effective date and hour
of cancellation in the notice shall become the end of the Policy period. Delivery
(where permitted by law) of such written notice either by the Insured or by
Underwriters shall be equivalent to mailing.

16.4 If the Insured cancels this Policy, 25% of the premium charged shall be deemed
fully earned upon inception of the Policy and the remaining earned premium shall
be computed in accordance with the customary short rate table and procedure. If
Underwriters cancel this Policy the premium shall be computed pro rata.

16.5 The premium shall be deemed fully earned if any loss, damage, circumstance or
Occurrence has been notified under this Policy.

623AFB00154 – Political Violence - Property Damage Wording 10

 16.6 Premium adjustment may be made either at the time of cancellation or as soon as
practicable thereafter but payment or tender of unearned premium is not a
condition of cancellation.

17. WARRANTY AS TO USES

The Insured warrants that the building uses declared to Underwriters at inception and
detailed in Schedule 2 to the Policy are correct and that such uses shall not change during
the Policy Period without Underwriters' prior written consent.

18. CHANGES/AMENDMENTS

Any addenda, amendments or endorsements to this Policy shall only be valid if agreed by
Underwriters in writing.

19. GOVERNING LAW AND DISPUTE RESOLUTION

19.1 Any dispute arising out of, in connection with or in relation to this Policy or any
claim under it, including any question regarding the Policy's existence, validity or
termination, shall be referred to and finally resolved by arbitration under the LCIA
Rules (as may be amended from time to time and are in effect at the date of the
submission to arbitration), which Rules are deemed to be incorporated by reference
into this Clause. The number of arbitrators shall be three (3). The seat of the
arbitration shall be London, England. The language to be used in the arbitral
proceedings shall be English.

19.2 The governing law of this Policy and any dispute arising in connection with or in
relation to this Policy shall be the substantive law of England and Wales.

20. SEVERAL LIABILITY

Underwriters' obligations under this Policy are several and not joint and are limited solely
to their individual subscriptions. Underwriters are not responsible for the subscription of
any co-subscribing Underwriter who for any reason does not satisfy all or part of its
obligations.

21. CLAIM SETTLEMENT

Settlement of any valid claim under this Policy shall be payable, subject to the application
of the Deductible, within 60 days after the conclusion of Underwriters' investigation(s)
necessary for the assessment of the extent of their liability.

BUSINESS INTERRUPTION EXTENSION (BUSINESS INCOME)

1. INSURING CLAUSE

1.1 Loss of Income: In consideration of the additional premium paid, this Policy is
extended to cover the actual loss of Income sustained by the Insured resulting
directly from Business Interruption.

1.2 Due consideration shall be given to the continuation of such reasonable charges
and expenses, including payroll expenses, to the extent necessary to resume the
Operations with the same operational capability as existed immediately before the
physical loss or damage occurred to Buildings and/or Contents.

623AFB00154 – Political Violence - Property Damage Wording 11

 1.3 Expenses to reduce loss: Underwriters shall also pay to the Insured the
additional necessary and reasonable costs and expenses incurred by the Insured
in order to minimise its losses under this Extension and continue its business, less
any savings which result from the reduced costs and expenses during the period of
business interruption. Underwriters' liability for such costs and expenses shall not
exceed the amount by which loss otherwise payable under this Extension is
thereby reduced. For the avoidance of doubt, any sums paid by Underwriters in
respect of such costs and expenses shall form part of and shall not be in addition to
the Business Interruption Limit (if applicable) or Policy Limit (if applicable).

1.4 Indemnity under this Extension shall commence from the date on which the
physical loss or physical damage occurs to Buildings and/or Contents and continue
for the entire period of interruption of business but not beyond the lesser of:

1. the time required, with the exercise of due diligence and dispatch, to repair,
rebuild or reinstate such part of the Buildings and/or Contents as has been
destroyed or damaged commencing with the date of such direct physical loss or
damage; or

2. TWELVE (12) calendar months.

2. DEFINITIONS

"Business Interruption" shall mean the necessary and unavoidable interruption of or

interference with the Insured's Operations provided always that:

1. a business interruption value is declared in Schedule 2 to the Policy for the relevant
Insured Location(s); and

2. such business interruption occurs at an Insured Location; and

3. such business interruption occurs as a direct consequence of one or more of the

Covered Causes of Loss as are specified in item 4 of Schedule 1 and in respect of
which cover has been purchased by the Insured.

"Business Interruption Policy Limit" shall mean the business interruption policy limit
stated in item 12 of Schedule 1.

"Income" shall mean the net income (net profit or loss before income taxes) that would
have been earned or incurred.

"Finished Stock" shall mean stock manufactured by the Insured which in the ordinary
course of the Insured's business is ready for packing, shipment and sale.

"Merchandise" shall mean goods kept for sale by the Insured which are not the product of
manufacturing operations conducted by the Insured.

"Raw Stock" shall mean material in the state in which the Insured receives it for
conversion into Finished Stock.

"Stock in Process" shall mean Raw Stock which has undergone any ageing, seasoning,
mechanical or other process of manufacture at the Insured's premises but which has not
become Finished Stock.

623AFB00154 – Political Violence - Property Damage Wording 12

3. CONDITIONS

3.1 Direct Damage

No claim shall be payable under this Extension unless and until a claim has been
paid or liability admitted by Underwriters, in respect of one or more of the Covered
Causes of Loss (as specified in item 4 of Schedule 1 and in respect of which cover
has been purchased by the Insured) and which Covered Cause(s) of Loss give rise
to Business Interruption. This condition shall not apply where no claim payment
has been made or liability admitted solely owing to the operation of a Deductible
which excludes liability for losses below a specified amount.

3.2 Basis of Settlement

1. The amount of Income loss shall be determined based on:

(a) the net income of the Operations before the direct physical loss or damage
to Buildings and Contents occurred;

(b) the likely net income of the Operations if no physical loss or damage had
occurred, but not including any net income that would likely have been
earned as a result of an increase in the value of business due to favourable
business conditions caused by the impact of the Covered Causes of Loss
on customers or on other business;

(c) the operating expenses, including payroll expenses, necessary to resume

Operations with the same operational capabilities that existed immediately
before the direct physical loss or damage; and

(d) other relevant sources of information including: the Insured's financial

records and accounting procedures; bills, invoices and other vouchers; and
deed, liens or contracts.

2. Resumption of Operations

If the Insured could reduce the loss under this Extension resulting from
Business Interruption:

(a) by complete or partial resumption of Operations, and/or

(b) by making use of Merchandise, Raw Stock, Stock in Process or Finished

Stock, or any other property at the Insured Locations or elsewhere, and/or

(c) by using or increasing Operations elsewhere,

then such possible reduction(s) shall be taken into account in arriving at the
amount of loss under this Extension.

If the Insured does not resume Operations, or does not resume Operations as
quickly as possible, Underwriters' liability shall be limited to the length of time it
would have taken for the Insured to resume Operations as quickly as possible.

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 3. Appraisal

If Underwriters and the Insured disagree on the amount of Income and/or

operating expense or the amount of loss, either may make written demand for
an appraisal of the loss. In this event, each party will select a competent and
impartial appraiser.

The two appraisers will select an umpire. If they cannot agree, either may
request that selection be made by the LCIA. The appraisers will state
separately the amount of Income and operating expense of the amount or loss.
If they fail to agree, they will submit their differences to the umpire. A decision
agreed to by any two will be binding. Each party will:

(a) pay its chosen appraiser; and

(b) bear the other expenses of the appraisal and umpire equally.

If there is an appraisal, Underwriters shall still retain the right to deny the claim.

3.3 Proof of Loss

The Insured shall give immediate written notice to Underwriters of any loss or
damage under this Extension and shall protect the property from further damage
that might result. Within 60 days following the date of physical loss or damage, the
Insured shall render to Underwriters a proof of loss, signed and sworn by the
Insured, stating the knowledge and belief of the Insured as to the following:

1. the time and origin of the property loss or damage causing the interruption of
business;

2. the interest of the Insured and of all others in the business;

3. all other contracts of insurance, whether valid or not, covering in any manner
the loss insured against by this policy;

4. any changes in the title, nature, location, encumbrance, possession of said

business since the issuing of the Policy; and

5. by whom and for what purpose any building at which loss or damage has
occurred and the several parts thereof were occupied at the time of loss of
damage,

and shall furnish a copy of all the description and schedules in all policies, and the
actual amount of business interruption value and loss claimed, accompanied by
detailed exhibits of all values, costs and estimates upon which such amounts are
based. The Insured shall exhibit to any person designated by Underwriters all that
remains of any property insured under this Extension, shall submit to examination
under oath by any person named by Underwriters, shall produce for examination all
books of account, bills, invoices and other vouchers, or certified copies thereof if
originals be lost, at such reasonable time and place as may be designated by
Underwriters or its representatives and shall permit extracts and copies thereof to
be made.

623AFB00154 – Political Violence - Property Damage Wording 14

4. EXCLUSIONS

This Extension DOES NOT INDEMNIFY AGAINST:

4.1 Increase in loss or damage resulting directly or indirectly from interference at the
Insured Locations, by strikers or other persons, with rebuilding, repairing or
reinstating the property or with the resumption or continuation of Operations.

4.2 Increase in loss or damage caused directly or indirectly by suspension, lapse or

cancellation or any lease, licence, contract, or order, unless such results directly
from Business Interruption and then Underwriters shall be liable only for such loss
as affects the Insured's Gross Earnings during and limited to the Policy Period.

4.3 Increase in loss or damage caused directly or indirectly by the enforcement of any
ordinance or law regulating the use, reconstruction, repair or demolition of any
property insured hereunder.

4.4 Loss of market or any other consequential loss or damage except as specifically
insured herein.

4.5 Loss or damage as a result of physical or mental or bodily injury to any person.

4.6 Any loss or damage during any period in which goods would not have been
produced, or Operations or services would not have been maintained, for any
reason other than physical loss or physical damage of the type insured against to
which this coverage applies.

4.7 Any loss or damage due to fines or damages for breach of contract or penalties of
whatever nature.

4.8 Any loss or damage with respect to any additional time required for making
change(s) to the buildings, structures, or equipment for any reason, nor any
additional time required for re-staffing or retraining employees.

5. LIMITATIONS

5.1 In respect of loss or damage suffered under this Extension, Underwriters' maximum
liability shall never be more than the Business Interruption Policy Limit (if
applicable), or Policy Limit (if applicable) where this Policy Limit is a combined
amount for losses arising from both physical loss or physical damage and Business
Interruption, for any one Occurrence.

5.2 For the avoidance of doubt, where a Business Interruption Policy Limit applies to
losses suffered under this Extension, it shall apply to the aggregate of all claims by
all Insureds and in respect of all Insured Locations hereunder, and Underwriters
shall have no liability in excess of the Business Interruption Policy Limit whether
insured losses are sustained by all of the Insureds or any one or more of them or
whether insured losses are sustained at any one or more of the Insured Locations.
Where the parties to this insurance have agreed that the Policy Limit shall be a
combined amount for losses arising from both physical loss or physical damage
and Business Interruption, Clause 7.3 shall apply in respect of Underwriters'
maximum liability for losses suffered under this Extension.

5.3 With respect to loss under this Extension resulting from damage to or destruction of
film, tape, disc, drum, cell and other magnetic recording or storage media for

623AFB00154 – Political Violence - Property Damage Wording 15

 electronic data processing, the length of time for which Underwriters shall be liable
hereunder shall not exceed:

1. Thirty (30) consecutive calendar days or the time required with exercised due
diligence and dispatch to reproduce the data thereon from duplicates or from
originals of the previous generation, whichever is less; or

2. the length of time that would be required to rebuild, repair or reinstate such
property but not exceeding twelve (12) calendar months,

whichever is the greater length of time.

SUBJECT OTHERWISE TO ALL THE TERMS, CONDITIONS, LIMITATIONS AND

EXCLUSIONS OF THE POLICY TO WHICH THIS EXTENSION IS ATTACHED.

623AFB00154 – Political Violence - Property Damage Wording 16