KC Lightstream Business Bundles No Longer Available for New Supply

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1. Service Description KC Lightstream Business Bundles No Longer Available for New Supply KC Lightstream Business Bundles enable customers to combine their fixed voice and super-fast broadband products on to one consolidated monthly bill. One option is available to customers with the KC Lightstream Business but alternative separate Lightstream products are available here. The Business Lightstream service can be deployed by KC in two methods depending on where you live and KC s rollout programme. This will either be a fibre installation directly to your premises (Fibre To The Premises FTTP) or you may be provided service using Fibre to a nearby street cabinet (Fibre To The Cabinet - FTTC, also known as Fibre To The Kerb - FTTK or Very High Speed Digital Subscriber Line - VDSL). The maximum download and upload speeds capable from these services is detailed in the table below. Customer Requirements A new or existing KC telephone line rental is required to bundle with the KC Lightstream Business service. Ethernet LAN running TCP/IP (10 BASE T minimum). For LAN connections customer to supply PC Ethernet cards. An internet ready device If we connect PC s and laptops using the wireless router, we provide a router to wireless N standards. To optimise your wireless speed you will require wireless N adaptors or cards for your PC, rather than older and slower A, B and G standards. However A, B and G standards will still work. All customers should consider the security of their PC. KC recommends the use of current anti-virus software and firewall protection. Email anti-virus protection is provided with email POP accounts. Contact the business team regarding firewall security and Unified Threat Management hardware. FTTP customers will require two power sockets are required for the Optical Network Terminal (ONT) and the supplied router. VDSL customers will require a single power socket for the VDSL router and a VDSL microfilter supplied. See installation options below. 1. Engineer Visit We will provide you with an AM or PM appointment. Managed customers will require two on-site engineer visits and we will try and co-ordinate these on the same working day. Missed Appointment charges apply for any missed installation dates here. 2. Connection and Hardware Charges Service Contract Length Lightstream Business - All Bundles Exc. VAT Inc. VAT Connection 10 metres - ONT and router are located together within 10 metres of fibre entrance 50.00 60.00 Connection 50 metres - ONT and router are located together within 50 metres of fibre entrance 125.00 150.00 Cat5e Connection - Single Ethernet socket and cable to 100m when your router needs to be located next to your computers (in addition to above connection charge) Cat5e Connection x2 Double Ethernet socket and cable to 100m when your router needs to be located next to your computers (in addition to of above connections charges) 50.00 60.00 70.00 84.00 Hardware - Wireless router (no-nat and multi-static IP capable) 12 months 0.00* 0.00* 23/01/12-001 Page 1 of 8

Monthly Rental & Service Features Local and Mobile calls bundles Service Lightstream Business Office Bundle Lightstream Business Network Bundle Lightstream Business Managed Bundle Exc. VAT Inc. VAT Exc. VAT Inc. VAT Exc. VAT Inc. VAT Monthly Rental - 12 month contract Monthly Rental 24 month contract. Only available within 3 months of area activation. Direct Debit Discount Paperless Billing Discount1 Voice Service 60.00 72.00 80.00 96.00 120.00 144.00 50.00 60.00 70.00 84.00 100.00 120.00-1.00 exc. VAT - 0.50 exc. VAT Analogue Local including 2 hours of calls to UK mobiles per month Download Speed Upload Speed FTTP 60Mbps 80Mbps 100Mbps FTTC Up to 60Mbps Up to 80Mbps Up to 80Mbps FTTP 10Mbps 10Mbps 15Mbps FTTC Up to 10Mbps Up to 10Mbps Up to 15Mbps Monthly Download Allowance 150GB 400GB 600GB Monthly Upload Allowance Unlimited Peak Time Contention 40% 30% 20% Additional Usage Charges (per GB or part thereof) IP Address2 Email Included Services 1.00 per GB 1.20 per GB 1.00 per GB 1.20 per GB 0.40 per GB 0.48 per GB Single or Multiple IP addresses 20 POP mailboxes, each with 10 email aliases and 250MB storage Email anti-spam and anti-virus protection (including end-user controls) Free.co.uk domain Technical Support FREE & 24 x 7 online fault logging Contact hours Mon to Fri 0800 to 2100, Saturday 0900 to 1700 Sundays and Bank Holidays7 1000 to 1800 UK-based 0800 (freephone) 24 x 7 online and telephone fault logging, with priority fix Fully managed by the KC Network Support team, including daily monitoring and diagnostics, and remote fixes Webspace 100MB business webspace 500MB business webspace 1GB business webspace Service Level Agreement the KC Business Promise Repair time: Next Working Day4 85% of calls answered in <60 sec, 95% of emails replied to within 1 working day 75% of issues fixed at first point of contact4 Repair time: Same day fix4 6 90% of calls answered in <30 sec 95% of emails replied to within 1 working day 85% of issues fixed at first point of contact4 Lead Time 6-10 days 6 10 days * 04/01/11-001 Page 2 of 8

Bundle Features Telephone Line Rental Business telephone service included (analogue line) Local Calls Inclusive 01482 local calls 24/7 Regional Calls from 01482 area customers Fixed to Mobile Calls Inclusive regional calls from the 01482 region are free 24/7 to 014304, 014308, 01469, 01652, 01724, 019645, 019646 120 minutes of free calls from your landline to mobile worth 11.50 pm Free single line advert in KC White Pages and KC Colour Pages KC White & Colour Pages New advertisers can save 50% off a KC Colour pages advert Existing & New advertisers save 50% off a karoo.co.uk advertising campaign * Subject to router availability 1 Paper-free discount for KC Online does not apply if a summary bill is requested. 2 Multiple static IP addresses are subject to RIPE approval and require a no-nat configuration. 4 Excluding network outages, telephony faults, or faults that require ongoing monitoring; working days are Monday-Friday and exclude Bank Holidays 5 FTTC speeds vary and depend on distance from the street cabinet. 6 Same day fix for faults reported before 1200 Monday to Friday 7 Excluding Christmas Day, Boxing Day and New Year s Day 04/01/11-001 Page 3 of 8

Monthly Rental & Service Features National and Mobile calls bundles Service Lightstream Business Office National Bundle Lightstream Business Network National Bundle Lightstream Business Managed National Bundle Exc. VAT Inc. VAT Exc. VAT Inc. VAT Exc. VAT Inc. VAT Monthly Rental - 12 month contract Monthly Rental 24 month contract. Only available within 3 months of area activation. Direct Debit Discount Paperless Billing Discount1 Voice Service 64.00 76.80 84.00 100.80 124.00 148.80 54.00 64.80 74.00 88.80 104.00 124.80-1.00 exc. VAT - 0.50 exc. VAT National calls & Local calls including 2 hours of calls to UK mobiles per month Download Speed Upload Speed FTTP 60Mbps 80Mbps 100Mbps FTTC Up to 60Mbps Up to 80Mbps Up to 80Mbps FTTP 10Mbps 10Mbps 15Mbps FTTC Up to 10Mbps Up to 10Mbps Up to 15Mbps Monthly Download Allowance 150GB 400GB 600GB Monthly Upload Allowance Unlimited Peak Time Contention 40% 30% 20% Additional Usage Charges (per GB or part thereof) IP Address2 Email Included Services 1.00 per GB 1.20 per GB 1.00 per GB 1.20 per GB 0.40 per GB 0.48 per GB Single or Multiple IP addresses 20 POP mailboxes, each with 10 email aliases and 250MB storage Email anti-spam and anti-virus protection (including end-user controls) Free.co.uk domain Technical Support FREE & 24 x 7 online fault logging Contact hours Mon to Fri 0800 to 2100, Saturday 0900 to 1700 Sundays and Bank Holidays7 1000 to 1800 UK-based 0800 (freephone) 24 x 7 online and telephone fault logging, with priority fix Fully managed by the KC Network Support team, including daily monitoring and diagnostics, and remote fixes Webspace 100MB business webspace 500MB business webspace 1GB business webspace Service Level Agreement the KC Business Promise Repair time: Next Working Day4 85% of calls answered in <60 sec, 95% of emails replied to within 1 working day 75% of issues fixed at first point of contact4 Repair time: Same day fix4 6 90% of calls answered in <30 sec 95% of emails replied to within 1 working day 85% of issues fixed at first point of contact4 Lead Time 6-10 days 6 10 days * 04/01/11-001 Page 4 of 8

Bundle Features Telephone Line Rental Business telephone service included (analogue line) Local Calls Inclusive 01482 local calls 24/7 Regional Calls from 01482 area customers National Calls Fixed to Mobile Calls Inclusive regional calls from the 01482 region are free 24/7 to 014304, 014308, 01469, 01652, 01724, 019645, 019646 Inclusive UK national geographic calls. Includes directly dialled calls to 01, 02 & 03 numbers only. Local ISDN data calls are specifically excluded, along with calls to Chargeband: L. Subject to Fair Usage Policy.8 120 minutes of free calls from your landline to mobile worth 11.50 pm Free single line advert in KC White Pages and KC Colour Pages KC White & Colour Pages New advertisers can save 50% off a KC Colour pages advert Existing & New advertisers save 50% off a karoo.co.uk advertising campaign * Subject to router availability 1 Paper-free discount for KC Online does not apply if a summary bill is requested. 2 Multiple static IP addresses are subject to RIPE approval and require a no-nat configuration. 4 Excluding network outages, telephony faults, or faults that require ongoing monitoring; working days are Monday-Friday and exclude Bank Holidays 5 FTTC speeds vary and depend on distance from the street cabinet. 6 Same day fix for faults reported before 1200 Monday to Friday 7 Excluding Christmas Day, Boxing Day and New Year s Day 8 With UK National calls, the inclusive calls are not itemised on the customers account. 04/01/11-001 Page 5 of 8

3. Hardware We will provide hardware to you, for you to use with the KC Business Lightstream service, you acknowledge that any free hardware provided shall remain the property of KC. If the service is cancelled you must allow us access to the premises to collect the hardware, if required. You must take reasonable care of the hardware whilst it is at the premises and, in particular, must protect it from accidental damage and theft. In addition, you must not allow anyone other than us to carry out any repairs or maintenance work on the hardware. You will be responsible for the cost of repair or replacement hardware if it is lost or damaged as a result of accidental damage or you failing to take proper care of them. However, we will be responsible for any problems you experience with the use of the hardware that can be attributed to any defects with the materials or manufacture. We will repair or replace any defective items free of charge within the initial 12 months with a new or as new hardware of similar specification as the hardware being replaced. Beyond the initial 12 month warranty you will be required to purchase replacement hardware. 4. Purchased and Replacement Hardware If you purchase Hardware to use with the Service from Us or are required to purchase replacement Hardware after the initial 12 months service, the ownership of the hardware shall be yours once you have paid for the hardware in full. We will assign the benefit of any product warranties given by the manufacturer or supplier of the Hardware to You; and You shall be entitled to replacement hardware if You experience any problems with the Hardware, during the initial 12 month period following on from the date on which We supply the Hardware to You, if such problems can be attributed to any defects with the materials or manufacture of the Hardware. 04/01/11-001 Page 6 of 8

5. Other Charges Service Connection Charge Monthly Rental Exc. VAT Inc. VAT Exc. VAT Inc. VAT Reconnection fee when moving premises (Managed only) 55.00 66.00 N/A Downgrade of service in contract 180.00 216.00 NA.co.uk and.com N/A 5.00 6.00 Domain Name transfer / registration (including web and email forwarding).co.uk N/A 2.00 2.40 all other domains (.net,.org etc.) N/A POA Reconnection fee: for disconnection or suspension due to non payment or abuse (i.e. copyright infringement, viruses, open proxy) 25.00 30.00 N/A Replacement FTTC router (non-managed) 75.00 90.00 N/A Replacement FTTP router (non-managed) 75.00 90.00 N/A Optional Mobile Broadband 2GB per month* N/A 15.00 18.00 *Additional usage charging on mobile data is not applicable. Access speed will be throttled. 6. Customer Availability & Compatible Services KC Business Lightstream services are only available to business customers who contract directly with KC. The service includes a business analogue telephone service at the premises where this service is to be installed. KC Business Lightstream over FTTC on a fax line is not recommended. Fax users should note that Group 3, 2 or 1 fax machines may not function correctly due to frequency crossover problems. Therefore an additional analogue (telephone) line should be ordered when you still intend to use a fax machine. KC Business Lightstream over FTTC may interfere with caller display equipment. To check whether your caller display unit or telephone is compatible with broadband, please refer to the manufacturer or supplier. KC Business Lightstream over FTTC may interfere with alarm systems. Most alarm systems will operate as normal, but some which use 'out of band' (greater than 4kHz) signalling will be incompatible. To check whether your alarm system is compatible, please refer to your alarm system manual or provider. All services subject to availability, line test and confirmation. All customers and end-users are subject to and must abide by our Acceptable Use Policy. 7. Service Termination & Charging Where a customer serves notice within the initial contract period to cease their bundle and does not retain any element of that bundle, appropriate early termination charges based on the remaining duration of their contract will apply. These will be calculated as the line rental charges related to the remaining duration of the contract for instance, 6 months remaining = 6 x 60 = 360. Where a customer cancels their bundle contract but retains a fixed line, early termination charges should be calculated as 40.00 x N, where N = the number of months remaining in the bundle contract. 04/01/11-001 Page 7 of 8

All other associated services will also be cancelled in line with the date of the request unless a separate and new agreement is signed by the customer for the services they wish to retain. There will be no additional termination charges raised for these. Where a customer upgrades their bundle to a stand-alone Business Lightstream service, no early termination charges for that element will apply. 8. Mobile Broadband The minimum contract period for any mobile broadband product associated with a bundle is twenty four months. This applies from whenever the service start date is. For the avoidance of doubt, it is not associated with the contract start or end date of the bundle. Termination charges should be calculated as N x 15.00, where N is the remaining number of months under the 24 month term. 9. All Bundles Where the customer ceases their bundle but retains any of the services which are part of their original bundle, they will commence a new 12 month contract for that service Where a bundle is outside of the initial contract period and is being fully ceased, a thirty day notice requirement will apply, after which no additional charges will be raised. 04/01/11-001 Page 8 of 8