Minimum Period

Order Cancellation Charge

Charges will be raised where a Customer cancels a Contract or the provision of a line before Service is provided, cancellation- chargessee will apply as set out in Pricing Information. Thisin chargeSection will apply to new provisions, takeovers and conversions.21 Part 2 Subpart 3. This charge will apply to new provisions, takeovers and conversions.

MinimumLong Periods, Early TerminationTerm and DiscountsContracts

The Minimum Period for Embark, which includes both Embark Access Lines and Featureline Corporate Access Lines is 12 months. Customers wishing to cease their Embark service within the Minimum Period will be liable for payment of all rentals that would have been charged during the Minimum Period.

Long Term Contracts of three year duration (which have a 36 month Minimum Period) are also available, providing discounts off the access rental charge applicable to a contract with a 12 month Minimum Period. The discounts will be removed at the end of the fixed term 36 month Minimum Period and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing price scheme at the time of expiry, PLUS 10%%, unless a new appropriate Contract is signed. This applies to the tariffs listed below:

Digital Access Lines

Centrex Access Lines

A Customer who has Embark Access Lines only for seven continuous years, can opt to sign a Long Service (2) Term Contract for 3 years (with a 36 month Minimum Period) and on doing so their access rental discount will be 20%%. At the end of the 36 month Minimum Period, the discount will be removed and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing digital access and centrex access line and site rental tariff at the time of expiry, PLUS 10%% , unless a new contract is signed.

A Customer with Embark Access Lines only on expiry of their three year Fixed Term Contract, or those Customers who have had these lines for 3 continuous years can opt to sign an Enhanced Long Term Contract for three years (with a Minimum Period of 36 months) and on doing so their access rental discount will be 12.5%. At the end of the 36 Month Minimum Period, contract the discount will be removed and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing digital access and centrex access line and site rental tariff at the time of expiry, PLUS 10%% , unless a new contract is signed.

A Customer who has Embark Access Lines only, on expiry of their Five Year Fixed Term Contract (with a 60 month Minimum Period) or those Customers who have had these lines for five continuous years, can opt to sign a Long Service Term Contract for 3 years (with a 36 month Minimum Period) and on doing so their access rental discount will be 15%. At the end of the 36 month Minimum Period the discount will be removed and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing digital access and centrex access line and site rental tariff at the time of expiry, PLUS 10%% , unless a new contract is signed.

Long term contracts provide a discount against the access rental charge applicable to a contract with a 12 month Minimum Period - see Section 21 Part 2 Sub-part 3.

At the end of the Minimum Period the discount will be removed and the charges will revert to the prevailing 1 year access rental charge as set out in Section 21 Part 2 Sub-part 3 plus 10% unless a new contract is signed.

Long Service Long Term Contracts - Embark only

Customers who have had Embark Access Lines only for a specified period of time may apply for a Long Service Long Term Contract as set out in the table below.

A Customer who has Embark Access Lines only, on expiry of any type of Long Term Contract can sign a 1 year Extension Contract (with a 12 month Minimum Period) and this will enable them to carry on receiving the relevant access rental discount they were receiving under their original Contract. At the end of the contract the 12 month Minimum Period, discount will be removed and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing digital access and centrex access line and site rental tariff at the time of expiry, PLUS [Price] % , unless a new contract is signed.

The following table refers to Customers who have Embark Access Lines only and explains the Contract options available on expiry of an existing Long Term Contract or for those Customers with these lines who have been on the Service for either 3 or 5 continuous years.

NB. This table does not apply to Networks made up of Featureline Corporate Access Lines.

The above discounts are applied against the Digital and Centrex Access Rental charges applicable to a one year contract (12 month Minimum Period).

Extension Contracts are not available on networks made up of Featureline Corporate Access Lines only.

Early Termination Charges

If the customer terminates the contract beforefor anthe Embarkend lineof (whichthe includesMinimum bothPeriod Embarkthe accessfollowing linesearly andtermination Featurelinecharges Corporatewill lines) before the end of the Minimum Period, the following early termination charges will apply:

1. Contracts with a 12 Month Minimum Period

If the contract is terminated within 12 months, the customer will pay BT the full rental for the remainder of the 12 month period.

2. Contracts with more than 12 months Minimum Period - Long Term Contracts

i) Where the Contract is terminated within the first 12 months of the Minimum Period, the Customer will pay BT:

a) the full rental due for the first 12 months of the Minimum Period and 20%of ofthe rental that would otherwise have been payable for the remainder of the Minimum Period at the rental applicablethat onwould otherwisethe datehave beenof terminationpayable (exclusivefor theof VAT).remainder of the Minimum Period at the rental applicable on the date of termination (exclusive of VAT).

ii) Where the Contract is terminated after the first 12 months of the Minimum Period, the Customer will pay BT: AND FOR FEATURELINE CUSTOMERS ONLY

ba) the difference between the connection charge actually paid per line and the connection charge which would have been paid per line at the time the line was taken, had the customer not taken out a Long Term Contract (plus VAT).ii) Where the Contract is terminated after the first 12 months of the Minimum Period, the Customer will pay BT: a) 20% of the rental that would otherwise have been payable for the remainder of the Minimum Period at the rental applicable on the date of termination (exclusive of VAT). and

b) the difference between the connection charge actually paid per line and the connection charge which would have been paid per line at the time the line was taken, had the customer not taken out a Long Term Contract (plus VAT).AND FOR FEATURELINE CUSTOMERS ONLY

b) the difference between the connection charge actually paid per line and the connection charge which would have been paid per line at the time the line was taken, had the customer not taken out a Long Term Contract (plus VAT).iii) At the end of the Minimum Period, the rental charges will revert to the standard charges applicable at that time.3. For allContracts Contractson both 12 month Minimum Period and Long Term Contracts (including extensions)on :both 12 month Minimum Period and Long Term Contracts (including extensions):

(a) VAT will not be applied to these termination charges, unless otherwise stated.

(b) Early Termination Charges will not apply where:

(i) Access Lines are transferred from one existing site to another existing or to a new site. Please note that connection charges will be applied to the provision of the lines at the new location.

(ii) The total number of Access Lines terminated in any one year is less than 10% of the total number of Access Lines forming the Customer's Embark network.

The Long Term Contract will:

(a) be for the Minimum Period specified and

(b) provide customers with a discount on the Embark Access standard line rental applied against the Digital and Centrex Access Rental charges applicable to a one year contract (12 month Minimum Period)

at the end of the Minimum Period the discount will be removed and charges will revert to the 1 year Embark Access line rental, plus 10%, unless a new contract is signed.

A Customer who has Embark Access Lines only, on expiry of any type of Long Term Contract can sign a 1 year Extension Contract (with a 12 month Minimum Period) and this will enable them to carry on receiving the relevant access rental discount they were receiving under their original Contract. At the end of the contract the 12 month Minimum Period, discount will be removed and customer service will be continued on the basis of un-discounted rates applicable to contracts with a 12 month Minimum Period, at the prevailing digital access and centrex access line and site rental tariff at the time of expiry, PLUS [Price] % , unless a new contract is signed.

Migration to Hosted VoIP

For Customers who whowish signedto migrate their ContractsEmbark or afterFeatureline JanuaryCorporate 1stNetwork 2003(this whoincludes wishall types of Access lines) Service to migrateBT's Multimedia theirVoIP Embarkservice Networkand/or (thisBT's includesVoIP port service the following cessation allowancesall typesapply: of Access lines) Service to BT's Multimedia VoIP service and/or BT's VoIP port service the following cessation allowances apply:-

1st year of a three or five year Contract - additional 20% of lines on the network*.

2nd year of a three or five year Contract - additional 60% of lines on the network*.

3rd year of a three or five year Contract - additional 90% of the lines on the network*.

4th and 5th years of a five year Contract - additional 90% of the lines on the network*.

* based on the number of lines at the beginning of the Contract year.

Please Note: reference to:

1 year contract means a contract with a Minimum Period of 12 months.

3 year contract means a contract with a Minimum Period of 36 months.

5 year contract means a contract with a Minimum Period of 60 months.

These allowances are in addition to the cessation allowances stated elsewhere in this part but only apply provided that:-

1. Total charges for the new Contract must exceed the Early Termination Charge for existing Contract.

2. Outstanding connection charges for the current Embark or Featureline Corporate Service being ceased have been paid in full.

3. On migration all appropriate charges (including Set Up charges) for the new service must be paid.

4. Term of the new Contract is equal to or greater than the outstanding term of the old Contract.

5. The new VoIP service must equate to at least 90% of the volume of lines on the original Embark/Featureline Corporate Network being ceased.

The new Contract and services thereunder commence on or before the date of cessation of the Embark/Featureline Corporate Service, however Customers must accept that there may be a break in service from cessation of the Embark/Featureline Corporate Service to the commencement of the new VoIP Service.

Both Embark Access Lines and Featureline Corporate Access Lines under a single Embark Contract will co-terminate on the same date, according to the start date and the agreed term of that Contract. Subject to a Minimum Period of service of one year, both new Access Lines may be added to an existing Embark Contract at any time, and will receive any applicable discounts available under that Contract.

Fixed Term Contracts do not protect against changes in the rental prices payable during the contract term. They offer the Customer a discount over the appropriate and prevailing minimum term rental prices, in return for a commitment by the Customer to retain the Embark service for the duration of the Fixed Contract Term.