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SAIA/410/042002 (MULTIMARK) MMIII 2003

The amount payable as indemnity under this item will be the actual amount which the insured shall pay as wages for such period to employees whose services cannot, in consequence of the Damage, be utilised by the insured at all and an equitable part of the wages paid for such period to employees whose services cannot, in consequence of the Damage, be utilised by the insured to the full provided that if the sum insured by this item is less than the aggregate amount of the wages that would have been paid during the specified number of weeks immediately following the Damage had the Damage not occurred, the amount payable will be proportionately reduced.

Item 6 - Fines and penalties for breach of contract The insurance under this item is limited to fines or penalties for breach of contract and the amount payable as indemnity hereunder shall be such sum as the insured shall be legally liable to pay and shall pay in discharge of fines or penalties incurred solely in consequence of Damage for non-completion or late completion of orders.

Definitions Indemnity period - The period beginning with the commencement of the Damage and ending not later than the number of months thereafter stated in the schedule during which the results of the business shall be affected in consequence of the Damage. Turnover - The money paid or payable to the insured for goods sold and delivered and for services rendered in the course of the business at the premises. Revenue - The money paid or payable to the insured for goods sold and for services rendered in the course of the business at the premises. Gross rentals - The money paid or payable to the insured by tenants in respect of rental of the premises and for services rendered. Gross profit (difference basis) - The amount by which

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the sum of the turnover and the amount of the closing stock shall exceed the sum of the amount of the opening stock and the amount of the uninsured costs.

The amount of the opening and closing stocks shall be arrived at in accordance with the insured’s normal accountancy methods, due provision being made for depreciation. Uninsured costs - As specified in the schedule (the words and expressions used shall have the meaning usually attached to them in the books and accounts of the insured). Gross profit (additions basis) - The sum produced by adding to the net profit the amount of the insured standing charges or, if there is no net profit, the amount of the insured standing charges less such proportion of any net trading loss as the amount of the insured standing charges bears to all the standing charges of the business. Net profit - The net trading profit (exclusive of all capital receipts and accretions and all outlay properly chargeable to capital) resulting from the business of the insured at the premises after due provision has been made for all standing and other charges including depreciation, but before the deduction of any taxation chargeable on profits. Insured standing charges - As specified in the schedule (the words and expressions used shall have the meaning usually given to them in the books of account of the insured)

Standard turnover Standard revenue Standard gross rentals - The turnover (revenue) (gross rentals) during that period in the twelve months immediately before the date of the Damage which corresponds with the indemnity period

Annual turnover Annual revenue Annual gross rentals - The turnover (revenue) (gross rentals) during the twelve months immediately before the date of the Damage

Rate of gross profit - The rate of gross profit earned on the turnover during the financial year immediately before the date of the Damage

to which such adjustments shall be made as may be necessary to provide for the trend of the business and for variations or other circumstances affecting the business either before or after the Damage or which would have affected the 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

Note If the Damage occurs before the completion of the first year’s trading of the business at the premises, the value of bracketed terms shall be calculated by using values proportionate to the results obtained during the period between the commencement of the business and the date of Damage.

Business interruption section 3/6

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